Inteko, a company owned by Yelena Baturina, and Basic Element (BasEl), which belongs to Oleg Deripaska, are to build four cement plants that will be able to produce a total of about 10Mta of cement, Regional Development Minister Vladimir Yakovlev said.
"There are 16 specific projects in the cement industry now. They include a plan by Inteko and BasEl to build four cement plants with a capacity of about 10Mta of cement," Yakovlev said. He said Russia’s cement industry would reach an annual production level of more than 50Mt by the end of 2006. "In 2005, the level was 40Mt," he added. Inteko Vice President Oleg Soloshchansky did not confirm the existence of the cement plants project. But a source familiar with Inteko’s business told Interfax on condition of anonymity that the national project entitled Accessible and Comfortable Housing for Russian Citizens might induce Baturina to return into the cement industry.
"She has sold her plants to Eurocement Group for good money - $800m. Plus the national project on accessible housing didn’t exist at that time. Now the situation has changed," the source said. BasEl spokesman Vadim Bely said meanwhile that the BasElCement company planned to build four plants, which would be located in the Northwestern, Central, Southern, and Volga federal districts. The cost of the project would be $100/t of design capacity. Each plant would take two to two and a half years to build.
Construction of the Serebryansky Cement Plant - has started in Ryazan region, Bely said. A contract has been signed with Chinese company Sinoma Engineering International, a world leader in the production of cement manufacture equipment, for the supply of equipment for the plant, and another contract has been signed with a design organization, he said. "Construction is due to start in March 2007, the plant’s design capacity will be more than 1.5Mta of cement. Putting [the plant] in operation is planned for autumn 2008, Bely said.