Al Jouf Cement Co. is targeting the Iraqi market for its exports, as per the directives of the Saudi government in order to contribute to rebuilding the neighboring state, General Manager Jamal Al Amer told Argaam.
Cement exports will help reduce the pile up of inventory, oversupply, and weak demand by pumping cement to foreign markets at competitive prices, he said. It will also help to improve profit margin, based on the prices of the target markets.
Exports, however, won’t be the only solution, as neighboring countries have their own cement producers as well.
“There’s a deal signed with Saudi Industrial Export Co. (SIECO) to export 72,000 tons of cement to Jordan, in addition to other clients we do business with in the Jordanian market,” Al Amer said.
Al Jouf Cement’s clinker inventory reached around 1 million tons by the end of 2017, he said, adding that the clinker inventory of Saudi cement producers rose by 7 million tons last year.
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