The project calls for the construction of a 1 million-tonne-a-day facility. Total project costs are estimated at $150 million. The plant will be located at Batis in Abyan governorate and will take 24 months to complete.

Another private local/Saudi consortium, which includes the local Hayel Saeed Group, is also planning a cement plant at Batis, although sources close to the project suggest it may be moved to a new location.

A third joint venture, Arab Yemen Cement Company (AYCC),is understood to be in direct negotiations with a supplier for the turnkey contract to build a greenfield cement plant at Mukalla in Hadramout governorate. The project, which is being backed by Saudi Arabia's Eastern Province Cement Companyand Saudi Binladin Group (SBG), calls for the construction of a 4,000-tonne-a-day facility and a captive power plant with capacity of 30 MW. Total project costs are estimated at $250 million-300 million. India's Holtecis the consultant.

Trade & Industry Minister Khaled Rajeh Sheikh said last November that the government was aiming to boost cement production to 5.5 million t/y by 2007, from about 1.5 million t/y today, through public and private investment of about $700 million (MEED 22:4:05).