Egypt's Arabian Cement agrees joint venture with Brazil's Cementos La Union

Egypt's Arabian Cement has entered a joint venture for cement grinding with Brazil's Cementos La Union worth 23 million Euros(28.76 million US dollar), it said in a statement.

Arabian Cement's board of directors approved the venture with Cementos Relampago, an affiliate of Cementos La Union, "to establish a cement grinding facility in Northwest Brazil with a total capacity of 230,000 tons per year," the statement said.

The investment cost of 23 million Euros would be financed 50 percent through debt and equity, the statement read. It said Arabian Cement's contribution would be 7 million, "representing 60 percent of the total paid-in capital".