JK Cement has suffered another setback in setting up its first overseas cement-making unit in the United Arab Emirates (UAE). The company has failed to tie up with UAE-based banks for funds even two years after the overseas foray was proposed. The plant originally projected to go on stream by the middle of 2010, is now expected to be commissioned in 2012.
Though the Rs 1,500-crore cement maker (in terms of sales) does not seem to be in a mood to quit the project, it has decided to scale down the unit’s capacity by one-fifth, from the proposed 2.2Mta to 1.8Mta, owing to projections of the region turning into cement surplus by 2010.
JK Cement chief financial officer A K Saraogi said, “Banks in the UAE are not funding due to the liquidity crisis in the region. Talks are on, and if everything goes fine, from now onwards, by middle of 2010, we can start the project.”