CAIRO, Egypt Dec. 13, 2004 (PRIMEZONE) -- Orascom Construction Industries (Pink Sheets:ORSDF) (LSE:OCICq) announced that it was awarded a contract valued at LE 152 million by Eastern Company (EAST.CA) for the construction of its new main production facility. This is the second major contract awarded by Eastern Company as part of their relocation program to new production facilities at 6th October City industrial zone in Egypt. Earlier this year, OCI was awarded a LE 246 million contract for the construction of warehousing facilities at the same production site. The construction of the new production facility will require 170,000 cubic meters of concrete in addition to 20,000 tons of reinforcing steel. Construction work on the project is scheduled for completion in 18 months.
OCI has also received a new (LE/EURO) contract valued at 161 million for the construction of a new anhydrous ammonia fertilizer production facility in Egypt for Helwan Fertilizer Company. OCI's scope of work includes the construction of all civil works, pouring 30,000 cubic meters of concrete, fabrication and erection of 5,000 tons of structural steel, on-site fabrication and installation of 3,000 tons of alloy steel piping and installation of 10,000 tons of process equipment. Construction is scheduled for completion in 21 months. The Engineering Procurement and Construction contractor for the project is Krupp Uhde of Germany. OCI has teamed up with Krupp Uhde on two other fertilizer plant construction projects in Egypt. OCI Construction Group - Managing Director, Osama Bishai commented "OCI continues to accumulate expertise in the construction of petrochemical industrial facilities. Past projects have included a urea/ammonia plant for Egyptian Fertilizer Company, a processing plant for Alexandria Mineral Oils Company, a chlorine production plant for Misr Chemicals, liquefied natural gas (LNG) storage tanks for Union Fenosa, jetty and marine works also for the Union Fenosa LNG plant, and natural gas transmission infrastructure for Nile Valley Gas Company (NVGC). This type of construction has developed into a core competency for OCI allowing us to undertake similar projects in the region as well."
OCI Chief Executive Officer, Nassef Sawiris commented "The Egyptian industrial construction market is becoming vibrant again. We expect a strong stream of projects during 2005. OCI is well-positioned due to its expertise and track record to benefit from this revival. We are optimistic that the Egyptian market will begin to catch up with the erupting regional construction boom. We expect double digit growth for our Construction Group during 2005 reflecting market strength and our ability to efficiently capture growth opportunities." At the close of the third quarter ended 30 September 2004, OCI had reported a record Construction Group backlog of LE 8.9 billion.
OCI focuses on three high growth business activities - construction services, cement manufacturing and infrastructure concessions. Our Construction Group provides engineering, procurement and construction services on industrial, commercial, infrastructure and railway projects for public and private customers in the Middle East and North Africa. Our Cement Group owns and operates cement production plants in Egypt and Algeria. Our Concessions Group participates as an equity investor in long-term infrastructure concessions including port operations, industrial parks and natural gas distribution systems.
This information is provided by RNS The company news service from the London Stock Exchange