Egypt's Orascom Construction Industries (OCI) has completed negotiations to acquire a 51 percent stake in Chakwal Cement Company Limited (CCCL), the firm said in a statement sent to Reuters on Monday. The company added it will build a cement plant between Lahore and Islamabad to produce 22 million tonnes a year.
Chakwal Cement already owns the real estate and the equipment for the plant, and OCI will complete the construction and assembly over a 15-month period, the company said in the statement.
"This acquisition is in line with our strategy to expand our production capacity in key emerging markets," OCI Chief Executive Nassef Sawiris said in the statement.
"Through CCCL, OCI will gain access to a promising cement market where per capita cement consumption is close to 90kg compared to around 370kg in Egypt, which indicates significant room for growth. "Domestic consumption in Pakistan is expected to witness double-digit growth to reach around 15 million tonnes during 2004 in addition to an estimated 1.5 million tonnes in exports primarily to neighbouring Afghanistan," he added.
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