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Ali Al-Qahtani CEO of Tabuk Cement Co.
Ali Al-Qahtani, CEO of Tabuk Cement Co., said demand for cement at NEOM is on the rise and may surpass five-six million tons annually, adding that Tabuk Cement will benefit the most from its strategic location in the region.
The company has successfully become a certified supplier for the NEOM, Red Sea and Amaala projects, Al-Qahtani explained, adding that the company seeks to tap all available opportunities to boost its profitability, he told Al-Arabiya TV.
On the other hand, he attributed the company’s losses in the first half of 2022 to a 25% drop in selling prices amid weak demand and fierce competition in the sector.
The sector’s combined production capacity exceeded 80 million tons, while demand for cement stands at nearly 55 million tons.
Al-Qahtani added that the increase in production costs is attributed to the quarrying fees set by the Ministry of Industry and Mineral Resources, along with an increase of 40% in the diesel and fuel prices, as well as quarrying contracts.
Tabuk Cement generated profit in Q2 2022, backed by a 7% rise in sales volumes and a 35% jump in average selling prices.
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