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‎Tasnee CEO says shipping, distribution costs skyrocket by over 200%

Source
Argaam - Main News
Source link
https://www.argaam.com/en/article/articledetail/id/1927499
Published
2026-08-09 19:40:00
Discovered by ProcIntel
2026-08-09 18:05:52
Category
GCC Spotlight
Geography
Saudi Arabia
Organisations
—
Review status
Pending
Record type
REAL

Summary

‎<p><img src="https://argaamplus.s3.amazonaws.com/d6feed47-af1f-4bb2-a0d9-4a4fc362cf89.png" ></p> <p class="ckeCaption" >Fawaz Al Fawaz, CEO of National Industrialization Co. (Tasnee)</p> <hr> <p ><a href="https://www.argaam.com/en/tadawul/tasi/tasnee/organizationemployhistory/fawaz-mohammed-fawaz-alfawaz/558" target="_blank">Fawaz Al Fawaz</a>, CEO of National Industrialization Co. (<a href="https://www.argaam.com/en/tadawul/tasi/tasnee" target="_blank">Tasnee</a>), said that shipping and distribution costs skyrocketed by more than 200% during the previous period, amid supply chain disruptions.</p> <p ></p> <p >Speaking to CNBC Arabia, he noted that shipping costs rose from around $50 to more than $250 in some destinations.</p> <p ></p> <p >Tasnee, per Al Fawaz, underwent scheduled periodic maintenance at the end of Q1 2026 and at the beginning of Q2, coinciding with the regional geopolitical tensions and supply chain disruptions.</p> <p ></p> <p >These circumstances played a significant role in the company's latest financial results, paired with increases in certain prices and production inputs, said the top executive.</p> <p ></p> <p >He stressed that the liquid materials segment was affected by shipping costs by more than 60% during the past period.</p> <p ></p> <p >Al Fawaz added that Tasnee is working to restore all plants to their production levels within two months.</p> <p ></p> <p >Moreover, the company’s cash flows were also hit. Tasnee is currently working to restructure some of its existing loans. It has SAR 5.3 billion in total debt, including SAR 1.1 billion in financing from the Saudi Industrial Development Fund (SIDF) and SAR 4.9 billion from commercial banks.</p> <p ></p> <p >Meanwhile, total consolidated loans of the company and its subsidiaries amounted to SAR 8.1 billion, including SAR 1.7 billion from SIDF and SAR 6.3 billion from commercial banks. The loans remain at reasonable levels, according to Al Fawaz.</p> <p ></p> <p >He pointed out that the domestic market accounts for approximately 13% to 15% of the company's products.</p> <p ></p> <p >According to <span ><strong>Argaam</strong></span>’s data, Tasnee turned to a net loss of SAR 889.1 million in <a href="https://www.argaam.com/en/financial-reports/company-report/72/2026/71" target="_blank">H1 2026</a>, versus a net profit of SAR 830 million recorded during the same period in 2025. The Q2 losses reached SAR 547.8 million.</p>

Procurement Relevance Gate

PASS — score 22.8/100 — evaluated 2026-08-09 18:05:52
Passed on: logistics_freight_transport, geographic_exposure (score 22.8/100, threshold 20.0).
  • logistics_freight_transport (weight 12) — matched on "shipping"
  • geographic_exposure (weight 8) — matched on "1 linked geography"

Initial Signal Assessment ProcIntel's automatic, provisional read of this individual Signal -- Initial Significance and Initial Confidence, computed deterministically before any Event extraction or human review.

A provisional, automatically-computed reading of this individual Signal, before Event extraction or human review. Not a final rating.

Initial Significance
1 · Low (14.0/100)
Initial Confidence
2 · Low (31.5/100)
Data sufficiency Whether enough structured evidence exists to trust this Signal's Initial Confidence reading. 'Sufficient' has no cap; 'Partial' and 'Insufficient' cap Confidence until more evidence is available; 'Not Assessed' means the Signal did not pass the Relevance Gate.
Partial
Strongest contributor
Procurement Impact
Limiting factor
Geographic Breadth

Initial Significance Low (14.0/100). Strongest contributor: Procurement Impact (6.0/30 points). Limiting factor: Geographic Breadth (0.0/10 points). Initial Confidence Low (31.5/100, data sufficiency: Partial). Strongest contributor: Source Authority (20.0/40 points). Limiting factor: Corroboration (2.5/25 points).

  • No likely Event type matched; a low contextual baseline was applied.
  • No eligible (non-geographic, non-fictional) entities were linked to this Signal.
  • no matched Event type
  • no actor entities (only attribution/metadata, if any)
  • no actor content-derived geography
  • single source only
  • Only source-level entity metadata was available.
  • Only source-level geography metadata was available.
  • Source metadata did not contribute to Initial Confidence.

Methodology signal_scoring_v1 — calculated 2026-08-09 18:05:52.