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Jebel Ali Cement Factory to invest Dirhams 120 million for first phase of new plant

United Arab Emirates: Monday, November 29 - 2004 @ 16:14

The ‘New Jebel Ali Cement Factory’ expansion project, requiring an investment totaling Dirhams 120 million, is the first phase of a strategic expansion plan that will be rolled out over the next five years. After 11 years in the cement production industry, the factory, which is the second largest cement producer in Dubai, will be built in the Jebel Ali Industrial Area. It is set to produce 2,300 tones of cement a day and will be completed in January 2006.

“As Dubai’s construction sector grows by leaps and bounds, we have undertaken a strategic new project to supply the ever increasing demand of cement required to spur on the development of the real estate sector in the Emirate of Dubai, which is continually contributing to the growth and diversification of Dubai’s economy,” said Sharafuddin Al Sayed Mohamed Hussain Sharaf, Proprietor of Jebel Ali Cement Factory. “We are also extending invitations to interested private investors and business people to join us in this venture.”

“The new Jebel Ali Cement Factory will become the World’s most advanced grinding unit with ball mill, multi compartment silo, bulk loading and packing plant including jumbo bag packing facilities,” continued Sharaf. “The operation of the plant will also exceed the highest international quality standards and will be continually monitored by DCS for consistency of products and customer satisfaction principles.”

A crisis over soaring cement prices in the UAE, which came to a head in May 2004 when prices leapt 200% due to an upsurge in demand and a shortfall in supply, was recently subdued by the UAE Ministry of Commerce’s decision to waive the 5 percent import duty on a range of building materials, including iron, cement and wood. The move has since helped ease the prices as cement imports, directly brought in by the UAE Contractors Association, increased and prices stabilized.

“Our expansion plans were driven by a two-pronged objective which aims at driving our national growth plans set forth by His Highness General Sheikh Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and UAE Defence Minister, and a business objective aimed at meeting the increasing demand for cement, currently at 11 million tones per annum, and competing on regional and international markets to provide high quality cement for the regional construction boom,” commented Sharaf.

“Recent industry surveys have valued on-going GCC wide construction projects at around Dirhams 183 billion (US$50 billion), with Dubai holding the leading position in terms of current and future projects. Furthermore, the construction boom is creating a discrepancy in the cement market, which we view as a tremendous business potential,” said Sharaf. He added: “The factory’s expansion will be followed by further developments with the sister company, Jebel Ali Blocks Factory, as well as plans to set up a ‘Ready Mix Concrete Plant’.”

“Phase two of the plan is to establish a large ‘Clinkerisation Plant’, with production capacity of 1.6 million tones clinker per year with an estimated cost of Dirhams 587 million (US$ 160 million), with the intention to go for an initial public offering (IPO),” Sharaf added.

Enexco Teknologies India Limited, one of the leading cement plant manufacturers, will undertake the design of the complete clinker grinding plant, custom-made to suit the specific requirements of the Jebel Ali Cement Factory. Larsen & Toubro, FLS Denmark will provide its latest Ball mill with dynamic separator.

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Monday, November 29- 2004 @ 16:14 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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