06 September 2024

Thailand/Myanmar: Siam Cement Group (SCG) has suspended the operations of two plants in Myanmar and halted any expansion plans over the next two years amid ongoing economic decline and political instability. The economic situation in Myanmar has deteriorated since the outbreak of Covid-19 and was exacerbated by the 2021 military coup and continuing conflicts between the junta government and various ethnic groups, reports The Nation newspaper.

SCG's executive vice president, Thammasak Sethaudom, stated that the company has invested over US$240m in these facilities. He said "There is no hope of resuming operations anytime soon. Myanmar has another cement plant in the north, owned by a Chinese company and guarded by the Chinese military. SCG could not do that and we would not risk our employees’ lives."

US: Titan Cement International has announced via press release its intention to proceed with the initial public offering (IPO) of its US business, Titan America. The listing will involve an IPO of a minority stake and is designed not to create any additional tax burden. The transaction is anticipated to be completed in early 2025.

Pakistan: Recent tax increases on cement have been blamed for a significant decline in demand, with cement despatches falling by 25% in August 2024 compared to August 2023. According to the All Pakistan Cement Manufacturers Association (APCMA), total cement dispatches during August 2024 were 3.37Mt, down by 34% year-on-year from 4.53Mt.

For the first two months of the 2024 financial year, total cement despatches were 6.38Mt, a decline of 18% year-on-year from 7.76Mt in 2023. In August 2024, domestic dispatches decreased by 21% year-on-year to 5.21Mt, and exports dropped slightly by 2% to 1.16Mt.

A spokesperson for the APCMA said "In the current budget, excise duty on cement doubled, alongside significant increases in federal and provincial taxes," adding that no other industry has been taxed as heavily. "The government must reassess its taxation policies to support the struggling construction sector, which is critical for employment and economic stability."

Ghana: Minister of Trade and Industry, Kobina Hammond, has assured Ghanaians that cement prices will remain fair and stable following a new regulatory law, according to the Pulse Ghana newspaper. The legislation is designed to oversee the industry and ensure a balanced market without imposing price caps. Hammond stated that the new law will protect consumers from unjustified price rises while also allowing cement producers to operate profitably.

He said "I am clear beyond argument that there is a certain amount of unfairness in the pricing of cement in the country and I am prepared to make sure that there is some sort of sanity. The document [Legislative Instrument] as we speak is in force.”