Lafarge has announced the launch of a project to increase production capacity at in Sonadih plant in the Raipur District of the state of Chhattisgarth, in eastern India, where the group has developed a strong presence over the past six years. This announcement follows a signature of a Memorandum of Understanding with the state government of Chhattisgarth. The project, which is scheduled in two phases, will increase cement capacity by 3Mt over the next five years.
Phase I of the project, due to be completed within two years, represents an investment of around 140 million Euros and will be value-creating as from 2009. This phase will involve the construction of a second production line at Lafarge’s Sonadih plant, increasing the plant’s total clinker capacity by 1.6Mt to 3Mta, and a 1Mt grinding station at Mejia in a key market of west Bengal.
During Phase II of the project, 2Mt of additional grinding capacity will be added to serve the main Eastern markets, with construction timed to allow Lafarge to respond to future demend growth in these markets.
In total, Lafarge’s prooduction capacity in the region will increase from the current 5.5Mt to around 9Mt. The overall project represents a total investment of around 75 euros per new tonne of capacity.
This investment, along with Lafarge’s project to build a new 3Mt cement plant in Himachal Pradesh in Northern India, announced on Sepetember 26, 2006, will allow the group to more than double its total cement capacity in India, taking it from around 5.5Mt to approximately 12Mt within the next five years.