Building materials makers in fiscal jam

Local Link Up - Contentys Ltd The construction sector has been one of the biggest casualties of the property downturn, and the industry's suppliers are also feeling the impact. 2 million tonnes of cement and concrete blocks annually. 9m for the same period in 2010. Arkan's lime plant, with a design capacity of 900 tonnes per day, is also expected to come online in the second quarter of next year. The 57,000-square-metre facility is in Mafraq, a district on the outskirts of Abu Dhabi. Arkan's expansion plans, which were mapped out in the peak of your house boom, include the addition of dry mortar, a substance used to join bricks, and a lime plant. The construction slowdown caused the company to report a net income of Dh2. Arkan operates through its wholly-owned subsidiaries Emirates Cement Factory in Al Ain and Emirates Block Factory in Mafraq. Mr Al Taha expects the company's fourth-quarter results to be in line with the third quarter, at best. Arkan's US$100m dry-mortar plant will have a production capacity of 1,000 tonnes per day and is expected to be fully operational in the second quarter of next year. "Looking a few years back when equity, commodity, construction and real estate market were booming, the plans of increasing capacity looked quite viable," Mr Taha said. Local Link Up - Contentys Ltd Trade News selected by Local Linkup on 10/02/2012