Qassim Cement awards $298m contract for new Saudi production line

18/08/2025 04:09 AST

Saudi-based Qassim Cement Company has announced that it has signed up leading Chinese engineering company Sinoma for setting up a fourth cement production line at its plant site in Buraydah city.

The $298 million contract was signed with Sinoma International Engineering Company based on a complete EPC contract for a cement production line with a capacity of 10,000 tonnnes per day at the company's Saudi plant according to the latest technologies in cement industry.

It is expected that this project will enhance energy efficiency, which will positively impact production costs, starting from the commencement of commercial operations, said Qassim Cement Company in its filing to Saudi bourse Tadawul.

As per the deal, the entire work will be completed within a two-year period, it stated.

On the key contract, CEO Eng. Omar Al Omar said the project is designed to replace certain outdated, low-efficiency production lines with a modern, advanced line.

"This initiative aligns with the kingdom's objectives to enhance energy efficiency and promote environmental sustainability," he stated.

Al Omar said the project aims to optimise the utilisation of the existing plant infrastructure and marks a pivotal contribution to the company's sustainable growth strategy - focused on maximizing shareholder value, meeting domestic demand, and diversifying product offerings in accordance with Saudi's Vision 2030.

In another development, the Saudi group awarded Sinoma a key contract for the Liquid Displacement Program (LDP) & Gas conversion project.

The $12 million deal was signed within the framework of the Liquid Fuel Displacement Program based on EPC contract which includes the displacement of liquid fuel and conversion to natural gas for the existing production lines at the company's plant in Buraydah city.

Al Omar said the project was mainly aimed at replacing crude oil with natural gas in the operation of the current production lines' Kilns, which contributes to achieving the goals of KSA's 2030 Vision, in terms of raising the efficiency of fuel exploitation and environmental sustainability.

The entire work will be completed within a 15-month period, he added.

On the financial impact, Qassim Cement Company said it is expected that this project will enhance fuel efficiency, which will positively impact production costs, starting from the commencement of operation.

Trade Arabia