Arabian Cement to set up Brazilian joint-venture

Egypt-based Arabian Cement Company, announced it will establish a grinding plant in northwest Brazil as part of a joint-venture agreement with local cement manufacturer Cementos Relampago, part of Cementos La Union.

The 2.3Mta facility is expected to involve an investment of €23m ($28.7m), of which Arabian Cement will contribute €7m.

Arabian Cement added that its contribution represents 60 per cent of the total paid in capital, noting that 50 per cent of the project’s cost will be financed through debt and equity.

In May, Arabian Cement held the first initial public offering (IPO) after the 25 January Revolution in 2011, with the company aiming to raise US$100m by listing on the Egyptian Stock Exchange.