China’s Sinoma International has signed an agreement to build a cement plant with an annual capacity of 1.4Mt in Yemen, the Saba news agency said. Under the deal, Sinoma is to complete the construction of the plant in the city of Mukalla within three years, the agency said. The total cost of the plant is US$260m, but the agency did not give the value of the agreement signed with Sinoma.

The deal was awarded by the private Arab Yemen Cement, which industry sources said is mainly owned by Saudi Arabia’s Eastern Cement, Saudi Binladin Group and Yemeni investors.