Arabian Cement announces updates on new cement mills in Rabigh plant

An Arabian cement factory

Arabian Cement Co. said that the new cement mills in the Rabigh plant are 100% complete.

The contractor, China National Building Materials, Import & Export Corporation (CNBM Import & Export Corporation), reached an agreement with one of the group's subsidiaries, SINOMA Overseas Development Co., to carry out the rest of the project works in coordination with the original equipment manufacturer (OEM), the company said in a statement to Tadawul.

The outstanding project works and startup operational tests have been completed and the project was handed over according to the terms and conditions of the original valid contract between Arabian Cement and CNBM International Engineering Co. today, Feb. 21, in preparation for commercial operation and project financial closure.

The delay from the previously announced date was due to discussions between the representatives of the CNBM and SINOMA on the remaining project works, equipment operation plan, procurement plan and schedule, and the mechanism for the necessary acceptance tests to hand over the project and the issuance of main contractor approval to the subsidiary to award the remaining works, the statement added.

The project cost will decrease by approximately 5% as the company will impose a delay damage penalty according to the contract. There will be no effect on the financial results of the company, the statement said.

In April 2015, Arabian Cement signed a SAR 362 million engineering, procurement and construction (EPC) contract with CNBM International Engineering Co. to build cement mills at its Rabigh plant, according to data compiled by Argaam.

In October 2022, the company received a statement from the contracting firm indicating its inability to complete the cement grinding mills project at the Rabigh plant.