Exports ‘unfeasible’ even if tariffs cut by 70%, says Riyad Cement CEO

Saudi Arabia's decision to slash cement export tariffs by 50 percent is still “unfeasible”, as companies will not be able to pay these high charges and export their products, Shuail Al-Ayed, chief executive of Riyadh Cement Co., told Argaam on Tuesday.

Exports will not be feasible for cement producers, even if charges are reduced by 70 percent.

“If such fees are not fully removed, we’ll continue to urge for their abolition,” Al-Ayed added.

Some cement firms have taken measures to reduce their output amid higher stock.

Al-Ayed added that Riyadh’s inventory reached 1.5 million tons of clinker while its annual production stands at 3.5 million. Therefore, the company halved its output to 1.7 million tons annually.

Output cut is the only available option, which will raise the cost of sales, Al-Ayed said, adding he expected more pressures and layoffs in cement firms.