How Much Does It Cost To Setup AAC Block Plant?

Many investors have an interest in starting an AAC block manufacturing plant. However, some may have no idea about the total cost of the project. If you are curious about the AAC block plant setup cost, you are in the right place. CNBM will guide you step by step to get a clear idea.

A glimpse of the AAC block plant market

First, it is better to analyze the market demand and tendency before you are going into this business. The growing demand from the construction industry makes the AAC( Autoclaved Aerated Concrete) blocks a hot product. This is due to the multiple advantages of AAC blocks over ordinary red bricks. In some countries, it is compulsory to use AAC bricks in the building industry to protect the environment. Let’s have a glimpse of the market analysis of AAC blocks.

It only weighs a third of clay brick. As a building material, AAC shows superior strength, sound and warm protection, and structural capacity, and has great flexibility in designing and construction.

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The top five consumer market of AAC is North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. China is the largest block manufacturer followed by India. Take India for example, the number of AAC block plants established is estimated to be 150-180. Regardless of the great development of AAC Block in building applications during the last 10 years, it is just 7-8 percent of the business, while 85-90 percent of the business is as yet overwhelmed by red blocks and that implies a colossal likelihood in the years to come.

The global autoclaved aerated concrete market was valued at USD 4720.79 million in 2021 and is expected to reach USD 8766.98 million by 2030 at a CAGR of 7.12 % during the forecast period, 2022–2030. Emerging economies such as China and India contribute the highest share in the Asia Pacific autoclaved aerated concrete market. (from globe newswire)

aac block plant is a promising investment

Cost of setting up an AAC block manufacturing plant

Several factors will affect the cost of setting up an AAC blocks manufacturing plant, such as the size of the plant, location, raw material, labor cost, machinery cost, and additional costs.

Land costs

Costs for machinery


Additional costs for transportation, insurance, permits, licenses, etc

Land and Building Cost

The cost of acquiring land and building construction will depend on the location and size of the plant. The approximate cost of land and building construction can range from $200,000 to $1,000,000.

Machinery Cost

There are two parts of machinery needed. One is the AAC block machine, and the other is the office automation equipment. For the AAC block plant, a production line consists of several machines. Here is a list of the main equipment for the AAC plant production line.


Jaw crushers

conveyor belt

bucket elevator

ball mill

storage silo

slurry tank

pouring mixer

mold for AAC block


tilting machine

rails & plates

cutting machine



packing machine

aac block machines for aac block plant
key equipment cost in aac plant construction

The cost of machinery will depend on the size of the plant and the production capacity. The annual capacity of an AAC block plant ranges from 10,000 m3 to 300,000 m3, or more. Also, the quality and features of the machinery will directly affect the AAC block machine price. It is always worth investing in making machines with excellent performance to lower the future risk of maintenance costs. The approximate cost of machinery can range from $300,000 to $2,000,000.

Raw Material Cost

The cost of raw materials such as cement, fly ash, lime, aluminum powder, and water will depend on the location of the plant and the availability of the raw materials. The approximate cost of raw materials can range from $50,000 to $200,000.

Labor Cost

The cost of labor will depend on the location of the plant and the prevailing wage rates in the area. The approximate cost of labor can range from $50,000 to $200,000 per year.

Additional costs

There may be other miscellaneous expenses such as transportation costs, insurance, permits, and licenses, which can range from $20,000 to $100,000.

Based on the above estimates, the total cost of setting up an AAC block plant can range from $620,000 to $3,300,000. It is important to note that these estimates are approximate and can vary depending on the specific circumstances of each plant. If you are interested in Mini AAC Plant cost or want to get a customized AAC block manufacturing business plan, or have questions about how to set up an AAC block plant step by step, don’t hesitate to send us an inquiry for FREE consultation service.