Saudi Cement Co. — Capital/Financing Update 2013

May 7, 2013

Follow-up announcement from Saudi Cement Company regarding rehabilitation & reoperation of Kilns 4 & 5 in Hofuf Factory

3030 · 07/05/2013 15:40:31 · Announcement #30897 · View on Saudi Exchange

Follow-up announcement from Saudi Cement Company regarding rehabilitation & reoperation of Kilns 4 & 5 in Hofuf Factory

Further to Saudi Cement Company announcement on tadawul website on Tuesday 23/4/2013 (13/6/1434H) about rehabilitation and re-operation of Kilns 4 & 5 in Hofuf factory with a total designed capacity of 3000 (Three Thousand) tons of clinker/day, the Company hereby announces that, with Allahs Grace, it has signed an agreement on 07/05/2013 (27/06/1434H) with M/S SINOMA Technology & Equipment Group Co. Ltd, from Peoples Republic of China, for execution of the subject project with total value of USD 19.90 Million ( U.S. Dollar, Nineteen Million and Nine Hundred thousand) which will be fully financed through the companys own resources. Execution shall commence effective the above agreement signing date, and finish during the fourth Quarter 2013. Also, it is expected that the financial impact of this project shall be reflected on the results of the Company during fourth Quarter 2013 as increase in the sales and profits of the Company if there is demand for the expected production from the project, or as support for low clinker inventory levels to meet future demand in case of lack of such demand. Hence, the Company is unable to specify the amount of this financial impact nowadays due to difficulty of estimating the expected sales quantity from these two kilns after their rehabilitation & reoperation.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.