Saudi al-Ahsa Development Co said it plans to build a 1.2bn riyals (US$320m) cement plant, the latest in a series of similar projects aimed at tapping rapid growth in demand.
The firm is considering raising its capital to help finance the project, Ahsa said in a statement on the bourse’s Web site.
It did not say where the plant would be located and what would be its projected production capacity.
Eight cement companies are listed on the Saudi stock market including Tabuk Cement and Qassim Cement.
Authorities last year licensed 27 cement firms which are expected to invest 21.6bn riyals to raise cement production to some 70 million tonnes per year from around 25Mt currently.
The move is aimed at boosting cement production to help cope with a real estate boom and huge infrastructure projects, as rhe current output capacity barely covers 60 per cent of the market’s annual needs.
Some of the eight existing cement firms are also seeking to raise their output to defend their turf against new comers.