ASEC Engineering, a Portfolio Company of ASEC Holding, has signed three 5-year contracts to manage new cement plants that will create over 750 jobs in Egypt's Qena, Beni Suef and Assuit governorates
ASEC Holding announced today that Portfolio Company ASEC Engineering and Management has signed three five-year renewable contracts to provide technical management services for three cement plants. A fourth contract, signed in 2000, has been extended for five years and now runs through mid-2016.
The first new contract is for a plant owned by El-Nahda Co. for Industries in the Governorate of Qena, while the other two are assets of South Valley Cement Company (SVCC) in the Governorate of Beni Suef and the Building Materials Industrial Company (BMIC) in the Governorate of Assuit.
El-Nahda’s plant, built by China’s TCDRI, has a nominal output of 5,500 tons of clinker per day and is scheduled to go into production in the third quarter of this year.
Meanwhile, the SVCC plant has a nominal output of 5,000 tons of clinker per day; first clinker was produced on July 7, 2011. ASEC Engineering has been carrying out the engineering work for the SVCC plant since January 2007 and took over the operation and management of the clinker grinding and packing plant in October 2008.
In Assiut, ASEC Engineering will provide technical management to BMIC’s 5,000 ton-per-day cement plant. Phase one of the agreement, covering clinker grinding and packing, will begin commercial operations in the third quarter of this year; clinker production will begin in the second quarter of 2012.
ARESCO, another ASEC Holding portfolio company, is carrying out US$130 million contract to provide the civil, electrical and mechanical work for the BMIC plant’s construction. ARESCO is also carrying out the steel fabrication as well as testing and commissioning on behalf of BMIC. Group companies ASA and ESACO also play roles in the construction, to which ASEC Engineering was the lead consultant.
“These three contracts will see ASEC Engineering conduct the start-up and commissioning works, after which we will take charge of complete plant operations for a period of five years while providing all necessary spare parts and consumables,” said ASEC Engineering Chief Executive Officer Mohamed Galal Yakout.
Each of the three plants will create more than 250 permanent jobs, the majority of which will be filled by members of the communities in which they are based.
The agreements bring to 14 the number of kilns for which ASEC Engineering provides management services with a total output of c.18 million tons of clinker per year, a 25% rise. Two of the production lines that ASEC Engineering manages are outside Egypt, namely in Sudan and Jordan with a total annual output of 1.4 MTPA in Sudan and 1.5 MTPA in Jordan.
Meanwhile, ASEC Engineering has won a five-year renewal of a contract with Sinai Cement Co. Under the terms of the contract extension, ASEC Engineering will continue to provide services for the 18,700 ton per day clinker plant located in the city of Al-Arish in Egypt’s North Sinai governorate through June 2016; the contract was first signed in 2000.
ASEC Engineering and Management is currently engaged in engineering and consulting services for under-construction cement plants including the Arab National Cement Company (ANCC) cement plant in Minya; South Valley Cement Plant in Beni Suef; BMIC Cement Plant in Assuit, as well as a gypsum plant in Ataka, Suez.
ASEC Holding is a Platform Company of Citadel Capital (CCAP.CA on the Egyptian Stock Exchange), the leading private equity firm in the Middle East and Africa with investments of US$ 8.7 billion in 15 industries spanning 14 countries.
Citadel Capital holds a 49.81% stake in ASEC Holding. Citadel Capital holds a 49.79% effective ownership in ASEC Engineering.
ASEC Engineering and Management is a wholly-owned subsidiary of ASEC Holding, a Platform Company of Citadel Capital, the leading private equity in the Middle East and Africa. ASEC Engineering is the leading company for cement technology in the MENA region, providing technical management and consultancy services to regional cement plants since 1975. In addition to the basic services of engineering, consulting and plant operation and management, ASEC Engineering and Management provides specialized services including production optimization, upgrading, major overhauls, specialized maintenance, material testing and certification, and training.
Citadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading private equity in the Middle East and Africa. Citadel Capital focuses on building regional platforms in select industries through acquisitions, turnarounds, and greenfields executed via Opportunity Specific Funds. Citadel Capital’s 19 OSFs now control Platform Companies with investments worth more than US$ 8.7 billion in 14 countries spanning 15 industries, including mining, cement, transportation, food and energy. Since 2004, the firm has generated more than US$ 2.5 billion in cash returns to its co-investors and shareholders (on investments of US$ 650 million), more than any other private equity firm in the region. Citadel Capital is the largest private equity firm in Africa by PE assets under management (2006-2011, as ranked by Private Equity International). For more information, please visit www.citadelcapital.com.
For more information, please contact:
Ms. Ghada Hammouda
Head of Corporate Communications
Citadel Capital (S.A.E.)
g...@qalaaholdings.com (click to reveal this email)
Tel: +20 2 2791-4440
Fax: +20 22 791-4448
Mobile: +20 16 662-0002