Gazan Agricultural Development said yesterday it plans to build a 1.1bn riyals ($293m) cement plant, the latest in a series of such projects amid a surge in demand in Saudi Arabia. Shares in the company soared by nearly the 10 per cent daily limit to 53.50 riyals after the announcement.
The company said the trade and industry ministry gave its approval to the plant which will have a production capacity of 1.5 million tonnes per year. "The firm will finalise procedures for other approvals with the oil and mining ministry and will discuss the financing plan (of the project) in the upcoming meeting of its board," Gazan said in a statement posted on the bourse website.
Last month saw the announcement of plans for two new cement firms that will invest more than 2bn riyals in two plants projected to produce 3Mta each. Some of the eight existing cement firms, producing an annual 23Mta, are seeking to raise their output to defend their turf against newcomers.