Saudi Cement shuts down two kilns

Saudi Cement Co has closed down two kilns indefinitely as a result of high inventory, absence of growth in Saudi demand and the continuing ban on exports, it said in a bourse statement on Wednesday.

The company reported an impairment charge of SAR66.2m (US$17.6m) in the fourth quarter of 2015 as a result of the kiln closures.

Furthermore, Saudi Cement Co expects the fuel and electricity price hikes announced in the 2016 government budget to increase its production costs by SAR68m (US$18.13m) next year.