ID :
20581
Mon, 09/22/2008 - 13:27
Auther :
Shortlink :
https://oananews.org//node/20581
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New plants to help slash cement prices in the UAE
Abu Dhabi, Sept 22, 2008 (WAM) - The price of cement in the UAE is set to drop due to the falling cost of fuel and raw materials used in its manufacture and the opening of three new plants, says Nasser Khammas of the Cement Producers Group.
The factories – at Al Ain, Ras Al Khaimah and Fujairah – are due to start production this year. They will increase the country's capacity from the current 20 million tonnes per year to 24 million tonnes, Khammas, the General Manager of Fujairah Cement Industries, told Emirates Business. Investment in the factories topped Dh3 billion.
The 12 cement plants currently in operation plus the new ones will be able to meet 85 per cent UAE demand.
Khammas said the high price of cement since the beginning of 2007 was caused by the gap between supply and demand, which was the biggest challenge faced by cement factories.
In the past two years, huge real estate projects with a combined value of Dh1 trillion were launched in the UAE and the increase in production from six million tonnes to 20 million tonnes failed to bridge the gap.
"The cement industry has developed considerably in the UAE and uses state-of-the-art technology. The factories have attempted to raise production over the last four years to accommodate the giant real estate boom. The projects set to be constructed in the UAE over the next five years are valued at US$700bn."
Khammas said the UAE's consumption of cement had grown by 24 per cent over the last four years. The factories faced another challenge because of the high cost of raw materials, especially clinker. Local production of clinker did not meet the demand from the factories so supplies had to be imported to make up the shortfall.
He said he hoped the government would find a solution to the cement factories' complaints over the increasing price of electricity and their demands to have more power allocated to them.
The factories – at Al Ain, Ras Al Khaimah and Fujairah – are due to start production this year. They will increase the country's capacity from the current 20 million tonnes per year to 24 million tonnes, Khammas, the General Manager of Fujairah Cement Industries, told Emirates Business. Investment in the factories topped Dh3 billion.
The 12 cement plants currently in operation plus the new ones will be able to meet 85 per cent UAE demand.
Khammas said the high price of cement since the beginning of 2007 was caused by the gap between supply and demand, which was the biggest challenge faced by cement factories.
In the past two years, huge real estate projects with a combined value of Dh1 trillion were launched in the UAE and the increase in production from six million tonnes to 20 million tonnes failed to bridge the gap.
"The cement industry has developed considerably in the UAE and uses state-of-the-art technology. The factories have attempted to raise production over the last four years to accommodate the giant real estate boom. The projects set to be constructed in the UAE over the next five years are valued at US$700bn."
Khammas said the UAE's consumption of cement had grown by 24 per cent over the last four years. The factories faced another challenge because of the high cost of raw materials, especially clinker. Local production of clinker did not meet the demand from the factories so supplies had to be imported to make up the shortfall.
He said he hoped the government would find a solution to the cement factories' complaints over the increasing price of electricity and their demands to have more power allocated to them.
