Eurocement plans to increase the distance between itself and competitors on the cement market. By the end of 2007, the company will sign agreements on the construction of four cement plants three of which will be located in Karachay-Cherkessia, Sverdlovsk and Lipetsk regions. The aggregate capacity of the new plants will amount to 5Mt of cement a year and investments in their construction will amount to $2.35bn.
In 2006, Eurocement produced 27 million tons of cement. According to its own estimate, it accounts for about 40% of the overall cement production in Russia. Its main shareholders are Chair of the Board of Directors Filaret Galchev and his deputy Georgy Krasnyansky. Financial performance of the company is not disclosed.
Construction of four new plants is only part of the ambitious investment program of Eurocement. Recently, the company announced construction of a cement plant with capacity of 2.4 million tons a year in the Voronezh Region. By 2015, the company will invest more than 165 billion rubles in the construction of new production facilities increasing its capacity almost by 100% or by 21Mt of cement. Already in 2007, it plans to increase cement production to more than 30Mt.