HeidelbergCement intends to create its own raw material base for Kryvyi Rih Cement (Dnipropetrovsk region) and Dniprotsement (Dnipropetrovsk region), its two Ukrainian divisions.
A representative of for Kryvyi Rih Cement and Dniprotsement disclosed this to Ukrainian News.
According to him, a project for providing Kryvyi Rih Cement and Dniprotsement with their own raw materials is presently being drafted.
"An analysis of the limestone deposits that are suitable for production will be conducted this year," the representative said.
Most of the raw materials presently used for production of cement are imported.
"We have one opencast mine that is located 80 kilometers from the Kryvyi Rih factory, but we mainly buy raw material," the representative said.
Creation of the company’s own raw material base will enable Kryvyi Rih Cement and Dniprotsement to reduce their expenditures and expands production.
As Ukrainian News earlier reported, HeidelbergCement plans to invest around EUR 20m in modernization and development of its Ukrainian subsidiaries, Kryvyi Rih Cement and Dniprotsement in 2005.
Kryvyi Rih Cement increased cement production by 0.126Mt or 10.3 per cent to 1.347Mt and increased clinker production by 0.074Mt or 8.7 per cent to 0.922Mt in 2004.
Dniprotsement increased cement production by 51,100t or 13.3 per cent to 435,600 and increased clinker production by 13.2 per cent or 30,100t to 257,800t in 2004.