Arabian Cement signs mutual production agreements

The Arabian Cement Company (ACC) announced that it signed an istisna agreement on 17/2/2013 with its Jordan-based affiliate Qatrana Cement for converting 700,000 tonnes of clinker into cement yearly to be marketed for Qatrana in the Western region.

To that end, another agreement was signed by and between ACC and the Northern Cement Company (NCC) in Saudi Arabia on 17/2/2013 for three years starting 1/3/2013, thereby Qatrana Cement shall supply the NCC Jordan (a public joint-stock company) with 700,000 tonnes in return for the delivery of the same quantity of clinker to the ACC through the NCC plant in Saudi Arabia.  

This agreement will leverage Qatrana’s clinker production capacity and cut its cost by around JOD 5 million annually, including transport and milling cost savings, and will increase ACC’s revenue by 86.7% (i.e. the same value of the company’s stake in Qatrana Cement).