Arabian Cement likely to start commercial ops at Rabigh mills project in Q4 2022

Logo of ACC

Arabian Cement Co. (ACC) is expected to start commercial operations at Rabigh mills project in the fourth quarter of 2022, the company said in a bourse statement today, April 21, 2021.

 The project is 99.53% complete, the statement added.

The delay was driven by to the failure of China National Building Material Co. (CNBM), the contractor, to adhere to the schedule, given the travel restrictions due to the pandemic. Therefore, the contractor was unable to complete the installations and commissioning work necessary for operation and testing of equipment by the original equipment manufacturers (OEMs) in the absence of the contractor's team at the site.

The contractor expected to finalize the project by Q3 2022, in case it managed to obtain the necessary regulatory approvals from the Chinese authorities.

In addition, the contractor currently mulls to authorize a qualified subcontractor to complete the project, subject to ACC approval.  

 ACC confirmed the delay would have no material impact on the project's cost or the company's financial statements.

 In November 2020, the company announced the possible start of commercial operations at Rabigh clinker line in Q3 2021.

 According to data compiled by Argaam, ACC inked in April 2015 a SAR 362 million contract with CNBM to construct the cement mills in Rabigh.