| CEMENT Update
Jaypee to set up cement unit in AP
Jaypee Group is planning to set up a cement manufacturing
facility in Andhra Pradesh with an investment of Rs 1,600
crore. The unit on 250 acre will have an annual capacity of
5 mn tonne. It will be operational by 2010.
Contact: Jaypee Group.
Tel: 011-2614 1540. Fax: 011-2614 5389.
E-mail: jil@jalindia.co.in Website: www.jilindia.com
Cement Cos in Gujarat increasing capacity
Several cement companies in Gujarat are increasing their capacities.
These include AHW Steels, a subsidiary of the Bagaria group,
which is currently negotiating with the Gujarat government
for setting up a cement unit in Kutch. The unit on 1,000 acre
will be set up with an investment of Rs 1,200 crore. The company
has also sought mining lease from the state government for
the plant. Similarly, Gujarat Mineral Development Corporation
(GMDC) has entered into a joint venture with Jaypee Group
to set up a 2.4 mn metric tonne per annum of cement unit in
Kutch, while Sanghi Cement is in the process of raising its
capacity to about 9 mmtpa in Kutch, and Binani Group is aiming
to set up a 2.5 mmtpa in Kutch.
Cement cos to trim production
The domestic cement industry is planning to trim production
due to various reasons like increasing gap between production
and despatches, softening of cement prices and inventory level
inching towards 2 mn tonne. The 205-mn tonne cement industry
added over 30 mn tonne in FY08 and is set to add a similar
capacity in the current financial year to take the overall
capacity to around 230 mn tonne. However, cement demand is
low with growth at 7-8 per cent against the anticipated 10
per cent.
JK Cement UAE project delayed
The 2.2-mn tonne UAE cement plant by JK Cement, which was
scheduled to go onstream by the middle of 2010, is likely
to be delayed by nearly a year as the company is redrawing
the strategy amid global slump and meltdown. The plant with
an investment of $400 mn is to be set up in the Fujairah province.
The local government will also have 10 per cent stake in it.
The Rs 1,450-crore company, which currently has an overall
capacity of 4.4 mt, is also setting up a 3.5 mt greenfield
project in Karnataka.
Contact: JK Cement.
Tel: 040-2750 8700. Website: www.jkcement.com
Rising stocks, poor demand forces ACC to shut clinker kiln
Rising stocks and poor demand in the northern region has forced
ACC Ltd to temporarily shut its 4,800 tonne a day Gagal-II
kiln in Himachal Pradesh. The kiln that contributes 2.4 mn
tonne a year, had been witnessing accumulation of clinker
stock for quiet some time due to lack of demand and increase
in duty free imports.
Contact: ACC Ltd.
Tel: 022-6665 4321. Fax: 022-6631 7440.
Website: www.acclimited.com
Aditya Birla Group’s cement production up by 2.76%
The cement production of Aditya Birla Group for the period
April-November 2008 has increased by 2.76 per cent to 201.19-lakh
mt as against 195.80-lakh mt during April-November 2007. The
despatches too grew by 3.20 per cent to 200.64-lakh mt against
194.43-lakh mt in the corresponding period last year. Cement
production in November 2008 alone rose by 9.47 per cent at
25.03-lakh mt.
Contact: Aditya Birla Group.
Tel: 022-5652 5000.Fax: 022-5652 5750.
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Cement prices fall
Cement prices in November 2008 in the eastern, northern and
southern parts of India have declined due to sluggish demand
as compared to previous months. Prices in the eastern part
of the country have declined by Rs 10 - Rs 12 for a 50-kg
bag over the last fortnight, while prices in the northern
and southern markets have fallen by Rs 2 - Rs 4 a bag. Western
and central regions are the only markets where the cement
makers have been able to maintain their prices.
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