BackgroundDuring the second half of the last century, Saudi Arabia underwent a major construction boom that is still ongoing. This transformation process involved all spheres of life, particularly such industries as construction, with projects involving the construction of infrastructure, roads, bridges, schools, hospitals, government buildings, and others.
This construction boom peaked in the mid-seventies of the 20th century as construction activities gathered pace, leading to the formation of major national companies and factories to produce cement and other construction materials to meet the needs of the nation’s far-reaching transformation.
EstablishmentPreviously, the materials and products used in cement packing, packaging, and storage were imported from outside the Kingdom. To bridge this vital gap in the local industry, support the transformation process, and meet the needs of the local market, three major companies joined forces to establish the first Saudi company specializing in the production of cement bags. These companies were Saudi Cement Company, Al- Yamama Cement Company, and Arabian Cement Company. In 1972, the trio established the Cement Products Industry.
Early DaysIn 1972, the company commenced its maiden production at its first factory, which was located at the beginning of Hira Street in Jeddah. At the same time, the company was working on building the most sophisticated factory in the industry. The factory was built in the 4th stage of the 1st industrial city in Jeddah.
The New FactoryThroughout its nearly 50 years in business, the Company has always strived to expand and transform its operations to keep pace with developments and meet the ever-growing demand on its products. In the year 2000, the Company moved its operations to the new factory in the industrial city in Jeddah. Expansion activities continued at the factory until the year 2001, which saw the construction of administrative buildings. By 2002, the production lines had been fully assembled and commissioned, raising our annual production capacity to more than 50 million bags.
TodayCement Products Industry is one of the leading companies in the production of Kraft paper bags in the GCC and Middle East regions, with a production capacity of up to 300 million bags per year. The following table illustrates the different stages of growth that the company’s production capacity experienced:
In 2018, the Company sold an old production line located at its factory in Riyadh.