PTI reported that Swiss cement maker Holcim will go ahead with its USD 2 billion India expansion plans for enhancing capacities by 2010 although it operations in US, UK, Spain and India are getting affected due to ongoing crisis.

Holcim is present in India through ACC Ltd and Ambuja Cements, in which it had acquired controlling stakes. As on December 31st 2007, the company had a production capacity of 45 million tonne through the two firms.

Mr Paul Hugentobler executive committee member of Holcim said that "There is no question of rethinking. We will be adding about 14 million tonne by June 2010."

Mr Hugentobler said that "We are investing about USD 2 billion for setting up 5 cement plants and some grinding units under ACC and Ambuja. 3 plants would be added by ACC, while two would go to Ambuja.”

Mr Hugentobler however said that the company has been affected in the US, Spain, the UK and India. He said that “Compared to last year, we will have substantially lower EBIDTA margin. While the markets in the US, Spain and the UK suffered from recession in India the company is affected due to inadequate pricing.”

He said that Holcim has recently laid off 165 jobs of ACC Concrete, the ready mix concrete division of ACC and has put on hold its RMC business expansions. He added that it had planned to add 40 RMC plants each year, but due to slowdown in demand, it has aborted the expansion, adding that this year we have added 20 plants, but there will be no new plants next year.

Holcim has a global sale of about USD 20 billion, where India contributes USD 2 billion to USD 2.5 billion. It has 24 plants in the country and enjoys about 25% market share.