Northern Cement joins Industrial Sector Competitiveness Program

Logo of Northern Region Cement Co.

Northern Region Cement Co. signed an agreement to join the Industrial Sector Competitiveness Program, aimed at enhancing energy efficiency and optimizing energy sources in industrial facilities.

The program is expected to lower production costs and develop and improve energy efficiency, the company said in a statement to Tadawul.

Prior to signing the agreement, the projected increase in production costs was approximately 14%, largely due to fuel price adjustments. Following the agreement, the expected cost increase will be reduced to around 11%, effective January 1, 2024.

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The company announced plans to work during the coming period to explore additional ways to raise production efficiency and reduce costs.

Last January, the cement producer received a notification from Saudi Aramco on adjustments to prices of fuel products used in cement production, effective Jan. 1, 2024. It indicated that the direct financial impact from the adjustment of fuel product prices is estimated at a rise of 14% in the cost of production, according to data with Argaam.