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FINANCIAL NEWS
Saudi cement output expected to exceed 66m tons by 2015
10 Jun 2012
(MENAFN) A recent report issued by asset manager Al Rajhi Capital predicted Saudi Arabia’s cement output capacity to exceed 66 million tons annually by 2015. The Gulf kingdom’s current production capacity is 47 million tons, Saudi Gazette reported.
The report saw that the oil-rich nation is preparing to meet demand for big infrastructure projects, adding that the bright indicators for the kingdom’s cement sector is underpinned by the massive USD385 billion planned infrastructure projects until 2014.
Local cement demand is estimated to grow by an annual 6 percent rate until 2015, driven by the government’s infrastructure projects.
11 out of 14 cement factories in the kingdom have applied for an increase in fuel supply to expand their production lines and boost output to meet accelerating demand particularly from the central and western regions, according to the report.
The government previously unveiled plans to build 500,000 residential units as part of a Kingdom-wide plan boosting real estate investments to accommodate the increase in young population, which would secure a continuous demand over the coming three years for cement consumption, the report said.
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