September 08, 2008

Binani Cement to buy a cement unit in Dubai

BS reported that Binani Cement is close to acquiring a cement unit in Dubai to make a foray into the Middle East, where construction activity is fuelling demand for cement.

The board of Binani Cement had approved a plan to raise about USD 150 million to fund the Dubai acquisition and partly to increase capacity at its plant in Shandong in China. The Binani group, which also has interests in zinc and glass fibre, last year bought a 49% stake in the Shandong Rongan Group’s cement company for INR 44.4 crore.

Mr Vinod Juneja MD of Binani Cement said that “We are looking at some cement units in Dubai and planning to expand capacity in China to about 2.5 million tonne by March 2009, from 0.8 million tonne.”

Increased construction activity in housing and infrastructure projects such as bridges, highways and ports, has been boosting demand for cement in India. Demand for cement in India is currently growing at the rate of 8% to 9% and is expected to stay firm.

Binani Cement, which makes 4 million tonne of cement a year, is planning to make close to 6 million tonne by March 2008. It is also planning to build a 2 million tonne cement plant in Gujarat, which will take the total capacity of the group to about 12 million tonne by 2009, including the China and Dubai plants.