(Yicai Global) Dec. 12 -- Huaxin Cement will be the general contractor building and renovating cement production lines and related supporting facilities for Philippines' major cement maker Holcim Philippines.

The Wuhan, Hubei province-based firm plans to sign a USD245 million engineering, procurement and building contract with a two-year construction period with Holcim Philippines, the cement maker operated by Switzerland's LafargeHolcim announced late yesterday.

Huaxin Cement will construct a 6,000 ton per day cement clinker production line for USD175 million, renovate an existing 3,000 ton per day one at USD58 million and erect a USD12 million 7 megawatt waste heat power generation project, per the announcement.

The project will refurbish Taguig City-based Holcim Philippines' plants in Bulacan and Misamis Oriental to reduce costs, Bloomberg News reported. 

Huaxin Cement will take charge of design, provide equipment, build civil works, install and debug equipment, test comprehensive product performance and the project upon completion, per the EPC contract, the announcement added.

Undertaking this project will give full play to the firm's technical and management advantages in the construction of modern and new dry cement kilns and help it explore the international general contracting market for cement project construction, the announcement said.

Holcim Philippines is listed on the Philippine Stock Exchange, per the announcement, which adds that LafargeHolcim, Huaxin Cement's major shareholder, is Holcim Philippines' indirect but second-largest shareholder. It also oversees its production and operation, so this transaction is a connected one.

Editor: Ben Armour