Acc To Revive 3rd Phase Of Wadi Expansion Plan

ACC has decided to revive the third phase of expansion at Wadi in Karnataka which will double its capacity to four million tonne.

Besides, the company is looking at other sites where it could set up new plants. The expansion is part of ACCs plans to attain a manufacturing capacity of 14-15 million tonne by 2000.

The company had earlier dropped plans to implement expansion plans, citing oversupply as the reason. According to TMM Nambiar, managing director, ACC: We had made a commitment and we are going ahead with it.

When asked why the company was expanding capacity in a situation of oversupply, he said, We are planning for the future. We think the demand is not going to remain stagnant and want to be ready for it.

 

Company sources said that the capital outlay of Rs 520-crore for expansion might be revised downward as interest rates have fallen.

The company expects to commission the new plant within 19 months of the zero date, the date when construction begins.

On the companys plans to set up new plants, a company source said: We might take up a greenfield project at sites currently owned by us.

When asked about the possibility for a new plant in the south as cement prices as well as demand are higher in that region, the source said, We will not set up a plant in the south in the next three years.

A Rs 100-crore floating rate paper is to be issued by the company and a strategy is being finalised for the 15-million tonne expansion.The company had earlier modernised its Kymore facility and set up a 1.2-million tonne clinkering unit. The capacity of the Sindri grinding unit is being increased from 0.3 million tonne per annum to 0.6 million tonne per annum.