HeidelbergCement to expand Ukrainian capacities

HeidelbergCement to expand Ukrainian capacities
Published: 20 June 2011

HeidelbergCement Ukraine is considering increasing its cement production this year by at least 15 per cent over 2010 levels to reach 2.3Mta, according to Andrey Zhuravlev, CEO of the company’s plant in Kryvyi Rih.

His comments were made during the recent 4th International UkrCemFor2011 Conference which was held under the theme “Cement Industry, Prospects of Development ". 

According to Mr Zhuravlev, successful implementation of the company’s plan is expected to help it increase domestic market share from the current 22 per cent to 25 per cent this year.

As part of the project, the company plans to increase capacity of its local cement plants. In addition HeidelbergCement is ready to complete some of its investment projects including the conversion of its Amvrosievsky plant to dry-process technology. By 2015 the company plans to invest about EUR250m in the expansion of this facility and, in particular, the development of the Balka Shirokya chalk quarry. Between 2006-10 more than UAH470m (US$58.75m) has been invested in its Amvrosievsky works. 

HeidelbergCement has been present in the Ukraine since 2001. In 2008 it completed restructured its Ukrainian business, which is currently comprises the Kryvyi Rih Cement plant, Kryvyi Rih (with a clinker and cement capacity of 1.1Mta and 1.6Mta respectively), the Dniprocement plant, Dneprodzerzhinsk (0.35Mta of clinker and 0.65Mt of cement), Doncement, Amvrosiyivka (2Mt clinker and 2.5Mt cement) and Enakievo (450,000t of cement).

Last year HeidelbergCement increased net income by 3.6% YoY to UAH 24.37m (USD$115.5m). The global economic crisis negatively affected Heidelberg’s Ukrainian arm and production declined 55 per cent in 2009 to just 1.8Mt.

However, the Ukrainian market is steadily growing and according to recent forecasts by Peter Lopatov, executive director of Ukrcement, the Ukrainian association of cement producers, by 2015 the market is expected to grow to 25Mta of clinker and about 29-30Mta of cement – up 30 per cent on current figures.