Saudi Cement Co, Saudi’s biggest cement supplier by volume, said the company has signed a memorandum of understanding yesterday with an undisclosed partner for a new cement company, Global Cement Company. The Saudi producer plans to buy a 40% stake, reflecting a investment of KWD800,000 (US$2.9m).
The authorised capital of the company will be up to 100m at 100 Kuwaiti fils per share, with the paid-up capital of KWD2m.
Saudi Cement Co is currently benefiting from a construction boom in Saudi Arabia that has boosted its bottom line. Net profit for the last quarter rose 39% to SAR195m from SAR140m last year as the company noted a 18.4% YoY increase in sales.