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Tabuk Cement Co. plant
Tabuk Cement Co. signed an agreement to join the Industrial Sector Competitiveness Program, which provides several solutions that help in raising the efficiency and quality of energy sources used in industrial facilities, according to a statement to Tadawul.
The program will contribute to reducing the company’s production costs. Accordingly, the financial impact on the increase in the cost of production due to adjusting the prices of fuel products used in cement production will decrease by approximately 20% (the increase in production costs will be 10% instead of 12%) as a result of signing the agreement, starting from Jan. 1, 2024.
The cement producer also confirmed that it will work to explore additional ways to raise production efficiency and reduce cost during the coming period.
In January, Tabuk Cement received notifications from Saudi Aramco about adjustments to the prices of fuel products used in cement production, according to Argaam's data.
At the time, the company said that the direct financial impact of adjusting the prices of fuel products is an estimated increase of approximately 12% in production costs.
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