Yamama Cement Company Announces The Latest Developments Regarding The Project To Relocate The Seventh Production Line From The Old Plant To The New Plant

Introduction: Further to Yamama Cement Company’s announcement published on 6 November 2022 regarding the signing of the contract for the project to relocate the seventh production line from the old plant to the new plant (which has become the third production line at the new plant), the Company would like to disclose the latest developments related to the project.

Previous Announcement: Signing of a Contract for the Relocation of the Seventh Production Line from the Old Plant to the New Plant.

Date of Previous Announcement on Saudi Exchange’s Website: 2022-11-06 Corresponding to 1444-04-12

Hyperlink to the Previous Announcement on the Saudi Exchange Website: Click Here

Latest Developments Of The Announced Event: The trial operation phase has commenced, during which the efficiency of performance and operational stability will be tested to achieve the project’s operational targets. This phase is expected to continue for a period of three months from the date of the announcement, with the financial impact expected to be reflected in the financial statements during the first half of 2026.

The costs associated with the event, and if they have changed or not with indication of the reasons.: The project included the execution of additional scope of work covering the overall modernization and upgrade of the production line. The production capacity of the line was also upgraded from 10,000 tons of clinker per day to 12,500 tons of clinker per day, representing an increase of approximately 25%. The total project cost is estimated at approximately SAR 1.2 billion.