Al Kathiri says major projects to drive cement demand; prices likely to stabilize

Logo of Al Kathiri Holding Co. 

Al Kathiri Holding Co. expects demand for cement to grow in the coming months due to major projects in Riyadh.  

In an investor call, the company added that it is ready for such projects by establishing three cement plants in Al-Gwan suburb to fulfill the upcoming orders.  

The Tadawul-listed firm collected debts from customers during the fourth quarter, which decreased from SAR 42 million to SAR 17 million. It also made a credit loss provision of nearly SAR 8.5 million.

Al Kathiri indicated that it used the collected funds to establish concrete plants in the north of Riyadh.

Regarding the three-dimensional concrete panels factory, the firm stated that it is currently selling polystyrene and other products until it obtains a license to build and construct homes using the new technology

Elsewhere, Al Kathiri stated that the factory's operating capacity stands at 10% currently, and is expected to reach 20% and 30% in 2023 and 2024, respectively.

“The new technology will reduce costs and save time,” the firm concluded.

Al Kathiri reported a net profit after Zakat and tax of SAR 8.5 million in 2021, a drop of 12% from SAR 9.7 million a year earlier. In Q4 2021, the company swung to a net loss after Zakat and tax of SAR 3.3 million, according to data compiled by Argaam.