Investment requirements of Russian cement sector
The investment requirements of the Russian cement industry are estimated at US$5.1-6.3bn. These funds need to be invested within the next four years in the maintenance and modernization of existing facilities. Of that amount, $2.5-3b is to be committed to the construction of new cement mills. The data was cited by Eurocement Group president Mikhail Skorohod. The head of the holding stressed the need for urgent measures to overcome the crisis in the cement industry. He urged an approval of "Comprehensive Measures on the Development of the Industry and Construction Materials Until 2010" and priority implementation of investment projects in the cement sector, both private and federal. Legislation needs to be amended to provide impetus for the use of recycled waste in cement production and to return ecological payments to cement mills for reinvesting in nature conservation measures. Regional administrations should exempt mills that invest in regions from that part of the property tax which is paid to the regional budget and from the profit and land taxes. The import duty on new equipment for the cement industry should be lifted.
The national program, "Affordable Houses", provides for raising annual housing construction to 70-80 million sq m by 2010, which will require boosting cement output to 85-90 million tonnes a year. The actual capacity of the country’s 50 cement mills does not exceed 63Mt, which may cause a shortage of cement in 2010 in excess of 20Mt - Eurocement conclude. Published under Cement News
