Displaying items by tag: Capacity

Ukraine: Ukrainian cement and concrete producers are ready to expand capacity to meet reconstruction demand, according to a survey by Consumer and Business Research Ukraine (CBR), despite reduced funding and limited state budget. Cement production dropped to 5.4Mt in 2022 from 11Mt in 2021 but stabilised at 7.4Mt in 2023 and 7.97Mt in 2024. CBR estimates that 8Mt/yr is feasible during wartime, rising to 12Mt/yr in the third or fourth year of reconstruction.

The Ukrainian Cement Association (UkrCement) head Pavlo Kachur said “Reconstruction will begin with demining, reinforcing the front lines and restoring energy infrastructure. Large-scale construction will likely not begin until the third or fourth year.”

At present, plant capacity utilisation varies across regions. Plants in western Ukraine are operating at higher capacity, while those in the south and east remain underutilised. In 2022, plants operated at a loss but retained staff. In 2023, volumes were sufficient to break even. Two-thirds of surveyed consumers increased production in 2023, though 2024 expectations were cautious.

Kachur said “Time will be needed for training, planning and securing financing—and cement producers will use that time to fill the market, primarily by investing in modernisation and capacity expansion. For example, two major projects to build new kilns are already ready in Kryvy Rih and Ivano-Frankivsk.”

The study notes that building brand new plants is unlikely, but modernising existing kilns can be accomplished within a year. It expects at least two plants to launch new kilns, increasing capacity by 2Mt/yr. For example, Kryvyi Rih Cement has obtained a permit to develop the Maryanske limestone deposit (60km from the plant) and plans to build a clinker kiln at the site.

CBR researcher Tetiana Sytnyk said “Cement companies are ready to make rapid investments in modernisation and to launch additional kilns once recovery begins. They’re waiting for clear signals to proceed – such as the allocation of reconstruction funds or a surge in demand to at least 9.5Mt/yr.”

Ukraine exported 1.7Mt of cement in 2024, up from 56,000t in 2021, with Kachur adding that exports have ‘saved’ the local industry during the war. Developed countries will be capable of meeting Ukraine’s reconstruction needs, though this could hurt local producers. Kachur added “During the recovery phase, Ukraine’s market must be as localised as possible with domestic products. Only countries that supported us during the war should have access.”

Saudi Arabia: Arabian Cement Company said in its 2024 annual report that work is underway to increase the production capacity of its fifth production line by the fourth quarter of 2025. The company also said it is progressing on a project to connect its Rabigh plant to the Saudi Electricity Company grid under the liquid fuel displacement programme.

It forecast that cement demand will rise in 2025 due to government and Public Investment Fund-backed development projects in the Makkah region. The sector is reportedly operating at 63% capacity due to oversupply and weak demand, according to Zawya News, although an interest rate cut in September 2024 led to a revival of real estate projects.

India: Dalmia Cement (Bharat), a material subsidiary of Dalmia Bharat, has commenced commercial production at its cement grinding unit at Rohtas Cement Works in Rohtas district, Bihar, increasing capacity by 0.5Mt/yr to 1.6Mt/yr.

With this rise in cement capacity, the group’s total cement production capacity now stands at 49.5Mt/yr.

India: The Ramco Cements has increased the capacity of its Kalavatala plant in Andhra Pradesh from 2Mt/yr to 2.4Mt/yr by de-bottlenecking and optimising the cement mill. The producer's total cement grinding capacity now stands at 24.4Mt/yr.

India: UltraTech Cement has commissioned a 3.35Mt/yr brownfield clinker line and one of two 2.7Mt/yr cement mills at its Maihar unit in Madhya Pradesh. The second grinding mill will be commissioned in the first quarter of the 2026 financial year. The producer also commissioned brownfield expansions at its Dhule grinding unit in Maharashtra (1.2Mt/yr) and Durgapur grinding unit in West Bengal (0.6Mt/yr), and launched its first bulk terminal in Lucknow, Uttar Pradesh, with a handling capacity of 1.8Mt/yr.

“Consequent to the above, the company’s total domestic grey cement manufacturing capacity stands at 183.36Mt/yr. Along with its overseas capacity of 5.4Mt/yr, the company’s global capacity stands at 188.76Mt/yr,” UltraTech Cement said.

Gabon: The Gabonese government and Ciments d'Afrique (Cimaf Gabon) have signed an investment agreement for the construction of a third cement production line. The US$41.1m project will increase Cimaf Gabon's cement production capacity by 1Mt/yr to 1.85Mt/yr.

Cimaf Gabon also holds a permit to exploit a major limestone deposit around Ntoum and will build a clinker production unit in the area, requiring more than US$148m in investment.

Cimaf Gabon’s general director Janah Idrissi El Mehdi said “This plant, located a stone's throw from Ntoum in the Estuaire province, will bring significant benefits to the entire region, particularly in terms of job creation (1400 in the project phase and 500 in the operational phase). It will contribute to improving the living conditions of the surrounding populations.”

Cameroon: Cameroon will increase its cement production capacity by 4.3Mt to 12.7Mt/yr by the end of 2025 with the addition of three new plants in Édéa, according to Business in Cameroon. The new facilities will help meet local demand and support exports.

The first plant, Sino Africaine (Sinafcim) is under construction and will have a 1Mt/yr capacity. It is set to begin production in April 2025. It will employ 200 workers and 90% will be Cameroonian. The second, Central Africa Cement (CAC), has been operational for several months with a 1.5Mt/yr capacity. It currently employs 100 people and aims to reach 200. The third, Yousheng Cement, is being built near Douala and will have a 1.8Mt/yr capacity. National demand in Cameroon is reportedly around 8Mt.

India: UltraTech Cement has increased its production capacity by 1.2Mt/yr through debottlenecking efforts. The producer said that it had identified multiple efficiency enhancement opportunities across various locations as part of its capacity expansion programmes. The additional capacity includes 0.8Mt/yr at the integrated Hirmi plant in Chhattisgarh and 0.4Mt/yr at the Roorkee grinding unit in Uttarakhand. Ultratech’s domestic cement capacity now reportedly stands at 179Mt/yr.

Nigeria: Dangote Group has resumed construction of a 6Mt/yr cement plant in Itori, Ogun State, according to Business Insider Africa. Itori is 10km from Ewekoro, the site of a 3.9Mt/yr plant owned by Lafarge Africa. Construction of the plant is expected to be completed by November 2026. The company will also build ‘Nigeria’s largest seaport’ at the Olokola Free Trade Zone, also in Ogun State. The plant will have two lines and sits on 533 hectares of land.

Ogun State is already home to the 12Mt/yr Dangote Cement Plant in Ibese. Upon completion of the Itori project, the state’s total cement production capacity will reach 18Mt/yr. Dangote Cement reportedly has a production capacity of 52Mt/yr across Africa, with 70% of production in Nigeria.

Aliko Dangote said “We earlier on abandoned our vision of investing in the Olokola Free Trade Zone but, because of governor Dapo Abiodun’s policies and investor-friendly environment, we are back and will work with the government to return to Olokola. Plans are underway to construct the largest port in the country.”

He said that the nearly US$800m Itori cement plant should have been completed earlier, but was delayed due to opposition from former governor Ibikunle Amosun.

India: Dalmia Bharat has commenced commercial production at its expanded cement grinding facility in Lanka, Hojai district, Assam. The expansion by subsidiary Dalmia Cement (North East) has added 2.4Mt/yr to the company’s total production capacity, which has now reached 49Mt/yr. Capacity utilisation stands at 60% on a pro-rata basis. The expansion cost US$80.4m, funded through equity, debt and internal accruals. The additional output is expected to meet rising cement demand in the northeastern region.