AZERBAIJAN: A cement plant with annual capacity of 6 million tons to be launched

Baku, Fineko/abc.az NORM Ltd. is not going to content itself with announced capacity of its plant " Gizildash cement" to be constructed by summer of this year.

NORM’s general director Ismail Erkovan has informed that 2 million tons a year is only the project capacity of their plant.

"In the process of the activity we are planning to gradually (by 2 million tons of new capacity) bring it to 6 million tons of cement a year",- I. Erkovan said.

At present demand for cement in the country is estimated for 4 million of tons a year and till 2015 it will grow up to 6-7 million of tons.

In 2007 cement consumption in the country was 2.2 million tons , in 2008 it grew up to 2.8 million tons and in 2009 reduced to 2.3 million tons.

The investment cost of the project is $400 million.

$ 100 million from this sum will make expenditures for creation of infrastructure for the plant activity and the balance of funding is distributed on a parity basis between expenditures for construction and maintenance of the plant.

About 60% of project investments will be implemented at the expense of the company’s own funds and 40%- at the expense of drawn funds.

The contract for the plant construction was signed in Baku today between chairman of China Triumph International Engineering CO LTD (CTIEC) company Peng Show and general director of NORM LTD Ismail Erkovan.

The contract envisages the plant construction within 28 months.

" Main technical equipment will be supplied by European companies and the work will be carried out by local contractors. Under the contract the construction must start within 3 months after the agreement is signed. During this period the contractor plans to make direct research in the area and we- to obtain all necessary permissions for building from state bodies.

CTIEC in fact heads international consortium of contractors which includes Mitsubishi for example.

Industrial capacity of the plant will make 5.000 tons of clinker a day or 2 million tons of cement annually.

Operation of the plant will begin in late 2013. The project started in 2008 from the preparation of a feasibility study made by India’s Holtec Consulting Private Ltd.

On 12 April 2010 the Ministry of Environment & Natural Resources of Azerbaijan approved the environmental impact assessment of the project.