The most technologically advanced plant in Sudan will satisfy fast-growing domestic demand, helping Sudan ease cement imports that currently stand at 3 million tons per annum
ASEC Cement, which will control more than 12 million tons of annual cement production capacity by 2013 in five countries spanning from Algeria to Iraq-Kurdistan, announced today that it has begun production at Takamol, its greenfield cement plant on the left bank of the River Nile some 320 km north of the Sudanese capital of Khartoum.
The total investment cost for Al-Takamol Cement stands at USD 252.7 million.
“This was a very challenging plant,” said ASEC Cement Chairman and CEO Giorgio Bodo. “Takamol is in a remote area on the left bank of the Nile, and the location was dictated by its proximity to the limestone quarries that give the plant an important competitive advantage. Although we are accustomed to working in remote locations and to dealing with intense heat, the challenges at Takamol were compounded by the fact that the two banks of the Nile were only recently connected by a bridge. Until a few months ago, we had been working with pontoons.”
ASEC Cement is a Portfolio Company of ASEC Holding, Citadel Capital’s Platform Company for investments in the regional engineering and construction industry.
At Takamol, ASEC Cement built 15 km of roads to connect the plant to government roads, erected a water treatment station connected to the plant by a 15-km-long pipeline, and contracted to build its own 42 MW captive power plant, which now provides all of Takamol’s electricity needs.
“This tremendous effort gives us an important advantage over other factories now under construction in Sudan,” Bodo noted.
The plant, built with leading-edge technology that meets or exceeds national environmental standards, has a nominal capacity of 1.45 million tons per annum (MTPA) of clinker and 1.6 MTPA of cement.
The Takamol plant will directly employ 450 staff and help create the same number of indirect jobs. In line with ASEC Cement policy, Takamol is already running a training program for Sudanese nationals and will prioritize the hiring of local staff. All ASEC Cement plants aim to replace Egyptian management and line personnel with highly trained local staff as operations come on-stream.
ASEC Cement’s Takamol plant will reduce by half Sudan’s annual cement deficit of 3 MTPA, allowing the country to save hard currency for other uses.
ASEC Cement is Citadel Capital’s platform investment for cement production in the emerging cement markets of the Middle East and Africa. Created by Citadel Capital and a group of leading co-investors, ASEC Cement is growing into a leading regional cement production group that will have a combined production capacity of approximately 12 million tons per annum in 2013 spanning five countries from Algeria to Iraq-Kurdistan. ASEC Cement is a portfolio company of ASEC Holding.
Citadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading private equity in the Middle East and Africa. Citadel Capital focuses on building regional platforms in select industries through acquisitions, turnarounds, and greenfields executed via Opportunity Specific Funds. Citadel Capital’s 19 OSFs now control Platform Companies with investments worth more than US$ 8.3 billion in 14 countries spanning 15 industries, including mining, cement, transportation, food and energy. Since 2004, the firm has generated more than US$ 2.5 billion in cash returns to its co-investors and shareholders (on investments of US$ 650 million), more than any other private equity firm in the region. Citadel Capital is the largest private equity firm in Africa by PE assets under management (2005-2010, as ranked by Private Equity International). For more information, please visit www.citadelcapital.com.
For more information, please contact:
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Citadel Capital (S.A.E.)
g...@qalaaholdings.com (click to reveal this email)
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