Umm Al-Qura Cement restarts Cement Mill No. 1

Logo of Umm Al-Qura Cement Co.

Umm Al-Qura Cement Co. reopened its Cement Mill No. 1 today, Sept. 18, after rehabilitating it to be technically compatible with a locally purchased alternative unit following the necessary modifications and technical testing, the cement producer said in a statement.

As a result of the return of production of mill no. 1, the rate of production capacity will be gradually increased to meet the market need and the volume of demand.

The cost of purchasing the alternative unit from the local market and rehabilitating Mill No. 1 was estimated at SAR 4.5 million.

The financial impact of operating mill no. 1 cannot be precisely measured due to price and demand fluctuations. The impact is expected to reflect in Q3 and Q4 2023 financial results.

Additionally, the purchased unit will be stored as a strategic spare part for potential future use.

Cement Mill No. 1 experienced a significant technical issue on Aug. 9, 2022, resulting in a temporary shutdown and a daily sales volume drop of 1161 tons, according to data available with Argaam.

Consequently, the company's management chose to replace the faulty unit in March with a new one, previously identified as a strategic spare part by the manufacturer, benefiting both the company and its shareholders.