Al Jouf Cement enters into short-term project with Altec Limited
JOUF CEMENT
3091 0.21% 4.86 0.01
Riyadh – Mubasher: Al Jouf Cement Company has signed a contract with ALtec Limited to undertake the design, supply, and installation of electrical interconnection works at its manufacturing facility in Turaif, according to a bourse filing.
The agreement is valued at approximately SAR 27.79 million and represents a significant step in the cement manufacturer’s efforts to modernize its infrastructure and transition toward more efficient energy sources under Saudi Arabia’s Liquid Fuel Displacement Program, which is a national initiative supported by the Ministry of Industry and Mineral Resources.
The contract was formally signed on 21 May 2026, while the project is scheduled for completion within a six-month timeframe from the date of the signing.
Under the terms of the agreement, Altec Limited will execute the project on a turnkey basis, assuming full responsibility for the design, procurement, and installation phases required to complete the electrical interconnection.
From a financial perspective, Al Jouf Cement has projected that the impact of this project will begin to materialize following the completion of the installation and the commencement of commercial operations.
Meanwhile, the company currently anticipates that the project will reach the operational stage during the first quarter (Q1) of 2027.
Consequently, the associated financial and operational efficiencies are expected to be reflected in the company’s financial results starting from that period.
The listed company expects the project to yield substantial operational and environmental benefits. By upgrading its electrical infrastructure, Al Jouf Cement aims to significantly improve energy consumption efficiency and reduce the carbon emissions associated with its power generation activities.
Beyond the environmental impact, the interconnection is anticipated to enhance the overall reliability and stability of the plant’s operations. This increased reliability is crucial for maintaining consistent production levels and ensuring the long-term sustainability of the company’s manufacturing processes.
The national Liquid Fuel Displacement Program aims to optimize energy consumption across the Kingdom’s industrial sector by reducing reliance on liquid fuels and transitioning to more sustainable energy alternatives.
For Al Jouf Cement, the project is specifically designed to finalize the delivery of electrical services to its Turaif plant, ensuring the facility is fully integrated into the regional power grid.
This project is a core component of Al Jouf Cement’s broader corporate strategy to upgrade its existing production lines and improve operational excellence. By aligning its internal infrastructure projects with the objectives of Saudi Vision 2030, the company is positioning itself to meet higher standards of environmental stewardship and resource management.
Al Jouf Cement confirmed that the contract involves no related parties and was concluded as an independent commercial transaction.
It is worth noting that in Q1-26, the Saudi cement manufacturer incurred net losses worth SAR 21.60 million, while its revenue decreased to hit SAR 40.19 million as of 31 March.
Source: Mubasher Source: {{details.article.source}}