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Belarus’ Krasnoselskstroymaterialy EGM OKs $147 mln deal with China’s CITIK

05 February 2008

The extraordinary general meeting (EGM) of Belarus’ largest cement maker OAO Krasnoselskstroymaterialy, approved a U.S. $147 million contract with China’s CITIK, a representative in the administration of the company told Prime-Tass.

The contact envisages two investment projects: the construction of a dry-process cement-making line and a coal preparation unit to transfer cement production from gas to coal.

The new cement-making line will have a capacity of 1.8 million tonnes of cement and 1.5 million tonnes of clinker brick. The project costs an estimated $122 million. The new line is to be launched in April 2010.

The coal project will cost about $25 million. The project will be completed this year.

Belarus’ Belengineeringstroy plans to open an office in China in order to facilitate the increase in domestic production of cement by 5.4 million tonnes by 2010.

In 2007, Belarus’ cement output rose 9.3% year-on-year to 3.82 million tonnes.

OAO Krasnoselskstroymaterialy increased cement production 6.6% in 2007 to 1.7 million tonnes. In 2008, it is planned to increase output to 1.72 million tonnes. The company was established in 2001. The state controls 80% in OAO Krasnoselskstroymaterialy.

Prime-Tass