Orascom cements plant line production in Libya

US $40 million subcontract to produce 5,000 tonnes per day is awarded by Danish firm FL Smidth

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By  Conrad Egbert Published  May 20, 2006

Egypt’s Orascom Construction Industries (OCI) has won a US $40 million (EGP231 million) contract for construction work on a new cement production line in Libya. The company was awarded the subcontract by Danish equipment supplier, FL Smidth, to work on the 5,000 tonnes-per-day greenfield cement project. The company completed work on a similar line in the same cement plant, worth $30 million, earlier this year. OCI, a cement producer and construction contractor active in emerging markets, also said that it would distribute a double Egyptian pound share cash dividend, amounting to $70 million, to shareholders based on last year’s results. The cash dividend will include all the newly issued shares resulting from OCI’s recent capital increase. A capital increase through a rights issue of 11.5 million new shares at $35 per share, totalling around $400 million, was conducted by OCI in February. A total of 11.42 million shares, or 99.3% of offered shares, were taken up by the close of subscription. Proceeds of the capital increase will be used to help finance strategic investments and expansion plans. OCI has also earmarked up to $250 million for cement acquisitions and investments in eastern and western Turkey. The company acquired an integrated cement plant in eastern Turkey near the city of Van for a total of $54 million, and a 20% stake in Baticim Cimento in western Turkey for $54.7 million. OCI is part of the Orascom group of companies.

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