The Italcementi Group has signed an agreement with the European Bank for Reconstruction and Development for a $25m (€20m) loan to fund the modernisation of the Shymkent cement plant in southern Kazakhstan.
In addition to the loan, the bank will invests of approximately $5m in Shymkentcement, for an equity stake of around 21%.
The project, arranged under the European Bank for Reconstruction and Development’s policy to support energy efficiency initiatives in Kazakhstan, will replace the four wet-process lines currently operating at the cement plant with a new dry-process line.
The technology to be employed will enable the plant to boost efficiency and achieve a significant reduction in emissions, according to Italcementi.
Construction work has already reached an advanced stage. The new plant, with a production capacity of approximately 1.2mta of cement, is expected to begin operations in early 2016.