Following Iskander Makhmudov’s Ural Mining and Metal Company, the MECHEL steel group is considering building a clinker plant, with a capacity of 1Mt, in Beloretsk, Bashkortostan (clinker is a raw material for cement production)
The plant will be built next to the Pugachev limestone deposit, owned by MECHEL. Production is scheduled to begin in late 2008 or early 2009. Analysts believe MECHEL will have time to earn on the project, despite the large number of the ongoing projects in the industry. Gross profit margins on cement production now average between 55% and 80%, while the Affordable Housing national project will ensure markets for cement makers in upcoming years.