Eastern Cement to shut down furnace till market improves

Eastern Province Cement Co.’s board of directors has approved plans to temporarily shut down furnace no. 1 until market conditions improve and export bans in Saudi Arabia are lifted, the company said in a statement.

Continuing operations at the clinker furnace, which has a capacity of 3,500 tons per day, will add to inventory levels, which have already reached 1.5 million tons in 2015.

The halt is not expected to have any impact on the company’s financial results or its ability to fulfill customer orders, the company added.

Local producers have lately been pushing the government to lift an export ban on cement as the domestic market has become oversupplied and prices have fallen.

Earlier this month, a spokesperson for the commerce ministry said he would submit the demands of cement companies to King Salman for review, adding that local producers would need to maintain sufficient clinker and stockpiles before excess supplies could be exported.