Labor reforms harmed local cement demand in 2014, says Yanbu chairman

Yanbu Cement’s sales were hurt in 2014, as compared to a year earlier, by lower demand for cement in Saudi Arabia due to labor reforms in the building and construction sectors, said Ahmed bin Abdo Zugail, chairman of the company

Cement demand rose by the start of fourth quarter in 2014, bolstered by higher demand of the public and private sectors, he told CNBC Arabia in an interview.

Zugail said he expects demand to improve this year, especially in the public sector.

High cement inventories, new market entrants, and new production lines heated up competition in some markets across the kingdom, pushing prices lower by five to 10 percent.

Yanbu Cement is mulling new expansions and rehabilitation of old kilns, but no decision has been taken yet, Zugail added.