Spanish cement manufacturer Cementos La Union has decided to double the size of its Egyptian operation and sell off other assets. The firm, based in the Spanish autonomous region of Valencia, has decided to double the size and capacity size of its plant in Egypt under construction to 2Mt of clinkers per year, 700,000t of which is expected to be sold in the Egyptian market.
Total investment in the plant, which is due to commence operations in 2007, will now increase from 104m euros to EUR129m. At the same time, the Valencian firm plans to sell its shares in companies in which it does not have a controlling or majority stake, such as its 26 per cent of Spanish cement group Tarragona Cementos Esfera to Catalan group ICA. Last year, Cementos La Union recorded a profit of EUR13.4m, down 21 per cent on the previous year due to increases in the cost of oil.