The Austrian-based contractor Strabag is deepening its involvement in the production of building materials and is in negotiations with the local authorities to purchase a 20 hectare site at Anina in the Caras-Severin region of Romania to build a cement plant.
The total cost is said to be in the region of EUR250m, of which the land element is believed to represent about Ä20m. If the deal goes ahead, it is likely to provide employment some 300 people and give Romania a fourth cement producer alongside Lafarge, HeidelbergCement and Holcim.
This would be the second Strabag cement works, as the company has already started work on 0.85Mta cement works at Kiralyeghahza in south-western Hungary, which should go into production in 2010.
Strabag has recently agreed to purchase Cemex’ activities in Austria and in Hungary for EUR310m. The Austrian group is also believed to still be in negotiations with the Russian cement producer Basic Element, to set up a joint venture to cover the cement operations of the two groups, negotiations that have been going on for at least a year.