NRCC and Arabian Cement sign 3-yr clinker swap deal

The Northern Region Cement Co. (NRCC) and Arabian Cement Co. (ACC) signed three-year, clinker swap agreement today thereby the two firms will exchange 700,000 tonnes of the material as of March 1, 2013.

NRCC will transport clinker to Arabian Cement’s plant at Rabigh. In return, Arabian Cement’s subsidiary in Jordan, Qatrana Cement Company will deliver the same quantities to NRCC’s plant at Al-Muwaqqar governorate in Jordan, a Tadawul filing said.

The two firms own and run cement companies in Jordan, and the swap deal will enhance their output levels and cut costs.

Qatrana Cement, 86.7 percent owned by Arabian Cement, expected its annual cost to be reduced by around five million Jordanian dinars (SAR 26.4 million).

NRCC said the deal will boost its business by around SAR 50 million annually, and the financial impact will be gradually reflected as of 2013.