Chinese CBMI clinches Cyprus cement contract

China's CBMI Construction Co Ltd was awarded one of the largest contracts ever signed between an EU member state involved in the cement industry and the largest deal ever assigned to a Chinese contracting firm by a Cypriot company.

Vassiliko Cement Works Pcl (VCW.CY) awared the EUR 83.8 mln contract for the construction of a new cement production plant in Cyprus after successfully merging its operations with those of Cyprus Cement, which will gradually cease operations.

The high-tech production unit is expected to be operational by the end of 2010, increasing the company's annual production capacity from 1.85 mln tonnes to 2.50 mln tonnes.
Vassiliko CEO Antonis Antoniou said that without this investment the long-term prospects of Vassiliko would have been limited.

Chinese Ambassador Zhao Yali, who attended the signing ceremony, noted that this is the largest contract in value terms ever signed between the two countries. He said bilateral trade was booming, with Chinese exports to Cyprus surging 90% in 2007 to $707 mln.
"Cypriot exports to China were valued at USD 7 mln, an increase of 160%, which shows our trade relations are developing rapidly."