Spanish company Cementos Molins will join Lafarge in building a state-of-the-art cement plant at Chhatak, Sunamganj in Bangladesh. The two companies signed an agreement to this effect in Paris in May.

Under the agreement, the companies will work as a 50-50 joint venture and together hold around 60% interest in Lafarge Surma Cement Ltd. The remaining shares will be held by international financial institutions and local investors.

In addition, engineering work has started in building the US$225 million cross-border project at Chhatak. Development work at Lafarge's own quarry in Meghalaya also has started. Raw materials from the quarry will be transported to the Chhatak plant by a 17-km-long belt conveyor. The plant is expected to go into production in 2005.