Orascom Construction Industries (OCI)
Nile City Towers - South Tower
2005A Corniche El Nil, Cairo, Egypt
Tel: +202 461 1111, Fax: +202 461 9400,
OCI stock symbols: OCIC.CA / ORCI EY / OCICqL / ORSD LI
This information is provided by RNS
The company news service from the London Stock Exchange
Orascom Construction Industries Expands Aggregates Operations in Europe
| Source: Orascom Construction Industries
Cairo -- (MARKET WIRE) -- March 5, 2007 --NEWS RELEASE
OCI Expands Aggregates Operations in Europe
Group GLA acquires 100% of aggregate operations to raise Group's Spanish
reserves by 43%
Cairo, Egypt - 4 March 2007: Orascom Construction Industries announced that
Group GLA - 50% owned by OCI - has signed an agreement for a total value of EURO
17.4 million for a 100% stake of Minas Nieves in Corrales de Buelna and for the
acquisition of Minas Cau, a quarry operation in Yecla. Combined, the two quarry
operations are expected to produce close to 0.8 million tons after the take-over
is complete.
Group GLA is the largest independent aggregates and ready-mix concrete producer
in Spain. OCI acquired 50% of the Group in October 2006. The Group has
activities in aggregates, ready-mix concrete, and clinker grinding throughout
Spain with a focus on the Madrid and Valencia markets.
The individual investments reached EURO 12.6 million for Minas Cau and Euro 4.8
million for Minas Nieves. The two barite and calcium carbonate deposits rank
amongst Spain's major mining reserves. Minas Cau is South Europe's largest
reserve with 80 million tons of carbonate, allowing for a strong market share in
Spain as well as market opportunities in Europe and Africa. Minas Nieves
contains 4 million tons of barite deposits. Group GLA now controls a total of
approximately 268 million tons of various aggregates reserves.
Calcium Carbonate creates new avenues for growth as it is an essential component
in a multitude of industries. It is primarily used in pharmaceutical products
including cosmetics and sanitary products. It is also used in the manufacturing
of ceramics, glass, paper, paint, plastics and concrete. Investing in Barite
deposits allows the company to target new markets through the production of
special types of concrete that are typically used to shield against laboratories
from x-rays and radioactive materials, as well as the production of enamels,
ceramic products, sanitary items and high-resistant paint.
OCI Chief Executive Officer, Nassef Sawiris commented," this acquisition affirms
Group GLA's strength in generating growth and identifying new opportunities in
the industry at extremely attractive valuations. Furthermore, this investment
asserts OCI's strategy to expand its current position in ready-mix and concrete
operations in markets suffering from structural deficits in cement. Securing
these two reserves will allow the Group to capture the opportunities arising
from the increased significance of aggregates in Europe and enhances
diversification of our client base."
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CONTACT: Hassan H. Badrawi
Investor Relations Director
Tel: +202 461 1039/1036
Email: hassan.badrawi@orascomci.com
Orascom Construction Industries
Orascom Construction Industries (OCI) is a leading cement producer and
construction contractor active in emerging markets. Based in Cairo, we employ
more than 40,000 people in over 20 countries. Working together with our
employees, business partners and customers, we are helping to build the future
in developing countries around the world.
As a cement producer, we own and operate cement plants in Egypt, Algeria,
Turkey, Pakistan, northern Iraq, and Spain which have a combined annual
production capacity approaching 21 million tons. Our new investments in
northern Iraq, Turkey, Nigeria, Algeria, the United Arab Emirates, and Saudi
Arabia will increase our annual production capacity to 36 million tons. Our
Cement Group exports primarily from Egypt to customers in more than 30 countries
including the USA, Europe, Africa and the Middle East. We produce and distribute
aggregates and ready-mix concrete in Spain, Egypt and Algeria. We also
manufacture cement bags in Egypt and Algeria.
As a contractor, we provide engineering procurement and construction services on
large, complex and demanding industrial, commercial, water/sewage,
transportation, telecommunications, maritime, tourism and railway projects for
private and public customers principally in the Middle East, Africa and Central
Asia. Our Construction Group is active in over 100 projects in more than 20
countries. Through partnerships with industry leaders, we also manufacture
fabricated steel products as well as architectural curtain walling and window
systems. As part of our long-term strategy to create a sustainable flow of
construction opportunities, we also have investments in natural gas industries,
including fertilizers and in infrastructure concessions, a port operator, an
industrial park developer and a natural gas distributor.
For additional information on OCI: www.orascomci.com