China's Sinoma inks $147 mln Saudi initial deal

RIYADH, Nov 3 (Reuters) - Saudi-based Southern Province Cement Co 3050.SE said on Tuesday it has signed a preleminary agreement to award China's Sinoma (600970.SS) a $147 million contract to expand its production capacity.

A final contract for the turnkey expansion will be signed before the end of 2009, said Southern Cement, the kingdom's biggest cement firm by market value.

The contract covers adding a production line with a daily 5,000 tonne capacity to one of Southern Province's plants, it added in a statement on the bourse website. (Reporting by Souhail Karam; Editing by Firouz Sedarat)