Umm Al-Qura Cement revises fuel price modification impact

Saudi Arabia-based Umm Al-Qura Cement Co has revised its estimated production cost increase due to the recent fuel price changes. Initially the company faced an 11 per cent increase in production costs but has now revised this down to nine per cent as the result of a new agreement under Saudi Arabia’s industrial sector competitiveness programme.

The adjustment will be effective from 1 January 2024 and comes as the company actively participates in strategic programmes that provide various solutions for improving industrial productivity.

Saudi Arabia’s industrial sector competitiveness programme aims to promote sustainable production practices in the country’s industrial sector, leading to reduced production costs. The initiative, launched by the country’s Ministry of Industry and Mineral Resources, provides developmental and enabling solutions with a focus on switching to optimal energy sources, increasing energy efficiency and raising awareness to adopt the best possible practices and measures to enhance the long-term competitiveness of companies. The programme will contribute to achieving long-term goals such as sustained growth of the industrial domestic product baseline until the year 2035 AD, reducing carbon emissions,  optimal use of energy sources and operational improvement of production inputs.