Orascom Construction to open unit in Libya

CAIRO - Egypt-based Orascom Construction Industries has started work on opening a subsidiary in Libya and expects demand for construction services there to increase dramatically, the company said yesterday.

By (REUTERS)

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Published: Sat 22 May 2004, 10:05 AM

Last updated: Thu 2 Apr 2015, 12:29 AM

The building materials and construction company, which began the process during the first quarter, said recent events including the lifting of US

sanctions would allow new investment in petrochemical, infrastructure and tourismrelated projects in Libya.

Orascom Construction said it hoped to repeat in Libya its success in Algeria, where it formed the Algerian Cement Company in 2000. It expects construction revenue in Algeria to match its Egyptian revenue by next year, it said.

"By following a similar business model (to Algeria), we believe OCI Libya will be an engine for future long-term growth," said Orascom Construction Group Managing Director Osama Bishai in the quarterly statement sent to Reuters yesterday.

Chairman Onsi Sawiris operated a successful construction business in Libya for more than a decade before returning to Egypt in 1974, the company said.

The firm also said it saw the potential for new construction business in the aviation industry.

"There is a fresh stream of new airport projects in the region and we believe our experience and technical capabilities position us among the top tier of contractors qualified to pursue these large and complex projects," Bishai said.

On Wednesday, Orascom Construction posted a 56 per cent jump in first-quarter net profit, pushing up its shares by 4.4 per cent. The statement yesterday also said cement exports from subsidiary Egyptian Cement Company reached record levels in the three months to March 31.

Cement exports rose 74 per cent year-on-year, and clinker exports, an intermediary material used to make cement, soared 358 per cent. This made Egyptian Cement the largest Egyptian exporter, accounting for 31 per cent of the country's total exports for the period.

Egypt's bourse does not trade on Friday, but Orascom Construction shares closed 0.04 per cent higher on Thursday at 90.56 Egyptian pounds ($14.61).


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