Orascom to invest in new South Africa cement plant
Orascom Construction Industries (OCI) has announced the launch of Mafikeng Cement Company (MCC) in the North West Province of South Africa which will build and operate a state-of-the-art cement plant with a production capacity of 2Mta.
OCI owns 67.5% of the new start-up venture. Minority partners in MCC include the Barolong-Boo Rapulana Traditional Council and the Barolong-Boora Tshidi Traditional Council each representing their respective local communities, as well as the Osman Family Trust, Bazan Family Trust, Lezak Family Trust, who together with the Traditional Councils are broad-based black economic empowerment (BBBEE) groups, and Redsun Enterprises. The total investment cost of the project is expected to reach approximately US$440m (ZAR3.2bn). The plant is expected to begin production during 2010.
The launch of the new cement venture was announced at an event held in Mafikeng in the Ngaka Modiri Molema District of the North West Province attended by local and national government dignitaries, members of the Traditional Councils and their respective communities alongside the shareholders of MCC.
At the ceremony, OCI signed a plant equipment order with Polysius, and a contract with Siemens for electrical and automation equipment / materials for the Mafikeng cement plant.
Nassef Sawiris, OCI chief executive officer, commented: “We are very pleased to announce our new investment in South Africa. We are committed to deliver a state-of-the-art cement plant which will cater to the fast-growing demand for cement in the country and offer the highest quality products. Our new subsidiary will contribute to the development of the North West Province of South Africa through numerous ways including the creation of new job opportunities during and after the construction of the plant.”
Published under Cement News
