Egypt-based Arabian Cement Company (ACC) has announced plans to set up a cement grinding facility in northwest Brazil that will boast a total production capacity of 230,000 tonnes per year.

Established in 1997 by a group of Egyptian entrepreneurs, ACC is a joint venture between Cementos La Union, a Spanish investor holding the majority of shares, and a group of Egyptian investors.

The company move to set up a joint venture with Cementos Relampago, an affiliate of Cementos La Union, comes in line with its international expansion strategy.

According to ACC, the total investment in the new project is €23 million ($28.7 million), 50 per cent of which will be financed with the remaining provided as paid-in capital.

"As a leading cement manufacturer in Egypt, ACC is keen to explore new opportunities to expand our operations on locally, regionally and globally," remarked Jose Maria Magrina, the chief executive of ACC.  

"Our new facility in Brazil will establish our presence as an industry leader in one of the hub markets of Latin America," he added.

The ACC’s contribution to the venture is €7 million ($8.7 million), representing 60 per cent of the total paid-in capital.

A major player in the region, ACC produces five million tonnes of cement, approximately 10 per cent of Egypt’s production.-TradeArabia News Service