Akmenes Cement closing talks with banks for new line

Akmenes Cement closing talks with banks for new line
Published: 09 July 2010

Akmenes Cementas (Akmene Cement), Lithuania’s only cement manufacturer, aims to complete talks with banks on a more than LTL200m (EUR 57.97m) syndicated loan for the construction of a new production line and sign a contract with the leading Lithuania’s construction company Panevezio Statybos Trestas (PST) in the nearest time.

"We are several days behind the schedule, but we hope to sign the contract on Jul. 19-23," Richardas Sudaris, Akmenes Cementas’ representative, told BNS.

The company was now holding talks with banks, he said. A syndicated loan of LTL212m is being lead managed by SEB Bankas. Other banks, which will contribute to the loan in equal parts, include DnB Nord, Swedbank, Snoras and the Lithuanian branch of Danske Bank.

PST would carry out construction work worth approximately LTL150m, Sudaris said.

Akmenes Cementas launched an upgrade project worth some LTL330m in 2007. The upgrade involves shifting from wet to dry cement production technology. Investments into equipment totalled LTL141m and the remaining amount would be allocated for the construction of the line and installation work.

The upgrade is expected to boost the company’s output by one-fourth to up to 1.5Mta of cement.