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ASEC Engineering and Management enters agreement to manage Sudanese plant

World Cement,

ASEC Holding has announced that Portfolio Company ASEC Engineering and Management has signed a three-year renewable contract to provide technical management services for Alsalam Cement Production Company (ACPC)’s cement plant near Atbara in Sudan.

The Atbara plant has a production capacity of approximately 2000 tpd of clinker. ASEC Engineering will receive a fixed fee for every ton of clinker produced in return for a guaranteed minimum annual production and a pledge to reduce the plant’s consumption of electrical power and fuel.

“We look forward to developing a strategy that optimises the efficiency of Alsalam’s production process,” said ASEC Engineering Chief Executive Officer Mohamed Galal Yakout, who noted the contract is the company’s second in Sudan.

ASEC Engineering has long provided market-leading management and consultancy services in Egypt, where in 2009 the company managed seven plants with a total production capacity of about 15 million tpa, or more than 30% of total cement production capacity in the country. In 2010, the company has already delivered three major cement plant consultancy projects. In addition to its expansion into Sudan, ASEC Engineering played a vital role in the turnaround of the Zahana cement plant in Algeria and is currently exploring opportunities in other regional markets. (For more on the Zahana plant, see the February issue of World Cement.)

ACPC was established in 2003 and is owned by the Ahmad Osman Abdulsalam Group. The plant near Atbara is currently ACPC’s sole operation, although it is in initial planning stages for the construction of a second plant.

In related news, ASEC Engineering will also be responsible for the technical management of ASEC Cement’s nearby Takamol plant, which is in advanced stages of operational testing. Scheduled to open later this month, the plant will have a production capacity of 1.45 million tpa of clinker and 1.6 million tpa of cement, reducing Sudan’s national cement deficit of 3 million tpa by more than half. An article on this project is scheduled into the August issue of World Cement, available for subscribers to download shortly.

ASEC Holding is a Platform Company of Citadel Capital (CCAP.CA on the Egyptian Stock Exchange), the leading private equity firm in the Middle East and Africa with investments of US$ 8.3 billion in 15 industries spanning 14 countries.

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