SANAA, April 21: China's Sinoma International on Saturday signed a deal with a private Yemeni-Saudi firm to build a 1.6 million tons per year cement plant in the Arab state, the firms said.

They said in a statement that the Yemeni-Saudi Cement Co. will operate the plant, which is expected to cost $250 million.

The project, to be set up in the southern province of Abyan, will be completed within 25 months starting from the agreement signing, the statement said.

Sinoma last year signed a deal with the private Arab Yemen Cement Co. to build a 1.4 million tons per year cement plant in the Red Sea port city of Mukalla within three years. The total cost of the project was estimated at $250 million.

Industry sources have said that the Arab Yemen Cement Co. is mainly owned by Saudi Arabia's Eastern Cement Co, Saudi Binladen group and Yemeni investors.—Reuters