High demand forces HeidelbergCement to build new plant

Ziarul Financiar 10.09.2008
German group HeidelbergCement will build a new cement plant next year using investments in the region of around 300-330 million euros, while the current facilities in Bicaz, Fieni and Deva are working at full capacity. The local subsidiary of HeidelbergCement, Carpatcement Holding, forecasts an annual rise of 15-20% in cement consumption by 2018, given that large infrastructure projects have yet to start, whilst the construction market is being buoyed by real estate projects. "The group's strategy is to double its production capacity in Romania over the coming three years, both by expanding the current facilities, and by building a new facility, either next to the existing ones, or in other locations. We will most likely start construction of a new plant next year, which we are already preparing for, given that the local cement market is forecast to register a 15-20% rise over the next ten years," Andreas Kern, a member of HeidelbergCement's Board of Directors, told ZF. Fro m the start of construction, the plant will take two years to complete, according to Kern. The company's main rivals, Lafarge (France) and Holcim (Switzerland), have also announced plans to build plants, and so has Austrian group Strabag, which is in negotiations for the construction of a cement plant in Anina, Caras-Severin county. The Germans will double the cement production capacity to 7 million tonnes by 2011-2012, from 3.5 million tonnes at present, after an investment worth around 150 million euros.