Arabian Cement Company said the project cost of setting up new cement mills at the Rabigh plant will fall by nearly 5 percent as it will impose a delay damage penalty.

The cement maker had awarded a 362 million Saudi riyal ($96.52 million) engineering, procurement, and construction (EPC) contract to China’s CNBM International Engineering Company for the project in April 2015.

The new cement mills at the Rabigh plant are 100 percent complete, the company said in a statement to the Saudi stock exchange on Wednesday.

Sinoma Overseas Development Co., a subsidiary of China National Building Materials & Equipment Import & Export (CBMIE), will carry out the rest of the project works in coordination with the original equipment manufacturer.

The project delay was due to discussions between CNBM and Sinoma on the remaining works, equipment operation plan, procurement plan and schedule, etc.

The startup operational tests have been completed with preparation for commercial operation, the statement added.

(Writing by D Madhura; Editing by Anoop Menon)


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