Orascom signs for line No 2

Algerian Cement Company signs contract to build a second production line increasing production capacity to 4.4Mt of cement annually. Orascom Construction Industries announced that its wholly owned subsidiary Algerian Cement Company (ACC) has signed an engineering, procurement and construction (EPC) contract with an FLSmidth of Denmark / OCI Algeria consortium valued at US$153m for the construction of a second production line at their new plant located in M’sila, Algeria. The signing ceremony was held in the capital Algiers and was attended by senior Algerian Government officials and prominent members of the local business community. The second production line will increase the total plant production capacity of ACC up to 4.4 Mt of cement per year. The total investment cost of the second production line is estimated at US$176m. The Algerian Investment Authority (ANDI) has already approved extending the same investment incentives package to ACC’s second production line which includes a 10 year tax exemption from the start of production.

OCI Chief Executive Officer, Nassef Sawiris commented "our decision to pursue further expansion at ACC was prompted by very positive trends in cement consumption in Algeria. Construction work on the second production line is scheduled for completion in mid 2005 and will contribute significantly to our consolidated earnings growth."

ACC is the first privately owned cement company in Algeria. ACC successfully launched its early cement production program for its first production line on September 2003, only 18 months following the start of construction of the plant’s facilities. Within three weeks, ACC had achieved an average daily market share of around 10 per cent. ACC expects to fire its first kiln during February 2004, setting a new world record for the fastest greenfield cement plant ever constructed at only 22 months. Upon completion of the second production line at ACC, OCI will have a consolidated total production capacity of 11.7Mt making it the region’s largest cement producer.