(Yicai Global) Jan. 7 -- Beijing-based Sinoma International Engineering's wholly-owned unit will build a production line for clinker cement near Samawah in Iraq's southern Al Muthanna province for USD246 million as an engineering, procurement and construction contractor.

The subsidiary, Chengdu Design & Research Institute of Building Materials Industry, signed the EPC contract with project owner Baghdad-based Iraqi Cement on Jan. 3, the major Chinese cement equipment and construction services provider announced the next day.

The unit will take charge of mine design, supply of mining equipment and building a complete production line for clinker with a 6,000-ton daily output, spanning the whole gamut from crushing raw materials to packaging and delivery of finished cement, as well as the supporting facilities of a staff life services area and self-provided power plant, per the agreement.

Cement clinker is a dark gray material produced by heating ground limestone and clay at 1,400°C – 1,500°C, with a bit of gypsum mixed in to control setting.

The affiliate will provide engineering design, supply of equipment and steel structures, civil engineering, installation and commissioning of the production line and staff training services, per the announcement.

The agreement will take effect after Iraqi Cement secures the customer's credit and the subsidiary receives prepayment and the necessary design and construction documents, the announcement said. 

The plant must deliver the first product within 26 months after the deal comes into force, with quality and output meeting target within 37 months.

Editor: Ben Armour