City Cement joins industrial sector competitiveness program, cuts output cost to 7.5%

A production line at City Cement plant 

City Cement Co. signed an agreement to join the industrial sector competitiveness program, which provides several solutions to improve the efficiency and quality of energy sources used in industrial facilities, according to a statement to Tadawul.

The program will reduce the company’s production costs and improve energy efficiency.

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Accordingly, the financial impact on the increase in the cost of production before signing the agreement was about 8%, which will come down to about 7.5% from Jan. 1, 2024.

The cement producer will explore additional ways to raise production efficiency and reduce costs during the coming period.  

City Cement said its energy efficiency rate is close to the global standard set for the top 10 companies. This is the result of the company’s previous and current internal investments in several efficiency improvement projects and attracting the best specialized human competencies, which contributed to raising energy use efficiency.

The company received notifications from Saudi Aramco about adjustments to the prices of fuel products used in cement production from Jan. 1, according to Argaam's data.

The financial impact of higher fuel prices was estimated at an around 8% increase in total production costs.