China National Materials (01893) (Sinoma) announced that its subsidiary, Sinoma International, has entered into a letter of intent for the engineering, procurement and construction of two 10000 t/d cement production lines at Medcem cement plant with Eren Holding. The project is located at Akdere District of Silifke County near Mersin Port of Southern Turkey.
The transaction amount under the letter of intent is US$780 million, including US$420 million for one production line and US$360 million for the other. The scope of work for the project includes design, equipment procurement and supply, civil works, installation and performance testing etc.
Sinoma International will enter into an engineering, procurement and construction contract (the EPC contract) with Eren subject to the market conditions and the satisfaction of the funds from Eren. Eren has not fully fulfilled its investment funds for the project, Eren is at the stage of financing for the project. Since no conclusion has been reached for the technical negotiations for the project, the final price shall be subject to the EPC contract.
