United Cement Company of Nigeria Limted (UNICEM), the country’s third largest cement manufacturer, has kicked off investment to develop a 2.5 million metric tons cement line, as it aims to double its existing 5 million tons capacity by 2016.

Construction of the cement line, which is estimated to cost N84 billion ($510.1 million), has already been awarded to Sinoma Group, a Chinese firm known globally for handling cement line projects.

With economic growth of over 6 percent driving roll out of infrastructural projects, demand for building materials, particularly cement, has increased.

This has heightened competition between industry operators seeking to secure larger market share.

Dangote, Nigeria’s largest cement producer has already kicked off projects to further expand it output capacity. It revealed in January that plans were already underway for a third and fourth cement line in Ogun State, Western Nigeria, to up production by 6 million metric tons per annum (mmpta), raising total capacity to 12mmpta.

It also plans to add 3mmpta to its Obajana plant in Kogi State by the end of 2014. The plant currently produces 10.25 million tons yearly.

Also, French manufacturer, Lafarge – the second largest producer in Nigeria – has also revealed plans to invest $1.37 billion in the next three years. The investment will be used to grow its local capacity to 16 million tons, double its current 8 million.