Lafarge plans to set up Sudan cement plant

Byswb

Updated 2009-10-16

Lafarge SA plans to set up a cement factory in Sudan, the African country's state-run news agency SUNA reported, citing Industry Minister Jalal Al-Diqair.

The minister "welcomed" the French company's plan to set up the plant, which will cost $800 million and have an annual production capacity of 4 million tons, the Khartoum-based news agency said yesterday.

Construction in Sudan, especially in the capital Khartoum, has expanded since the north and south of the country signed a peace agreement in 2005 which ended a two-decade civil war in Africa's largest country.

Lafarge's planned project will be located in the town of Atbara in northeastern Sudan, the report said. Lafarge spokeswoman Claire Mathieu declined to comment.

The government expects cement production to increase to 6 million tons in 2010, from 1 million tons now, with four new factories starting production in the next four month, Al-Sahafa reported today, citing Al-Diqair.

The production increase will alleviate some of the demand gap in the local market, the minister said, and will allow for potential exports to neighboring countries, Al Sahafa reported.

Sudan has been under U.S. economic sanctions since 1997, which Sudanese officials say is hampering development in the country. The U.S. imposed sanctions under the Clinton administration for accusations of sponsoring terrorism. Sudan strongly denies the charges.

The African country depends on investment from countries such as China, India and Saudi Arabia to compensate for the lack of Western capital inflows.

Bestway Cement Ltd. of Pakistan wants to build a 450,000 ton per-year cement plant in Sudan, SUNA reported in July, citing Faisal Ikbal, Pakistan's commercial consul in Khartoum.

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