Yamama Cement Company is expecting clinker production to exceed 30,000 tonnes of per day following the launch of commercial operations at its new factory and relocation of the seventh production line to the new factory, CEO Jehad bin Abdulaziz Al-Rasheed said in the company's 2022 annual board report.

The expected completion date for the relocation project is in the second half of 2025.

The company has signed an agreement with China’s Sinoma Overseas Development Company to relocate and install the seventh production line from the old factory to the new factory, which has a production capacity of 10,000 tonnes of clinker per day, at an estimated cost of 830 million Saudi riyals.

The annual report said that the cement producer expects four percent growth in domestic cement demand to 48 million tonnes in 2023.

The anticipated growth will be equal to a three percent increase in demand for 2024-2026, the report added. The forecasted demand for the Kingdom is 49.4 million tonnes for 2024, 50.9 million tonnes for 2025 and 52.4 million tonnes for 2026.

(Writing by D Madhura; Editing by Anoop Menon)

(anoop.menon@lseg.com)