City Cement provides updates on subsidiaries, strategic investments

Production line at City Cement Co.

City Cement Co. provided updates on the operations of its subsidiaries and strategic investments, according to a statement to Tadawul.

The key developments are as follows:

First: Green Solutions for Environmental Services Co.

The company continues to develop its operations in waste management and treatment.

Its activities include managing and operating facilities for producing alternative fuel derived from municipal solid waste, industrial waste and used tires, as well as expanding the treatment and recycling of various types of waste and converting them into usable products.

The company also provides specialized transportation services related to its activities.

City Cement noted that Green Solutions is currently working to complete the necessary licenses and regulatory requirements to support the expansion of its operations.

According to current plans, the financial impact of these activities is expected to begin contributing to the Group’s results in 2027.

This is subject to the completion of the required licenses and regulatory requirements and the commencement of the related operations in accordance with the approved plans.

Second: Innovative Alternatives for Environmental Services Co.

Green Solutions holds a 29.4% stake in Innovative Alternatives for Environmental Services, alongside Tadweer Environmental Services Co., which is owned by the Saudi Investment Recycling Company (SIRC), a Public Investment Fund (PIF) company, and Lichtenberg Middle East Environmental Services Co.

The company said the project’s strategic plan has been approved. The plan involves developing, constructing and operating a materials recovery and waste treatment facility in the Riyadh region, which is expected to be one of the largest facilities of its kind in Saudi Arabia.

The necessary approvals and regulatory requirements are currently being completed in preparation for signing the relevant contracts and commencing project implementation.

The project’s investment cost is estimated at approximately SAR 350 million.

Under the current financing plan, around 30% of the project cost is expected to be funded through the partners’ contributions, while approximately 70% is expected to be financed through external funding, subject to the completion of the relevant arrangements and approvals.

According to the current project timeline, trial operations are expected to commence in 2028, subject to obtaining the necessary approvals, fulfilling regulatory requirements and implementing the project in accordance with the approved schedule.

City Cement will announce any material developments related to the project or its financing arrangements in due course.

Third: Nizak Mining Co.

Nizak Mining has completed the setup of its operations and begun operating as the Group’s mining arm.

It provides mining services to City Cement, in addition to a range of services to other customers.

Nizak Mining is currently developing its future strategy to expand its business scope, capitalize on available investment opportunities in the mining sector and enhance integration with the Group’s core operations.

The company added that it will announce any material developments related to Nizak Mining’s strategic direction and future plans in due course.

Fourth: Joint Venture Between Nizak Mining Co. and Next Generation SCM

Regarding the partnership agreement between Nizak Mining and Next Generation SCM, the joint venture will utilize patented technology owned by Denmark-based CemGreen to produce supplementary materials for the cement industry.

The joint venture has been established with Nizak Mining and Next Generation SCM each holding a 50% stake.

The partnership aims to localize the technology, replace a portion of imported materials and create export opportunities.

The joint venture has completed several key project milestones, including its incorporation, obtaining its articles of association and commercial registration, and securing the industrial license for the establishment phase.

Work is currently underway to complete the remaining procedures, approvals and regulatory requirements for the project.

The investment cost of the project’s first phase is estimated at approximately SAR 102 million. Under the current financing plan, around 30% of the project cost is expected to be funded through contributions from the partners, while approximately 70% is expected to be financed through external funding, subject to the completion of the relevant arrangements and approvals.

According to the current timeline, trial operations at the plant are expected to commence in mid-2027, with the project’s financial impact expected to begin contributing to the Group’s results by the end of 2027.

This is subject to the completion of the required regulatory requirements and implementation of the project in accordance with the planned schedule.

City Cement will announce any material developments related to the project or its financing arrangements in due course.

City Cement confirmed that these projects form part of its strategy to diversify revenue sources, enhance value-chain integration and expand into the mining, circular economy and sustainable industrial solutions sectors.

The company added that the projects are aligned with the objectives of Saudi Vision 2030, particularly in supporting sustainability, reducing the carbon footprint, developing the mining sector, and enhancing local content and non-oil exports.

The company will announce any material developments in accordance with the applicable rules and regulations.