Northern Cement delays financial impact of Iraq production line project to H2 2026

Logo of Northern Region Cement Co.

Northern Cement Co. postponed the expected financial impact of its project to construct a cement production line with an annual capacity of 1.32 million tons in Iraq from the first quarter of 2026 to the second half of 2026.

In a statement to Tadawul, the company said the delay resulted from Sinoma Overseas Development Co. being unable to take possession of the project land until Dec. 26, 2024, due to regulatory procedures in Iraq.

Consequently, the recognition of the project’s related financial impact has been deferred.

The company stated that it will announce the financial impact later and disclose any relevant developments in due course, as applicable.

According to data available with Argaam, Northern Cement announced in May 2024 the award of the contract for the construction of the 1.32-million-ton p.a. cement production line in Iraq to Sinoma Overseas, with a contract value of $188 million (equivalent to SAR 705 million).

The project has a construction period of 18 months and includes deferred payment terms extending for 12 years from the date of commissioning and the commencement of production.