Chinese engineering company Sinoma will construct a cement plant for Saudi Riyadh Cement Co which is currently being established, under a US$170m contract, to be signed on March 23, 2005 by Prince Feisal bin Abdul Majid, board chairman of Riyadh Cement Co.
The contract envisages the construction of the cement plant and all its facilities, with the exception of a power plant, which will supply electricity for the project. Under the contract, the plant’s kiln must be complete in a 24-month period and the plant is to start operations 26 months after signing the contract. The plant will have an initial daily capacity of 5000tpd.
The cement plant will be owned and managed by Riyadh Cement Co, which will have a capital of 550m Saudi riyals (US$146.7m). The total cost of the project, including the power plant and adjacent housing units, is estimated at 1.1 bln riyals (US$293m), according to Naser Aqeel, a member of the company’s board and founding committee. Riyadh Cement Co will provide 50 per cent of the total funds for the project, some 400 mln riyals (US$106.7m) will be extended by the Saudi Industrial Development Fund, and 150 mln riyals (US$40m) by local commercial banks, Aqeel said.