Arabian Cement to Impose Delay Penalty on Chinese Contractor for Project at Rabigh Plant
Arabian Cement Company announces a nearly 5% project cost reduction at its Rabigh plant due to a delay penalty imposed on China’s CNBM International Engineering Company.
Arabian Cement Company, listed in Saudi Arabia, has declared that it will impose a delay damage penalty on China’s CNBM International Engineering Company, leading to a nearly 5 percent reduction in the project cost for new cement mills at its Rabigh plant. The engineering, procurement, and construction (EPC) contract, valued at 362 million Saudi riyals ($96.52 million), was awarded to CNBM in April 2015. The project has reached 100 percent completion, with Sinoma Overseas Development Co., a subsidiary of China National Building Materials & Equipment Import & Export (CBMIE), set to carry out the remaining works in coordination with the original equipment manufacturer.
The delay in project completion stemmed from discussions between CNBM and Sinoma regarding the remaining works, equipment operation plan, procurement plan, and schedule. However, startup operational tests have been successfully completed, with preparations underway for commercial operation. This move by Arabian Cement reflects its commitment to timely project execution and cost efficiency, ensuring the company's competitive edge in the cement industry.
Source: Zawya
