Ras Al Khaimah, 18 June 05 (WAM)--The emirate of Ras Al Khaimahwill have a new cement factory with an annual production capacity of onemillion tonnes, in an endeavour to meet the growing demand in the UAE and the Gulf region for this vital commodity.

Pioneer Cement Industry has announced that construction work of thenew factory has already started at Al Ghail area.

"The new installation's construction cost of Dh 400 million will be financedthrough a joint investment bid by the founding parties of the company as well as a cartel of local banks," said Dr. Khatir Mussa'd, chairman of Pioneer.

"With the present construction boom in the UAE and Gulf region, demandfor cement is expected to rise to 10-15 per cent annually to a total of around23 million tonnes per annum within the next five years," he noted.

He said his company was planning to install state of the art technology inthe new factory to ensure effective levels of safety and high quality standardsas well as low rate of power consumption.