Monday, July 12, 2010

Aresco to Build $130 Million Cement Plant in Egypt

By Mahmoud Kassem

July 11 (Bloomberg) -- Asec for Manufacturing and Industrial Projects, a unit of Asec Holding, said it has signed a $130 million contract to build a cement plant for Building Materials Industry Company in southern Egypt.

Asec for Manufacturing, also known as Aresco, will provide all the civil, electrical and mechanical works for the 1.5 million-ton-a-year facility in the governorate of Assiut, the company said in an e-mailed statement today. Aresco, in which Citadel Capital Corp. has a 49 percent stake, will also provide steel fabrication services and will test and commission the plant, it said.

“The integration of Aresco’s in-house design and manufacturing capabilities -- which include its own workshops and fleet of cranes -- have made the company a strong competitor in both the cement and industrial sectors,” Tarek Salah, a managing director at Citadel Capital, said in the statement.

Egypt wants to increase cement output by 54 percent to 77 million tons by 2015, Amr Assal, the head of the country’s Industrial Development Authority, said in December. Cement production may increase to 60 million tons in 2011 from the current level of 50 million tons, he said.

Shares of Citadel Capital advanced 0.6 percent to 6.35 Egyptian pounds at 11:26 a.m., valuing the company at 4.2 billion pounds ($737.3 million). Citadel Capital is the biggest publicly traded private equity firm in Egypt, with more than $8.3 billion in investments.