Egypt: ASEC Cement expects full production from the Arab National Cement Company (ANCC) in Minya to begin by the first quarter of 2013, creating 400 direct jobs and 1500 indirect jobs.
ASEC Cement has confirmed that it is on track to start commissioning at the US$335m ANCC plant , its 1.9Mt/yr clinker greenfield plant in the Upper Egyptian governorate of Minya, in the final months of 2012. ASEC Cement is the largest shareholder in ANCC with a 45% stake in the project.
Civil engineering work on site was completed by the end of 2011 but construction delays occurred due to the national political situation. ANCC and ARESCO, the contractor responsible for the steel fabrication and mechanical erection of the plant, and an ASEC Holding portfolio company are now implementing a recovery plan to complete mechanical and steel installation by the third quarter of 2012.
ANCC is one of Egypt's biggest project finance deals. In September 2010 ANCC signed an US$182m loan to finance the construction of its plant in Minya. The syndicated loan agreement involves a consortium of seven leading Egyptian and regional banks, which will cover 52% of the US$335m investment with the balance financed by the equity of ANCC. Other shareholders in ANCC include Misr Qena Cement (13.9%), Safari Investments (30.7%), IFU/FLS (9.2%) and other shareholders (1.1%).
