Beirut (APD) - Bin Harmal Group signed an AED 250 million deal with Germany-based Cemag Group to construct a cement factory at a preliminary production capacity of 2,000 tons/day (tpd), the Abu-Dhabi-based daily, al Ittihad reported Thursday.
Saeed Sultan Bin Harmal Al Dhaheri and Nayel Rashed Saif Al Shamsi, founders of the Bin Harmal Group and representatives from Cemag signed the agreement this week. Cemag had it already established many cement factories in Abu Dhabi, Ras el Khaimah and Dubai.
The group stated that production capacity will increase to 4,000 tpd and construction works for the 30 hectares factory will be completed at year end 2006.
The establishment of many cement factories in the UAE and the gulf region in general, is due to increasing demand on building materials which are necessary for the construction of real estate projects and the land developments that the region is witnessing.
Despite being the fourth-largest cement producer in the region, the UAE was the second largest importer in the region after Saudi Arabia. However, most of its imports were in clinker form, which were then processed into cement using local grinding facilities.
The GCC cement demand is projected to grow at an annual rate of 9.5% during 2005-2008, the highest in the MENA region.
Cemag Group works in the design, construction, engineering and development of the cement industry. It has subsidiaries in Iran, Pakistan, Vietnam and Libya.
Cemag was responsible for the modernization, up-grading and development of kilns and cement grinding plants in these UAE plants: Arabian Cement Industry, Fujairah Cement, Gulf Cement Company and National Cement Company. [FC]
By Nadim Issa, APD Staff Writer in Beirut
© APD (Arab Press Digest) 2005
