JSW Cement signs deal for 1.65 million-tonne cement grinding plant in UAE

en.Wedoany.com Reported - Fujairah Natural Resources Corporation (FNRC) and JSW Cement have signed a contract to build and operate a cement grinding station with an annual capacity of 1.65 million tonnes in Al Tawyeen, Fujairah. The project is scheduled for implementation over approximately 15 months, with construction scope including dedicated production units for ordinary Portland cement as well as supporting utilities and infrastructure. The project will use clinker produced locally in the UAE.

The project is being advanced by JSW Cement Middle East LLC SPC, a wholly-owned subsidiary established by JSW Cement in the UAE. JSW Cement previously disclosed that the project's estimated capital expenditure is approximately US$39 million, with plans to finance it through a combination of debt and equity; the company also intends to provide corporate guarantees of up to approximately US$29.25 million for the project loans. Subsequent disclosures in July indicated that the related loans would be used by JSW Cement Middle East LLC SPC to build this 1.65-million-tonne-per-year grinding plant.

Prior to the contract signing with FNRC, multiple preliminary engineering works for the project had already been completed. JSW Cement's investor materials from May this year show that JSW Cement Middle East LLC SPC had been duly incorporated, the project had obtained the factory operation permit from local authorities as well as site plan approval from the Fujairah Municipality; the EPC contract had been awarded to Sinoma, and basic engineering design was underway at the time.

This contract further advances the project to the Al Tawyeen site with specific construction and operation arrangements. According to the scope announced by FNRC, the new grinding unit will include, in addition to cement production facilities, associated utilities and infrastructure, with a designed capacity of 1.65 million tonnes per year and an implementation period of approximately 15 months. The project's investment amount, financing arrangements, EPC contractor, and key approvals have all formed an interconnected project implementation chain.