Cement Plants in Iraq - 9 Billion Deal

The company INEKON GROUP signed a contract in Iraq worth 300 million EUR (approximately nine billion crowns) to build two cement plants in Iraq. It is the biggest Czech investment in Iraq since the fall of the Saddam Hussein regime after which international companies hoped to profit from projects in connection with the country reconstruction. "Last week we were granted approval from the Kurdish government. That means that the contracted project may be implemented," said Josef Hušek, director of the INEKON company.

The cement plants construction will be financed through the Czech Export Bank and EGAP. „This year, it will be the biggest export contract. I do not know about any other bigger project,“ said Josef Cílek, director of Technoexport company that exported technologies for Iraqi refineries reconstruction. The Inekon deal should bring revenue for other Czech companies also. For example, subcontractor of the constructional part is the Zlín-based company PSG International. Machinery (large furnaces and mills) will be produced in Přerov by PSP Engineering. Electronics and control systems will be supplies by CZMT company from Ostrava. The project preparation is to be completed by October next years and first deliveries are expected to occur in the beginning of 2007. Both factories will be built in a relatively peaceful northern region where Western companies are not at risk like in the southern Basra region where the Czech reconstruct refineries. The total value of Czech contracts in Iraq supported by the government should reach 8.6 billion crowns. INEKON is now completing preparation work for a cement plant in Vietnam for 150 million USD (approximately 3.7 billion crowns). Josef Hušek who founded INEKON fifteen years ago. Before, he had been working in the foreign trade Pragoinvest company for twenty years. Besides other activities, INEKON controls Druchema company and produces trams.