$260 million capital,Yemeni – Arab Cement Company in Mokala established [Archives:2004/780/Business & Economy]

October 11 2004

The Yemeni – Arab for cement was recently been declared in the city of Mokala, Hadramout governorate. The company is established with a joint Yemeni – Saudi Capital of $ 260 million. The company is to produce and industrialize all kinds of cement to meet Yemen's increasing demand for this construction material and demands of expanding building.
The businessman Sheikh Abdullah Ahmed Baqshan, Saudi Eastern Region Cement Company, Saudi Bin Laden Group, the Yemeni Group for Development, Sheikh Mohammed Hussein Al-Amoudi, Barum International Holding Company and Sara limited company for development participate in the company's capital.
The city of Mokala has being selected as site of the company, covering an area of 22 km in the region of Abu-Ghraib. The period of the company's contract is 50 years extendable to another period under decision by the general assembly of the company.
The Cement plant production capacity amounts to 1 million and 200 thousands tons a year. Meanwhile the Ministry of Industry and Trade and the concerned parties has completed the infrastructure for a similar plant in Batis area in the governorate of Abyan under a Saudi-Yemeni common capital estimated by $ 150 million with a production capacity of a round 1 million tons a year. The Minister of Industry and Trade Dr. Khalid Rajeh Sheik has expected arise in the volume of investment in Cement Industry until 2007 to amount to $ 700 million, $ 400 million of which for the private sector and $ 300 million for the public sector.
Minister Sheik told Al-Thawra newspaper that expansion in Cement Industry as a result of demand growth for it because of great development seen by the sector of construction and building in Yemen.
Official figures mention that Yemen's consumption of Cement amounts to 2.5 million tons, 1.5 million tons as local production provided by 3 public sector plants in Amran, Bajel, and Barh, while Yemen imports about 1 million tons from a broad. All surveys confirm availability of local raw materials by 100% necessary for Cement Industry.