Arabian Cement expects to start operations at Rabigh plant in Q4 2021

Logo of Arabian Cement Co.

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

The delay was due to the China National Building Material Co.'s (CNBM), the contractor, failure to adhere to the schedule, given the current conditions causing travel suspension due to the COVID-19 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 project is 99.53% complete.

The project completion is likely to take 150 additional days following the resumption of work after lifting the lockdown measures in Saudi Arabia.

ACC confirmed the delay would not have any 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, Arabian Cement inked in April 2015 a SAR 362 million contract with CNBM to construct the cement mills in Rabigh.