French cement maker Vicat and Kazakh group Kazkommerts Invest will build a cement plant in the Central Asian state at an estimated cost of US$230m, Kazkommerts Invest said on Thursday. Vicat has a 60 per cent stake in the project, while Kazkommerts Invest (KKI) owns the rest.
"The shareholders have invested US$60m, and the remaining US$170mwill come from a syndicated loan," KKI Chief Financial Officer Murat Temirkhanov told Reuters.
He said the companies were in talks with the International Finance Corporation, the World Bank’s private sector arm, over arranging the loan. The plant, due to be built by 2010, will have an annual capacity of 1.1Mtof cement. China’s Triumph Engineering International will carry out construction work, Temirkhanov said.
Kazakhstan’s highly leveraged construction sector was hit hard by the global liquidity squeeze, but analysts see a quick recovery due to persistent demand.
The Company proposes to utilise the net proceeds of the Issue to finance its plan for investment in capital equipment on a recurring basis, fund long term working capital requirements and for general corporate purposes. It intends to bid for road related infrastructure projects - leveraging and building the specialization and prequalification and thereby participating in more states and regions and gaining access to more complex projects. It will leverage its strength in road construction to bid for projects on BOOT and BOT basis which will enhance the core competence of the company.
Niraj is catering to road projects and has capability to execute various road construction projects. Its major clients include New Mangalore Port Trust, Orissa Work Govt. Dept, Indore Development Authority, Jaipur Development Authority and Kidco. Its present areas of operations are road construction and other infrastructure related works including providing EPC services.
He called for diversifying cement production, the report added.