Saudi Ceramics to start trial, commercial ops of porcelain tiles plant in July

Logo of Saudi Ceramic Co. (Saudi Ceramics)

Saudi Ceramic Co. (Saudi Ceramics) will launch trial and commercial operations at its new porcelain tile plant in July 2024, according to a statement to Tadawul.

The company finished all the essential work related to the installation of machinery and equipment and started the final operating tests phase. It also completed the necessary preparations for pilot production, the statement added.

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Saudi Ceramics attributed the few-day delay in starting pilot and commercial production to a delay in the supply, installation, and operation of the feedstock source, which included natural gas and alternative industrial gas.

However, a natural gas supply contract was signed with the Natural Gas Distribution Co., and work is currently underway to complete the gas supply and installation of the natural gas platform, the company indicated.

There is no change in the scope of work of the project, Saudi Ceramics said, adding that it is working to reduce any material impact resulting from the delay that may cause an increase in the approved costs of the project. There will be no impact on the company’s financial results.

In August 2021, Saudi Ceramics’ board approved setting up a new factory to produce porcelain tiles using the latest international technologies, with a production capacity of 8.25 million square meters annually, at a total cost of SAR 249.3 million, Argaam reported.

In January this year, the company expected the plant’s trial and commercial production to begin in Q2 2024, noting that the postponement is due to the delayed arrival of some machines and equipment that were contracted to be manufactured during the last period.