Yamama Cement to reassess useful life of plant assets, says board

Yamama Cement Co. (YCC) is planning to reassess the useful life and estimated value of assets at its existing plant, following a decision to relocate the plant to the Al-Kharj province from south Riyadh, the company said in its board report for 2015.

The board estimated an increase in depreciation expenses at SAR 6 million for December, according to the report seen by Argaam.

The plant’s net asset value stood at SAR 1.11 billion by the end of 2015. The full-year depreciation rose by five percent year-on-year (YoY) to SAR 190 million, the report added.

Yamama is currently in talks with the Saudi Industrial Development Fund (SIDF) to secure facilities for the new plant.

In Q4-2015, Yamama paid SAR 405 million, or 15 percent of its total contract value with Germany’s ThyssenKrupp Industrial Solutions to build two clinker lines with a production capacity of 20,000 tons per day at the new plant. The total cost of the project was estimated at SAR 4.2 billion.

The board added that it is close to hiring advisors to fix the fair value of the plant’s assets during Q1-2016.