COIMBATORE: With increasing demand for Autoclave Aerated Concrete (AAC) blocks in the construction industry, Erode-based Renacon is opening a manufacturing unit in Tirunelveli.

The 50-crore plant will cater to the requirements of Kerala, which used such blocks, which reduce the cost of construction by 20 per cent, in a large way, Renacon Chairman and Managing Director R.P. Sevasundaram told reporters here on Saturday.

Intended as the future of building material, made of 67 per cent fly ash, 17 per cent cement, mixed with lime and gypsum, there would be a demand of 50 lakh cubic metres of block across India, while the company is making 2.5 lakh cm per annum, with 15 per cent annual growth rate, he said.

As the transportation consumes nearly 20 to 30 per cent cost, the company decided to open the plant in Tirunelveli, which is close to Kerala and the present Vellore plant cater to the requirements of Karnataka and Tamil Nadu, he said.

The Rs.350 crore company is opening a Renacan Experience Centre in the city, which will act as a facilitating center for engineering students and masons to learn more about the products, its CEO G. Suresh Kumar said.