Riyadh Cement seals deal with Competitiveness Program to cut production costs

Logo of Riyadh Cement Co.

Riyadh Cement Co. signed a deal with the Ministry of Industry and Mineral Resources’ Competitiveness Program for Improving Energy Prices, entailing the provision of several solutions that help raise the efficiency and quality of energy sources used in industrial facilities and contributing to cutting production costs.

“Accordingly, the financial impact on the increase in the cost of production will decrease to 12%,” the cement producer wrote in a Tadawul filing today, May 16. 

It also reiterated its efforts to explore additional ways to raise production efficiency and reduce costs during the coming period.

The signing came after Riyadh Cement announced in January that the direct financial impact of the recent fuel price hike by Saudi Aramco is expected to increase production costs by almost 24.7%, according to Argaam’s data.

The cement producer recently received a notice from Saudi Aramco on price adjustment of fuel products used in cement production, effective as of Jan. 1.