Saudi Cement Co said it would not restart the two refurbished kilns at its Hofuf plants as the company currently has a high inventory level and market demand remains weak.
“The feasibility of operating these two kilns shall be reconsidered whenever market conditions warrant that,” the statement said.
The company expects to record annual depreciation charges of about SAR7.6m (US$2m) related to the kilns from 4Q14 onwards.
In the year to August Saudi Arabia’s largest cement producer had reported a 14 per cent drop YoY as the industry delivers an increasing output against a stagnant demand.
