13 December 2016
Arabian Cement steps back from building grinding plant in Brazil 13 December 2016
Brazil: Arabian Cement has frozen plans to build a cement grinding plant in the north-west of the country. It said that there was no ‘investment efficiency for the project’ due to the poor Brazilian economy, according to Mubasher. The cement producer originally planned a joint venture in 2014 with Cementos Relampago Company, an affiliate of Cementos La Union, to build a 0.23Mt/yr plant for US$28.7m.
Medcem Cameroon to inaugurate grinding plant 13 December 2016
Cameroon: Medcem Cameroon, a subsidiary of Turkey’s Eren Holdings, is set to inaugurate its cement grinding plant in Douala in mid-December 2016. The plant originally started selling cement in October 2015 before it left the market, according to the African Press Agency. It has since resumed selling its cement. The plant has an investment of US$21m it has a production capacity of 0.6Mt/yr. It is the fourth cement plant in the country bringing the national production capacity to 43Mt/yr.
Colombia: Cemex has received a subpoena from the US Securities and Exchange Commission (SEC) seeking information to determine whether there have been any violations of the US Foreign Corrupt Practices Act (FCPA) in relation to a new cement plant being built by Cemex Colombia at Maceo in Antioquia.
In late September 2016 Cemex fired several senior staff members in relation to the Maceo project and its subsidiary’s chief executive resigned. This followed at internal audit and investigation into payments worth around US$20.5m made to a non-governmental third party in connection with the acquisition of the land, mining rights, and benefits of the tax free zone for the project. Cemex referred the situation to the Colombian Attorney General at the same time. The group has also confirmed that it maintains an anti-bribery policy applicable to all of its employees and subsidiaries.s
Bahrain: The Arab Petroleum Investments Corporation (APICORP), a development bank jointly owned by Organisation of Arab Petroleum Exporting Countries (OPEC) member states, has purchased 30% stake in Falcon Cement. The deal was completed with the GFH Financial Group.
“We are delighted to acquire a 30% stake in FCC, Bahrain’s largest cement producer. We believe this is a high growth sector for Bahrain and the investment assists us in diversifying our investment portfolio. The investment is also a strong signal of APICORP’s commitment to driving economic growth throughout the region,” said Raed Al Rayes, Deputy CE and General Manager of APICORP.
Falcon Cement runs the country’s sole integrated cement plant. It has a production capacity of 1000t/day and this is currently being upgraded to 2400t/day in 2017. Another regional firm, Integrated Capital PJSC, part of the Abu Dhabi Financial Group, bought a 10% stake in Falcon Cement in 2016.