German-Saudi group sets up cement firm

German-Saudi group sets up cement firm
Published: 30 May 2006

A German-Saudi consortium will build a 3mta cement plant at a total cost of 1.1bn riyals ($293.3m), of which 30 per cent will be floated, Saudi Arabian newspapers reported yesterday. German engineering Cemag Group and Saudi TIG Group signed on Saturday an agreement to build Al Watan Cement plant in Jalajil, a town around 160km north of the capital Riyadh, Al Eqtisadiah and Al Jazirah newspapers reported.

Officials at the two companies could not be reached for comment but a spokesman for the Riyadh Trade and Industry Chamber confirmed the signing of the deal at the chamber’s headquarters. Work on the plant will be completed within two years, the newspapers added.

Last June, the ministry issued licences for projects worth 21.6bn riyals to treble cement production to some 68Mta. There are eight cement companies in Saudi Arabia producing an annual 23 million tonnes, some of which are seeking to raise their output.