Al Badia Cement JSC, a Syrian affiliate of Italcementi SpA and Saudi Arabia’s Al Muhaidib Group, will reduce its capital by 20 per cent to limit losses because of violence in the country, Chief Executive Officer, Khaled Al Sawaf said.
Al Badia, which started production about two months ago, will lower its capital to SYP9.76bn (US$205.3m), Sawaf said today.
In March, before the outbreak of unrest, the company said that it had halted construction of a second production line because of reduced demand. The company had initially planned to build two lines with annual production capacity of 1.6Mt of cement each, Sawaf said. Al Badia provides as much as 17 per cent of Syria’s cement demand, Sawaf said in March.
Italcementi owns 12.5 per cent of Al Badia and Al Muhaidib 29.5 per cent.