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Johannesburg - South African and Chinese companies on
Thursday announced plans to build a R1.65bn cement plant in South
Africa, in one of China's biggest investments in the country.
The R1.65bn deal
highlighted China's growing importance as an investor in Africa. in 2009 China became South Africa's biggest trade partner.
The new plant will be developed with Women Investment Portfolio Holdings
Limited (Wiphold), a black women-owned company, and South African limestone
mining company Continental Cement.
The Chinese partners are Jidong Development Group and the China-Africa
Development Fund, which together will hold a 51% stake, Wiphold said in
a statement.
"This represents a significant foreign direct investment into the South
African cement industry, with an inflow of more than R800m foreign
direct investment from China," Wiphold said.
The company said 45% of the investment would be in equity and 55% in commercial debt.
The plant will initially produce 2 500 tonnes of cement a day.
The deal, China's largest investment in South Africa in two years, comes as
consulting firm Frost and Sullivan released a report that South Africa was set
for a spike in cement demand.
South Africa has been in a construction boom as it readies for the 2010 Fifa World
Cup, which kicks off on June 11.
Frost and Sullivan said on Thursday that increased
infrastructure spending by government and a revival in residential construction
were "likely to spur the demand for cement in South Africa over the next
few years".
- AFP