Yamamah Cement Environmental Scanning

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Yamamah Cement Company External Environmental Scanning

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* Table of Contents:
Table of Contents:3
1.Objectives4
2.Company Overview4
3.KSA cement industry4
4.Compotator4
5.2009 summary5
6.Outlook summary6
7.Yamamah Cement and the environment6
8.External Factor Analysis Summary (EFAS)7
9.internal environmental scanning7
10.Internal Factor Analysis Summary (IFAS)8
11.Appendix9

Objectives
Will cover in this study on Yamamah Cement Company External Environmental Scanning Exercise and an Internal Environment Scanning Exercise to Build EFAS, IFAS & SFAS

Company Overview

Established in 1961, Yamamah Saudi Cement Company (YACCO) is one of the oldest cement manufacturers in the Kingdom of Saudi Arabia. With an installed cement production capacity of 6.3 MTPA, the company operates in the central region of the Kingdom, and was the second-largest company in Saudi Arabia in cement production and the third-largest in clinker production as of 2009. YACCO doubled its capacity to 6 million tones per annum (mtpa) of clinker capacity in 2007. YACCO commanded 14% share in the local cement market in 2009 and mostly serves the cement demand in Riyadh, a market in close proximity to its current location.

KSA cement industry

The Kingdom of Saudi Arabia (KSA) has 12 cement companies with an estimated annual cement production capacity of 48 million tons of cement. For 2009, total cement sales volumes were 37.9 million tons, up 16% versus the 32.7 million tons in 2008. From this, total export volumes in 2009 came to 1.2 million tons (3.4% of total sales volumes). Exports constituted 11.5% of total cement sales volumes in 2007, the last export ban free year. Additionally, clinker sales and exports stood at 487,000 tons in 2009 against 161,000 tons in 2008. In 2009, cement companies produced 38.8 million tons of clinker, up 9.9% versus the 35.3 million tons in 2008. 37.8 million tons of cement was produced in 2009, up 14.7% from 32.9 million tons in 2008. From the listed cement companies results, the average price per ton of cement in 2009 was SR235, down 7% from SR253 in 2008.

Saudi Arabia has become one of the fastest expanding economies in the region with a real economic growth rate of 5% over the last five years compared with an average rate of 1.4% in the previous decade. The government is in an enviable position of being able to invest its high oil revenues in infrastructure. As a result, the demand for cement has been continuously increasing over the past years. Saudi Cement Co., Yamama Cement Co. and Southern Cement are at the top in terms of market capitalization in the Saudi Cement Sector. Private Non-oil Sector contribution to GDP has increased over the past decade, but oil and oil derivatives still account for 90-95% of Saudi earnings, As a result, the Saudi economy has witnessed an unprecedented rise in infrastructure activities in the past few years. This has created a huge demand for cement in the Kingdom. The rising population of the youth.

Compotator

Yanbu Cement Co. has dominated the Saudi Cement Sector in terms of sales activities. The company, which had a market share of just 14% in 2008 held a 17% share in the Kingdom, in 2009. Yamama Cement and Southern Province Cement Co. held a 16% market share each, out of the total cement sales in the Kingdom, in that year. It should be noted that the top 4 companies – Yanbu, Yamama, Southern and Saudi – together had a share of more than 64% in the local (i.e. country-wide) cement sales in 2009. Much of the cement demand in Saudi originates from the central, eastern, and western regions, while the southern and the northern regions account for a lesser share of the total demand. This is also reflected in the present spread of production capacities in the country. In 2009, the central region, in which Yamama Cement and Qassim Cement...
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