Displaying items by tag: Import

Russia: Eurocement has started an initiative to reduce its reliance on spare parts purchased from outside of the country. The programme is designed to start a phased transition to in-house production of components. One of the first examples of the scheme has been the development and installation of a clutch for a mill at the Sengileevsky cement plant.

The cement producer hopes to source at least 90% of the parts it requires domestically. At present it says that around 30% of the equipment used in the local cement sector is imported. The estimated economic effect will be around Euro14m.

The company has also announced an unscheduled indexation of staff wages to over 7000 workers at 16 cement plants. Indexing of wages is typically used to compensate for inflation. Other measures have also included food support. Vyacheslav Shmatov, the general director of Eurocement, said ““We have decided to increase our support measures for our employees during this difficult time in order to strengthen our work teams. Eurocement is, first of all, people, so the company will continue to take care of its employees.”

International economic sanctions were implemented upon Russia by European and North American countries in response to its invasion of Ukraine in February 2022.

Cameroon: The government has enacted a ban on the export of cement, along with other commodities including oil and grain, from East Region. The Journal du Cameroun newspaper has reported that the impacts of the Russian invasion of Ukraine have exacerbated a difficult supply situation of the basic commodities in the region, dating to the beginning of the Covid-19 outbreak in the country in March 2020.

The East Region borders the Central African Republic and Congo. It has no cement plants of its own.

Kazakhstan: Steppe Cement recorded rising revenues in the first quarter of 2022 due to stronger cement volumes and higher prices during the period. The manufacturer posted sales revenue of US$14m in the three months to 31 March 2022, up by 29.6% year-on-year from US$10.8m in the first quarter of 2021.

Sales volumes rose by 6% to 281,968t from 266,007t, while average prices for delivered cement also climbed. Exports from Kazakhstan fell by 50% as new factories opened in Uzbekistan. Imports into Kazakhstan, predominantly from Russia, increased from 6.5% to 8% of the market.

Steppe Cement estimates that Kazakhstan's cement market demand will stay at 11 - 12Mt in 2022 but added that there was is a high degree of uncertainty due to the ‘geopolitical situation’ in the region.

Europe: The Council of Europe has banned imports of cement from Russia as part of a fifth set of economic and individual sanctions. The import ban, in response to the war in Ukraine, also includes wood, fertilisers, seafood and alcoholic spirits. It has been valued at Euro5.5bn/yr. Other measures within the European Union (EU) include blocking coal and other solid fossil fuel imports from August 2022, stopping access of Russian flagged ships at ports, banning Russian or Belorussian road transport within the region and additional restrictions on the export on materials such as jet fuel, computer parts and certain types of machinery. Imports of coal into the EU are currently valued at Euro8bn/yr.

Josep Borrell, High Representative for Foreign Affairs and Security Policy at the European Council said, “These latest sanctions were adopted following the atrocities committed by Russian armed forces in Bucha and other places under Russian occupation. The aim of our sanctions is to stop the reckless, inhuman and aggressive behaviour of the Russian troops and make clear to the decision makers in the Kremlin that their illegal aggression comes at a heavy cost.”

Iran: Mehdi Dosti, the governor of Hormozgan Province, says that a new 3000t/day cement plant will be built in the region. Dosti met with the head of Cement Investment Holding to discuss the project, according to the Islamic Republic News Agency (IRNA). The project is intended to increase cement production and create jobs in the province. Currently, Hormozgan Province has a 6000t/day cement plant at the Port of Khamir but cement is also imported into the region.

Zimbabwe: Kelibone Masiyane, the managing director of PPC Zimbabwe, has complained about the negative effects rising imports of cement could have upon the local cement industry. In an interview with Business Weekly he said that imports had doubled to 16% over the last year and that this is restricting PPC’s efforts to reach its desired capacity utilisation levels. PPC and other producers have lobbied the government to slow down imports. PPC operates two integrated plants in the country with a combined production capacity of 0.7Mt/yr. Selected retailers interviewed separately reported that they had experienced difficulty obtaining cement from PPC recently.

Namibia: Immigration authorities have apprehended eight Chinese employees of Whale Rock Cement at the company’s Otjiwarongo grinding plant who failed to produce working permits during an inspection. Namibian Press Agency News has reported that seven of the workers have been in Namibia since mid-2021, while the eighth arrived in March 2022.

South Korea: Seven cement producers have agreed to produce 3.77Mt of cement in the second quarter of 2022, up by 36% quarter-on-quarter from first-quarter 2022 levels, to alleviate a shortage. 380,000t of cement which would previously have been exported will now supply the domestic market instead. The Yonhap News Agency has reported that bituminous coal supply issues have hampered the domestic cement industry's ability to increase its production in line with demand growth. In the first quarter of 2022, South Korea's coal imports consisted of 54% Russian coal and 46% Australian coal, compared to 75% Russian and 25% Australian coal in 2021.

The government plans to invest US$764m between 2023 and 2030 in improving the sustainability of South Korean cement production, including moving it away from reliance on coal through increased alternative fuel use.

Russia: The government is ‘working to establish import flows’ of building materials from Uzbekistan. Russian media sources have reported that the construction industry is also hoping to expand import partnerships with China, India, Iran and Turkey. Russian cement production reportedly continues to adequately serve the national demand for cement.

Cambodia: Conch International Holding (HK) subsidiary Conch KT Cement has completed the feasibility study for its upcoming US$250m Kampong Speu cement plant at Monorom in Horng Samnan Commune. The Phnom Penh Post newspaper has reported that the company is collaborating with stakeholders to develop a ‘masterplan’ to manage all potential impacts revealed in the feasibility study. The plant is Conch KT Cement’s second in the country, with the help of which it hopes to secure a reliable domestic cement supply for Cambodians, making use of the kingdom’s abundant raw materials.

In the first 10 months of 2021, Cambodia imported US$40m-worth of cement, down by 33% year-on-year from US$59m in 2020.