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One of Southern Province Cement’s plants
Southern Province Cement Co. joined the industrial sector competitiveness program by signing an agreement to provide several solutions to raise the efficiency and quality of energy sources used in the industrial facilities and reduce production costs, according to a statement to Tadawul.
The program was initially implemented at the Bisha Cement Plant, leading to a 1% reduction in production costs, the company added, noting it will explore additional means to raise production efficiency and reduce costs.
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Accordingly, the financial impact on the increase in the production cost was reduced to 11% as of Jan. 1, 2024, instead of 12.5% as announced earlier.
According to data compiled by Argaam, the cement producer recently received a notice from Saudi Aramco about the price adjustment of fuel products used in cement production in Jan. 2, 2024. In February, the company stated that the direct financial impact of the fuel price adjustment is estimated to increase production costs by about 12.5%.
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