Overview

Our core business is the production and distribution of cement. Since making our foray into the Central Asia region in 2017, we have been continuously increasing our cement production capacity in this region each year.  We now own and operate a cement plant and a grinding station in Tajikistan, and two cement plants in Kazakhstan, with a combined annual cement production capacity of 4.0 million metric tonnes.  Our cement is primarily used in the construction of infrastructure projects such as residential buildings, roads, bridges, highways, and railways.

We continue to make great strides in building our cement production capacity in the Central Asia region through both acquisition and construction of cement plants. With the planned addition of 1 new cement plant, our combined annual cement production capacity will increase from 4.0 million to 5.5 million tonnes. This puts us in an advantageous position to meet the projected demands for reconstruction, urbanisation, and infrastructure growth in the Central Asia region.

Tajikistan

We own and operate a cement plant, the IMCCMC plant, in the Yovon district, Khatlon region in Tajikistan with an annual production capacity of 1.2 million tonnes. It is one of the largest cement plants operating in Tajikistan and is well-positioned to capture the growing development and construction demands within Tajikistan. Our Tajikistan operations produce cement under the Mohir brand name, which is then sold domestically and to the export markets of Afghanistan and Uzbekistan. We sell our products to retail customers, construction firms, and distributors who then resell our cement to other end users.

In May 2019, we completed the US$32.8 million (S$45.9 million) construction of a grinding station in Tajikistan, adding 0.6 million metric tonnes to our total production capacity. While our main cement plant is located in the Yovon district, our grinding station is in the Kolkhozabad district of the Khatlon Province, which is closer to our export customers. This greatly reduces overall transportation costs.

ICG’s Grinding Station in Tajikistan

Preheater and Kiln of the IMCCMC

In addition to growing our cement business, we are looking to broaden our product offerings in the Central Asia region to include drywall (gypsum plasterboard). The Group plans to invest US$26.0 million (S$35.0 million) to build a drywall (gypsum plasterboard) production line within our main Tajikistan cement plant, with an anticipated annual production capacity of 30.0 million square metres of drywall. Construction began in the last quarter of 2021 and is scheduled to be completed by the second quarter of 2023. Tapping into our existing distribution network in Tajikistan, we are well-positioned to grow this new business segment and meet the local demand for building materials.

Kazakhstan

Our operations in Kazakhstan currently consist of two cement plants, located in the Almaty region and East Kazakhstan. In 2021, we continued to deepen our footprint in Kazakhstan, commencing construction of a new cement plant in the Jambyl region.

The Alacem plant, located in Sary-Ozek in the Almaty region, commenced commercial production in the third quarter of 2020 and has an annual production capacity of 1.2 million metric tonnes. The plant produces cement under the Alacem brand and supplies cement to the domestic market, specifically the Almaty and Taldykorgan areas, as well as the Horgos port near the Kazakh-Chinese border. It is the Group’s maiden investment in Kazakhstan, with a construction cost of approximately US$130 million (S$175.7 million), including other ancillary facilities.

To further strengthen our presence in Kazakhstan, in November 2021, we acquired a cement plant, the Sharcem plant, in the Jarminsky district in the East Kazakhstan region, with an annual production capacity of 1.0 million metric tonnes. The plant commenced commercial production in August 2022 and will enable the Group to reach out to new markets in the east of Kazakhstan and the capital, Astana.

We also entered into a joint venture to build a new cement plant, the Korcem plant, in the Korday district, Jambyl region in Kazakhstan in September 2021. With a construction cost of approximately US$153.0 million (S$206.8 million), the new cement plant will comprise, specifically, a dry process cement clinker production line with a daily production of 3,500 metric tonnes of clinkers. Construction started in the last quarter of 2021 and is expected to be completed by mid-2024. Upon completion, the Korcem plant will have an annual cement production capacity of 1.5 million metric tonnes. Strategically located in the neighbouring region of our existing Alacem plant in the south-eastern part of Kazakhstan, with direct export routes to Kyrgyzstan, the Korcem plant will complement the Group’s existing operations in this part of the country.

ICG’s Cement Plant in Almaty, Kazakhstan

Ignition Ceremony of ICG’s Cement Plant in Almaty, Kazakhstan