Najran Cement CEO says housing projects support cement sector, eyes higher clinker output

Abdulsalam Aldraibi, CEO of Najran Cement Co.

Saudi Arabia’s ongoing housing projects reflected positively on the cement industry during 2020 and Q1 2021, Abdulsalam Aldraibi, chief executive officer (CEO), Najran Cement Co. told Argaam.

“We expect this positive impact to continue over the coming period,” said Aldraibi, adding that the company’s clinker inventory reached around 782,000 tons by the end of Q1 2021.

“We are continuously monitoring the clinker stockpiles and the local cement demand, and we are planning to boost the clinker production over the coming months to fulfill the market needs,” he noted.

Najran Cement reported around an 18% increase in sales volume and value in Q1 2021, the CEO stated, expecting this growth to sustain, though rates may differ based on the seasonality factors.

Najran’s limited liability transportation unit launched operations to provide local transport services, either for end products or inputs, such as clinker, fuel, etc., Aldraibi said, expecting the unit’s operating revenue to account for only 5% of Najran Cement’s in the first phase. 

Najran Cement reported 51% earnings increase year-on-year (YoY) to SAR 60.7 million in Q1 2021, Argaam reported.