Dubai, Sep. 16, 2005 (WAM) -- Belgium's Besix Group will constructEmirates Cement Company's plant, office and associated facilities in Fujairah,a top official said. Egypt's Orascom obtained a 50 per cent stake in thecontracting company in 2003.

Johan Beerlandt, Besix's chairman, told +Gulf News+ on Wednesday, "Aspart of Orascom, which has partnered with Dubai Holding to build EmiratesCement Company (ECC), we will handle the construction of the project."Besix, which recently introduced a new indentity and logo as part of acorporate restructuring that saw horizontal integration of a dozen subsidiaries,is also tipped to win a major contract to build a 300-metre tower in theBurj Dubai distsrict. The award may be announced later this month.

Besix is part of the consortium along with Samsung and Arabtec that isbuilding Burj Dubai, the world's tallest tower.

Beerlandt said, "The UAE and the Gulf is one of our largest markets outsideBelgium and represents more than 25 per cent of our global annual turnoverand our business in this region represents about 50 per cent of our globaloutput.

"Our current order book in the UAE and Qatar is more than Dh3.5 billionand annual turnover exceeds Dh1.5 billion per annum.

"The UAE has strong growth potential and we see major opportunities here.

We are bidding for major projects as the market opens for new investmentsin the country."The company's 6,000 workforce is engaged in 23 projects in the UAE atpresent.

Besix has been a major player in the UAE's construction business for morethan 40 years, handling major infrastructure projects such as ports, harbours,roads, power and desalination plants as well as large real estate projects.

The company completed Emirates Towers, Abu Dhabi's Emirates Palace Hoteland is currently finishing Abu Dhabi's Dh1.5 billion Grand Mosque.

"We are completing the Dh150 million Al Sufouh interchange which willgive clear access to the Palm Jumeirah Island, as well as Dubai Pearl.

Besides, we are completing the access bridge project for the Palm Island,constructed at a cost of Dh100 million with handover scheduled for December2005," he said.

"We have recently put the Dh300 million Ajman sewage project back on trackby underwriting Dh55 million in financial exposure. The concession isfor 27 years, including two years for construction."Beerlandt said inflationary pressures caused by high oil prices will befelt by the region's construction industry in the coming years.

"Due to the high oil prices, all oil related products as well as activitiesrelated to oil and gasoline are expected to go up. Historically, contractorsbid for projects on a lump-sum basis and on a fixed-price contract.

"Therefore, most contractors will suffer in case there is a hike in buildingmaterial prices. Besides, due to an increase in gasoline prices, transportationcosts for materials are expected to go up drastically.

"All these factors are going to put inflationary pressures on the constructionindustry, and smaller players will be the most severely affected.

"We have an early procurement programme that helps us to absorb pressuresto a certain extent. But most small players will suffer badly, and somemight go out of business," he said.