National Cement Factory , an Abu Dhabi-based cement company which is linking up with Holcim to build a new grinding plant in Abu Dhabi is also studying the feasibility of setting up a new clinker factory in the UAE. Speaking to Khaleej Times yesterday, Abdul Razak, Executive Director of National Cement said: “Currently we are executing a 2.6Mt capacity plant which is expected to be ready by November this year. The second phase will increase our total capacity to 5Mt per year.”

The new cement plant is expected to come on stream in 2007. Earlier this month, Holcim had acquired 25 per cent stake in NCF. Although the cost of acquisition is not known, the Swiss firm is understood to have big plans for capacity expansion in the Middle East. “The partnership with NCF provides a strong basis for future growth. This will provide Holcim with a strong position in the UAE,” Holcim said in a statement.

NCF was founded last year by the Emirates International Investment Company and other local investors to start cement production in Abu Dhabi. The capacity expansion is primarily targeted at booming domestic demand for cement.

“The new capacity will address the cement demand from huge development projects coming up in Abu Dhabi. The demand from these projects is strong for the next 10 years. In the future we also look forward to supplying cement to all emirates ,” sad Razak. With Holcim’s association, the new company will use the latest production technology and raw material (clinker and slag) sourced from the most competitive markets around the world.