Basic Element, a private equity fund owned by Oleg Deripaska, plans to invest up to $600m in the construction of cement facilities. However, experts doubt that the arrival of a new player will affect the alignment of forces on the market.
BasEl Cement said in a statement that the company planned to complete the construction of the first cement plant with a capacity of 1.5Mta in the Ryazan Region southeast of Moscow in 2008. Some $75-$90m will be invested in the project.
BasEl’s partner in the project, Chinese cement producer Sinoma Int., will deliver equipment.