Al Jouf Cement joins Competitiveness Program, reduces fuel price hike impact to 5.3%

Al Jouf Cement Co.'s plant

Al Jouf Cement Co. announced on May 29 that it joined the Industrial Sector Competitiveness Program, trailing which it signed an agreement to implement several solutions aimed at enhancing the efficiency and quality of energy sources used in its industrial facilities.

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In a statement to Tadawul, the cement producer said the program will contribute to reducing production costs, building on its previous projects aimed at developing and improving energy efficiency.

The financial impact of the adjusted fuel prices used in production declined by 4.8%, falling from 10.1% to approximately 5.3%, effective Jan. 1, 2024.

The company confirmed that, going forward, it will explore additional methods to enhance production efficiency and reduce costs.

According to data available on Argaam, Al Jouf Cement announced in Jan. 2025 that it received a notice from Saudi Aramco regarding adjustments to the prices of fuel products used in cement production, effective Jan. 1, 2025.

At the time, the company stated that the direct financial impact of the adjustments in fuel and diesel prices was estimated to increase production costs by 10.1%, based on the most recent audited financial statements, which included increases in the prices of heavy fuel and diesel.