Cement Industry Study

SAUDI INDUSTRIAL DEVELOPMENT FUND
Technical Consultancy Division
INDUSTRY STUDY
CEMENT
TECHNICAL REPORT
Prepared by : Reviewed by :
Ghassan J. Al-Qahtani Ahmed Al-

Ghamdi
Snr .Technical Consultant Team Leader -TCD
Issued: 21/01/1427 (20/02/2006)
INDUSTRY STUDY
CEMENT
TECHNICAL REPORT
Table of Contents
1.0 Introduction
2.0 Summary
3.0 Comments and Conclusions
4.0 Recommendations
5.0 Products
6.0 Processes
7.0 Existing manufacturer .
8.0 Installed and expansion capacity and Utilization
9.0 Technology developments
10.0 Saudization
Appendix-1 : List of Industrial Licence .

INDUSTRY STUDY
CEMENT
TECHNICAL REPORT
1.0 INTRODUCTION
1.1 Cement Industry is considered to be one of the oldest industrial sector in the
Kingdom (1956). Cement plants were among the early recipients of SIDF
financial assistance. The financial support is continued up to now .
1.2 Demand for cement in the Kingdom has grown significantly over the past few
years, driven by increased construction activity and government expenditure on
infrastructure projects. The SIDF has received new proposals and enquiries from
the existing manufacturers as well as new potential investors.
1.3 The object of this study is to examine the following issues for companies in
the cement industries in Saudi Arabia:
Installed capacity .
Expansion Capacity .
Utilization rate.
The existing manufacturer plans .
Technology issues.
Saudization.
1.4 The methodology used to perform this study included visits to some of SIDF
investments , review of SIDF technical reports, and information available on the
internet from web sites.
1.5 A questionnaire was sent to all local manufacturers representing all information
required in our study . The response was very good except from Tabuk Cement
Cement Industry Study , By Ghassan Al-Qahtany , TCD 1

Company. This was followed by contacts through telephones and site visits. The
targeted factories of this study were the 8 known existing factories .
2.0 SUMMARY
2.1 Portland cement is a complex mix of many compounds. It is manufactured

commercially by heating together a mixture of limestone , sand , iron ore and clay
up to a temperature of 1300 to 1500C then cooled down up to 160C to produce
clinker . Clinker is ground to a fine powder and a small amount (around 5%)of
gypsum is added to produce cement .
2.2 Cement plants machinery and equipment consists mainly of crushing equipment,
raw material mills , pre-heating , rotary kiln , cooling system , cement mill and
packing system .
2.3 There has been no major development in the cement technology . The main
advancements are in the instrumentation and control of cement equipment and
systems which has utilized the latest advancements in the computer soft and
hardware. The other main development is in the area of material analysis.
Nowadays , it is possible to provide a complete chemical analysis of the cement
raw material as they pass through online analyzer.
2.4 Currently , there are 8 cement factories around the Kingdom producing about 22
million ton of clinker .The local cement companies are very well known and
have been established with the SIDF financial support . The following table and
charts show names , existing installed capacity and percentage of production for
each company ;
Manufacturer Designed Capacity (Clinker)
Million tpa
Yamama Saudi Cement Company (YAMCC) 2,730
Saudi Cement Company (SCC) 4,147
Eastern Province Cement Company(EPCC) 2,100
Qassim Cement Company (QCC) 1,485
Yanbu Cement Company (YCC) 3,750
Arabian Cement Company (ACC) 2,400
Southern Province Cement Company(SPCC) 4,050
Tabuk Cement Company (TCC) 1,200
Total 21,862

% Clinker Existing Capacity
EPCC
YAMCC
10%
12%
QCC
YCC 7%
17% SCC
19%
SPCC TCC
19% ACC 5%
11%
2.5 The distribution of the existing factories based on the main regions are as
follows ;
Manufacturer Region
1. Yamama Cement Company Central
2. Saudi Cement Company Eastern
3. Eastern Province Cement Co. Eastern
4. Qassim Cement Company Central
5. Yanbu Cement Company Western
6. Arabian Cement Company Western
7. Southern Province Cement Company Southern
8. Tabuk Cement Company Northern
Region name No.of plants

1) Central 2
2) Southern 1
3) Western 2
4) Eastern 2
5) Northern 1
Total 8

capacity per region
Northern
Central
5%
19%
Eastern
29%
Southern
19%
Western
28%
2.6 Almost all cement producers in the Kingdom are upgrading their existing
facilities or building new ones. At the same time, new investors will enter the
market such as Riyadh cement company , City cement company , Alkhayat
cement company , etc . It is expected that the local cement capacity will be
around 44 million ton by the end of 2008 which is 91% higher than its current
level of 23million tpa. RCC & CCC are included in this study .
2.7 The following table lists all companies with capacity upgrade plans in place,
their planned capacities , and expected date of completion .
Company Current Upgraded New capacity Completion

capacity capacity (ton ) date
million
Arabian Cement Company 2.52 2.425* 3.685* 2006
Eastern Cement Company 2.205 1.213 3.417 2006
Qassim Cement Company 1.559 1.559 3.118 2006
Southern Cement Company 4.2525 1.732 5.985 2007
Tabuk Cement Company 1.26 1.732 2.992 2008
Yamama Cement Company 2.866 3.465 4.567* 2007
Yanbu Cement Company 3.937 3.465 7.402 2008
Saudi Cement Company 4.355 6.93 9.709* 2008
Riyadh Cement Company New 1.732 1.732 2007
City Cement Company New 1.732 1.732 2007
Total 22.9545 25.985 44.339*
*excluding capacity of some existing lines which will be shot down .
2.8 The following chart shows the existing and new expansion capacities including
capacities of new manufacturers RCC and CCC ;

Existing Cem ent Capacity+Expansion
(including new plants)
12,000,000 Expansion
10,000,000 Existing
Cem ent , ton

8,000,000
6,000,000
4,000,000
2,000,000
/yr
-
EPCC QCC SCC TCC ACC SPCC YCC YAMCC RCC CCC
Com pany
Yamama Saudi Cement Company (YAMCC)
Saudi Cement Company (SCC)
Eastern Province Cement Company (EPCC)
Qassim Cement Company (QCC)
Yanbu Cement Company (YCC)
Arabian Cement Company (ACC)
Southern Province Cement Company (SPCC)
Tabuk Cement Company (TCC)
Riyadh Cement Company (RCC).new company
City Cement Company (CCC) new company

3.0 CONCLUSIONS
3.1 Currently there are approximately 8 plants with a total installed capacity of 23
million tpa of cement .The existing capacities are fully utilized .
3.2 All existing companies in the Kingdom are currently building up new cement
plants or upgrading their existing production facilities in order to meet demand
for cement in local market. In addition to the existing capacity , there will be
about 26 million metric tons per annum of new capacities are scheduled to
start production within the next 24-36 months .
3.3 Some local manufacturers will stop some of their existing lines because those
lines are using old long kiln without pre-heater.The total capacity of those
lines which will be shutdown is about 4 million ton of cement per year (i.e.
17% of the existing capacity will be stopped) . Details are as follows;
No.of lines to Total capacity ,

Name
be shout down clinker tpd
Yamama Saudi Cement Co. 5 5,600
Arabian Cement Co. 4 4,000
Saudi Cement Co. 4 2,825
Total 12,425 equi. To
(3,914,000 ton of
cement per year)
3.4 The total installed capacity for all existing factories vs the actual sales given by
the local producers in year 2005 is shown in the following table along with
the corresponding utilization listed as follows:
Installed Capacity (ton)
Installed Capacity 23,000,000
Sales (ton)
Actual Sales of 2005 26,232,000

Utilization Rate
Utilization of 2005 (%) 114%
3.5 The utilization rate is higher than 100% since all local manufacturers had
utilized their excess clinker stock .
3.6 TCD has obtained sales figures from the local manufacturers in order to
compare the production capacity vs the demand for this year and the coming
years .The actual sales for 2005 was about 26,232,000 ton of cement .
3.7 The estimated demand (obtained from the local manufacturers) in year 2008 is
expected to be 33 million tpa which means that the utilization rate would rise
to 142% based on the existing installed capacity. However , new capacities
(about 26 million ton) are scheduled to start production within the next 2-3
years. The expected installed capacity in the end of 2008 is about 44 million
ton of cement , then the utilizing rate would decline to 75% . If un expected
projects enter the market this will bring the utilization rate lower than 75%.
Hence there would be surplus capacity available after 2006 .
Projected supply and dem and
50,000,000
45,000,000
40,000,000
35,000,000
30,000,000
Supply
25,000,000
Demand
20,000,000
15,000,000
10,000,000
5,000,000
-
2005 2006 2007 2008
years
3.8 WTO provisions will remove all cross-borders tariffs and restrictions currently
imposed by the government and will open the window for outside
competition. This will cause another problem to the industry .

3.9 On average, the cost of adding 1million tpa of new capacity is estimated at
USD150million . Therefore , for 26 million tpa of cement ( expansion and
new green field projects ) TCD believes the cost is expected to be about USD
3.9bn ( SR 14.6bn) required to finance the planned upgrades and new
cement projects across the country.
3.10 Saudi Arabian Standards Organization (SASO) has issued two standards
regarding cement products which are SASO 143 and 570. All existing
manufacturers are producing according to SASO and international standards.
3.11 The Ministry of Industry and Trade has issued tens of licenses for cement
projects either for the existing companies or for new ones (155 million tpa).
3.12 The manufacturing process is well established and most of the machinery
suppliers provide complete production lines. The main cement plant suppliers
are Polysius of Germany , KHD of Germany , FLSmith of Denmark , and IHI of
Japan . Those suppliers have been participated in establishing and developing
the cement industry in the Kingdom over the last three decades .

Note ; the above chart is for the existing factories
3.13 Portion of these companies will be declined since recently a new supplier has
strongly entered the race known as SINOMA of China which offers reasonable
prices . Based on the term of references , SINOMA has won number of
contracts world wide.
3.14 SINOMA build new plants using KHD- FLS or Polysius designs. All the
plants they have contracted so far in Saudi Arabia are based on the supply of
main equipment (Mills-cooler material handling systems ) from Europe as
these systems are complex and require high manufacturing technology which is
not yet available with the Chinese. All SINOMAS contracts in the Kingdom
are including European machines .
3.15 The Chinese can be very competitive in building plant on turn key bases, as they
use very low cost construction and erection manpower. Also they are good sheet
metal fabricators and they can be very competitive.

3.16 Some of the leader manufacturers world wide such as Lafrage (France) have
selected Sinoma to implement their new projects which gives a positive
indication of this company . Furthermore some of the local manufacturer have
selected SINOMA company to implement their projects .
3.17 SINOMA has won four contracts for the supply and erection of cement plants
in Saudi Arabia . One of them is considered the largest ever deal in cement
industry from Saudi Cement Company which consists of two cement
production lines each with a daily production capacity of 10,000 tons .It will be
the first line of this size to be installed outside China . Furthermore , SINOMA
has installed only one line of this size (10,000 tpd) in China.
3.18 Except Saudi Cement Company and Southern Cement Company , it was noticed
during the visits that the Saudization level is low in this industry especially in
the production floor which might be due to the nature of this industry and the
low payment.
4.0 RECOMMENDATION
4.1 It is recommended that, SIDF should support the new expansions in the existing
factories because they are well established and well experienced with no
additional overhead cost .
4.2 The SIDF should consider financing new projects based on the following
criteria;
Region demand .
Close to the borders or ports for export .
Availability of good raw materials .
4.3 Since SINOMA from China was already awarded a lump sum contract from
Saudi Cement Company (Hofouf ) to implement two 10,000 tpd capacity lines ,
TCD suggests that SIDF inspect the performance of a similar installed and
operational project implemented by SINOMA if SCC applies to SIDF for
financing .
4.4 In order to attract young Saudis for employment in this industry, SIDF should
encourage cement factories to recruit Saudis .

Ghassan J. Al-Qahtani
Snr .Technical Consultant

5.0 PRODUCT
Chemistry of Cement
It is made from calcining and sintering of finely ground and well blended
mixture of oxides of Calcium, Aluminum, Silica and Iron. Naturally occurring
Limestone is the main source of Calcium Carbonate ( Ca CO 3), which when
heated to 650 to 900 deg. C , decomposes and lets off C0 2 gas and converts
itself to Calcium Oxide( CaO).This process is known as calcination. Clay ,
Marl, Lime Marl are good sources for Aluminum Oxide (Al 2O3), Silicon
Dioxide (SiO2).Iron Oxide can be obtained from Literate or Roasted Pyrites or
clay rich in Fe2O3. Cement shows hydraulic binding properties under water
For convenience, in the process technology of cement, these oxides are
represented as follows:
C ~ CaO S ~ SiO2
A ~ Al2O3 F ~ Fe2O3
The final composition of cement , then, is presented as:
C2S ~ C3S ~ C3A ~ C4AF ~
2.CaO,SiO2 3.CaO,SiO2 3.CaO,Al2O3 4.CaO,Al2O3,Fe2O3
It simply means , formation of complex compounds of cement by first calcining

of CaCO3 and then sintering to 1350 to 1500 deg. C to enable CaO to combine
with SiO2 , Al2O3 and Fe2O3.
At the end of the reactions, it must be ensured that free lime (CaO) presence is
minimum ( < 1%)
The semi liquid sintered material is cooled in air to norm cement clinker which
is a stable product and can be stored for a long period.
The clinker is finely ground along with 3 to 5 percent gypsum to form cement.
The main cement products produced locally are ;

1- Portland Ordinary Cement (Type I) is a general purpose Portland cement
suitable for all uses where the special properties of other types are not required.
It is used where cement or concrete is not subject to specific exposures, such as
sulfate attack from soil or water, or to an objectionable temperature rise due to
heat generated by hydration. Its uses include pavements and sidewalks,
reinforced concrete buildings, bridges, railway structures, tanks, reservoirs,
culverts, sewers, water pipes and masonry units.
2- Sulphate Resistant Portland Cement (Type V) is a sulfate-resisting cement

used only in concrete exposed to severe sulfate action , principally where soils
or ground waters have a high sulfate content.
6.0 PROCESS

Manufacturing processes of the cement is similar in any place world wide which
mainly consists of the following brief description:
6.1 Raw materials ;

These are generally combinations of limestone, shale, clay,
sand or iron ore, usually mined from a quarry close to the plant
where they undergo reduction using primary and secondary crushers.
When the reduced materials reach the cement plant they are
proportioned to create a cement of specific chemical composition.
Much work is being done on the use of alternative raw materials
often the by-products of other industrial processes. These can
minimize the effects of quarrying, reduce the impact of the cement
plant on the local environment . Materials are proportioned, ground
to a powder, blended and fed into the kiln dry.
6.2 Pre-heater
To conserve energy, most modern cement plants pre-heat raw
materials before they enter the kiln, using the hot exhaust gases from
the kiln itself.
6.3 Kiln
The mixture of raw materials is fed by conveyers into the
upper end of a rotating, cylindrical kiln, which achieves
temperatures in excess of 1000C. It passes through at a rate
controlled by the slope and rotational speed of the kiln. Chemical
reaction inside the kiln leads to the fusion of the raw materials to
produce clinker. Kiln fuels is Crude Oil.
6.4 Cooling/finish grinding
Clinker is discharged from the lower end of the kiln and
transferred to various types of coolers. Cooled clinker is combined
with gypsum and ground to a fine powder in a ballmill to produce
the final grade cement.
6.5 Storage, Packing, Dispatch
The cement is stored in silos before being dispatched either in bulk or in paper
bags (50kg or 25 kg) to its final destination.

THE CEMENT MANUFACTURING PROCESS
quarry
dumper
loader
Quarry face
1. BLASTING 2. TRANSPORT
storage at
crushing
the plant
conveyor
3. CRUSHING & TRANSPORTATION
1. BLASTING : The raw materials that are used to manufacture cement (mainly limestone and clay) are blasted
from the quarry.
2. TRANSPORT : The raw materials are loaded into a dumper.
3. CRUSHING AND TRANSPORTATION : The raw materials, after crushing, are
transported to the plant by conveyor. The plant stores the materials before they are Next
homogenized.

Raw grinding and burning
storage at Raw mill

the plant
conveyor
Raw mix
1. RAW GRINDING
preheating
kiln
cooling
clinker
2. BURNING
1. RAW GRINDING : The raw materials are very finely ground in order to produce the raw mix.
2. BURNING : The raw mix is preheated before it goes into the kiln, which is heated by a flame that can
be as hot as 2000 C. The raw mix burns at 1500 C producing clinker which, when it leaves the kiln, is
rapidly cooled with air fans. So, the raw mix is burnt to produce clinker : the basic material needed to
make cement.

Grinding, storage, packing, dispatch
Gypsum and the secondary additives are added

to the clinker.
clinker
storage Finish grinding
1. GRINDING
silos
dispatch
bags
2. STORAGE, PACKING, DISPATCH
1.GRINDING : The clinker and the gypsum are very finely ground giving a pure cement. Other secondary
additives and cementitious materials can also be added to make a blended cement.
2. STORAGE, PACKING, DISPATCH :The cement is stored in silos before being dispatched either in
bulk or in bags to its final destination.
7.0 EXISTING PRODUCERS :
7.1 Yanbu Cement Company (YCC)
YCC was established in 1977 and started its operations in 1979 when it
commissioned two of its long dry kilns each 1500 tpd at Ras Baridi 60km north
of the city of Yanbu on the west coast of Saudi Arabia. The company
commissioned its third long dry kiln with a capacity of 1000 tpd in 1982 thus
increasing the total plant capacity to 1.2 million tons per year. All three kilns
were supplied, installed, and commissioned by the German company KHD .
YCC manufactures and supplies *OPC, *SRC, *LHC and *PPC in the Middle
East. The first producer or SRC on the west coast and the first producer of 25kg
bags in the Middle East.
In order to meet long term organizational goals of growth, adapting the latest
technologies, and attaining competitive advantages through economies of scale,
the company commissioned its fourth and largest kiln of 7000tpd clinker
production capacity in 1997. YCC has just completed the upgrade of line 4 from
7000 tons per day to 8500 tons per day of clinker in year 2005 .
The new short dry kiln from KHD uses the latest technology in digital process
control, efficient power and fuel consumption and minimum use of man power
in all stages of production. YCC is considered the first local company who

install the largest kiln in the Kingdome . YCC has the advantage of having most
of the required raw materials in the vicinity of the plants. Limestone and
gypsum reserves are located adjacent to the plant with more than 50 years mine
life. Clay is mined some 20km south east of the plant while sand stone and iron
ore are transported from other parts of Saudi Arabia.
In view of the remote location of the plant, the operation and maintenance of is
sub-contracted to Associated Cement Companies of India (ACC) with the
contractual obligations to fulfill company's targets of productivity, quality,
training of Saudis and exchange of technical know how. YCC's Technical
Department is entrusted with the responsibility of monitoring the attainment of
the above targets on a day-to-day basis. The plant has a fully furnished
residential complex for its employees adjacent to the plant. The plant and the
residential complex are supported by the power station with capacity of 140
megawatts per day and total capacity of the desalination units is 6,000 cubic
meters per day and two sewage treatment plants of 350 cubic meters per day.
The following table summaries the existing capacity , date of installation and
the proposed expansion ;
year of Clinker Cement

No . Of lines Supplier Clinker ,tpd production ,tpy production, tpy
Existing
line-1 KHD ,Germany 1,500 1980
line-2 KHD 1,500 1980
line-3 KHD 1,000 1983
line-4 KHD 8,500 1997/2005
Sub-total existing 12,500 3,750,000 3,937,500
Expansion
line-6 10000 N/K
Sub-total expansion 10,000 3,300,000 3,465,000
7,0
Total 22,500 50,000 7,402,500
The first two lines are equipped with long dry kilns, which consume higher
energy (fuel) than the latest two lines , which have short kiln with pre-heater
& pre-calciner.
The existing lines (1to5) have long dry kilns, which consume higher energy
(fuel) than the existing line #6 (Expansion #4), which has a short kiln with pre-
heater & pre-calciner.

Future Plane : The YCC plans to increase its existing capacity by 80% in 2009.
The company is preparing the feasibility study of the new expansion and it is
in the final stages of choosing the project contractor and supplier . The
proposed kiln design capacity is 10,000 tpd .
7.2 Qassim cement company
The Qassim Cement Company (QCC) was founded in 1976 as a Saudi joint
stock company in the Heart of the Kingdom of Saudi Arabia in Qassim Region
330 Km north-west of Riyadh .
The existing cement plant is producing approximately 1.6 million tons per
annum of OPC Type I and SRC Type V cement to Saudi standard.
year of Ceme
productio produc
No . Of lines Supplier Origion Clinker ,tpd n Clinker ,tpy tpy
Existing
KHD, deve. Germany,
by FCB FCB
line-1 France 2,750 1980
line-2 IHI Japan 2,200 1993
Expansion
line-3 IHI Japan 4,500 2006* 1,485,000 1,559,2

2,970,00 3,11
Total 9,450 0 0
* under commissioning
The QCC has completed its expansion which is under commissioning . The
expansion has been implemented by IHI , Japan . The existing lines are
considered of new and the company has no plan to stop them .
7.3 Saudi Cement Company
SCC started operation in 1961 where one kiln of 300 tpd was installed at the
Hofuf plant .The Houfuf plant since then has executed four expansions and/or
renovation and upgrading of its facilities , the last of which , was in 1997 where

a kiln of 3,500 tpd capacity (kiln#6) was added , bringing the total capacity of
the plant to 7,825 tons of clinker per day .The Ain Dar plant , started as an
independent company under the name of Saudi-Bahraini Cement Company
(SBC) back in 1981 , where 4 kilns of 1,500 tpd of clinker capacity each where
installed ( total 6,000 tpd) . SBC continued its operations independently till
December 31 ,1991 . As of January 1 , 1992 SBC merged with SCC and
operations since then have continued under the old name of Saudi Cement
Company.The following table summaries the existing capacity , date of
installation and the proposed expansion ;

(I) Hafuf plant
Cem
year of produ
No . Of lines Supplier Origion Clinker ,tpd production Clinker ,tpy tp
Existing
line-1* Polysius Germany 300 1961
line-4* Polysius Germany 1,500 1977
line-5 Polysius Germany 1,500 1977
line-6 KHD Germany 3,500 1996
Sub-total existing (Hafuf plant) 7,825 2,347,500 2,464,8

* will be replaced by two 10,000 tpd new lines
(II) Ain Dar plant

Cem
year of produ
Existing
line-1 IHI Japan 1,500 1980/81
Sub-total existing(Ain Dar plant) 6,000 1,800,000 1,890,0
Sub-total existing ,
2plants 13,825 4,147,500 4,354,8
Cem
year of produ
Expansion(Hafuf plant)
line-7 SINOMA China 10,000 Mid 2008 3,300,000 3,465,0
line-8 SINOMA China 10,000 End 2009 3,300,000 3,465,0
Total before shout down old lines 33,825 10,747,500 11,284

Total after shout down lines 1,2,3 and 4 (Hafouf 31,00 9,247,50 9,7
plant) 0 0 5

7.4 Arabian Cement Company (ACC)
ACC is the first cement producer in the Kingdom and Arabian Gulf.
The foundation stone was laid by King Saud Bin Abdul Aziz in 1376 H. (1956
G.).The original plant, which was, located North of Jeddah city started
production in 1379 H. (1959 G.) with 300 Tons clinker and 100 tons lime
capacity .Capacity of the plant was expanded in 1968 G. to 1000 tons of clinker
per day and subsequently to 2000 tons per day in 1394 H. (1974 G.)
Due to the expansion of Jeddah city towards the North and the construction of
King Abdul Aziz international airport and to maintain safe and healthy
environment for Jeddah city and its people, it was decided to construct a totally
new plant far from Jeddah city.
TRANSFER TO RABIGH
Rabigh area was selected to be the site of the new plant due to the availability of
limestone and proximity and easy accessibility to major markets such as Jeddah,
Makkah and Madinah.The new plant was launched in 1984 with a capacity of
4000 tons per day clinker consisting of four long kilns. The capacity was further
increased to 4400 tons per day.Due to high demand and continuous growth the
company embarked on an expansion program in 1993.
A totally new 4000 tons capacity short kiln was erected along with vertical raw
mill, preheater and grinding mill was launched in late 1996 early 1997 . This
brought the total clinker capacity to 2.5 Million tons per annum and grinding
capacity to over 3 Million tons.
year of Ceme
productio produc
No . Of lines Supplier Origion Clinker ,tpd n Clinker ,tpy tpy
Existing
line-1* KHD Germany 1,000 1984
line-5 Polysius Germany 4,000 1988

* will be replaced by new 7000 tpd line
Expansion

line-6 7000 N/K
4,710,00 4,9
Total before stopping old lines 15,000 0 0
3,510,00 3,68
Total after stopping lines 1,2,3 and 4 11,000 0 0
7.5 Yamama Saudi Cement Company
Yamama Saudi Cement Company (YAMCC) is a joint Stock company

established in 1961 for the production of Cement products. The company is
owned by:
Saudi Shareholders 85.47 %

Kuwaiti Shareholders 14.53 %
YSCC started production in 1966 with a kiln line of 300ton/day supplied by

Fried Krupp Gmbh of Germany. The establishment and the subsequent
expansions can be summarized as follows ;
year of Cement
productio production,
No . Of lines Supplier Clinker ,tpd n Clinker ,tpy tpy
Existing
line-1 Fried Krupp 300 1966
line-2 Polysius 800 1972
line-3 Polysius 1,500 1978
Expansion

6,030,00 6,331,50
Total before stopping old lines 19,100 0 0
Total after SHOUT DOWN 13,50 4,350,0

lines 1,2,3,4 AND 5 0 00 4,567,500
The existing lines (1to5) have long dry kilns, which consume higher energy (fuel) than
the existing line6 (Expansion #4), which has a short kiln with pre-heater & pre-calciner.
Yamama have already taken decision to go ahead and build a new production line
( Production line NO.7).The contract was signed by Managing Director between
Yamama and Polysius , Germany for an amount of 214 million euro and $30 million in
addition to a contract for civil and structural jobs , between Yamama and Gama
Almoushegah Arabia of Saudi Arabia, for a value of SR 389 million and $7 million.
The total amount will be more than SR.1500 million . This line will be a complete
production line from quarry to cement dispatch system. It will have a capacity of 10000
tons/day . It is also envisioned that if local and/or export demand is strong, the old
lines will be kept in production to make total production of yamama at about 19000
ton/day of clinker. against 8600 tons/day now.
Major item of Project ;
- 10000 tons/day kiln ( 6 stages precaliner ).
- 2x420 tons/hour Raw Mills.
- 3x210 tons/hour Cement Mills.
- Full automation dispatch system.
- Pollution Bag house filter at Max. 5 mg/Cubic meter.
(may be the largest in the world).
- Full automation of quality control and operation.
This production line will be equipped with a bag filter to control the emission of
dust at all places of the plant everywhere there is chance of emission. It will
probably out of the largest bag house filter in the world with a guarantee
maximum of 5 mg/cubic meter emission always even during the closure of some
section for maintenance. All raw materials storage will be covered and since natural
gas will be fuel, sulphur emission will be reduced. All emissions will be treated to
have better than the present European standards. Quality of cement to be
produced will be un-matched anywhere in the country. Full automatic control will
monitor all stages of production from quarry to dispatch.
7.6 Eastern Province Saudi Cement Company
Eastern Province Cement Company (EPCC) is located at Al Khursaniyah

approximately 150 km north of Dammam and 65 km from Jubail alongside the
Dammam-Kuwait highway .The existing plant was brought into operation in the

early 1980s with two POLYSIUS precalciner kilns each rated at 3,500 t/day . The
existing cement plant is producing approximately 2.476 million tons per annum of
the Ordinary Portland Cement (OPC) Type I and Sulphate Resisting Cement (SRC)
Type V to Saudi and International standards.
The following table summaries the existing capacity , date of installation and the
proposed expansion ;
No . Of lines Supplier Clinker ,tpd year of Clinker Cement

production production ,tpy production, tpy
Existing
Expansion
line-3 Polysius 3,500 2006* 1,155,000 1,212,750
3,417
Total 10,500 3,255,000 ,750
* under commissioning
The existing two lines are equipped with short dry kilns with pre-heater & pre-
calciner. I.e they are utilizing the latest technology in this industry .Therefore ,
the company has no plan to stop or replace them .
The EPCC has completed its expansion which is under commissioning . The
expansion has been implemented by Polysius , Germany . The existing lines are
considered of new and the company has no plan to stop them .
7.7 Southern Cement Company
(I) Jazan plant

year of Cement
No . Of lines Supplier Clinker ,tpd production Clinker ,tpy production, tpy
Existing
line-1 Fuller 4,000 1981
Sub-total existing(Jizan plant) 8,000 2,400,000 2,520,000
(II) Beshah plant

year of Cement
Existing

line-1 FLSmith 5,500 1980/81
Sub-total existing(Beshah plant) 5,500 1,650,000 1,732,500
Sub-total existing ,
2plants 13,500 4,050,000 4,252,500
Expansion(Tehama
plant)
line-1 SINOMA 5000 2007
18,50
Total 0 5,700,000 5,985,000
7.8 Tabuk Cement Company
year of Cement
Existing
line-1 UBE 4,000 1998
Expansion
line-2 UBE 5000 N/K 1,650,000 1,732,500

2,992,50
Total 9,000 2,850,000 0
8.0 INSTALLED CAPACITY AND UTILIZATION
The key factor to calculate the installed capacity of each cement factory is
the kiln design capacity . For the existing projects TCD has estimated
number of days at 300 and the amount of Gypsum to be added to the clinker
to make cement is 5% . For expansion TCD has estimated number of
operating days at 330 since the shout down and maintenance time are much
less than the new ones .
It is known that ministry of Trade and Industry has issued number of

licenses for new cement project . Few of them are serious and have started
implementation such as Riyadh Cement Company and City Cement
Company and Al-Khyat Cement Company .
It is important to note that TCD has included in addition to the existing

projects two new companies Riyadh Cement Company and City Cement
Company , which have been obtained loan approval from SIDF.
EXISTING CAPACITY :
The current production is estimated at 23,000,000 tpa of cement as follows ;

Existing
Company Clinker , tpy Cement , tpy
EPCC 2,100,000 2,205,000
QCC 1,485,000 1,559,250
SCC 4,147,500 4,354,875
TCC 1,200,000 1,260,000
ACC 2,400,000 2,520,000
SPCC 4,050,000 4,252,500
YCC 3,750,000 3,937,500
YAMCC 2,730,000 2,866,500
RCC 0 0
CCC 0 0
Total , tpy 21,862,500 22,955,625

Existing Cement Capacity
5,000,000
4,000,000
3,000,000
ton
2,000,000
/yr
1,000,000
-
CC
CC
CC
C
C
C
CC
C
SC
YC
AC
TC
SP
EP
M
Q
YA
Company
Portion of each company from cement production is as follows ;

CAPACITY AFTER EXPANSION AND NEW PROJECTS (RCC &
CCC) :
The expected local capacity of cement will hit 44.3million tpa by enf of
2008,aproximatly double the existing capacity (excluding some of existing
capacity which will be shout down as stated by YAMCC , SCC and ACC due to
age of those lines ) higher than its current level of 23 million mtpa.
Existing Expansion Date Total

Company Clinker , tpy Cement , tpy Clinker , tpy Cement , tpy Clinker , tpy Cement, tpy
EPCC 2,100,000 2,205,000 1,155,000 1,212,750 2,006 3,255,000 3,417,750
QCC 1,485,000 1,559,250 1,485,000 1,559,250 2,006 2,970,000 3,118,500
SCC 4,147,500 4,354,875 6,600,000 6,930,000 2,008 9,247,500 9,709,875
TCC 1,200,000 1,260,000 1,650,000 1,732,500 2,008 2,850,000 2,992,500
ACC 2,400,000 2,520,000 2,310,000 2,425,500 2,008 3,510,000 3,685,500
SPCC 4,050,000 4,252,500 1,650,000 1,732,500 2,007 5,700,000 5,985,000
YCC 3,750,000 3,937,500 3,750,000 3,465,000 2,008 7,500,000 7,402,500
YAMCC 2,730,000 2,866,500 3,300,000 3,465,000 2,007 4,350,000 4,567,500
RCC - - 1,650,000 1,732,500 2,007 1,650,000 1,732,500
CCC - - 1,650,000 1,732,500 2,007 1,650,000 1,732,500
Total , tpy 21,862,500 22,955,625 25,200,000 25,987,500 42,682,500 44,344,125

8.1 Licensed Capacity :
TCD has worked in cooperation with MSCD to establish the

licensed production capacity of the existing factories according to
the factories list shown by RESD. The list was reviewed to reflect
the latest actual and final status of the industrial licenses which can
be summarized as shown in Appendix-A-.
8.2 Comparison of the Licensed and Installed Capacity :
The Licensed and Installed capacity can be compared as follows :
Capacity Cement (ton)
Installed 23,000,000
Licensed 154,950,000
Licensed vs Installed capacity
13%
Installed
Licensed
87%

8.3 Utilization of the Installed Capacity :
TCD has used actual sale figures which as been obtained from some
local producers for year 2005 to calculate the expected utilization
rate over the 2005-2008 period . Since the growth in cement
demand is not available yet , TCD has made three scenarios
(8%,10% and12%) to compare supply vs demand over the 2005-
2008 period.
The following table shows the installed capacity over 2005-2008
period vs forecasted sales based on three different scenarios ;
Installed Capacity , cement (tpy)
2005 2006 2007 2008
Installed Capacity 22,955,625 25,727,625 32,690,125 44,344,125
Sales
Scenario-1 growth 8% 26,236,000 28,334,,000 30,601,000 33,049,000
Scenario-2 growth 26,236,000 28,859,600 31,745,560 34,920,116

10%
Scenario-3 growth
26,236,000 29,910,438 32,910,116 36,859,691
12%
Utilization Rate (%)
Scenario-1 growth 8% 114% 110% 94% 75%

Scenario-2 growth
114% 112% 97% 79%
10%
Scenario-3 growth
114% 114% 101% 83%
12%
*source : SPCC
It is important to note that TCD does not include capacity of some new
companies other than RCC and CCC . In case of adding the unknown new
companies capacities the scenario will be worse .
Scenario-1(growth 8%)
Scenario-2 (growth 10%)

Scenario-3 (growth 12%)
It is clear from the above charts that supply will be higher than the demand in
all proposed scenarios .

9.0 TECHNOLOGY:
Most of Cement Companies utilize the latest modern technology in cement

manufacturing. Raw materials are electronically and separately weighed
according to their chemical composition. They are equipped with a highly
efficient computer-aided production operation which are monitored via CCTV .
Automatic packaging and mechanical loading systems have been installed to
minimize manual labour. This is in addition to the introduction of a
computerized system at the cement dispatch facilities . The companies also use
modern technology for their bulk-filling operations .
All companies have a modern spacious laboratory, where complete chemical

analysis is undertaken after each phase of production and final production runs.
The laboratories are equipped with the most modern chemical analysis
instruments incorporating the use of analytical and verification procedures.
Cement industry has made tremendous strides in technological up gradation and
assimilation of latest technology. At present 83% of the total capacity in the
industry is based on modern and environment-friendly long dry process
technology and only 17%of the capacity is based on old short wet and semi-dry
process technology.
Generally, the technical know-how of this industry is well established and

settled in Saudi Arabia. Therefore , most of local factories do not have any
technical agreement with external or international companies.
Technology of cement manufacturing is considered quite the same in any place
with some minor differences like type of mills (hammer mill , or roller mill ,
vertical mill) , pre-calcinar ( 4,5or 6 stages) ..etc.
All cement plants in the kingdom have been purchased from a very well known
company whose are considered the leader in the industry. The main technology
developments have been in the area of output such as 10,000 tpd . The same
technology are still used world wide . No major changes have been discovered
so far .
CEMENT INDUSTRY DEVELOPMENT
There has been no major breakthrough in the cement industry chemical process
technology. The main advancements are in the instrumentation and control of
cement equipment and systems which has utilized the latest advancements in
the computer soft and hardware. Also the cement industry has benefited greatly
from the advancement in the area of networking (software and hardware). The
other main development is in the area of material analysis. Nowadays , it is
possible to provide a complete chemical analysis of the cement raw material as
they pass through Online analyzer.

CHINESE TECHNOLOGY(SINOMA);
SINOMA build new plants based on KHD- FLS or Polysius designs. All the
plants they have contracted so far in Saudi Arabia are based on the supply of
main equipment (Mills-cooler material handling systems ) form Europe as
these systems are complex and require high manufacturing technology which is
not yet available with the Chinese's. The Chinese can be very competitive in
building plant on turn key bases, as they use very low cost construction and
erection manpower. Also they are good sheet metal fabricators and they can be
very competitive.
TCD sees that the whole Chinese industry are supported by the Chinese
government as most of the Chinese companies like SNOMA and CNBM are
government owned companies. The main obstacle with Chinese is the
communication. It is very default to communicate wit them as they have very
strong and deferent culture from any other country in addition to lake of English
language compunction skills.
SINOMA
Sinoma International is the only large-scale technical enterprise who can

provide the integrated service of research, design, manufacturing, general
engineering construction of new type dry process cement. Since 1999 Sinoma
International has won the overseas project bid for Dujiangyan Lafarge (the
largest cement company) Cement Plant (3200t/d), Suzhou Golden Cat Cement
Plant (2750t/d), Fushan Cement Company, Vietnam (5000t/d). Sinoma
International has become a general engineering service provider for large-scale
multinational cement corporations. The competitive power of Sinoma
International was fully demonstrated trough the general contact it signed
recently in Saudi Arabia; the contract price is 2000million RMB.
SINOMA has won number of contract for the supply and erection of cement
plants in Saudi Arabia . The following is a list of the new project to be
implemented by Sinoma ;
Company Design capacity , tpd No. of lines

Southern Cement Company 5,000 1
Saudi Cement Company 10,000 2

Riyadh Cement Company 5,000 1
Saudi Cement Company 5,000 1
10.0 SAUDIZATION:
During the factories visits , it has been noticed that there are few
administration Saudi employees. But generally, the Saudization level is
low especially on the production floor due to the following reasons:
The nature of work in this industry sector is quite hard, and it

requires patient people who have the ability to overcome the
difficulties such as dirty environment, hot weather in the summer
time, etc.
Some of the Saudi employees work as temporary employees

until they get administration jobs or other jobs with high salary
and clean environment.
The salaries of operators in this sector especially on the

production floor are quite low.
The technical institutes coordinate summer training courses for

undergraduates. However, after the graduation, the student do not apply
for jobs in this kind of industry unless they are temporary jobs because
of the above reasons.
According to the above, TCD recommends the following to increase the

Saudization level in this sector of industry:
There should be a continuous cooperation between the technical

institutes and the local cement manufacturer .
There should be more advertising in the local newspaper and magazines

for jobs to attract the Saudi employees especially fresh graduates .
There should be motivations for the Saudi employees in this industry

such as increasing salaries, bonuses, training, scholar ships, etc.

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SAUDI INDUSTRIAL DEVELOPMENT FUND

Technical Consultancy Division

Ghassan J. Al-Qahtani Ahmed Al-

Technical Consultancy Division

Appendix-1 : List of Industrial Licence .

Technical Consultancy Division

Cement Industry Study , By Ghassan Al-Qahtany , TCD 1

2.1 Portland cement is a complex mix of many compounds. It is manufactured

Manufacturer Designed Capacity (Clinker)

Yamama Saudi Cement Company (YAMCC) 2,730

Saudi Cement Company (SCC) 4,147

Eastern Province Cement Company(EPCC) 2,100

Qassim Cement Company (QCC) 1,485

Yanbu Cement Company (YCC) 3,750

Arabian Cement Company (ACC) 2,400

Southern Province Cement Company(SPCC) 4,050

Tabuk Cement Company (TCC) 1,200

Cement Industry Study , By Ghassan Al-Qahtany , TCD 2

Region name No.of plants

Cement Industry Study , By Ghassan Al-Qahtany , TCD 3

Company Current Upgraded New capacity Completion

*excluding capacity of some existing lines which will be shot down .

Cement Industry Study , By Ghassan Al-Qahtany , TCD 4

Cem ent , ton

Yamama Saudi Cement Company (YAMCC)

Saudi Cement Company (SCC)

Eastern Province Cement Company (EPCC)

Qassim Cement Company (QCC)

Yanbu Cement Company (YCC)

Arabian Cement Company (ACC)

Southern Province Cement Company (SPCC)

Tabuk Cement Company (TCC)

Riyadh Cement Company (RCC).new company

City Cement Company (CCC) new company

Cement Industry Study , By Ghassan Al-Qahtany , TCD 5

No.of lines to Total capacity ,

Installed Capacity (ton)

Installed Capacity 23,000,000

Actual Sales of 2005 26,232,000

Cement Industry Study , By Ghassan Al-Qahtany , TCD 6

Utilization of 2005 (%) 114%

Projected supply and dem and

Cement Industry Study , By Ghassan Al-Qahtany , TCD 7

Cement Industry Study , By Ghassan Al-Qahtany , TCD 8

Cement Industry Study , By Ghassan Al-Qahtany , TCD 9

Cement Industry Study , By Ghassan Al-Qahtany , TCD 10

Cement Industry Study , By Ghassan Al-Qahtany , TCD 11

It simply means , formation of complex compounds of cement by first calcining

The main cement products produced locally are ;

2- Sulphate Resistant Portland Cement (Type V) is a sulfate-resisting cement

Cement Industry Study , By Ghassan Al-Qahtany , TCD 12

6.1 Raw materials ;

Cement Industry Study , By Ghassan Al-Qahtany , TCD 13

3. CRUSHING & TRANSPORTATION

THE CEMENT MANUFACTURING PROCESS

storage at Raw mill

Cement Industry Study , By Ghassan Al-Qahtany , TCD 14

Gypsum and the secondary additives are added

2. STORAGE, PACKING, DISPATCH

7.0 EXISTING PRODUCERS :

7.1 Yanbu Cement Company (YCC)

Cement Industry Study , By Ghassan Al-Qahtany , TCD 15

year of Clinker Cement

Sub-total existing 12,500 3,750,000 3,937,500