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| OCI buys 50% of North Korean cement company  Egyptian cement maker Orascom Construction Industries ("OCI") has announced that it has signed an agreement with the state-owned Pyongyang Myongdang Trading Corporation to acquire a 50% stake in Sangwon Cement which owns and operates the cement plant nearest to Pyongyang, the capital city of the Democratic People's Republic of Korea ("DPRK"). The plant, which is originally supplied by German equipment supplier KHD, has two dry-process production lines with a combined design-based nominal capacity of 2.5 million tonnes per year.OCI will acquire 50% of Sangwon Cement for a total value of US$ 115 million. The acquisition will take the form of a capital increase from which the proceeds will be used to modernize, rehabilitate and upgrade the plant capacity to reach 3 million tonnes per year. The proceeds will also be used to invest in ready-mix concrete and distribution activities. In addition to the Sangwon cement plant, the agreement also includes mining operations related to the cement production including limestone quarries, a coal mine and a gypsum quarry. It also includes a dedicated hydroelectric power station near the plant. The plant also has its own railway connection to the national railway grid which connects the plant to the Port of Nampo thus allowing for exports. Technical proposals for the rehabilitation and upgrade of the Sangwon cement plant are currently being prepared by F.L.Smidth, Polysius and KHD, all global leaders in the field of cement plant equipment technology. With surveys of the plant already completed, a decision on the award is imminent and should be finalized during the third quarter. Work on the plant is expected to begin soon after. write your comments about the article :: © 2007 Construction News :: home page |