RIYADH: Riyadh Cement Co. is expected to fully rely on natural gas as an alternative to liquid fuel in its operational processes at the beginning of 2027, CEO Shoeil Al-Ayed confirmed to Al-Eqtisadiah.
The company had announced on Tadawul at the beginning of the year the signing of a contract with Chengdu Design & Research Institute worth SR59.4 million ($15.8 million), as part of the liquid fuel displacement program.
It noted that the contractor has taken over the site and begun project implementation as of the announcement date, and the advance payment has been made to it according to the payment terms.
In response to the sector’s suffering despite massive projects in the country, Al-Ayed told Al-Eqtisadiah: “The cement sector during the third quarter of 2025 faced some challenges represented in high clinker inventory levels for most companies, which reflected an increase in supply exceeding the actual demand in the market.”
Regarding the existence of a price war in the sector to gain market share, the top official indicated that the market has not witnessed a real price war, but rather has been subjected to increasing pressures that led to a noticeable decline in selling costs. This negatively impacted the profitability levels of cement companies during that period, according to the CEO.
