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New Yamama Cement Plant
Overview
Establishing a new cement plant at Al-Kharj governorate to produce 10.4 million tons of clinker annually. The new plant will replace the company’s incumbent plant, which produces 6.4 million tons of clinker annually, as Higher Committee for Environmental Protection ordered to relocate the old plant out of the city zone.
The approximate total cost of the entire project is SAR 6 billion, which will be distributed as follows: two production lines at a value of SAR 2.7 billion, with a production capacity of 20,000 tons of clinker per day, a 133 Megawatt power plant with a value of SAR 480 million, a gas project with a value of SAR 420 million, a crude oil project with a value of SAR 280 million, a residential city with a value of SAR 300 million, and roads worth SAR 30 million.
Project Information
- Industrial Manufacturing > Basic Material > Construction Materials > Cement
- In July 2015, the company received a license for a raw material quarry from the Ministry of Petroleum in the northern Halal site in Al-Kharj Governorate.
- In November 2015, the company signed an agreement to establish two production lines with Tyson Group Inc., with a value of 2.7 billion riyals.
- In June 2016, the company signed the agreement for the construction of the power station with the company, Warsaw, with a capacity of 133 MW, valued at 480 million riyals.
- In October 2016, the company signed a fuel delivery agreement with the Arab Gas Company, with a value of 280 million riyals.
- The company announced the signing of a construction contract with Al-Araini Contracting Company in the amount of 227.3 during 2018.
- The completion rate reached 90% in the two production lines, 98.5% in the power plant, 95.5% in fuel supply, and 72% in the residential city, by the end of year 2019.
- The company announced that the completion rate in the project reached 92%, 98% of the power station project and the fuel supply project 98.5% and the residential city 93%, and the project is expected to be completed in the third quarter of 2021.
- The company announced its decision to transfer the new seventh line to the new factory in Riyadh in the second quarter of 2021, indicating that the production capacity of the line is 10 thousand tons / clinker per day, thus the production capacity will reach to 30 thousand tons / clinker per day.
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In Q4 2021, the company announced that the two production lines are 96.5% complete, the power plant is 99% complete, the residential city is 84% complete and the fuel supply project is 99% complete. The project is scheduled to be completed in Q2 2022.
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In Q4 2022 , the company announced that construction work was completed at a total cost of SAR 4.7 billion and the trial operation will start in november 2022.
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In Q4 2022, the company announced the signing of a contract with China’s Sinoma Overseas Development Co. Ltd. to transfer production line No. 7 to the new plant, at an estimated cost of SAR 830 million.
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On Feb. 12, 2024, GAS Arabian Services Co. (GAS) was awarded a SAR 35.5 million contract by the company for procurement of metering skids, pressure reduction station and construction of gas pipelines.
- In 2023 board report, the company revealed that it upgraded the seventh line in the old factory before moving it to the new factory as its third production line, to increase its capacity to 12,500 tons of clinker per day, at an estimated cost of SAR 1.3 billion. The project is expected to be completed in Q2 2026.
Owners
Related Parties
Financing Sources
Project Developments
Here’s a look at top 17 Saudi projects to watch in 2020Argaam Special01/01/2020
Yamama Cement considers developing city for clean industries, logistics: CEOArgaam Special07/03/2024
GAS wins SAR 35.3M contract from Yamama CementArgaam12/02/2024
Yamama Cement to transfer line 7 from old to new Riyadh plantArgaam20/04/2021
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