04 September 2023

Dominican Republic: Cemex is considering selling its subsidiary Cemex Dominicana according to Bloomberg. The Mexico-based group is reportedly working with JPMorgan Chase & Co on a potential divestment worth over US$1bn. Proceedings are at an early stage, with Cemex starting to talk to interested parties to assess potential interest.

Cemex has been operating in the Dominican Republic since 1995 when it acquired Cementos Nacionales. It runs the integrated 2.4Mt/yr San Pedro de Macorís cement plant. It also has ten concrete plants, three sea terminals, two aggregate quarries and a gypsum mine. It employs 1500 people directly. Cemex sold its subsidiaries in Costa Rica and El Salvador to Cementos Progreso for US$329m in 2022.

Paraguay: Andrés Wardle, the head of Yguazú Cementos, has warned that the government does not need to allow the current levels of cement imports. He said that the Ministry of Industry and Commerce was issuing “unnecessary” licences for imports because local demand levels were too low, according to the ABC Color newspaper. He added that local cement producers were able to meet domestic demand for cement as they had idle production capacity. The government has authorised import licences for 80,000t of cement and licences for another 60,000t have been authorised but are pending entry.

Egypt: Lafarge Egypt has confirmed that it is aiming to reduce its CO₂ emissions in excess of 20% by 2030. Its key steps to achieve this include increasing its use of alternative fuels and lowering its clinker factor, according to the Daily News Egypt newspaper. Chief executive officer Jimmy Khan added that the company is also working on developing digital methods to reduce emissions by improving transport logistics. The cement producer launched its Shatbna Masonry Cement product in 2022, part of parent company Holcim’s ECOPlanet range.

Holcim has set a worldwide target to reduce its gross Scope 1 CO₂ emissions from cement production of 22% by 2030 from a baseline of 590kg/t in 2018. It reported a 5% reduction to 562kg/t in its 2022 sustainability report. Ultimately the group is targeting net zero emissions from its activities by 2050.

Kenya/Uganda: Bamburi Cement’s profit after tax has been adversely affected by a tax claim in the first half of 2023. The cement producer said that its profit after tax was reduced due to the “settlement of corporation tax matters in Uganda.” Its turnover grew by 11% year-on-year to US$153m from US$138m in the same period in 2022. However, its profit after for tax fell by 7% to US$604,000 from US$652,000. As well as operating plants in Kenya, the subsidiary of Switzerland-based Holcim runs Hima Cement in Uganda.

Reporting by the Business Daily newspaper has revealed that the Uganda Revenue Authority (URA) started a review in 2020 of Hima Cement’s transfer pricing compliance between 2014 and 2018. The URA then raised its corporation tax assessment for Hima Cement in December 2022. Bamburi Cement has also faced additional penalties and interest charges from the Kenya Revenue Authority.

Nigeria: Dangote Cement has publicly confirmed the price of cement from its plants. It made the announcement in response to allegations that it has been selling its products at “significantly” lower prices in neighbouring countries including Benin, according to the Daily Trust newspaper. It also detailed how much transportation costs and the location of a delivery could affect the end price. Arvind Pathak, the Group Managing Director of Dangote Cement, added that the company’s ex-factory price could be different from the end retail price.