Saudi Readymix Acquires New Quarry in Al Nu'airiyah

This addition to the company's portfolio brings the number of quarries operated by Saudi Readymix to three, a significant number for the Kingdom of Saudi Arabia. The move is aimed at further strengthening Saudi Readymix's position as a market leader and follows a record production year, which saw the company produce 3 million cubic meters of concrete in 2006. Saudi Readymix already owns and operates two other quarries in the Abu Hadriyah and Al-Summan areas.

With a production target of 4 million cubic meters for 2007, and in anticipation of the mega projects planned in KSA's Eastern Province such as the Jubail 2 Expansion, SAGIA's Ras Al-Zour and Saudi Aramco's Manifa projects, acquiring a new quarry represents a crucial step in the company's five-year expansion plan and will stand it in good stead to deal with the construction boom.

Commenting on the acquisition, Rami Alturki, President of Saudi Reaymix, stated:

"In addition to ensuring a steady supply of raw materials for operations, owning our own quarries allows us to impose and maintain our stringent quality control policy over our entire supply chain. Hence, we plan to commission yet another quarry in the Western Province in the near future to supply our network of plants there, and are also looking to acquire more quarries in various other regions in Saudi."

Al-Nu'airiyah quarry adds an estimated reserve of 5 to 7 million cubic meters of aggregates, with an average daily production rate of 2,500-3,000 cubic meters. These figures will bolster the 10 million cubic meter reserve in Saudi Readymix's Al-Summan quarry which was commissioned last year. The combined daily production rate for the three quarries is expected to be around 4,000 to 5,000 cubic meters of aggregates in all sizes.

"Mega projects valued at more than SR 1.2 trillion ($320 billion) have been launched in the Kingdom," concluded Alturki. "We anticipate that due to the size and tight scheduling of these projects, there will be a tremendous strain on most raw materials, especially aggregates. Consequently, contractors working on these projects will be more demanding than usual in terms of reliability of supply and quality of service. Our goal is to provide our customers a turnkey "peace of mind" experience and assure them reliable uninterrupted delivery."