Najran Cement expects SAR 11 mln impact from production line halt

Najran Cement Co. said it expects a financial impact of SAR 11.3 million due to the production suspension at the third production line, and restart of the second line.

The impact is expected to reflect on 2018 financial statements, starting January 1.

The amount represents unavoidable fixed costs, the company said in a statement.

The cement producer added that inventory sales will limit this impact, any developments will be announced in a due time.

In December, the company’s board decided to suspend the third production line, which has a capacity of 6,500 tons per day, and restart the second line which has a capacity of 3,000 tons per day due to the high clinker inventories, according to data compiled by Argaam.