Yanbu Cement Company (YCC), one of the largest manufacturers of cement in Saudi Arabia, will sign a contract with Sinoma International Engineering Co Ltd of China for setting up a new cement plant with 3Mta of clinker.

Signing the contract will be YCC Vice Chairman Sulaiman Al-Rajhi and Sinoma Chairman Liu Zhijiang.

The contract is on a turnkey basis and the new plant is expected to be commissioned in 30 months time. Austroplan Austrian Engineering GmbH of Austria is the consultant for the new project.

Once commissioned, the total production capacity of YCC will exceed 7Mta, thus becoming the largest cement producer in Western Province. "The decision to expand its capacity was taken by the company to replace its older kilns, which have exceeded their normal lifetime and to meet any increased cement demand in the Kingdom," YCC board member and CEO Saud Islam told Arab News yesterday. "Our expansion resulting from the new contract will make the YCC the second largest producer of cement in the Kingdom," he added.

YCC will also sign a contract with MAN Diesel of Germany for setting up a new power station to meet the additional requirement of power for the expanded capacity. After the expansion is completed, YCC plans to export any surplus quantities of cement since it enjoys the geographical advantage of its location close to the Red Sea.