LAFARGE and TITAN CEMENT COMPANY have entered into an agreement to invest jointly in the Egyptian cement market.
Last December, LAFARGE has won the international tender by the Egyptian authorities for the privatization of 76 % of the capital of Beni-Suef plant. The agreement between LAFARGE and TITAN foresees that upon completion of the transaction, LAFARGE will sell half the shares to TITAN on the same terms.
The Beni-Suef plant, located 120 km south of Cairo, is the most modern cement plant in Egypt. Production started in 1993 and sales totaled 1.4 million tons last year. It is the intention of the two parties to invest in a second line of production, increasing plant capacity to 3 million tons.
This investment reflects LAFARGE and TITAN CEMENT COMPANY confidence in the development of the cement market in Egypt, which represents today about 25 million tons.
TITAN is a Greek Company engaged in the production of building materials with seven plants in Greece, the USA, Bulgaria and Macedonia of a total annual production capacity around 8 million tons. Established in Egypt since 1979, the Group forecasts to sell 800 000 tons in 1999 through their Alexandria and Safaga distribution terminals.
The World leader of building materials, LAFARGE Group accounts for 65000 collaborators in 65 countries and realizes a turnover close to 65 billion FFR (around 10 billion Euro). This is the first acquisition by the Group in Egypt.
This agreement has been notified to the Brussels authorities.
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