SAK Commodities has confirmed its first support contract with Iraq's Ministry of Trade. SAK spokesman Amar Mahdi stated: "Three months of continued negotiations have closed with the SAK receiving final approval from the Ministry of Trade's - State Trading Company for Construction Materials. We are pleased that the Ministry has invested such trust and confidence in our company and we look forward to working with the Ministry and serving the citizens of Iraq."
SAK is initially scheduled to deliver 50 000 metric tons of 42.5 Ordinary Portland Cement and an additional 50 000 metric tons of 52.5 Sulphur Resistant Cement every month for a period of two years. This initial quantity will increase up to 400 000 metric tons a month as needed by the Ministry of Trade and other Ministries whose construction projects are supported by the Ministry's State Trading Company for Construction Materials. This cement will be distributed throughout all of Iraq's 18 provinces and marketed at competitive rates. Several Ministries have already expressed interest in purchasing SAK cement through the Ministry of Trade and two have made direct contact to SAK representatives.
In support of the cement contract SAK has entered into negotiations on a companion contract for steel. "It made sense to engage the Ministry in negotiation for steel considering its current inventory and projects on the near term calendar. We expect to maintain similar competitive market prices for our steel as in SAK cement," said Sowell. Significant change is expected in 2010 as the Iraqi Government dramatically increases its domestic expenditures on infrastructure improvements in all government sectors.
Sanna Al Kassir in conjunction with its partners operates offices in Australia, China, Dubai, Jordan, Lebanon, Switzerland, Saudi Arabia and the United States and has maintained an active presence in Iraq since early 2005.
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