Al Badia Cement to lower capital

Al Badia Cement to lower capital

Al Badia Cement JSC, a Syrian affiliate of Italcementi SpA and Saudi Arabia's Al Muhaidib Group, will lower its capital by 20 per cent. "Yes, the company will lower its capital by 20 per cent as additional equity is no longer needed because the project is fully funded with long-term loans", said Khaled Al Sawaf, Chief Executive Officer. Al Badia, which started production about two months ago. It will lower its capital to 9.76 billion Syrian pounds ($205.3 million), Sawaf said. "Listing on the stock exchange cannot be performed with partially uncalled capital," he said. In March, before the outbreak of unrest, the company said that it had halted construction of a second production line. The company had initially planned to build two lines with annual production capacity of 1.6 million tonne of cement each, Sawaf said. Al Badia provides as much as 17 per cent of Syria's cement demand. "The second line is on hold for the board's decision based on company's strategic plans," said Al Sawaf and added "We are confident of the company's ability to raise more debt once needed to make extra investments. The second line is less costly as we have already constructed the infrastructure for two lines," he said. Italcementi owns 12.5 per cent of Al Badia and Al Muhaidib 29.5 per cent.
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