Najran Cement expects SAR 19 mln financial impact from suspended line

Najran Cement Co. said on Thursday it expects to incur unavoidable fixed costs of SAR 19.4 million in fiscal year 2017, due to the temporary halt of its second production line.

However, inventory sales are likely to offset the negative impact of the suspension, the company added in a statement to the Saudi bourse, Tadawul.

In early March, Najran Cement’s board of directors decided to suspend production on the company’s second clinker line, which operates with a capacity of 3,000 tons per day, due to low demand.