Egypt’s third biggest cement producer, Arabian Cement Company, announced Tuesday it will establish a cement grinding facility in Northwest Brazil.
The move comes as a part of the company’s joint venture agreement with Brazil’s leading cement manufacturer Cementos Relampago, part of Cementos La Union, Reuters reported.
The facility will run with a capacity of 230,000 tons per year, with a total cost of €23m ($28.7m), of which Arabian Cement will contribute €7m to the project.
Arabian Cement added that its contribution represents 60% of the total paid in capital, noting that 50% of the project’s cost will be financed through debt and equity.
In May, Arabian Cement held the first initial public offering (IPO) after the 25 January Revolution in 2011, with the company aiming to raise $100m by listing on the Egyptian Stock Exchange.
Following the government’s approval in April to use coal as a source of energy in the industrial sector, Arabian Cement has taken steps commencing testing coal in thermal power generation. The company aims to shift to this energy source for 50% of its factories’ needs.