Saudi Ceramics expects porcelain tiles plant to begin production in Q2 2024

Logo of Saudi Ceramic Co. (Saudi Ceramics)

Saudi Ceramic Co. (Saudi Ceramics) said it is taking all the necessary measures to complete its porcelain tiles project as quickly as possible and expects trial and commercial production to begin in Q2 2024, according to a statement to Tadawul.

The project is 85% complete, as the postponement is due to the delayed arrival of some machines and equipment that were contracted to be manufactured during the last period.

In addition, some civil construction works were incomplete due to the delay of some contractors.

Also, some competent authorities delayed their regulatory procedures.

Saudi Ceramics indicated that there is no change in the scope of the project or associated costs, noting that the delay will not impact its financial results.

Some regulatory procedures had been completed, including the Ministry of Energy’s approval to allocate natural gas in accordance with its letter dated Jan. 15, 2024.

The company is currently awaiting the completion of other regulatory procedures related to the Natural Gas Distribution Co. (NGDC) and obtaining the necessary approvals to extend gas to the designated zone in the industrial city, so that Saudi Ceramics can sign the gas supply contract with the NGDC.

Work is underway to follow up on the arrival of the remaining machines, equipment, and related parts.

The company's board of directors approved, on Aug. 18, 2021, setting up a new factory to produce porcelain tiles using the latest international technologies, with a production capacity of nearly 8.25 million square meters annually, at a total cost of SAR 249.3 million, according to data available with Argaam.

The company expected the trial run to begin in Q1 2023, saying that the plant is expected to be complete and begin commercial operations in Q2 2023.

In January 2023, Saudi Ceramics expected the start of trial and commercial production to be in Q1 2024, indicating that reasons for delay in the project include delay in legal procedures with official authorities, as well as changes in delivery schedules of some machines and equipment due to external factors affecting some suppliers.