Al Jouf Cement secures loan for expansion, Saudi Arabia

Saudi Arabian cement producer, Al Jouf Cement, said it has signed and agreement with Saudi British Bank (SABB) for a SAR350m (US$93.3m) five-year Islamic facility.

The financing will form part of the funds needed for the construction of a second production line and  dedicated  power plant.

Earlier this year, Al Jouf Cement said it would invest SAR885m in a second line with a capacity of 5000tpd, together with the power plant. The company said it would use its own funds to cover the remaining SAR535m project cost. The company currently has a capacity of 1.75Mta.

It has signed a SAR183m contract with Wartsila for the supply and installation of the 42MW power plant. Delivery is scheduled for June 2013.