CRH is seeking planning permission to double the capacity of its Limerick cement plant by the addition of a 850,000 tonne kiln. The move is being made, the company said, to ensure that it will be "well placed should strong Irish construction growth continue into the new millennium".

The expansion would represent substantial growth, adding about one third to existing capacity. Asked about costs and projected sales, finance director, Mr Harry Sheridan said the figures had not been worked out yet but that it would be "a lot less than other plants" because the group already has the site and quarries. It would be "an incremental" amount, he added. Mr Sheridan stressed that a lot of work has yet to be done. The planning process could take up to two years and the group wants to be in a position to have the capacity to cope with any increased demand.

Mr Sheridan noted that the group's wholly-owned subsidiary, Irish Cement, has been in business for more than 40 years and it is "our intention to hold our market share". The price of cement has not been increased since June 1996 and no increase is envisaged over the foreseeable future. CRH has had to contend with competition from the Sean Quinn cement plant with no adverse impact. Another competitor will be the Lagan Group which plans to set up an Irish cement plant. CRH has noted that this is for white cement for export.

CRH's chief executive, Mr Don Godson recently commented: "it depends on how demand levels out. It is competition and we are good at it".