Denmark's FL Smidth has been awarded a $128 million contract for the supply of equipment for a major new cement plant. The contract award comes only weeks after the Danish firm and the client on the scheme, Algeria Cement Company (ACC), signed a letter of intent for the project (MEED 22:2:02).
FL Smidth's contract covers the supply of machinery and equipment as well as civil construction drawings and steel structures for the new plant, located in the M'Sila area, 250 kilometres southeast of Algiers. ACC says the facility will produce 2 million tonnes a year (t/y) of cement at the end of construction phase 1 by mid 2004, with annual capacity set to double through the installation of a second 2 million-t/y production line by 2007.
The Danish company says engineering will start after the signing of the final contract at the end of June, pending the completion of financial arrangements.
ACC, a new venture established between Egypt's Orascom Construction Industries and local partners, says construction of the estimated $450 million plant started on 24 March, following the receipt of official authorisation to proceed in mid February. Orascom's local subsidiary, Orascom Construction Algeria, will carry out the design, civil works and erection. Design of the non-production buildings is already under way, and work is expected to start soon on the labour camp and administrative buildings.
The deal is FL Smidth's third supply contract for an Algerian cement plant, the last of which was commissioned in 1994.
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