Yamama Cement to transfer production line No. 7 to new factory: CEO

Jehad Al Rasheed, CEO of Yamama Cement Co.

Yamama Cement Co. is working on transferring production line No. 7 to the new factory with a production capacity estimated at about 10,000 tons per day, which brings up the total capacity to 30,000 per day, CEO Jehad Al Rasheed told Argaam.

The new factory operates at full capacity that nears 6.3 million tons annually. It is deemed as one of the largest cement plants in the Middle East, Al Rasheed said, noting that its depreciation costs started in the fourth quarter of 2022.

On cement selling prices, Al Rasheed said the ex-factory price cap is set by the Ministry of Commerce at SAR 240 per ton. Selling prices improved compared to Q3 2022 and Q4 2021.

Yamama Cement’s selling prices match the market, the CEO added, citing many factors that affect pricing, such as the services provided and proximity to customers.

“We delivered robust results. Had it not been for rains in the Central Region, we would have reported better results, as rain impacted cement deliveries,” he noted.

On the other hand, Al Rasheed attributed the company’s decision not to distribute dividends and repay debts of almost SAR 1 billion to its expectations for higher interest rates.

“By time, this was proved to be the right decision that serves investor interest,” he added.

Al Rasheed added that he expected a bright future for the cement sector, backed by giga projects in the Kingdom, especially as several projects started demand in the Central Region, such as King Salman Park, Diriyah Gate, Qiddiya, various housing projects, ROSHN, The Avenues, Jawharat Al-Riyadh Mall and Mall of Saudi.

These promising projects will drive demand for the sector products, the CEO noted.