(NICOSIA) - Cypriot cement works Vassiliko awarded China's CBMI Construction Co Ltd an 83.3 million euro (131 million contract on Thursday to build a new cement production plant on the Mediterranean island, officials said.

The high-tech production unit is expected to be operational by the end of 2010, increasing the company's annual production capacity from 1.85 million tonnes to 2.50 million tonnes.

CEO Antonis Antoniou said that, "without this investment the long-term prospects of Vassiliko would have been limited."

Chinese Ambassador Zhao Yali, who attended the signing ceremony, noted that this is the largest contract in value terms ever signed between the two countries.

He said bilateral trade was booming, with Chinese exports to Cyprus surging 90 percent in 2007 to 707 million dollars.

"Cypriot exports to China were valued at seven million dollars, an increase of 160 percent, which shows our trade relations are developing rapidly."

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