Saudi Cement renovates two kilns at Hofuf plant

Saudi Cement rehabilitated kilns 4 and 5 at Hofuf plant, but will not operate them given the company’s high clinker inventories, a filing to Tadawul said.

The feasibility of operating the two kilns will be reassessed pending market conditions, the filing added.

Saudi Arabia’s cement producers accumulated abundant clinker inventories of around 19.8 million tonnes in August, due to the seasonal slowdown of demand.

Saudi Cement’s sales dropped sharply in August by around 14 percent compared to the same month in 2013.

The company will depreciate the capital cost of the rehabilitation process (SAR 76 million) by an annual rate of ten percent as of the fourth quarter of 2014.