Arabian Cement to penalise CNBM on Rabigh project

Arabian Cement Co has confirmed that it will impose a delay damage penalty of five per cent on CNBM International Engineering Co for the Saudi cement producer’s new mills at its Rabigh plant.

According to Zawya, the cement manufacturer first awarded the SAR362m (US$96.5m) engineering, procurement and construction (EPC) contract to CNBM in April 2015. Although the new cement mills are now completed, the project has been delayed due to discussions between CNBM and Sinoma Overseas Development Co, a subsidiary of China National Building Materials & Equipment Import & Export (CBMIE), which will be carrying out the remaining works on the project.

Arabian Cement Co has said that start-up operational tests at the new mills have now been completed in preparation for commercial operation.