The Nesher Cement Enterprises power plant will be expanded to 120 megawatts by 2014.
Clal Industries and Investments Ltd. (TASE: CII), controlled by Len Blavatnik, subsidiary Mashav Initiation and Development Ltd. will invest $90 million to expand its private power station, which supplies electricity to Nesher Cement Enterprises Ltd. The power station's production capacity will be initially expanded by 50 megawatts of electricity, and then by 70 megawatts.
Clal Industries owns 75% of Mashav, and Ireland's CRH plc (ISE; LSE; NYSE: DAX: CRH) owns 25%. Mashav's 50-megawatt natural gas-driven power station received a 20-year independent power producer license in 2010. The expansion, scheduled for mid-2014, will increase production capacity to 100 megawatts and then to 120 megawatts in the second half of the year. The surplus power not used by Nesher will be sold to private customers.
Clal Industries' board of directors has instructed Mashav's management to secure financing for the project from external sources.
Published by Globes [online], Israel business news - www.globes-online.com - on August 26, 2012
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