22.12.2005

European Bank Reconstruction and Development

Karcement JSC, a sister company of Central Asia Cement JSC has entered into a USD35 million long- term loan with EBRD to finance the refurbishment of the Line 5 dry process clinker plant.

Work on the project started in October 2004, when PEG, a Swiss Consultant was appointed to assist in the feasibility study, project concept and approach. After much detailed study, tendering has started and award of contracts are expected to commence in early 2006. The project is scheduled for re-commissioning in late 2007. The plant shall adopt the state of the art technology to produce consistent good quality cement that will comply with international standards.

This Project represents the first major investment in the cement sector in Kazakhstan for over 15 years. 

By then, Karcement shall produce and supply 1.3 million tons of cement into the market, which presently is facing an acute shortage of almost 40%. This expansion is indeed very timely and will ease the shortage and contribute immensely towards the construction growth in the main markets of the Country.

In addition to the above expansion, Karcement has also commenced work to rehabilitate its more technologically-advanced Line 6 at much lesser cost. When completed by spring 2007, it is expected to produce about a million tons of cement.  The on-going upgrading works of Central Asia Cement JSC’s 4 wet lines will also see its production capacity increased by at least 15% to 800,000 tons of cement per annum.

On completion and full commissioning of all the above projects, Karcement JSC and its related company, Central Asia Cement JSC, both of which are ultimately wholly-owned by Steppe Cement Ltd, a company listed on London’s AIM, shall become the largest cement producer in the Country with a combined total annual production capacity of about 3 million tons of cement.

The investment should also have a positive impact and offer new opportunities for the village of Aktau and the immediate region.