DUBAI - The total clinker grinding capacity in UAE is expected to shoot up to 15 million tonnes by 2007, said local industry sources. Several upcoming projects in UAE indicate that rapid expansion plans in local cement factories are expected to fuel the grinding capacity in UAE.
The existing grinding capacity in UAE is placed at 12 million tonnes which is expected to move up in few years by 3 million tonnes.
Among the prominent expansion plans in the pipeline is the establishment of the new cement plant in Abu Dhabi by Emirates Trading Agency (ETA) with the total capacity of 600,000 tonnes as a part of phase-I with an investment of $21million. The company would begin grinding in the new plant since October and has chalked plans for the expansion for pahse-II, capacity of which is not yet decided. Both the capacities will be implemented in the Abu Dhabi plant. The ETA is essentially into import of clinker and grinding it at Ajman cement plant which it hired it about a year and half ago. Further, among the other players,the companies which are planning for expansion are Gulf Cement Factory , Sharjah Cement Factory, Union Cement Factory and Ras Al Khaimah Cement Factory.
Endorsing the view, Dubai based prominent local cement importers foresee that rise in cement imports will aid the grinding capacity of cement by additional 2-2.5 million tonnes by January 2005, which would soar to 13.5 million tonnes soon against the existing 11.5 million tonnes, said cement importers. The anticipated rise in grinding capacity is attributed to possible glut in cement supply that would be created in near future. At present, more and more local producers are importing clinker which will have to be grinded and hence this may impact the import of bulk cement.
Meanwhile sources said, off loading of imported cement stranded at Ras Al Khaimah Ports has commenced yesterday. The consignment has been brought by a Hong Kong based ship and is said to be carrying the cement from Indonesia. The consignment had been stranded due to increase in moisture content. The Dubai based importers have denied any involvement in importing the cement from Indonesia which was stranded at RAK port now for several days.
BY SANDHYA D'MELLO
© Khaleej Times 2004
