Eurocement Group is to invest around RUB10.8bn (US$410m) in the modernisation of cement producing units in the Ural Federal District.
This will enable raising the capacity of two Ural plants of the holding company, Nevyansky Cementnik and Katavsky Cement, by 2Mta and 1.6Mta of cement, respectively. Overall, the development strategy of the group’s cement works provides for two ways to raise production capacities. In the short-term, the holding company will raise the capacity by modernising existing plants and, in the long-term, pay attention to constructing new plants. By 2010, Eurocement Group plans to raise cement output from 25 to 34Mt. The company will earmark 36b roubles ($1.3b/E1.0b) to attain that goal.
At a recent meeting between the group leadership and first deputy prime minister Dmitry Medvedev, the acute need for higher investment in the cement industry with the aim to speeding up production growth was noted. It is crucial for the implementation of the national project to provide affordable housing to Russian citizens and for the country’s socio-economic development on the whole.