Two Egyptian companies have said they are in talks with the Sudanese armed forces on the feasibility of building a cement factory in Sudan.

In a statement released on Sunday, Egyptians for Housing, Development and Reconstruction EHDR.CA said it has agreed to take part in the project as 25 per cent shareholder in a company to be named Egyptians Abroad for Cement.

The Egyptian state news agency MENA said the new cement company would have paid-in capital of US$150m and the investment would cost up to US$200m.

Another Egyptian company, Egyptians Abroad Investment and Development said on Friday it had received an offer to help set up a cement plant in Sudan and initial studies showed that it could be extremely profitable.

A delegation from the two Egyptian companies visited Sudan in the second week of May to discuss the project with a Sudanese armed forces agency and signed a memorandum of understanding, the company said in a statement.

Another meeting will take place this week, it added.