Saudi Arabia Najran cement production line project is the first 6,000 tons per day cement production line engineering general contract won by China National Building Material Group in Saudi Arabia, won the bid in November 2004, the total contract value of 150 million U.S. dollars. The scope of the contract includes the whole process from raw material crushing to cement packing and transportation. The project adopts the latest cement production technology, and the implementation and management of the project is organized by CNBM, and the whole project is constructed in accordance with the internationally accepted EPC mode.
On November 20, 2004, Sinoma International signed a general contract for the construction of AL MAJAR-DAH cement production line with SPCC Company of the Kingdom of Saudi Arabia, with a total value of 2 billion RMB. The scope of the contract includes the whole process from raw material crushing to cement packing and transportation. The project adopts Sinoma International's technology and Sinoma International organizes the implementation and management of the project, and the whole project is constructed in accordance with the internationally accepted EPC mode. This project is the largest general contracting project in the building materials industry in the Middle East, and it is a major breakthrough for China to develop the cement engineering construction market in the Middle East.
On March 23, 2005, the signing ceremony of Sinoma International Saudi Arabia RCC project was held in Intercontinental Hotel in Riyadh, the capital of Saudi Arabia. The project is a cement clinker production line with a daily capacity of 5,000 tons, and the contract amount is 170 million U.S. dollars. This production line is entirely undertaken by Sinoma International from drawing design to equipment supply, installation, commissioning and civil construction of the plant, which is one of the larger EPC projects built by China in the Middle East.
On May 9, 2005, Sinoma International received the notification of award from City Cement Company (CCC) of the Kingdom of Saudi Arabia for the project of 5000 tons per day cement production line, with a total contract value of 200 million U.S. dollars, and the contract was signed in Saudi Arabia in July, with an investment of 165 million U.S. dollars in the production line, and the contract execution period is 23 months. More than 70 percent of the production line will use domestic equipment.
4. Market Forecast
The average annual growth rate of Saudi Arabia's population is 5.3%, which is the high growth rate in the world. It is expected that the investment in the construction industry in Saudi Arabia will continue to grow in the next 20 years, which will provide a good opportunity for the development of the cement industry. In the next few years, Saudi Arabia's domestic cement market demand is huge, and the export market also has a huge space for development. Increasingly expanding the scale of cement production, to 2008 all production lines completed and set up production, is expected to design production capacity of more than 6 million tons of domestic demand, in order to meet the annual growth rate of about 9.5% of domestic demand for domestic consumers, there will be a key moment in the search for foreign markets, moment, the export market has a lot of space to develop. And its export market development space is also huge. Even in recent years by the steady increase in the annual production of Saudi cement and export volume of the phenomenon of a continuous sharp decline can be reflected in recent years, the domestic market for cement in Saudi Arabia has a lot of space for demand. And the development of its export market is also huge. Even if the completion and commissioning of existing and new cement plants in the coming years lead to a significant increase in cement output, the pressure can be eased by exploring new export markets such as Iraq and Jordan, and the demand in the domestic market is also increasing. Intense competition in the cement industry has contributed to the growing sophistication of the full system of market operation. The rapid prosperity of the cement industry, with the expansion of existing cement companies and the completion of new cement companies, the Saudi cement industry will become increasingly competitive, which is conducive to the formation of a standardized market mechanism and a sound operating system.
5, Note
Saudi Arabia is currently China's largest overseas market for cement engineering contracting, and is one of the main destinations for China's export of complete sets of cement holding equipment. Saudi Arabia before 2010 plans to build 27 new projects, cement production capacity of 45 million tons, attracting global engineering contractors and cement equipment manufacturers, but due to the general contracting of cement production line construction projects is a systematic project includes a series of work from the design, civil engineering, equipment manufacturing, shipping, installation, training, commissioning, standardization, assessment, etc.; and the export project is facing a series of risk factors in international trade such as negotiation, technology, foreign exchange and so on. Foreign exchange and a series of risk factors in international trade, therefore, China's cement project in Saudi Arabia to do some issues should be noted:
-Saudi Arabia cement project is a turnkey project, therefore, the best form of export project organization is to have the qualification of general contracting for foreign projects of international engineering companies, Foreign trade companies or design institutes as a leader, the organization of the domestic cement technology and equipment exports.
--Avoid vicious competition, so that many foreign project investment is pressed down for no reason. Therefore, should be firmly stifled to kill each other's habitual competitive behavior, to safeguard national interests. Externally can be a few companies to step in, but internally coordinated, with a view to getting the best price for foreign projects. It is recommended to strengthen communication and collaboration, and in order to do a good job from the brand building, market segmentation, strong alliances and policy support in four areas.
-Some key equipment plus vertical mill, electrical, automation and other equipment, Saudi Arabia, the owner of more requirements for the use of Europe, the United States and other countries imported equipment, therefore, the general contracting costs should be considered accordingly, this part of the price of re-exported equipment increases.
-High environmental requirements. Saudi Arabia cement projects in the dust emissions, noise pollution and other requirements are very high, such as dust emissions requirements are in accordance with European emission standards below 30mg/Nm3, and some projects are even required to 5mg/Nm3.
--Project acceptance and warranty conditions are harsh. Some cement projects in Saudi Arabia have warranty payments of up to five years.
--Cement equipment manufacturers should pay attention to improve product quality to improve equipment life and reliability, to lay a good foundation for China's cement equipment exports.
--Strengthen and do a good job on-site construction organization and management. Project site management is a test of the experience and strength of the general contracting company. Through good on-site construction organization and management, you can make the project to shorten the construction period, the project was completed successfully up to standard, so as to achieve the purpose of reducing costs and increasing efficiency.
In addition, it is also necessary to pay attention to the national financial export credit support. Enterprises contracted large foreign cement sets of projects, there is no national financial credit support, funding difficulties will be quite large.