Saudi Arabia: Saudi Cement keeps Hofuf kilns closed due to weak demand

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Updated Fri, 24 Oct 2014 13:59:11 GMT

Saudi Cement Co has announced that it will not restart cement production after refurbishment work on two kilns at its Hofuf, Eastern Province plant due to high inventory levels and weak demand. The company has reported falling year-on-year profits in the first half of 2014. Between January and August 2014, sales fell by 14% year-on-year because of increased volumes being produced by Saudi cement firms and stagnant demand.
"The feasibility of operating the two kilns shall be reconsidered whenever market conditions warrants it," said Saudi Cement. The company expects to record annual depreciation charges of about US$2m related to the kilns from the fourth quarter of 2014 onwards.