15 February 2018

US: HeidelbergCement has announced that its subsidiary Lehigh Cement Company has signed an agreement to sell its 51% position in Lehigh White Cement Company to the minority shareholders Aalborg Cement Company and Cemex. Closing of the transaction is subject to customary conditions and is expected during the first quarter 2018. Authorisation by the Antitrust Authority has already been obtained.

Lehigh White Cement Company operates two plants in Waco, Texas and York, Pennsylvania with a combined production capacity of approximately 0.26Mt/yr.

“As a niche product with small volumes, the standalone production of white cement does not fit to the strategic focus on efficiency of HeidelbergCement,” said Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “The disposal is part of our global portfolio review and optimisation with the goal to generate additional cash flow in order to support our disciplined growth and increase shareholder returns.”

Cemex, via its US subsidiary, will increase its stake from 24.5% to 36.75% when the deal is completed. It will pay US$34.0m. Cementir, via Aalborg Cement, will pay US$107.m for the purchase of a further 38.75% stake. This will take its total share to 63.25% once the deal goes through.

"This acquisition gives us the opportunity to enter the direct management of assets in the US in a segment, that of white cement, which is our core business, strengthening our global leadership consistent with our development strategy," commented Francesco Caltagirone Jr, President and chief executive officer of Cementir Holding.

India: Shree Cement has commissioned its new cement grinding unit at Bangur, Rohi Udaipur Udasar in Rajasthan. The plant has a grinding capacity of 3.60Mt/yr.

UK: Drivers working for Hanson Cement are set to take strike action over what they have termed a ‘very unsatisfactory’ pay deal offer. The action is set to take place on one shift covering 26 - 27 February 2018 and will hit deliveries to and from the Padeswood plant near Mold, Wales. About 240 workers voted by 89% for strike action over the two-year pay deal.

The union Unite and the firm's management are holding last-ditch talks today (15 February 2018) in a bid to reach a settlement to avert strike action. The company is part of the HeidelbergCement Group.

The deal on offer is for a 2% pay increase from 1 January 2018, and a further increase in 2019 linked to inflation but capped at 3%.

Under the action drivers will also not spend overnights in their vehicles or use their cab phones between 26 February - 20 May 2018. They will withdraw ‘goodwill’ for the same three month period, i.e. not training of new or agency drivers.

Unite national officer for road transport Adrian Jones said, "Our members regard the two-year pay deal on the table as very unsatisfactory, given the current rate of inflation and soaring cost of living. The proposals also don't reflect the strong contribution that they make to the company's profitability.”

Hanson Cement said it had made a fresh 2.5% offer for 2018 and said further negotiations will take place. He added that they were hopeful about reaching a settlement that would avert strike action.

Zimbabwe: Lafarge Zimbabwe is looking to expand its operations as it is set to commence exploratative drilling for lime within the next two months. It already has two mining operations where limestone is extracted at Mbubu in Mashonaland East Province and Sternblick quarry in Harare.

The company told local press that exploratative drilling was anticipated to commence in April 2018. This comes as its environmental impact assessment for limestone exploration drilling in Pfura Rural District was approved. The company has contracted Bumira Environmental Consultants to perform the environmental assessment.