08 December 2016
Algeria: Groupe Industriel des Ciments d'Algérie (GICA), the government-owned cement producer, has launched the certification process of its oil well cement ahead of plans to produce the product itself. A sample batch of 300t was produced in November 2016, according to the Algeria Press Service. Rabah Guessoum, the chief executive officer of GICA, said that the cement will produced at the company’s Setif plant and sold to Sonatrach group and foreign oil companies. A national demand of around 300,000t/yr is anticipated.
Holcim Lanka rebrands as Insee Cement 08 December 2016
Sri Lanka: Holcim Lanka has been rebranded as Insee Cement following its acquisition by Thailand’s Siam City Cement. The company will continue to use its Sanstha and Mahaweli Marine brands of cement but it will also introduce Insee Pro, Insee Pro Plus and Insee Extra brands, according to the Daily Financial Times newspaper.
Camargo Corrêa exploring sale of 40% stake in Loma Negra 08 December 2016
Argentina: Brazilian cement producer Camargo Corrêa is in talks to sell a 40% stake in Loma Negra. The company is exploring a potential sale with an unspecified number of bidders, according to Reuters and Brazil Journal. The proceeds of any successful sale will be used to reduce the debts of InterCement, the holding company that Camargo Corrêa uses to manage assets it purchased from Cimpor. Loma Nega is the largest cement producer in Argentina.
US: The Portland Cement Association (PCA) has lowered its forecast for cement consumption in 2016 to 2.7% from a previous estimate of 4%. It has also revised downwards its forecast for 2017 to 3.1% from 4.2%, attributing the declines to post-election political uncertainty, inflation and slower construction activity.
“President-elect Trump continues to shape his cabinet and policies, thus making it difficult to forecast potential outcomes at this point,” said PCA Chief Economist Ed Sullivan. “The impact of uncertainty is expected to be compounded by increased inflationary expectations which will impact long-term bonds and loans, such as mortgages – to the detriment of cement consumption.”
In the meantime the PCA has presented three potential political scenarios in its forecast that could shape policy priorities. These scenarios take into account various levels of political support from the US Congress, as well as possible shifts in the President-elect’s previously announced policy objectives that impact cement consumption.