OCI has formed a new subsidiary in Algeria which has signed an EPC contract to construct a greenfield white cement plant capable of producing 550,000 tons per year
Cairo, Egypt - Orascom Construction Industries (OCI) announced that it has established a new subsidiary in Algeria under the name of Ciment Blanc d'Algerie (CBA) which has signed an engineering, procurement & construction (EPC) contract valued at US$ 138 million with an F.L.Smidth (FLS) / OCI Algeria consortium to construct a greenfield white cement plant with an annual production capacity of 550,000 tons. CBA has already purchased the land chosen for the plant site which is strategically located 45 km south of Arzew Harbor, 60 km east of Oran Harbor and 70 km southwest of the Mostaganem Harbor. The site is also 380 km west of the capital city Algiers. The total investment cost for the project is estimated to be US$ 172.4 million which will be financed through a 60:40 debt-to-equity structure. Project debt is expected to be provided through a syndication that includes international banks and leading local Algerian banks. Construction is scheduled to take approximately 21 months.
CBA intends to cater to Algeria's white cement needs which continue to be entirely met by imports from various sources. Total consumption of white cement in Algeria reached 0.3 million tons during 2004. In addition to the solid domestic growth prospects in consumption, the proximity of the plant site to three major Algerian ports and the national railway network provides strong potential for exports as well. OCI Chief Executive Officer, Nassef Sawiris commented "our investment in white cement capacity in Algeria serves to diversify our range of products in the Algerian market and further bolsters our export capabilities from North Africa to select markets in Africa, southern Europe and the USA."
Algerian Cement Company (ACC), a wholly owned subsidiary of OCI, is the largest cement producer in Algeria with an annual production capacity of 5 million tons. An FLS / OCI consortium was responsible for the construction of both production lines at ACC with the second production line completed in a world record time of 18 months in June 2005.
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Orascom Construction Industries
Orascom Construction Industries (OCI) is a leading cement producer and construction contractor active in emerging markets. As a cement producer, we own and operate cement plants in Egypt , Algeria and Turkey which have a combined annual production capacity of 14 million tons. Our new investments in Pakistan, northern Iraq, Nigeria, Algeria, the United Arab Emirates, Egypt and Spain will increase our annual production capacity to 30 million tons by 2007. As a contractor, we provide engineering procurement and construction services on industrial, commercial and infrastructure projects for private and public customers principally in the Middle East, Africa and Central Asia. For additional information on OCI: www.orascomci.com
For more information please contact:
Hassan H. Badrawi
Investor Relations Director
Tel: +202 461 1039/1036
Email: hassan.badrawi@orascomci.com
Orascom Construction Industries (OCI)
Nile City Towers - South Tower
2005A Corniche El Nil, Cairo, Egypt
Tel: +202 461 1111, Fax: +202 461 9400
OCI stock symbols: OCIC.CA / ORCI EY / OCICqL / ORSD LI
© Press Release 2006
