Northern Region Cement Co. announces last happenings regarding the signed agreement with the German Company KHD.
| Element List | Explanation |
|---|---|
| Introduction | Reference to the Northern Region Cement Co’s announcement dated 04/21/1445 AH (corresponding to 11/05/2023 AD) regarding the award of a project to establish a line with a production capacity of 1,320,000 tons of cement annually in the Republic of Iraq with the German company KHD, at a value of $139 million (“the project”).
The Northern Region Cement Co would like to announce that the agreement concluded with the German company KHD has not been activated due to the failure to agree on the terms and conditions related to the payment terms, and the award of the project to Sinoma Overseas Development Co. on 22/11/1445 AH (corresponding to 30/05/2024 AD) with the project construction period of( 18) months with a value of $188 million, with deferred payment terms for a period of (12) years after the date of operation and start of the production line. |
| Previous Announcement | Northern Region Cement Co. announced its signature of an agreement with the German Company KHD. |
| Date of Previous Announcement on Saudi Exchange’s Website | 2023-11-05 Corresponding to 1445-04-21 |
| Hyperlink to the Previous Announcement on the Saudi Exchange Website | Click Here |
| Latest Developments Of The Announced Event | Termination of the agreement with the German company KHD and awarding the project to Sinoma Overseas Development Co. for the purpose of establishing a line with a production capacity of 1,320,000 tons of cement annually in the Republic of Iraq. |
| Reasons For The Delay on The Date of The Event Previously Announced | Negotiations on terms and conditions related to payment terms. |
| The costs associated with the event, and if they have changed or not with indication of the reasons. | N/A |
| Delay consequences on the Company’s financial results | The financial impact will be postponed to the first quarter of the year 2026, and the Northern Region Cement Co. will announce the financial impact later and any developments in this regard in due course |
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