ACC to set up 2.8 MTPA unit at Jamul; may invest Rs 800 crore

NEW DELHI: Cement major ACC Ltd plans to set up a 2.8 million tonnes per annum (MTPA) clinker production unit at Jamul in the Durg district in Chhattisgarh, to cater to rising demand in the Eastern region.

Though the company did not disclose the exact quantum of investment it would make for the plant, industry sources put the figure at around Rs 800 crore.

"To meet the demand for cement in the Eastern Region, the company will set up a new clinker production facility of 2.79 MTPA and allied grinding facility at Jamul," ACC Ltd said in a filing to the BSE.

The company, in which Swiss major Holcim has a majority stake, did not disclose the exact quantum of investment it would make for the plant, which is expected to be commissioned in three years from now.

Industry sources said since the company does not need to acquire fresh land for putting up the facility, the investment should not be more than Rs 800 crore.

ACC's has existing clinkering and grinding lines at Jamul with around two MTPA capacity. It now wants to dismantle the facility and set up the new unit on the same place.

"The existing clinkering and grinding lines at Jamul will be phased out," it said.

ACC's existing facility at Jamul came up in 1966 and the dismantling of the unit is needed as it is nearing to exhaust its life-span.

"The company is also planning decentralised grinding stations which will utilise clinker produced at Jamul," it said.

ACC currently has 30 MTPA cement making capacity. In the Eastern region, it produces around nine MTPA. The Eastern region is one of the fastest-growing markets in India.

Shares of the company closed at Rs 1,304.90 apiece on the BSE, up 1.37 per cent over the previous day's closing.