Saudi cement manufacturers urged the government to prohibit traders from importing cement and ready-mix products, which are not subject to the standards set for the locally produced cement. The manufacturers further claimed that the Saudi cement market is already flooded by an excessive cement stock, a situation aggravated by the import of cement from abroad, reported Al-Watan.
The manufacturers said their attempts to export the accumulated 10-million ton cement surplus have encountered difficulties, due to over priced tariffs on sack packaging of the processed cement. The 30 Saudi Riyal (eight dollar) export fee per sack compels manufacturers to choose a more economical route and export bulk quantities of clinker to wholesalers for prices lower than the end product would have gotten them.
Saudi Arabia’s eight cement-manufacturing factories produce 23 million tons of cement per annum. Of this total, 2.5 million tons are directed to foreign markets, mainly to Yemen and several other African states. The factories’ total annual sales amounts to three billion SR ($800 million), with an annual growth rate of seven percent. — (menareport.com)
© 2001 Mena Report (www.menareport.com)
