26 March 2008
Sharaf GroupSharaf Group recently signed an agreement with the Government of Fujairah to establish a new cement factory in Habhab in the Emirate of Fujairah at a total cost of AED One Billion. The contract was signed between Mr. Rashid Hamdan Abdullah, Director of the Municipality of Fujairah and Major General Sharafuddin Sharaf, Vice chairman of Sharaf GroupSharaf Group. The contract was signed in the presence of Managing Director of Sharaf GroupSharaf Group Mr. Yousuf Sharaf.

Mr. Rashid Hamdan Abdullah emphasized that the directives of His Highness Sheikh Hamad bin Mohammad Al-Sharqi, member of the Supreme Council and the Governor Fujairah focused on the need to abide strictly by all the factory conditions and environmental laws of the Federation of Environment Authority, and the laws of environment and safety for the sake of public health. He highlighted that the location of the new factory in Habhab is at a safe distance and away from the nearest housing complexes.

Mr. Sharafuddin Sharaf the vice-chairman of Sharaf GroupSharaf Group said "The new plant will be a fully integrated unit with a total cost of the new plant in its first phase reaches up to one billion AED, and shall produce 2 million tons of cement a year. The total area of the factory in the first phase would be about 350 thousand square meters, It is however expected to increase in the second phase, after adding new production lines, to an estimated 513 thousand square meters. After expansion the production capacity of the plant will reach about 4 million tons a year".

He added "As per the current trend the domestic clinker production in the next three years would be about 18.700 million tons but expected to increase to 27 million tons a year".

Mr. Yousuf Sharaf, Managing Director of Sharaf GroupSharaf Group said "this project would be a real boost to the local market especially as the demand is high and the supply from some Asian and Gulf countries are insufficient".

He added," we are currently talking to top international companies in the Clinker and Cement industry for the finalization of the design to be in line with the highest standards and latest technological procedures for such a large capacity plant. Moreover, the Group is also in discussions with key strategic investors who have a key interest in this project and in the cement segment in the region".

Furthermore he said, "The construction of the plant will take 27 months, and the actual production will begin only after that. As such the domestic market in the coming years will be in dire need of 32 million tons of cement each year, a fact that explains the importance of this industry and the venture. The project site in Habhab contains the raw material needed", called "Limestone" and its reserves are sufficient for the plant life ".

Sharaf GroupSharaf Group has been active in the cement production since over 20 years in the UAE.

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© Press Release 2008 from Momentum Seven