Dubai Holding and Orascom to invest in state-of-the-art cement projects in UAE
Dubai Holding and Orascom to invest in state-of-the-art cement projects in UAESeptember 12, 2005
DUBAI, 12 September 2005: The establishment of major new construction-related firm, Emirates Cement Company, was announced today by Mohammed Al Gergawi, Chief Executive Officer of Dubai Holding and Chairman of Dubai Investment Group, a member of Dubai Holding.
He explained that the new company was established by Dubai Holding in partnership with Orascom Construction Industries (OCI), Dubai Investment Group (DIG) and the Government of the Emirate of Fujairah.
He also announced that as the first project, The Emirates Cement Company will construct a new state-of-the-art greenfield cement plant with a total production capacity of 3 million tons per year in the Emirate of Fujairah.
"This is a tremendous opportunity for our Group and we are confident that this strategic alliance will prove prosperous for all parties in addition to adding great benefit to the region," said Al Gergawi.
"The plant and the raw material quarries will be located in Fujairah. Construction work at the site is already underway and is expected to be completed in 24 months. OCI will be responsible for managing and operating the new plant," he added.
Al Gergawi said that establishing The Emirates Cement Company is in line with the strategy of Dubai Holding to expand its investments in the different Emirates. He said that this is the first project of Dubai Holding in Fujairah and that there are other such projects which are under study for future investments.
Wider strategic partnership
Soud Ba'alawy, Chief Executive Officer of Dubai Investment Group LLC, said; "In addition to the Emirates Cement Company project, DIG and OCI have entered into a strategic partnership to co-invest in greenfield industrial and infrastructure projects in key emerging markets including Egypt. This first project will lay the foundation of a continued programme of investment in high quality industrial products."
OCI Chief Executive Officer, Nassef Sawiris, commented: "We are extremely pleased with our new partnership with DIG and the Government of Fujairah. We believe the UAE cement market offers significant growth opportunities and our partners have a unique knowledge of the domestic economy. We believe Emirates Cement Company will serve as a model for the UAE cement industry going forward setting new efficiency, safety and environmental standards. This project marks what we believe will be the beginning of an important long-term strategic alliance with DIG."
Dubai Investment Group
Dubai Investment Group (DIG), a member of Dubai Holding, is a global financial investor with an investment philosophy centered on delivering superior performance through strong ethics of professionalism and productivity.
DIG operates as a group of investment companies creating and extracting economic value through the combination of identifying, acquiring and building long term businesses. Within the asset classes of Global Securities and Real Estate, DIG owns and manages a highly diversified portfolio of direct and indirect investments with a focus on key target sectors: Financials, Industrials, Hospitality and Telecoms.
DIG firmly believes in managing risk locally and has offices in Dubai, London, New York and Kuala Lumpur.
Orascom Construction Industries is a leading cement producer and construction contractor active in emerging markets. OCI is based in Cairo, Egypt and employs more than 40,000 people in 20 countries. The OCI Cement Group is the largest cement producer in the Middle East and a leading regional cement exporter with an annual production capacity of approaching 15 million tons with an additional million tons of capacity under construction in several emerging markets.
The OCI Construction Group provides engineering, procurement and construction services on large, complex and demanding projects for public and private customers, primarily in the Middle East, North Africa and Central Asia. OCI is listed on both the Cairo & Alexandria Stock Exchanges and the London Stock Exchange and has a market capitalization of around US $6 billion.