September 2024
Colombian Superintendent of Industry and Commerce reports evidence of price collusion 17 October 2017
Colombia: The Superintendent of Industry and Commerce (SIC) says that it has found evidence of price collusion from 2010 to 2012 between Cementos Argos, Holcim and Cemex. A report by SIC alleges that the three companies raised the price of Ordinary Portland Cement (OPC) in a coordinated manner, according to the El Espectador newspaper. The producers have been given a time to respond to the allegations and they could face fines of up to US$8m each by the end of 2017.
However, the cement producers have denied the allegations and criticised SIC’s methods. In a response, Cementos Argos described SIC’s analysis of cement prices over a 36-month period as ‘ not appropriate.’ It also pointed out that the regulator had assumed a stable market share between competitors and that its own share had changed between 2007 and 2017.
Corporacion Socialista de Cementos starts second line at Las Llanadas plant in Venezuela 17 October 2017
Venezuela: The Corporacion Socialista de Cementos’ Las Llanadas plant in Trujillo has started its second production line. Following the upgrade the state-owned plant’s cement production capacity will rise to 1.35Mt/yr from 0.5Mt/yr, according to the El Mundo newspaper. The new line was built using Chinese technology.
Europe: The closing date of the merger between refractory manufacturers RHI and Magnesita is expected to be 26 October 2017. This follows approval by the Dutch Authority for the Financial Markets (AFM) for the prospectus for admission to listing of RHI Magnesita shares on the Premium Listing segment of the Official List of the UK Financial Conduct Authority and to trading on the London Stock Exchange’s (LSE) Main Market for listed securities. The new company, RHI Magnesita, will start trading on the LSE on 27 October 2017.
Thomas Gruppe buys Gebr. Seibel Erwitte cement plant 16 October 2017
Germany: Thomas Gruppe has purchased Portland-Zementwerke Gebr. Seibel’s cement plant at Erwitte in North Rhine-Westphalia. The deal also includes the plant’s limestone deposits. It will take over the plant on 1 January 2018. Gebr. Seibel has operated the unit since 1927.
Thomas Gruppe operates in the construction and building material sectors. It runs the Dornburger cement grinding plant in Thuringia.
Cong Thanh Cement defends decision to build grinding plant 16 October 2017
Vietnam: Cong Thanh Cement has defended its decision to build a grinding plant at Cam Ranh in Khanh Hoa province despite high debts, a domestic cement surplus and poor market conditions. A spokesperson said that the company’s loan liabilities have reached US$606m, according to the Việt Nam News newspaper. It has declared a revenue target of US$19.4m for 2017 with a loss of US$1.93m expected. A cement surplus and high fuel prices adding to transportation costs have contributed to the problems the company faces. The cement producer operates a two-line 6Mt/yr plant at the Nghi Son Economic Zone in Thanh Hoa Province.
Loesche supplying three mills for Egyptian Cement plant 16 October 2017
Egypt: Loesche is supplying three vertical roller mills for the Egyptian Cement plant at Sohag. The scope of delivery includes a raw material mill with a capacity of 540t/hr of cement raw meal, a cement mill with an output of 350t/hr as well as a coal mill with an output of 45t/hr. The cement mill is equipped with a COPE (Compact Planetary Electric Drive) drive.
Sinoma subsidiary, the Chinese Chengdu Design & Research Institute (CDI), is the general contractor for the project. Loesche and CDI have worked together previously on projects in Egypt including ones for El Arish Cement and Beni Suef Cement.
Loma Negra aims to raise US$800m in initial public offering 16 October 2017
Argentina/US: Loma Negra aims to generate up to US$800m in an initial public offering in Argentina and the US. Around US$700m of the money raised will go to its parent company Brazil’s InterCement, according to Reuters. InterCement is selling a 32% stake in the company to pay its debts. Subsequently it will hold a 57% stake in the Argentine cement producer. No schedule for the transaction has been disclosed.
China: Zhou Xiaochuan, the governor of the People's Bank of China, has described government targets for cutting excess capacity in the steel and cement industries as ‘optimistic.’ The Chinese government says it wants to cut steel and cement production capacity by around 10% but Zhou said he thought that might be difficult, given continued investment in urban housing and infrastructure, according to the Wall Street Journal. He made the comments at a seminar held by the Group of Thirty in Washington, US.
Worker found dead at Jajpur cement grinding plant site 16 October 2017
India: A worker has been found dead at a 2Mt/yr cement grinding plant that Emami Cement is building at Jajpur in Odisha. A fellow worker was also found injured next to the deceased, according to the New Indian Express newspaper. No cause for the accident has been reported. Both men were working as casual labourers at the site.
PPC said to be on shopping list for CRH 13 October 2017
South Africa: Ireland’s CRH is considering making a bid for PPC according to unnamed sources quoted by Bloomberg. However, no final decision has been made and neither CRH nor PPC have commented on the matter. Following an offer made by Fairfax Financial Holdings in September 2017, PPC said that it had received two other offers. Nigeria’s Dangote Cement publicly admitted that it was in talks with PPC but it later withdrew from the bidding process.