Develop a modern, very competitive cement plant on the basis of a high quality, easily exploitable raw material depositThe Business
The Company plans to develop a modern cement production plant on the basis of a significant high quality limestone deposit (the ?Deposit?) located in Russia?s Central Federal District (?CFD?). This proposed project envisions development of a quarry to exploit the Deposit and the construction of a modern cement plant. The Project is initially expected to supply the Russia?s Central Federal District (which includes Moscow region) with about 1.2 million tons of quality cement annually, with a possible increase to 3 million tons. The cement plant will be constructed on the basis of the latest clinker production technologies (dry method), which have low power consumption. Only seven other plants in Russia use such technology.
The quality of carbonate and carbonate-clay deposits has been shown through testing to be suitable for production of Portland cement grades 400 to 600. The Deposit reserves would support plant operation for about 55 years.
Market
The demand for cement in the CFD is almost half of the country?s total. In 2008, the CFD consumed about 25 million tons, however local suppliers provided only about 19 million tons. There are six competitor cement plants in the CFD, which produce from 0.8 to 6.1 million tons per year. The balance of supply has primarily come from imported cement.
Foreign imported cement, which is produced in modern plants, is price competitive with Russian producers, which mostly use older and less efficient equipment and technology. Also, import duties on imported cement were recently eliminated, which opened the market to efficient producers from Turkey, China and Ukraine. Domestic producers who modernize and construct new plants have a competitive advantage over other domestic producers as well as imports.
The project sponsors are seeking an investment in the amount of about USD230 million.
Sector: Construction MaterialsSegment: Cement ProductionRegion: RussiaFinancing Size: More than $100mContact: Philippe Der Megreditchian
Company: OLMATelephone: +33 6 03 88 30 13Email: [email protected]