Cemena Holding Company, a Mena-based cement holding company, has signed an agreement with Sinoma CBMI Construction, a subsidiary of Sinoma group, towards construction of a cement plant in Syria.

The plant will be Cemena’s second after a cement plant in Bahrain. The design production capacity of the plant is 6400 tonnes per day with two production lines, 3200 tonne per day of each production line, a statement said.

The construction of phase one will start in January 2011 and it is expected that the initial production will start in 18 months.

The plant is strategically located in Jabal Al Kahlah - half way between the Syrian Capital, Damascus and Syria’s second largest city of Homs, and 150 km from the Iraqi border.

The plant will benefit from huge demand in the fast growing Syrian market and it will also supply neighbouring countries such as Iraq where state infrastructure projects, and private sector development have created substantial demand for cement.

“We are delighted to reach yet another significant milestone in building our business. By adding this asset to our portfolio we are building a track record and creating further value for our shareholders,” said Hisham Alrayes, chairman of Cemena Holding Company.

“Following successful completion of our plant in Bahrain last year, we are now building one in Syria on one of the highest reserves of limestone in the country. Another announcement will be made soon for signing a further agreement to build a plant in North Africa which will enable us to cover the Mena region and tap into another highly growing market.”

“Sinoma CBMI is one of the largest specialists in the construction of cement plants in China; the company has a proven track record and vast expertise in cement plant construction,” Alrayes added.

Tong Laigou, general manager of Sinoma CBMI Construction, said: “We are happy today to conclude the signing and mark this partnership with Cemena following 12 months of tendering and negotiation. We look forward to further expanding the relationship through building plants in other locations which we are currently studying along their side.”

Salah Sahrif, acting CEO of Cemena Holding Company, said: “Cement consumption in Syria is increasing by 5.2 per cent per annum due to the increasing number of real estate and infrastructure projects, and we aim to fill the gap in this growing market.”

“We are extremely pleased to be establishing a plant in such a market as being one of the best in our portfolio covering Syria and Iraq,” he added. – TradeArabia News Service