Northern Cement joins Industrial Sector Competitiveness Program

Logo of Northern Region Cement Co.

Northern Region Cement Co.  joined the Industrial Sector Competitiveness Program, by signing an agreement with the program, which includes providing several solutions that help raising the efficiency and type of energy sources used in industrial facilities, as the program will contribute to reducing the company’s production costs in addition to the company's previous projects to develop and improve energy efficiency, the company said, in a statement to Tadawul.

Accordingly, the financial impact on the increase in the cost of production before signing the agreement was about 14%. After signing the agreement, the financial impact on the increase in the cost of production will be approximately 11%, it added.

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The company also said that it will 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.