In line with the trend in Saudi and other Gulf markets to raise cement production capacity, Yanbu Cement Company (YCC)’s board has granted approval for a new line of 10,000 tonnes per day or 3.65 million tonnes per year.

The company’s production in 2007 was 4.6 million tonnes. The new line should put it in a good position to deal with any strong demand should that occur. YCC’s CEO Saud Islam was quoted recently as saying that new capacity was coming on line and while the first half should be fine the second would be difficult to predict.
Islam also said that while considerable new capacity was coming the demand increase was only about 5-7 per cent on an annual basis.
Saudi Arabia has initiated several construction projects in its economic cities some of which are already under construction.
While Islam expressed caution about the tempo of demand, he said YCC would have no problem exporting its surplus at short notice. It had in fact exported in the past to markets as far as Belgium. Yanbu Cement Company’s location on the Red Sea and proximity to the Suez Canal gave it an advantage.
Another aspect of its location is its proximity to the main raw materials. Reserves of gypsum and limestone occur virtually at its doorstep, while clay is mined some 20 km southeast of the plant and sandstone and iron ore are brought in from other parts of Saudi Arabia.
The company’s product range comprises cement of the following categories: ordinary Portland, sulphate resistant, pozzolana and low heat among other kinds. The plant is situated 70 km north of the city of Yanbu while the head office is in Jeddah.
A publicly listed company Yanbu Cement Company employs close to 1,000 staff and was said to be the first producer of sulphate resistant cement on the kingdom’s west coast. It holds a 60 per cent stake in a subsidiary firm, Yanbu Paper Products Company.
YCC achieved sales of SR1.17 billion ($312 million) in 2007 against SR843.24 million in the year before. The company did well in the first quarter of this year with sales of SR323.11 million.
The company made a net profit of SR661 million in 2007 against SR512.2 million in the previous year.
The new line when commissioned will give the company its biggest boost since the start of operations of Line 4 (capacity 7,000 tonnes daily) in 1997. It recently completed an upgrade to the line taking its capacity to 9,500 tonnes per day and there are plans to hike capacity further on the line.
According to the company, the new short dry kiln from KHD uses the latest technology in digital process control, efficient power and fuel consumption and makes minimum use of manpower in all stages of production. It is said to be the largest kiln in the world excluding a few plants in the Far East, which makes YCC one of the largest cement producers in the Middle East.
In order to be prepared for any jump in demand in the next few years, the company plans to replace all production lines although it does not state when that will happen.
In view of the remote location of the plant, its operation and maintenance is sub-contracted to Associated Cement Companies of India (ACC) with the contractual obligations to fulfill the company’s targets of productivity, quality, training of Saudis and exchange of technical know how. YCC’s Technical Department is entrusted with the responsibility of monitoring the attainment of the above targets on a day-to-day basis. There is a fully furnished residential complex for its employees adjacent to the plant. The plant and the residential complex are supported by a power station with capacity of 140 MW per day, desalination facilities of 6,000 cu m per day and two sewage treatment plants of 350 cu m per day.
Yanbu Cement Company is considered to be among Saudi Arabia’s top four cement companies, the others being Southern Province Cement Company, Saudi Cement Company and Yamama Cement Company, and together they accounted for more than 60 per cent of the kingdom’s total production in 2007.