Displaying items by tag: growth
ACC acquires Asian Concrete and Cements
08 January 2024India: Adani Group subsidiary ACC has completed its acquisition of the outstanding 55% stake in Asian Concrete and Cements for US$93.2m. The Economic Times newspaper has reported that ACC expects the acquisition to strengthen its market position in North India.
Asian Concrete and Cements owns the 1.3Mt/yr Nalagarh cement plant in Himachal Pradesh and the 1.5Mt/yr Rajpura cement plant in Punjab. The assets raise the installed capacity of ACC to 38.6Mt/yr and that of Adani Group to 77.4Mt/yr. It plans to reach 106Mt/yr in the 2026 financial year, and 140Mt/yr in the 2028 financial year.
Al-Diyar Al-Iraqia for Investments Company to acquire 49% stake in Northern Region Cement’s Iraq business
04 January 2024Iraq: Al-Diyar Al-Iraqia for Investments Company and Northern Region Cement have concluded a deal under which the former will acquire a 49% stake in the cement producer’s business in Iraq. Argaam News has reported the value of the deal as US$44m. Northern Region Cement said that the new strategic partnership would help it to further expand its investments in the promising market. It will use the proceeds of the deal to repay loans and for ‘external investments.’
Northern Region Cement plans to build a US$139m, 1.32Mt/yr integrated cement plant at an unspecified location in Iraq.
Pakistan raises first-half cement sales in 2024 financial year
04 January 2024Pakistan: Cement producers despatched 23.9Mt of cement during the first half of the 2024 financial year (1 July – 31 December 2023), up by 9.7% year-on-year from 21.8Mt in the first half of the previous financial year. The Nation newspaper has reported that exports more than doubled, to 3.65Mt from 1.73Mt.
The All Pakistan Cement Manufacturers Association (APCMA) expressed its concern over slow domestic sales. The association said “We are very hopeful that the government will speed up PSDP projects in order to increase cement demand and also give attention to our operational problems. Two major issues currently being faced by the cement industry are related to the new Axle Load regime and Track and Trace system. We have approached the concerned functionaries and expect to get a positive response.”
Wonder Cement completes construction of Tulsigam grinding plant
02 January 2024India: Wonder Cement says that it has completed the construction of its new Tulsigam grinding plant in Gujarat. The Economic Times newspaper has reported that the new grinding plant will integrate with Wonder Cement’s existing facilities, including the Nimbahera cement plant in Rajasthan, and grinding plants in Haryana, Madhya Pradesh, Maharashtra and Uttar Pradesh.
The Tulsigam grinding plant will raise Wonder Cement’s capacity to 18Mt/yr, following the expansion of the Nimbahera cement plant to 11Mt/yr and the inauguration of the new Aligarh grinding plant in 2023.
Wonder Cement director Vivek Patni said "Each strategic move, including our new Tulsigam grinding unit, is aligned with our commitment to cater to India’s evolving infrastructural demands. We're poised for continued growth and are deeply committed to quality, innovation and societal impact."
Shree Cement inaugurates Nawalgarh cement plant
14 December 2023India: Shree Cement inaugurated its new 4.2Mt/yr Nawalgarh cement plant in Rajasthan on 14 December 2023. The plant boasts an 11,500t/day kiln, which is among the largest in India, according to the company. Following the inauguration, Shree Cement’s installed production capacity now stands at 53.4Mt/yr.
Managing director Neeraj Akhoury said “In our pursuit to become an 80Mt/yr company by 2028, we are excited to announce commissioning the kiln in our new integrated facility at Nawalgarh, Rajasthan. This facility is well suited to cater to the high consumption cement markets of National Capital Region, Punjab and Haryana, besides strengthening the company’s customer servicing capability in Rajasthan.”
UltraTech Cement to invest US$120m in Bihar
14 December 2023India: UltraTech Cement has signed a memorandum of understanding (MoU) with the government of Bihar for the investment of US$120m in the state.
Press Trust of India News has reported that the Bihar government has asked the government of India to grant the state special status in order to advance its industrial development.
Cement market to grow in India but not in China in 2024
12 December 2023China/India: Research organisation Fitch Ratings has forecast continued ‘steady’ growth of 6 – 8% year-on-year in cement demand in India in 2024. Meanwhile, it expects demand in China to remain ‘weak,’ amid low activity levels in the residential construction sector. Nonetheless, Fitch Ratings said that rising installed cement capacity will limit growth in producers’ profit margins in India, while producers’ profit margins will stabilise in China.
Ramco Cements expands Kolimigundla cement plant
11 December 2023India: Ramco Cements has raised the clinker capacity of its Kolimigundla cement plant by 26%, to 3.15Mt/yr from 2.5Mt/yr. The Hindu newspaper has reported that Ramco Cements plans to invest US$192m in capital expenditure (CAPEX) during the 2024 financial year (1 April 2023 – 31 March 2024), and a further US$24 – 30m in on-going projects in the 2025 financial year. The producer said that its projects, involving its cement, concrete and energy operations, are proceeding ‘on track.’ These include an expansion of its Odisha grinding plant to double its capacity to 1.8Mt/yr.
Star Cement contemplates expansion into southern India
11 December 2023India: Star Cement is reportedly considering acquiring new cement assets in the southern India market. The Hindu newspaper has reported that the producer expects cement production capacity there to have a lower valuation than in its native north east India, due to its larger scale.
CEO Vinit Kumar Tiwari said “We have to find a target which is suitable for our appetite. We are open to all the areas. Obviously, the southern market is a more glut market. So, if we find any opportunity there at a good valuation, only then will we go for it.” He added “The next round of consolidation in the industry should be in the southern market because this market is quite fragmented and players are operating at a very low capacity utilisation.”
Star cement expects to raise its capacity by 70% to 9.7Mt/yr by early 2026 through US$264m-worth of expansion projects, including an expansion to the clinker line of its Lumshnong cement plant in Meghalaya. To date, it has invested US$108m in the projects.
China: China National Building Material (CNBM) plans to rearrange shareholding in Sinoma Cement between its subsidiaries. On 4 December 2023, fellow CNBM subsidiary Sinoma International Engineering agreed to buy US$174m-worth of shares in Sinoma Cement. Upon completion of this, Sinoma International Engineering and New Tianshan Cement will together buy US$975m-worth of shares. Following these subscriptions, Sinoma Cement’s share capital will rise by 67%, to US$436m. New Tianshan Cement’s total stake in the company will be 60%.
The group’s first-half 2023 interim report recorded Sinoma Cement as a 100% subsidiary of New Tianshan Cement.