Palanca Cimentos to invest US$420 million in Benguela, Angola

5 February 2010

Luanda, Angola, 5 Feb – The new Palance Cimentos cement factory, an investment of US$420 million in Angola’s Benguela province, is awaiting approval from the Angolan government for construction to begin, said the chairman of the Gema group, which owns 50 percent of the company’s capital.

The project is the result of a partnership established between Angolan group Gema and Camargo Corrêa Escom Cement B.V., a Netherlands-based company, made up of Brazilian construction company Camargo Corrêa and Portuguese group Escom, which owns the remaining 50 percent of Palanca Cimentos.

The project was presented to the Angolan National Private Investment Agency “around a year ago” José Leitão told the O País newspaper.

The cement factory is located near the new Sonangol refinery and is due to produce between 1.6 and 2 million tonnes of cement per year, mainly for the domestic market.

The funding fo the project will be provided by a banking syndicate led by Banco Espírito Santo Angola (Besa).

The new cement factory is expected to take two years to build after it is approved and Leitão said that start of construction had been projected for March of this year. (macauhub)