Tabuk Cement counts on Yemen exports, mulls other options: Chairman

Tabuk Cement Co.’s proximity to Duba port gives the firm a competitive advantage in exporting cement to Yemen, given the relatively lower marine shipping cost, Chairman Saeed Obaid told Argaam.

The mill’s strategic location permits selling at competitive prices, he said, adding that the company has other options besides the Yemeni market.

“The company is about to sign several deals with partners in Asia and Africa,” he said.

Obaid expected a gradual improvement in the Saudi cement sector, battered by slower construction activity since 2015, on lower oil prices and sluggish economic growth.

He said the sector may pick up marginally in Q4, and see higher leverage a year afterwards.

Demand from NEOM project and other mega projects may exceed local industry’s production capacity, he said, adding that his company is well positioned to tap the market opportunity opened up by these projects.

According to data compiled by Argaam, Tabuk Cement signed on Nov. 25 a memorandum of understanding (MoU) with International Tataloat Co. to export 6,000 tons of cement to Yemen.