Alas International, a subsidiary of Austrian building materials producer Asamer Holding, plans to invest 40 million euro ($53.3 million) in the upgrade of its Bosnian cement plant Lukavac by 2009, Bosnian media reported on Wednesday.
The investment will secure a new clinker furnace for the plant that will allow a production process complying with all environmental norms of the European Union.
Alas International owns 98% of the shares of Fabrika Cementa Lukavac, Investitor.ba said.
The Austrian company bought a 51% stake in the plant in 2001 for 35 million marka ($23.9 million/17.9 million euro) and increased its stake gradually through buying shares from Bosnian privatisation investment funds and small shareholders.
Since 2001, ALAS International has invested 60 million euro in the Lukavac cement plant, Investitor.ba reported. The plant, located in northeastern Bosnia, posted a net profit of 7.3 million marka for 2005, up 34.7% on the year, on sales of 53.6 million marka, according to the latest available data.