ACC shuts down unit in Himachal

Following poor cement demand in the northern region and piling stocks, the ACC Limited has stopped clinker manufacturing in one of its units at the Gagal cement plant for the next 15 days.

Poor cement demand in Himachal, Punjab resulted in increase of clinker stocks

Following poor cement demand in the northern region and piling stocks, the ACC Limited has stopped clinker manufacturing in one of its units at the Gagal cement plant for the next 15 days. The decision to shut down one unit, which produces 4,800 tonnes of clinker per day, has been implemented with effect from December 16 at the Gagal cement plant in the Bilaspur district. Meanwhile, another unit would continue to manufacture an equal quantity.

The ACC, in an official statement released here today, stated that poor cement demand in both Himachal Pradesh and Punjab, with both states showing negative demand of approximately 8 per cent as compared to the last year, has resulted in increase of clinker stocks at Gagal works in HP. 8220;This has necessitated the shutdown of manufacturing operations for balancing the clinker stocks,8221; said the release of the company, handed out by Chief Commercial Officer J Datta Gupta. The unit contributes 2.4 million tonnes a year to the ACC8217;s total capacity of 22.41 million tonnes.

HR head of the ACC at Gagal, S D Karmalkar said the decision to shut down has not affected the employees and labour at the plant.

The company has also expressed that it was keenly watching how the recent positive initiatives taken by the government to improve liquidity and catalyse construction activities impacts the cement demand. 8220;ACC Ltd Company also expects the government to take further steps for stimulating internal demand of cement,8221; said the statement.

It was only earlier this month that the ACC had cut cement prices by up to Rs 5 a 50 kg. Ambuja Cement has also cut prices by Rs 4 to Rs 6 a bag.

The ACC has also requested the government to consider rationalising the cement excise duty structure. Welcoming the recent reduction in excise duty rate, the company expected it to be also extended to clinker as a matter of equity.