Riyadh- Mubasher: Saudi Vitrified Clay Pipes’ board decided to partially stop a number of furnaces in its Riyadh facility due to lower demand on the company’s products at present as a result of work stoppage in sanitary projects since the beginning of 2016.
The company aims to cut operating costs, it said in a bourse filing on Sunday, adding that the stoppage will take place by the beginning of August, while reoperation will be after the reactivation of infrastructure projects.
Total production capacity of 200,000 tonnes annually will decrease 15%-20%. The financial impact will appear by the third quarter of 2016, Vitrified Clay Pipes stated.
