Sinoma inks LOI for new Turkish lines

Sinoma inks LOI for new Turkish lines
Published: 19 April 2010

China National Materials (Sinoma) announced that its subsidiary Sinoma International has entered a letter of intent for the engineering, procurement and construction of two 10,000tpd lines at the Medcem plant with Eren Holding, according to local press reports. The project will be located at the Akdere District of Silifke County near Mersin Port of Southern Turkey.

The transaction amount, under the letter of intent, is US780m including US$420m for one production line and US$360m for the other. The scope of work for the project includes design, equipment procurement and supply, civil works, installation and performance testing etc.

Sinoma International will enter into an engineering, procurement and construction contract (the EPC contract) with Eren subject to the market conditions and the satisfaction of the funds from Eren. Eren has not fully fulfilled its investment funds for the project, Eren is at the stage of financing for the project. Since no conclusion has been reached for the technical negotiations for the project, the final price will be subject to the EPC contract.