JKHC cement factory to be built in Jordan

The cement factory is estimated to cost US $200 million and is the first project for JKHC in Jordan

  • E-Mail
By  Sean Cronin Published  April 30, 2005

The Jordanian-Kuwaiti Holding Company (JKHC) is all set to build a US $200 million cement factory in Jordan. The project is the first for JKHC in Jordan and, according to CEO Reem Badran, it will be followed by more developments in industrial, tourism, gas, water and electricity sectors, as well as basic infrastructure improvements in the country. The decision to build the factory was based on a feasibility study that showed a fast growing demand for cement, found in abundance, in the southern and eastern parts of the kingdom, Badran indicated. She said there is great potential for exporting the cement to neighbouring countries, especially Iraq, Saudi Arabia, Palestine and Syria. Established in 2004 with an investment of $119.2 million, JKHC is 85% owned by Kuwaiti investors, with the remaining 15% owned by Jordanians. Badran indicated that the new factory is expected to start production in 2008, and will employ at least 500 Jordanians. At present, Jordan produces cement at two locations; one in Fuheis near Amman, and the other in Shidiyeh in southern Jordan. The concession granted in 1950 to the Jordan Cement Factories Company (JCFC), which operates the two plants, expired in 2001. The government then sold its 48% equity in JCFC in two stages for $141 million (JOD100 million) to the French firm Lafarge. The remaining shares are owned by the Jordanian private sector. Demand for cement is high due to the present construction boom, and according to business analysts the new cement factory is bound to create strong competition for JCFC. JCFC sells 3.7 million tonnes of cement annually, of which 2.5 million tonnes are sold in the local Jordanian markets. Last year, JCFC posted $74 million (JOD52.5 million) in net profits.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code