Sulja Bros. Building Supplies, Ltd (SLJB)

[PinkZombie]

Cement deal was huge. Maybe too huge Peter. SLJB PRd a contract to sell 8.4 million tonnes per year, 25 milion tonnes in 3 years.

11 Dubai cement companies combined sold 10.7 metric tonnes in 2003. Way to go Petey! You alone signed a contract for almost as much as 11 local plants did combined. SLJB is HUGE!!!

http://www.menafn.com/qn_news_story_s.asp?StoryId=70336

DUBAI - The 11 cement companies in the UAE sold about 10.7mt of cement in 2003 for an estimated total sales of Dh1.75 billion. The industry employs about



Khaleej Times - 23/11/2004 [-] Text [+]





DUBAI - The 11 cement companies in the UAE sold about 10.7mt of cement in 2003 for an estimated total sales of Dh1.75 billion. The industry employs about 3000 workers and has an estimated investment of around Dh1.8 billion, according to a study by Global Investment House.


Cement manufacturing was one of the first modern manufacturing activities to commence in the UAE. The first factory was established in Ras Al Khaimah in 1975, but by the beginning of the eighties there was a cement factory in each of the seven Emirates.

Ras Al Khaimah has, over the years, emerged as the foremost centre for cement production in the UAE. It is not only a leading producer in the country, but in the entire AGCC region.

According to AUCB (Arab Union For Cement and Building Materials), there are currently 12 cement factories in the country � 11 for portland cement and one for white cement. Out of these, six are listed companies. The country has till the last year been a net exporter of cement products. Demand spurt in recent months has, however, changed the scenario.

The total capacity for producing portland cement is more than 10mtpy. The white cement capacity is about 0.45mtpy. All the major companies have integrated plants, producing clinker as well. The domestic clinker production was about 72 per cent of the cement production in 2003; the balance clinker had been imported. Thus, there is room for expansion of the clinker capacities in the UAE. Ras Al Khaimah accounts for half of the cement and clinker production of the country, with only 40 per cent of the country's production capacity. Production is taking place at almost full capacity. It is also a a significant exporter. However a spurt in domestic demand has seen lesser and lesser exports in recent months.

The small amounts of imports of cement products, which do take place, are largely meant for re-exports and are confined to special products like white cement, hydraulic cements, aluminous cements, etc.

According to the report by Global Investment House, Cement exports were estimated at over 10 per cent of the total cement sales in 2003. Ras Al Khaimah is the key exporter of cement. It accounts for almost 90 per cent of the cement exports of the country.

Export destinations are mostly in the AGCC region. Within the AGCC, Bahrain and Oman are leading importers. The other countries importing cement from the UAE are Sudan, Somalia, Ethiopia, Pakistan and Yemen, which mostly import white cement and salt resistant cement.

Exports showed a declining trend in the nineties, possibly because of increased production in the destination countries. They have further tapered off in the last year, due to high domestic demand.

The UAE is also an exporter of limestone, which is abundantly available in the country, mostly in Ras Al Khaimah. Consequently, most cement factories in the country are also engaged in the production of the intermediate cement feed, clinker. However, the UAE cement industry produced only two-thirds of the required clinker; the rest of the requirement was met through imports in 2003.

The prices of cement have gradually risen from the lows of 2000, on the back of firm domestic demand, following a spurt in domestic construction activity over the last 2-3 years, especially in the Emirate of Dubai, they were reportedly ruling at Dh280 per tonne.

The construction activity is expected to sustain cement demand in the months to come.

The study projects a cement demand CAGR (compounded annual growth rate) of eight per cent in the UAE during 2003-06.