Saudi Arabia's Yamama Cement Company has signed a SR4.2 billion ($1.12 billion) contract with Germany's ThyssenKrupp Industrial Solutions to build a new cement plant, the company said in a statement on Wednesday.

The new plant will be built over 39 months 100 km outside of Riyadh, with daily production capacity of 20,000 tonnes of clinker, or nodules ground to make cement, Saudi state news agency SPA reported from the signing ceremony.

The source of funding and start date of the project will be announced later, the company said.

Yamama Cement currently produces six million tonnes of clinker and 6.3 million tonnes of cement, according to Reuters data. - Reuters