(Ecofin Agency) - The Danish construction group FLSmidth via a release published on Feb.8 on its website said it has inked a €200 million contract with Algerian company Amouda Engineering for the construction of cement plant in Laghouat, 430km South of Algiers.

The agreement plans for designing, provision of equipment, construction, setting and training of staff.

Cited in the release, Per Mejnert Kristensen, vice-president of cement division at FLSmidth, said: “Algeria is a key market for FLSmidth and we built many cement plants across the country”.

Once completed, the plant will have a production capacity of 2 million tons per year.

In Algeria, state-owned and private cement plants produce each year around 18 million tons of cement while the needs of the country exceed 22 million tons.