Displaying items by tag: Expansion

North Korea: The Kangso Cement Factory has reportedly increased the rate of extraction from its quarry following an earlier kiln capacity upgrade, according to the Korean Central News Agency, which speaks for the Workers’ Party of Korea and the country’s national government.

It says that officials and workers have fulfilled production plans by ‘ensuring proper cooperation between shifts and between production lines’ and operating equipment at full capacity. It said that the workers and technicians of the calcining work-team are improving the quality of products and that workers responsible for cement production are producing more cement than planned every day by ‘checking, repairing and maintaining equipment with foresight.’

China: According to China Cement Net, Chongqing Tongliang Southwest Cement has inaugurated a 7300t/day (2.25Mt/yr) clinker production line. The company previously operated a 2500t/day (0.75Mt/yr) and a 4800t/day (1.55Mt/yr) clinker line, which will be relocated.

India: ICRA expects cement volumes to grow by 6-7% in the 2026 financial year, following a 6% rise in 2025, driven by housing and infrastructure demand. Capacity additions are forecast to increase to 43-45Mt/yr from 32-35Mt/yr in 2025. Eastern and northern regions will lead the expansion, with 22–24Mt/yr of new grinding capacity.

The assistant vice president of corporate ratings, Abhishek Lahoti, added “The southern region, despite an oversupply of capacity, is experiencing significant capacity additions by large cement companies as it is operating at optimal utilisation levels and intends to maintain its market share in the near term. Overall, the industry’s capacity utilisation is likely to remain stable at 70% in the 2026 financial year, similar to the previous financial year, on an expanded base.”

US: Mexico-based GCC has concluded two bank loan agreements totalling US$135m to fund the expansion of its cement plant in Odessa, Texas. The loans have five- and ten-year maturities respectively, and will support development at the site. GCC did not provide further details in its statement.

It said “These facilities reflect GCC's continued commitment to strengthen its operating and financial performance, while increasing the company's financial flexibility.”

In addition to the Odessa plant, the producer has cement plants in Rapid City, South Dakota; Trident, Montana; Tijeras, New Mexico; and Pueblo, Colorado.

Malaysia: Cahya Mata Sarawak (CMS) subsidiary Cahya Mata Cement is seeking approval from the Sarawak government to begin construction of a second clinker production line in Mambong. The line was first announced in January 2025. According to Bernama news, the new line will more than double the producer’s clinker capacity to 1.92Mt/yr from 900,000t/yr and is scheduled for completion in March 2027. Once operational, it will enable the group to manufacture up to 2.4Mt/yr of cement.

The project will be developed with China-based Sinoma Industry Engineering under a consulting agreement signed in 2023. The agreement covers the design and subsequent construction of the clinker line, as well as optimisation of the existing production line. The line will include a 6MW waste heat recovery system and a dust filtration system to cut emissions by 50%.

CMS group general counsel Izzam Ibrahim said “We are going through the regulatory approvals, and we are working very closely with the state government to obtain approval to start construction. In fact, we have lined up all the necessary manpower and procurement processes to kickstart the project. Once the project is off the ground, the target for completion will remain on track.”

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: Sinoma Overseas has marked the construction of the preheater tower as part of a relocation and upgrade of Yamama Cement’s production line. The previously 10,000t/day line now has a capacity of 12,500t/day. The placement of the final structural element on the preheater tower was attended by representatives from both companies.

Sinoma posted on social media that the company had “overcom[e] significant engineering and logistical challenges – from dismantling and moving massive equipment to integrating new technology.”

With the preheater tower now complete, the company looks ahead to the plant’s commissioning and final delivery.

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.