ASEC Holding

A SEC Holding (ASEC) is a leading regional cement, engineering and construction group with operations spanning the Middle East and Africa. With over 30 years of experience, ASEC’s portfolio of services includes plant design and engineering, technical management, automation and construction. Portfolio Company ASEC Cement is emerging as a leading regional cement producer that plans to control 10 million tons per annum (MTPA) of cement by 2015 in attractive, key markets in the MENA region, including Egypt, Sudan and Algeria.

Other ASEC Holding companies — ASEC Engineering, ESACO, ARESCO, ASEC Automation and ASENPRO — provide full-spectrum turnkey contracting solutions including technical management and environmental protection services.

While the bulk of ASEC Holding’s services cater to the cement sector, the group is rapidly diversifying its client base with large industrial clients such as steel producers and power plants among others.

OPERATIONAL UPDATE

ASEC Cement owns three assets in Egypt, including a significant minority stake in Misr Qena Cement Co., the Arab National Cement Company (a 2 MTPA plant under construction in Minya) and a Ready Mix operation in Upper Egypt. The company has entered other markets including Algeria and Sudan, and is well on its way to becoming a substantial regional player controlling the production of 10 MTPA of cement by 2015.

In Algeria, where demand for cement outstrips the country’s production capacity, ASEC Cement has established a strong presence by acquiring a 35% stake and management control of Algeria’s government-owned Zahana Cement Company and continues building a US$ 371 million, 1.4 MTPA greenfield cement plant in the central region of Djelfa in two phases. The second phase of the project will commence as soon as phase one is complete, adding 1.8 MPTA of capacity. Construction at Djelfa is now underway, with the project set for completion in 2014. Prominent partners in the Djelfa project include the Hayel Saeed Group and the Danish International Investments Funds, while the Banque Exterior d’Algerie has provided a US$ 180 million bank loan to finance the plant. The Djelfa plant will not only create 470 direct and approximately 700 indirect jobs when complete, it will also accelerate the development of surrounding infrastructure in the underdeveloped region.

ASEC Cement’s 1.6 MTPA Takamol plant in Sudan began operations in August 2010. Takamol primarily serves Sudan’s sizable local market and today stands as the most technologically advanced cement plant in the country. In its first six months of operation Takamol produced approximately 500,000 tons of clinker and cement.

Porfolio Company Arab National Cement Company (ANCC) obtained a US$ 185 million syndicated loan in October 2010 to finance the construction of its 5,000 ton-per-day greenfield cement plant in Egypt’s Minya governorate. With a total investment cost of US$ 335 million, the ANCC plant will be completed by the first half of 2013, in time to meet the projected spike in demand that will occur as several key infrastructure projects launch in Upper Egypt.

in Egypt, Portfolio Company ASEC Ready Mix began operations during the summer of 2010 with two batching plants, one in Qena and the other in Assiut. For the remainder of 2010, sales steadily picked up month after month, although projections for 2011 are uncertain given the prevailing situation in the country.

Lastly, ASEC Cement also owns licenses to build and operate 2.0 MPTA plants in both Syria and the northern part of Iraq, Kurdistan. To continue its expansion into new markets, ASEC Cement is also exploring the Ethiopian market and evaluating other new opportunities in Sub-Saharan Africa.
In 2010, ASEC Engineering managed seven cement plants in Egypt with a total production capacity of 12 MPTA, equivalent to 24% of total cement capacity in Egypt. In addition, it expanded its operation regionally to service Qatrana cement plant in Jordan, Takamol and El-Salam cement plants in Sudan and Djelfa cement plant in Algeria.

ARESCO has turned net profits from operations since 3Q10 and has substantially reduced its debt. The company announced in 3Q10 that it had signed a US$130 million contract to construct a new cment plant for the Building Materials Industry Company (BMIC) in the Upper Egyptian governorate of Assuit. The company has also signed for another mega project at El Minya cement plant, in addition to smaller projects in other industrial sectors, namely power generation.
ESACO, a civil contractor and steel fabrication firm, won six large-scale civil and mechanical production contracts throughout Egypt, Libya and Uruguay in 2010.