IHI signs up for Amran cement

07 June 2002

Japan's Ishikawajima-Harima Heavy Industries (IHI) is expected to sign in the first half of June a contract worth more than $150 million to build the new cement unit and associated facilities at the Yemen Cement Manufacturing & Marketing Companyplant at Amran, northwest of Sanaa. IHI was sent a letter of intent by Yemen Cement in April (MEED 5:4:02).

The contract calls for the construction of a new clinker line with a capacity of 1 million tonnes a year (t/y), the expansion of a power plant by 27 MW, the connection of the new and existing lines and the provision of technical assistance and spare parts. The contract was awarded against competition from two other international bidders. It is to be paid mostly in US dollars, although about YR 1,740 million ($10 million) is to be paid in local currency. The contract is for completion in 29 months and is to be financed by the company itself with government guarantees. The consultant is Belgium's BS Engineering.

The existing production line at Amran has a capacity of 500,000 t/y, although there are proposals to expand this to 750,000 t/y after the addition of the new line. Yemen Cement is also understood to have neared the completion of a study for the expansion of its plant at Bajil on the Tihama coastal plain.

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