Orascom acquires stake in Algeria’s Samba

Orascom acquires stake in Algeria’s Samba
Published: 17 May 2007

Orascom Construction Industries announced that it has acquired a 60% stake in Samba SPA, the largest aggregates producer in Algeria, for a total sum of US$8 million. Samba owns and operates a crushed stone quarry which is located in Blida, only 40km from the capital Algiers.

Samba controls a total of 60 million tonnes of crushed stone reserves and has a quarrying capacity of approximately 1Mt of aggregates per year. OCI intends to increase the production capacity of their existing plant and equipment up to 5000tpd which will double their annual output to 2 million tonnes of aggregates per year through additional investments.

OCI Chief Executive Officer Nassef Sawiris commented: "The acquisition of Samba solidifies our presence as an integrated manufacturer in Algeria. OCI will continue to build up its aggregates and ready-mix operations in core markets in order to enhance the distribution reach for its cement products and to compliment the development of the construction markets in high growth emerging markets which are increasingly demanding ready-mix concrete."

OCI currently produces and distributes aggregates and ready-mixed concrete primarily in Spain, Egypt and Algeria.

OCI has a 50 per cent stake in Grupo GLA (GLA), the largest independent aggregates and ready-mix concrete producer in Spain. GLA has aggregates and ready-mix concrete operations throughout Spain with market leading positions in Madrid and Valencia. GLA has an annual quarrying capacity of 5Mt of aggregates with more than 240Mt of reserves spread over 11 quarries. GLA has an annual production capacity of 3.5Mm3 of ready-mix concrete and is currently constructing a grinding plant south

of Madrid capable of producing 600,000t of cement annually.

GLA also owns 59 per cent of Cementos La Parrilla (CLP) which operates a grinding plant capable producing 1.2Mt of cement annually located near the city of Valladolid, northwest of the capital city Madrid. Together, GLA and CLP will have 1.8Mt of cement grinding capacity located both north and south of Madrid.

OCI Aggregates & Ready-mix Operations

Ready-mix Egypt (RME) is one of the largest aggregates and ready-mix companies in Egypt. During 2006, RME sold 0.5Mm3of concrete and 0.5Mt of aggregates. RME operates 3 sand and gravel quarries and also operates 9 mobile batch plants and 41 concrete truck mixers.

Ready-mix Algeria (RMA) is one of the largest aggregates and ready-mix companies in Algeria. RMA works closely with the sales team at Algerian Cement Company, an OCI subsidiary, to provide customers with high quality and timely ready-mix products. During 2006, RMA acquired rights to operate 5 aggregates quarries with ample reserves and also purchased 30 concrete truck

mixers, 6 mobile pumps, 4 concrete tracing booms, 2 stationary pumps and 8 batch plants.

In October 2006, the BESIX Group announced the acquisition of Socogetra which has 60 years of experience in the road construction industry and is a producer of aggregates, ready-mix concrete and asphalt. Socogetra has an annual production capacity of 1.1Mt of aggregates including a limestone quarry capable of producing 700,000tpa which is owned in joint venture with Lafarge. OCI owns 50 per cent of the BESIX Group.

Orascom Construction Industries

Orascom Construction Industries (OCI) is a leading cement producer and construction contractor active in emerging markets. Based in Cairo, we employ more than 40,000 people in over 20 countries. Working together with our employees, business partners and customers, we are helping to build the future in developing countries around the world.

As a cement producer, we own and operate cement plants in Egypt, Algeria, Turkey, Pakistan, northern Iraq, and Spain which have a combined annual production capacity approaching 21Mt. Our new investments in northern Iraq, Turkey, Nigeria, Algeria, the United Arab Emirates, Saudi Arabia and Syria will increase our annual production capacity to 39Mt. We export cement primarily from Egypt to customers in more than 30 countries including the USA, Europe, Africa and the Middle East. We produce

and distribute aggregates, ready-mix concrete and cement bags primarily in Spain, Egypt and Algeria.

As a contractor, we provide engineering procurement and construction services on large, complex and demanding industrial, commercial, water/sewage, transportation, telecommunications, maritime, tourism and railway projects for private and public customers principally in the Middle East, Africa and Central Asia. Our Construction Group is active in over 100 projects in more than 20 countries. Through partnerships with industry leaders, we also manufacture fabricated steel products as well as

architectural curtain walling and window systems. As part of our long- term strategy to create a sustainable flow of construction opportunities, we also have investments in natural gas industries, including fertilizers and in infrastructure concessions including a port operator and an industrial park developer.