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UltraTech starts US$297m capacity expansion at Chhattisgarh

20 February 2013

India: UltraTech Cement, a subsidiary of the Aditya Birla Group, has started a US$297m capacity expansion project with the help of International Finance Corporation (IFC), the multilateral lending arm of World Bank Group. About US$100m of the project comprises loans from the IFC.

The proposed project comprises a brown field expansion at UltraTech's operational integrated plant in Chhattisgarh and the investment for the necessary infrastructure to support the expansion. In a recent statement IFC said that the project is a key component of the company's cement capacity expansion strategy in the eastern part of India. Located on 389 hectares of land, existing operations were commissioned in 1995. The existing facilities and ongoing expansion include expanding the clinker capacity up to 6.5Mt/yr, the cement line up to 6.5Mt/yr and taking a coal-fired captive power plant up to 80MW.

Currently, UltraTech has 12 integrated cement manufacturing plants, 15 grinding units, five bulk terminals and more than 100 ready mix concrete plants spanning India, United Arab Emirates, Bahrain, Bangladesh and Sri Lanka with a capacity of 52Mt/yr

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Production begins at two new HeidelbergCement India plants

18 February 2013

India: HeidelbergCement India has successfully completed and commissioned two projects in Damoh district in central India, with production starting today at both facilities. It has increased production at its Narsingarh, Madhya Pradesh, plant from 1.2Mt/yr to 3.1Mt/yr. In Imlai it has taken its cement capacity from 1Mt/yr to 2Mt/yr.

HeidelbergCement India said that the expanded capacity will enable the company to increase its market share in central India, where the company's brand 'mycem' is already a premium brand.

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Heidelberg Cement India to set up US$27.8m waste heat recovery power plant

13 February 2013

India: Heidelberg Cement India has received approval to set up a waste heat recovery (WHR) power plant at its clinker plant at Narsingarh, Damoh District in Madhya Pradesh. The proposed plant will produce approximately 12.15MW of power from the available waste heat of pyro-processing system of all three lines at the unit. The project cost is estimated to be in the range of US$26.9m to US$27.8m and it is expected to be operational in January 2015.

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New plant for Seven Circle

13 February 2013

Bangladesh: Seven Circle Bangladesh, manufacturer of Seven Rings Cement, is going to establish a 1.3Mt/yr cement factory in Khulna by July 2013.

"We are expecting to enhance our production capacity to 4.4Mt/yr million tonnes by 2015 and the new factory in Khulna will help us a lot to achieve our business expansion target," said Seven Circle Bangladesh's general manager of marketing and sales Asadul Haque Sufyani. The company's current annual production capacity is 1.6Mt/yr

"Since 2008, we are exporting our product in 50kg bags to different states in India. We will be able to allocate more quantity of cement for export after starting production in our new lines. At present we are giving priority to our local buyers," added Sufyani, adding that the company was involved in numerous key building projects and highway developments in the capital Dhaka.

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New Zimbabwe plant for PPC

11 February 2013

Zimbabwe/Mozambique: South African cement manufacturer PPC's (Pretoria Portland Cement) Zimbabwean subsidiary, Portland Holdings Limited (PHL), is to build a new cement plant in the country to service its markets in Zimbabwe and Mozambique. The new plant will produce about 1Mt/yr of cement and will work alongside a separate grinding facility being constructed in Tete in Mozambique.

"In recent years our investment in Zimbabwe has show strong growth on the back of a more buoyant and stable economy," said PPC's chief executive officer, Ketso Gordhan. "This, together with the fact that PPC has received an indigenisation certificate, makes us optimistic about the future of the economy and the country as a whole."

"The construction of additional cement capacity will ensure that PPC continues to be a key player in the development of infrastructure in Zimbabwe and neighbouring countries," added Gordhan. "It is totally in line with our stated strategy of growing our non-South African revenue from the current 21% to at least 40% by 2016.

"Not only will this investment address the expected future increase in cement demand in Zimbabwe but create employment opportunities, beneficiation of the country's mineral reserves and a significant growth opportunity for our indigenisation partners," said PHL's managing director, Zak Limbada.

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China to build US$50m plant in Kyrgyzstan

06 February 2013

Kyrgyzstan: During the visit of Kyrgyz Deputy Prime Minister for Economy and Investment Tayirbek Sarpashev's to China, an agreement has been reached with Chinese investors to build a cement plant in Kemin.

The plant's capacity will be 1.8Mt/yr or 2500t/day. The construction period of the plant should take from one year to 18 months. Investments are expected of more than US$50m. It is planned that construction will begin in April 2012.

"It covers our volume and will lead to lower prices in the market and will substantially reduce the cost of construction in the north of Kyrgyzstan," said Sarpashev.

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Dangote reopens Gboko plant

01 February 2013

Nigeria: Nigeria's Dangote Cement re-opened its Gboko cement plant on 31 January 2013. The plant, which represents 20% of Dangote's production in the country due to its 4Mt/yr cement capacity was shut by the company in early December 2012, citing a glut in the market caused by imported cement from Asia.

"Since the shutdown of the Gboko Cement Plant, the government has been engaging local cement manufacturers in discussions and trying to find solutions to the challenges facing the industry," said Dangote in a statement. It added that the decision to re-open followed a meeting between President Goodluck Jonathan and the firm's chairman Aliko Dangote.

At the end of December 2012, Dangote Cement said that it expected its first quarter pre-tax profit to rise by 39% year-on-year to around US$267.8m. Dangote has expanded aggressively in recent years, supplying a construction boom in Africa's second-biggest economy and most populous nation. It plans to grow its Nigerian production to 29Mt/yr by 2015 and is also building cement plants across Africa, although cheap imports from Asia are seen as a threat to margins.

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Jazan mill enters commissioning

30 January 2013

Saudi Arabia: Southern Province Cement Company has announced the start of commissioning of its third mill at its Jazan plant, which started on 27 January 2013. It is expected that commissioning will be completed by 15 March 2013.

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Iranian state bank allocates Euro400m to cement industry

30 January 2013

Iran: Iran's Bank of Industry & Mine has allocated around Euro400m to complete 15 cement projects since 2010. The bank has financed 38% of Iran's cement projects, according to the IRNA News Agency.

The Bank of Industry and Mine is an Iranian government owned specialised bank located in Tehran, Iran. It aims to increase economic growth through the development of industry and mining. It is estimated that the bank has created some 4500 direct job opportunities.

In December 2012 Deputy Iranian Industry, Mine, and Trade Minister, Vajiollah Jafari, said that by reaching a cement production capacity of 115Mt/yr Iran will become world's third largest cement producer. Iran's cement output will reach 75Mt by the end of current Iranian calendar year on 19 March 2013. Iran plans to increase its cement output up to 85Mt by the end of the next Iranian Calendar year on 19 March 2014.

Iranian cement production surpassed 49Mt in the first eight months of the current Iranian calendar year, which began on 20 March 2012, an increase of 6% compared to the same period in 2011. Iran exported over 9.38Mt of cement and clinker in the same period, an increase of 30%. This comprised 8.25Mt of cement and 1.14Mt of clinker. Iraq, Central Asia, United Arab Emirates and Afghanistan were the main targets for the exported cement and clinker. Iran's cement production capacity is currently 86Mt/yr.

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Dangote announces new Zambian plant

30 January 2013

Zambia: Dangote Cement is set to open another US400m cement plant in Lusaka in 2014, bringing its total investment in Zambia to US$800m according to executive director Monica Musonda.

"The opening of the Dangote Ndola plant, which is situated in Masaiti, will make Dangote the biggest cement producer in the country producing 3000t/day," said Musonda. "The local cement production scenario will never be the same again with the coming of Dangote, which has now entered the Zambian market." She added that plans to open another 1.5Mt/yr capacity plant in the capital city after the completion of the Ndola plant in 2014 have reached an advanced stage.

China's Sinoma International Engineering has been hired to build the new Dangote plant. The chosen contractor would be announced once the construction process takes off. Musonda said, that like the Dangote Ndola plant, the Lusaka plant would be constructed using the latest, environmentally-friendly technologies that are commonly available in Europe and the United States.

Dangote's regional commercial manager Venkie Srinivasan said in an interview that his company expected a 40-45% share of the Zambian cement market after the opening of the Ndola plant in the third quarter of 2014. Srinivasan said that Dangote Industries in Zambia was set to meet the demand on the local construction and mining sector. He added that any excess cement would be able to compete favourably in the regional export market, including Democratic Republic of Congo (DRC).

Elsewhere, Zambia's Southern Province permanent secretary Chileshe Mulenga announced that a consortium of Indian investors are planning to invest US$10bn in various industries in the region including the construction of a new cement plant.

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