Paraguayan state-owned cement producer INC will invest up to US$300mn to double its cement production capacity by end-2011, the firm's industrial manager, Claudio Montiel, told BNamericas.
INC will invest US$60mn of its own funds in a number of projects, including the expansion of one of its cements plant and its packaging plant, Montiel said.
The company is in talks with financial entities to obtain at least US$200mn in financing to carry out additional projects, including the construction of an oven and a new grinding facility.
The firm is also preparing to launch a tender to expand the oven at its Vallemi plant to increase capacity to 3,500t/d, Montiel said.
INC also has plans to increase its clinker capacity; however, the process will take another two to three years, according to the executive.
INC has capacity to produce about 60,000 bags of cement each day. Paraguay is currently importing 20,000 bags; however, the current demand is over 90,000 bags.
Paraguay has been suffering cement shortages for years due to low production of Portland cement by INC, leading some construction companies to import cement from Uruguay and Spain. In recent weeks, construction workers have threatened to strike over the cement shortage.