Saudi Al-Jazira Cement, a newly established cement company, has signed a SAR1.54bn (US$411m) contract with an unnamed German company for the construction of a cement plant. The plant will have a combined capacity of 10,000tpd. The plant is to start operating within a period of 24-36 months.
Al-Jazira Cement is headquartered in the capital Riyadh. It has a capital of SAR1.2bn (US$320m), divided into 24 million shares with a par value of SAR50 (US$13.33). The company plans to launch an IPO to offer 48 per cent of its capital for public subscription in Saudi Arabia and the Gulf countries.
The cement output of Saudi Arabia’s eight listed cement companies rose to 6.456Mt in the first quarter of 2005, from 6.169Mt a year earlier.