Saudi building materials firms to cut production on excess supply

Manufacturers of building materials plan to close some production lines in order to get rid of surplus stock, said Saleh Al-Habdan head of the contractors committee at the Riyadh Chamber of Commerce.

He told Alriaydh newspaper that reviving the construction sector would depend on a recovery in government and private sector projects as prices of building materials have dropped due to a supply glut.

He said he expected a further decline in prices. Saudi steel and cement factories had earlier added new production lines based on an optimistic local market forecast.