Saudi Cement has announced that it has completed a project to upgrade kilns 4 and 5 at its Hofuf factory.

The firm appointed Chinese contractor M/S Sinoma Technology & Equipment Group on the $19.9mn project in May last year, and work was initially due for completion by the end of 2014.

However, the drop in demand in the market over the past six months has meant that although work has now complete, it has decided not to open them for the time being.

It pointed to the fact that Saudi cement firms have a record clinker inventory of 19.8mn tons. In light of this, and that fact that its own sales are around 14% lower than last year, it said the "feasibility of operating these two kilns shall be reconsidered whenever market conditions warrant that".

The capital cost of the project will be written off over a ten-year period, it added.