The Eastern Province Cement Company (Eastern Province Cement Co.) signed a SR300 million financing agreement with the Saudi Industrial Development Fund (SIDF) to finance a new production line with a daily capacity of 10,000 tons at its factory. The new production line will replace some of the existing production lines. In a statement to the Saudi Stock Exchange (Tadawul),
the company said that the financing contract with SIDF has added value to the company and will become one of the company's priority sources of financing. In addition, the company has signed financing agreements with other commercial banks. Eastern Province Cement will use these financing tools based on actual needs to achieve the lowest financing cost.
According to the statement, the guarantees provided for the financing include order notes, endorsement of insurance documents for the new production line project to the fund, and pledge of equipment and machinery related to the new production line project to the fund.
The statement also noted that no related parties were involved in the transaction. In January
2024, the board of directors of the Eastern Province Cement Company approved the award of a contract worth 1.01 billion Saudi riyals ( $270.53 million) to China's Sinoma International Engineering Co., Ltd. (Sinoma CDI) for the establishment of a production line with a daily capacity of 10,000 tons. The contract was officially signed in February 2024.
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