In a bid to reduce production costs, increase profitability and enhance competitiveness both in the local and export markets Saudi Cement Company (SCC) has embarked on the fifth extension and upgrading/modernisation project at its Hofuf plant.

According to a spokesman for SCC, the programme – which was decided upon following completion of feasibility studies – will help prepare the company to meet the challenges of the future when Saudi Arabia becomes a member of the WTO (World Trade Organisation), and help run the company’s plants in accordance with the latest technologies of the cement industry.
The project envisages the erection of a new production line of 10,000 tonnes per day of clinker capacity (3.3 millions tonnes per year) as well as upgrading of some of the existing facilities, particularly increasing the capacity of the existing Kiln No 6 from 3,500 to 4,000 tonnes of clinker per day or more.
“This project will have a very positive effect on SCC’s activities, both technically and financially, and will also provide the best practices in environmental controls,” says the spokesman.
The design for the fifth extension project has taken into consideration the latest technologies for dust collection that will lead to the highest standards in environmental protection and pollution control, he adds.
The increased output will help meet the demand for cement in the Kingdom. Last year, the demand for cement increased by approximately 6.6 per cent, when compared to the figures for 2003.
In terms of actual numbers, demand reached 24.2 million tonnes (of which 0.15 million tonnes were imported), compared to a total demand of 22.7 million tonnes for 2003.
 “Reciprocally, total production in Saudi Arabia reached to 22.5 million tonnes of clinker (equivalent to around 23.5 million tonnes of cement). This meant that the local cement companies have dipped into their clinker stocks to meet the increase in domestic demand and also their commitments to the neighbouring Gulf countries.
The clinker closing stock for all national cement companies by the end of last year dropped by 1.4 million tonnes from its level as of 2003 end,” says the spokesman.
SCC last year produced 4,376,902 tonnes of clinker. This overall clinker production exceeded the rated capacities of its plants (of 4,150,000 tonnes) by 226,902 tonnes, or approximately 5.5 per cent.
Likewise, cement production for last year also showed a marginal increase of 3.3 per cent over the previous year. In actual numbers, SCC’s production rose to 4,708,374 tonnes compared to 4,557,476 tonnes for 2003 registering an increase of 150,898 tonnes.
The company’s clinker stock stood at 331,159 tonnes last December, compared to a quantity of 560,151 tonnes as of December 2003, showing a decrease of 228,992 tonnes or approximately 40.9 per cent.
He continues: “In the same period, total cement sales amounted to 4,657,278 tonnes when compared to 4,582,544 tonnes sold in 2003
 “The total quantity of cement exported last year (other than oil well cement exports) stood at 800,534 tonnes compared to 1,159,002 tonnes in 2003, showing a decrease of 358,468 tonnes or approximately 30.9 per cent.
“The total quantity of clinker exported amounted to 103,947 tonnes compared to total exports of 323,189 tonnes during 2003, i.e. a decrease of (219,242) tonnes, or approximately (67.8 per cent).”
Most of SCC’s cement exports were limited to neighbouring Gulf countries of Bahrain, Qatar and Kuwait. “SCC did not export any other quantities to other countries in order to be able to meet the increase in domestic demand,” says the spokesman.
Pointing out the efficiency of the company’s operations, he says: “Cement mills operated at high efficiency and were stopped only for routine and scheduled maintenance and in accordance with operational requirements.
“SCC says that the operation and maintenance at both its plants have been carried out efficiently at the highest achievable standards. “The company has achieved production records, in more than one of its kilns that are considered to be high level records both locally and internationally.”
The company has sustained high quality standards and has the capability to produce other types of cement required if they prove economically viable, he adds.
Established in 1955, SCC is a Saudi joint stock company, which was formed with the principal objective of producing cement, cement products and invest in cement-related fields.
The company operates two plants in the Eastern Province – namely the Ain Dar plant and the Hofuf plant – which are about 35 km apart and are about 120 to 130 km from King Abdul Aziz Port at Dammam.
Keeping up to its Saudisation schedule, SCC has continued its efforts to attract Saudi manpower and to train Saudis, both in-house (on-the-job training) and externally, by deputing them to attend courses and seminars in Saudi Arabia and abroad, says the spokesman.
SCC had recently signed a contract with Saudi Human Resources Development Fund and has enrolled a number of Saudi employees, who are now being trained by an International Training Firm under a contract with SCC.
In recognition of its efforts to the programme, the company was recently awarded Prince Nayef bin Abdulaziz Al-Saud’s Award last January by the Minister for Water Dr Ghazi Abdulrahman Al Gosaibi in Riyadh. The percentage of Saudis as of 2004, exceeded 61 per cent, he concludes.