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Orascom Construction Industries acquires stake in Samba SPA
| Source: Orascom Construction Industries
Cairo -- (MARKET WIRE) -- May 16, 2007 -- NEWS RELEASE
OCI Acquires Algeria's Largest Aggregates Producer
OCI acquires a 60% stake in Samba SPA, the largest aggregates producer in
Algeria
Cairo, Egypt - 16 May 2007: Orascom Construction Industries announced
that it has acquired a 60% stake in Samba SPA, the largest aggregates
producer in Algeria, for a total sum of US$ 8 million. Samba owns and
operates a crushed stone quarry which is located in Blida, only 40km from
the capital Algiers. Samba controls a total of 60 million tonnes of
crushed stone reserves and has a quarrying capacity of approximately 1
million tonnes of aggregates per year. OCI intends to increase the
production capacity of their existing plant and equipment up to 5,000
tonnes per day which will double their annual output to 2 million tonnes
of aggregates per year through additional investments.
OCI Chief Executive Officer Nassef Sawiris commented: "The acquisition of
Samba solidifies our presence as an integrated manufacturer in Algeria.
OCI will continue to build up its aggregates and ready-mix operations in
core markets in order to enhance the distribution reach for its cement
products and to compliment the development of the construction markets in
high growth emerging markets which are increasingly demanding ready-mix
concrete."
About Orascom Construction Industries' aggregates and ready-mix operations
OCI currently produces and distributes aggregates and ready-mixed concrete
primarily in Spain, Egypt and Algeria.
OCI has a 50% stake in Grupo GLA (GLA), the largest independent
aggregates and ready-mix concrete producer in Spain. GLA has aggregates
and ready-mix concrete operations throughout Spain with market leading
positions in Madrid and Valencia. GLA has an annual quarrying capacity of
5 million tonnes of aggregates with more than 240 million tonnes of
reserves spread over 11 quarries. GLA has an annual production capacity
of 3.5 million cubic meters of ready-mix concrete and is currently
constructing a grinding plant south of Madrid capable of producing 600
thousand tonnes of cement annually. GLA also owns 59% of Cementos La
Parrilla (CLP) which operates a grinding plant capable producing 1.2
million tonnes of cement annually located near the city of Valladolid,
northwest of the capital city Madrid. Together, GLA and CLP will have 1.8
million tonnes of cement grinding capacity located both north and south
of Madrid.
OCI Aggregates & Ready-mix Operations
Ready-mix Egypt (RME) is one of the largest aggregates and ready-mix
companies in Egypt. During 2006, RME sold 0.5 million cubic meters of
concrete and 0.5 million tonnes of aggregates. RME operates 3 sand and
gravel quarries and also operates 9 mobile batch plants and 41 concrete
truck mixers.
Ready-mix Algeria (RMA) is one of the largest aggregates and ready-mix
companies in Algeria. RMA works closely with the sales team at Algerian
Cement Company, an OCI subsidiary, to provide customers with high quality
and timely ready-mix products. During 2006, RMA acquired rights to
operate 5 aggregates quarries with ample reserves and also purchased 30
concrete truck mixers, 6 mobile pumps, 4 concrete tracing booms, 2
stationary pumps and 8 batch plants.
In October 2006, the BESIX Group announced the acquisition of Socogetra
which has 60 years of experience in the road construction industry and is
a producer of aggregates, ready-mix concrete and asphalt. Socogetra has
an annual production capacity of 1.1 million tonnes of aggregates
including a limestone quarry capable of producing 700,000 tonnes annually
which is owned in joint venture with Lafarge. OCI owns 50% of the BESIX
Group.
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For additional information CONTACT:
Investor Relations Department:
Hassan H. Badrawi - Director
Sarah Makiya
Omar Darwazah
Tel: +202 2461 1039/1036
Fax: +202 2461 9409
Email: hassan.badrawi@orascomci.com
Orascom Construction Industries
Orascom Construction Industries (OCI) is a leading cement producer and
construction contractor active in emerging markets. Based in Cairo, we
employ more than 40,000 people in over 20 countries. Working together
with our employees, business partners and customers, we are helping to
build the future in developing countries around the world.
As a cement producer, we own and operate cement plants in Egypt, Algeria,
Turkey, Pakistan, northern Iraq, and Spain which have a combined annual
production capacity approaching 21 million tons. Our new investments in
northern Iraq, Turkey, Nigeria, Algeria, the United Arab Emirates, Saudi
Arabia and Syria will increase our annual production capacity to 39
million tons. We export cement primarily from Egypt to customers in more
than 30 countries including the USA, Europe, Africa and the Middle East.
We produce and distribute aggregates, ready-mix concrete and cement bags
primarily in Spain, Egypt and Algeria.
As a contractor, we provide engineering procurement and construction
services on large, complex and demanding industrial, commercial,
water/sewage, transportation, telecommunications, maritime, tourism and
railway projects for private and public customers principally in the
Middle East, Africa and Central Asia. Our Construction Group is active in
over 100 projects in more than 20 countries. Through partnerships with
industry leaders, we also manufacture fabricated steel products as well
as architectural curtain walling and window systems. As part of our long-
term strategy to create a sustainable flow of construction opportunities,
we also have investments in natural gas industries, including fertilizers
and in infrastructure concessions including a port operator and an
industrial park developer.
For additional information on OCI: www.orascomci.com
Orascom Construction Industries (OCI)
Nile City Towers - South Tower
2005A Corniche El Nil, Cairo, Egypt
Tel: +202 2461 1111, Fax: +202 2461 9400,
OCI stock symbols: OCIC.CA / ORCI EY / OCICqL / ORSD LI