Peru: Inka to start Pisco cement plant construction

Cementos Inka will begin construction of a second cement plant in Pisco, Peru, in the next few months. This second unit will be situated on a 20ha plot and should begin production in the 4Q17. The US$30m project's environmental impact study has been approved already.

Cementos Inka is also evaluating plans for a third production unit capable of 0.5Mta in Piura. This facility is expected to cost US$40m and will occupy 100ha. Construction works on this project could begin half-way through 2017. The firm is also looking at potential sites for new clinker lines.

The company currently imports clinker from Japan and South Korea. All these projects are expected to help Cementos Inka to achieve a market share of between eight and 10 per cent in the future, compared to four per cent at present. The firm expects to grow five per cent in 2016, after a "flat" 2015.

Meanwhile, Cementos Inka is establishing a joint-venture with an undisclosed foreign player to enter the premix products segment in Peru in 2017.  Both firms will invest US$5m (EUR4.49m) in the premix plant. At present, Peru has few companies operating in the segment, but included LaViga, Unacem's distributor.

Inka is also investing in advertising to promote its new MS Antisalitre product of which 400,000t might be sold this year. Cementos Inka's main factory is in Cajamarquilla.

Most sales are through ironmongers' yet 20 per cent of its cement sales are through DIY stores.