Sinoma Overseas Secured the Argentina - L’Amali Line 2 5,800tpd Cement Production Line EPC Project


In July 2017, after over one month of arduous negotiation, with the witness of notary officers, Sinoma Overseas Development Co., Ltd. (hereinafter referred to as the “Company”) officially issued the Offer Letter on L’Amali Line 2 - 5,800tpd Cement Production Line EPC Project to LOMA NEGRA C.I.A.S.A (hereinafter referred to as the “Employer”) in Buenos Aires, the capital city of Argentina. On August 3, as agreed in the Offer Letter, the Employer made remittance to the specified account of the Company, which was regarded as acceptance of the Offer Letter by the Employer and symbolized establishment of the contractual relationship between the two parties.

LOMA NEGRA C.I.A.S.A is a subsidiary to globally well-known cement supplier Intercement based in Brazil. The project is located in Olavarria in the Province of Buenos Aires, Argentina. The contract scope ranges from limestone crushing to cement packing and shipment and covers engineering design, equipment procurement and supply, civil construction, mechanical/electric equipment erection, commissioning and staff training etc.

Since September 2015, after receiving the project information, in order to promote landing of the project, Chairman Song Shoushun and Vice President Jiang Zhongwen of Sinoma International Engineering Co., Ltd. and Chairman Meng Qinglin of the Company participated in person and led Business Development Department to meet with Intercement senior management several times for ways of cooperation. The intent to and the way of cooperation between the two parties were gradually identified.

Since September 2016, the project entered the stage of pre-bid clarification, site investigation and negotiation. Chairman Meng Qinglin, General Manager Gao Chao and Deputy General Manager Yang Lei of the Company respectively led teams to Argentina for negotiation several times. In the mid June 2017 when it came to final negotiation, the Company mobilized a large number of business backbones from Marketing Department, Technical Center, Cost Control Department and Purchase Department and formed high-level technical and commercial teams to devote to the contract negotiation with the full support of Sinoma Nanjing. The negotiation lasted for around 45 days, eventually ending up with successful signing of the contract.

The project is the first cement production line EPC project that the Company and Sinoma International signed in South America and also the first monomer project with the largest contract value of the Group in South America. Meanwhile, as Intercement is the exclusive customer under the responsibility of the Company, it earnestly implemented provisions of the Administration Method over the International Market of Sinoma International Engineering Co., Ltd., ploughed its exclusive customers within the responsibility scope according to the market “responsibility system” and explored the market diligently, eventually harvesting the fruitful result.

The successful signing of the project signaled the Company’s official entry into the cement engineering market of South America. Meanwhile, the project was the second time of cooperation between the Company and the Employer after successful execution of TUPI project in Paraguay. As the cooperation was deepened, mutual trust was further enhanced, which consolidated the two-way strategic cooperative relationship, built up sound reputation for the Company to explore the South American market and expanded the Company’s market influence in the region.