As Saudi Arabia continues to expand its industrial and infrastructure base under Vision 2030, cement producers are racing to modernise operations, improve energy efficiency and secure capacity for the next phase of growth. Qassim Cement Company is positioning itself firmly within that trend through a major investment programme centred on its Buraydah plant.

The company has secured SAR400 million ($105 million) in financing from the Saudi Industrial Development Fund (SIDF) to support the construction of a fourth production line at the facility. The funding forms part of a broader strategy to upgrade production assets, replace less efficient lines and increase total production capacity to 10,000 tonnes per day.

Structured over nine years, including a two-year grace period followed by seven years of repayments, the SIDF financing provides long-term support for one of the company’s most significant capital projects in recent years. Qassim Cement said it will combine the SIDF financing with existing Sharia-compliant banking facilities to optimise its capital structure and minimise overall financing costs.

The project represents more than a simple capacity addition. It reflects a wider industry shift towards modern, energy-efficient manufacturing systems that can support rising domestic demand while reducing operating costs and environmental impact.

Qassim Cement bets on efficiency and capacity with new Buraydah production line.

A key milestone in that journey came with the award of a $298 million engineering, procurement and construction (EPC) contract to Chinese engineering specialist Sinoma International Engineering Company. The agreement covers the delivery of a new cement production line with a capacity of 10,000 tonnes per day and incorporates some of the latest technologies available in the global cement industry.

According to Qassim Cement, the project is expected to improve energy efficiency across the operation, creating long-term benefits through lower production costs once commercial operations begin. Construction is scheduled for completion within two years.

For the company, the new line also serves a strategic purpose by replacing older production assets that no longer deliver optimal performance.

“The project is designed to replace certain outdated, low-efficiency production lines with a modern, advanced line,” said Chief Executive Officer Eng. Omar Al Omar when announcing the EPC contract.

The executive described the investment as being closely aligned with Saudi Arabia’s goals of strengthening energy efficiency and advancing environmental sustainability across industrial sectors.

The expanded facility is expected to strengthen Qassim Cement’s ability to meet future market demand.

Beyond operational improvements, the expanded facility is expected to strengthen Qassim Cement’s ability to meet future market demand while making better use of existing plant infrastructure.

According to Al Omar, the project forms a critical part of the company’s sustainable growth strategy, helping maximise shareholder value, support domestic construction activity and broaden its product portfolio in line with the objectives of Vision 2030.

The production line expansion is being complemented by another significant initiative aimed at reducing the plant’s environmental footprint. Qassim Cement has also awarded Sinoma a $12 million EPC contract under Saudi Arabia’s Liquid Fuel Displacement Program (LDP).

The project will convert existing production lines from crude oil to natural gas, replacing liquid fuels in kiln operations. Scheduled for completion within 15 months, the conversion is expected to improve fuel efficiency, lower operating costs and support national efforts to optimise energy use across industrial facilities.

“The project is mainly aimed at replacing crude oil with natural gas in the operation of the current production lines’ kilns,” Al Omar noted, adding that the initiative supports Vision 2030 objectives related to fuel efficiency and environmental sustainability.

Together, the two projects signal a comprehensive modernisation programme rather than a standalone capacity expansion. By combining new production technology, greater output and cleaner fuel systems, Qassim Cement is seeking to future-proof its operations while strengthening its competitive position in a market increasingly focused on efficiency, sustainability and operational resilience.

As construction progresses, the Buraydah plant is set to become a showcase of how Saudi manufacturers are leveraging strategic financing, advanced engineering expertise and energy-transition initiatives to build the next generation of industrial production facilities in the Kingdom.