Displaying items by tag: Government
Portland Cement Association backs president’s infrastructure call
06 February 2019US: The Portland Cement Association (PCA) has praised President Donald Trump’s call to rebuild the country’s infrastructure in his State of the Union address. Trump said that he wanted both political parties to work together to pass an infrastructure bill.
“The Portland Cement Association applauds President Trump for emphasising the political imperative of addressing America’s long-neglected infrastructure needs in his State of the Union address. America’s cement manufacturers are ready and willing to work with Congress and the Trump Administration to find a legislative solution that shores up our transportation and waterways in a fiscally responsible manner,” said PCA president and chief executive officer (CEO) Michael Ireland.
Gambian cement importers complain about tariffs
05 February 2019The Gambia: Cement importers have asked the government to treat all importers equally. Alhajie Cessay, a local importer, said that some government-preferred companies that import cement from Senegal are exempt from the tax, according to the Point newspaper. However, other importers have been subject to tariffs since the start of 2019.
Aggregate Industries, Innovatium and the University of Birmingham work on liquid air energy storage system
05 February 2019UK: A consortium comprising Aggregate Industries, Innovatium and the University of Birmingham has gained funding from the Department for Business, Energy and Industrial Strategy (BEIS) to test a liquid air energy storage (LAES) energy efficiency technology under the government’s Industrial Energy Efficiency Accelerator (IEEA) programme. The IEEA programme, administered by the Carbon Trust on behalf of BEIS, will provide nearly Euro0.4m towards delivering a new compressed air system utilising LAES technology from initial laboratory testing to full operation at Aggregate Industries’ Bardon Hill quarry in Leicestershire.
PRISMA (Peak Reduction by Integrated Storage and Management of Air) by Innovatium is a LAES technology that stores energy in liquid air form to provide compressed air, allowing inefficient partially loaded, variable-demand compressors to be turned off, thus improving the total system efficiency by up to 57%. The PRISMA system will bring together a latent energy cold storage tank, filled with a phase change material (PCM) to store thermal energy, and a number of other off-the-shelf components to form a system that will work with Aggregate Industries’ existing compressed air network. The research group says that the integration of the equipment and components in an industrial setting, for the provision of compressed air, has never been attempted before.
“The project will help to address the ‘energy trilemma’ of managing energy efficiency, energy cost and energy security by: significantly improving the energy efficiency of our compressed air system; managing electricity costs by running the compressors out-of-hours, when electricity is cheaper; and helping to smooth and reduce the peak electrical demand on site. We are therefore very excited to be the first industrial partner to install the PRISMA system at our Bardon Hill quarry in Leicestershire,” said Richard Eaton, Energy Manager at Aggregate Industries.
The 24-month project will involve the development of the PCM at the University of Birmingham’s School of Chemical Engineering as well as the design, manufacture and assembly of multiple system components by Innovatium before installation of the system at Bardon Hill. The PRISMA Project has currently only been deployed in a simulated environment. Following successful delivery of the project, this scalable technology has multi-sectoral applications for compressed air systems both in the UK and globally. In the UK, the compressed air market is estimated at 1.3GW of installed electrical capacity across around 4500 sites and over 55,000 individual compressor units.
Insee Cement distributes cement to flooded areas in Sri Lanka
01 February 2019Sri Lanka: Insee Cement is working with the local government to supported rebuilding and renovation efforts in flooded parts of Northern Province. The cement producer has distributed 10 bags of its Insee Sanstha product to over 250 displaced families, according to the Daily News newspaper. It said it would continue to monitor the situation and offer more support.
Vassiliko Cement wins environmental awards
01 February 2019Cyprus: Vassiliko Cement has won the Gold Environmental Protection Award in 2018 at the Pancyprian Environmental Awards for Organisations and Businesses. The prize was given for the cement producer’s implementation of its Corporate Social Responsibility Policy. Company staff worked with local communities, non-government organisations (NGO) and others. The competition was organised by the Cyprus Center for Environmental Research and Education, in cooperation with the government and other groups.
Philippines: Cemex Philippines has received a set of tax breaks and financial incentives for the new 1.5Mtyr production line it is planning to build at its Solid Cement plant in Antipolo, Rizal. Its subsidiary Solid Cement has obtained ‘pioneer’ status from the Board of Investment (BOI) but with ‘non-pioneer’ incentives, according to the Inquirer newspaper. This means that the project may be able to benefit from a longer income-tax holiday. The new production line is scheduled to be operational by early 2020.
Update on the Philippines
30 January 2019The cement industry in the Philippines has been generating a lot of ‘steam’ in the past three months. Some of this has now come to a head in the last few weeks with the Department of Trade and Industry’s (DTI) decision to impose tariffs on imported cement and the Philippine Competition Commission’s (PCC) on-going investigation into alleged-anti-competitive behaviour. Then, there was the unnamed sourced quoted by Bloomberg this week that LafargeHolcim was seriously thinking about selling up in the country.
Resistance to imported cement has been building for a while as local producers and importers have repeatedly clashed in the media. The latest thread of this story started in September 2018 when the DTI started an investigation into imports. A review by the department found that imports grew by 70% year-on-year in 2014, 4391% in 2015, 549% in 2016 and 72% in 2017. However, the market share of imports grew from 0.02% in 2013 to 15% in 2017. This was followed by various organisations taking sides. The Philippine Constructors Association, Laban Konsyumer (a consumer group), the Philippine Cement Importers Association and others came out on the side of the importers, warning of the risk to prices and consumers if duties were implemented.
It didn’t stop the DTI though. It imposed a provisional safeguard duty of US$0.16/bag on imported cement, around 4% of the cost of a 40kg bag. The PCC then said that it was going to consider the new tariff as part of its on-going investigation. Its probe started in 2017 following allegations that the Cement Manufacturers Association of the Philippines (CEMAP), LafargeHolcim Philippines and Republic Cement and Building Materials had violated the Philippines Competition Act by engaging in anti-competitive agreements.
Amid all of this, LafargeHolcim popped up earlier this week with a news story that it was actively trying to find the ‘right’ price for its local subsidiary, Holcim Philippines. The ‘right’ price at the moment being something around US$2.5bn for four integrated plants and associated assets. That’s around US$225/t of production capacity using the total of 8.4Mt/yr in the Global Cement Directory 2019 and considering LafargeHolcim’s 75% share in the subsidiary. This is about what you’d expect, but it is certainly higher than the US$120/t LafargeHolcim has officially accepted for its divestment of its Indonesian operations.
Given the anonymous nature of the sources involved, it’s uncertain whether LafargeHolcim’s alleged intentions to sell in the Philippines is anything more than market scuttlebutt. What is more certain is that Holcim Philippines has had a tough time so far in 2018, reporting a 23% year-on-year drop in earnings before interest, taxation, depreciation and amortisation (EBITDA) to US$64.8m in the first nine months of 2018 from US$83.9m in the same period in 2017. Sales have grown but this has been hit by the fuel, power and distribution costs as well as the depreciation of the Philippine Peso against the US Dollar. It also blamed imports for its problems. However, alongside all of this the company announced in December 2018 that it was spending US$300m towards increasing its production capacity by 30% to 13Mt/yr by 2020. This includes upgrades to its plants at Bulacan and Misamis Oriental with the installation of new kilns, mills and waste heat recovery systems.
The latest victory in the war between producers and importers seems to be on the side of the producers as the government steps in with protection for the industry. The Philippines’ economy is doing well with its gross domestic product (GDP) forecast to rise by 6.5% in 2019 by the World Bank. The trick for the government will be striking the balance between shielding industry from dumping and allowing the construction industry to keep on growing. Rumours about LafargeHolcim selling up are enticing but seem less likely than LafargeHolcim’s decision to exit Indonesia. Leaving would mean abandoning South-East Asia and exiting a country with a growing industry.
Opposition filed at local government against San Miguel cement plant project in Pagbilao
29 January 2019Philippines: Church and non-government organisations (NGO) have filed a document with the local government expressing their opposition against several San Miguel projects, including a new 2Mt/yr cement plant at Pagbilao in Quezon. They allege that no public hearing was given for local communities to comment on the projects among other complaints, according to the Business Mirror newspaper. San Miguel is planning to build a group of projects at the site in Ibabang Polo including a coal power plant, a logistics hub and a quarry.
Tanzania: The Tanzania Investment Centre (TIC) says construction of a new 7Mt/yr cement plant by China’s Sinoma and Hengya Cement is due to start soon. TIC executive director Geoffrey Mwambe said that the government body had provided all the necessary incentives for the US$1bn project, according to the Citizen newspaper. The TIC licence gives investors a three-year window in which to start construction, otherwise the licence revoked.
The Chinese company plans to build a cement plant with a 1200MW captive power plant. At least 70% of the cement produced at the plant will be exported and the remainder will be sold domestically. The unit is expected to create 4000 - 8000 direct and indirect jobs.
Turkmenistan: A cement plant in Balkan province has started producing sulphate-resistant cement. A first batch of 7000t of the product has been manufactured, according to the Trend News Agency and local media. The Institute of Chemistry of the Academy of Sciences of Turkmenistan worked on the project with specialists from the Ministry of Industry and Turkmengeologiya State Corporation.