Votorantim Cimentos is to triple the capacity of Sivas cement plant in Turkey involving an investment of EUR140m, representing the largest spend for the company outside the Americas under its recently announced 2015-2018 outlay.
The new project will see capacity at the Sivas plant increase from 0.6Mta to 1.8Mta. Groundbreaking will take place this month and cement production is scheduled to begin in 2017.
The Sivas plant currently accounts for about 19 per cent of Votorantim Cimentos’ 3Mta capacity in Turkey and post-expansion it will represent 42 per cent.
Investment package
In April, Votorantim Cimentos announced a EUR1.61bn investment package spanning the 2015-18 period. The company will invest this amount in five new factories in Brazil, one in Bolivia, as well as in the expansion and modernisation of existing units. The Sivas expansion will be the company's largest investment outside the American continent under this current spending package.
“Votorantim Cimentos sees the potential of Turkey’s construction sector and this investment shows our commitment to reinforcing our presence in Turkey. Sivas’ expansion will bring a crucial dynamism and competitiveness to the company in the Turkish cement market”, said Mustafa Şefik Tüzün, CEO of Votorantim Cimentos in Turkey.
Turkey accounts for a share of about 29 per cent of Votorantim Cimentos’ total production capacity, excluding China.
