Hodna Algerian Cement Company and South African cement producer PPC are partnering to build a new cement plant in Algeria that will produce 2.2 million tonnes a year.
The new cement plant will be undertaken at a cost of US$287m and will be financed 80% by Algerian banks and the two JV partners will contribute 20%. PPC had earlier said that the commissioning of the project was expected by the fourth quarter of 2016.
The cement plant project would be undertaken in accordance with rules that state that foreign companies are limited to 49% ownership for Algerian-based investments.
Kagiso Asset Management investment analyst Ross Heyns said that the project was prudent for PPC and Algeria’s “good transport infrastructure” and low energy costs would make production costs lower to help the company become more profitable.
PPC has major operations in South Africa, Botswana and Zimbabwe.
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