Arabian Cement to launch Rabigh mills in Q1 2019

Arabian Cement Co. said on Thursday that it expects to start operations at its cement mills at Rabigh in the first quarter of 2019, as construction work is still ongoing.

The delay in operations is dueto the non-compliance of the contractor with the time frame, the Saudi-listed firm said in a statement to the Saudi Stock Exchange (Tadawul).

It is difficult to measure the financial impact of the mills, as this depends on market supply and demand, the statement added.

Meanwhile, the second stage of the clinker production line, involving engineering, supply and construction, is still under study. Any developments will be announced in their due time.

In May 2016, Arabian Cement said that it expects to start commercial operations at its new mills in the first quarter of 2017, instead of the second quarter of 2016.

Then, in February 2017, it postponed it to the fourth quarter of 2017, followed by another delay to the third quarter of 2018.

Arabian Cement was established in 1955 as the Kingdom’s first cement producer. The company started production in 1956 through its Jeddah plant before replacing it in 1984 with its Rabigh plant.