Sumitomo Osaka to increase capacity in China

Japanese cement producer Sumitomo Osaka Cement Co will increase cement capacity in China's Yunnan Province by 2016 through the construction of new facilities.

According to reports by the Nikkei the plan is to build two plants with a combined capacity of 6.4Mta. This will make the operation the province's largest, with a capacity of 14.6Mta, the report states.

The first new plant will be built in December 2014, and the second in 2016. Sumitomo Osaka Cement will invest around JPY4bn for its share of the project.

Sumitomo Osaka has been present in the Yunnan Province since 2007 in partnership with a local steelmaker and a Hong Kong construction materials company.  It currently operates four plants, each run by a separate joint-venture firm.

In Japan, the company is the fourth largest cement producer, operating four plants with a combined capacity of 8.1Mt of clinker.