September 2024
Switzerland: Eric Olsen, the chief executive officer of LafargeHolcim, has denied that his departure from the group is connected to payments to armed groups in Syria. Olsen announced his resignation following a review into a conduct of a cement plant in Syria, according to the Associated Press. However, he was found not responsible or even aware of the misconduct. Olsen told reporters at the publication of the group’s first quarter financial results that his decision to leave was not related to Syria but he did acknowledge ‘tensions’ at the company. LafargeHolcim hopes to have recruited a replacement for Olsen by the end of 2017.
Arabian Cement to spend US$7m on upgrades 08 May 2017
Egypt: Arabian Cement has announced three upgrade projects with a budget of US$7m. The projects include the construction of a mechanical crane to feed the kiln of the first production line, a new system to feed the cement mills and a new coal mill, according to the Daily Egypt newspaper. The coal mill project was announced previously in mid-2016.
ACC and Ambuja Cement consider merger options 08 May 2017
India: LafargeHolcim’s subsidiaries ACC and Ambuja Cement have started exploring the options for a merger. The cement producers have initiated a study to assess the benefits of the move. A special committee of directors, of which the majority are independent directors, has been constituted to commence the evaluation. The boards of both companies will make a decision once a recommendation is received from the special committee of directors and the Audit Committee.
US: The Federal Trade Commission (FTC) has approved Boral’s proposed acquisition of Headwaters. Boral expects that the transaction will be completed within two business days. The transaction is worth US$2.6bn. Following the purchase Boral USA and Headwaters will form a new division to be named Boral North America.
“We have been eagerly awaiting the approval from US regulators to allow us to complete the acquisition and to deliver on our strategy. In the meantime, we have continued to develop our integration plans and we are confident in our ability to deliver on the synergy targets we established when the transaction was announced,” said Boral’s chief executive officer and managing director Mike Kane. He added that Boral North America will focus on building products and fly ash.
India: Jaiprakash Associates has missed interest payments on a non-convertible debentures (NCD) for more than three months. It reported similar defaults on NCDs in April 2017. The indebted cement producer is selling integrated cement plants with a production capacity of 17.2Mt/yr and grinding plants with a capacity of 4Mt/yr to UltraTech Cement.
India: The Enforcement Directorate (ED) has filed a prosecution complaint against Penna Cement for alleged irregularities related to the allocation of land and the granting of a mining lease. The agency has also named the deceased YSR Congress chief Y S Jaganmohan Reddy, V Vijaysai Reddy, Penna Group chairman Putta Pratap Reddy and Pioneer Holdings in the case, according to the Hans India newspaper. The complaint accuses the former Andhra Pradesh state government, run by Reddy, of allocating 231 acres in Yadiki mandal of Anantapur district to Penna Cements for setting up a cement plant and officials for allowing the allocation in violation of land acquisition rules.
The ED’s complaint also says that the government at the time refused mining leases to UltraTech Cement, granted a prospecting lease to Penna Cement and was complicit in other irregularities. In return for these actions the ED alleges that Penna Group invested US$10.6m in companies owned by Reddy, in violation of money laundering regulations. Previously, the Central Bureau of Investigation (CBI) filed charges against Penna Cement, Raghuram Cements and India Cements for favours they allegedly received from the Andhra Pradesh state government in 2008 and 2009.
ACG Materials buys North Florida Rock 04 May 2017
US: ACG Materials has acquired North Florida Rock (NFR). ACG, a subsidiary of private equity firm HIG Capital, produces and processes industrial minerals and aggregates including gypsum, limestone, sand, gravel and downstream food, pharmaceutical and plaster products. NFR mines and produces limestone products sold into infrastructure, agriculture and building products applications. NFR owns and operates a quarry in Marianna, Florida and ships rocks across the Florida Panhandle, Alabama, and Georgia. No value for the deal has been disclosed.
“We are excited about the strategic expansion of our operations into the Southeastern US,” said Paul Harrington, chief executive officer of ACG Materials. “NFR not only allows us to grow outside our core Oklahoma, Texas, and Pacific Northwest markets, but also significantly expands our customer footprint and portfolio of limestone products within our expertise of mineral processing.”
NFR is the sixth add-on acquisition that ACG Materials has made since HIG acquired the company at the end of 2012.
Pakistan: Pakistan International Bulk Terminal (PIBT), the country’s first dry bulk unit for coal and cement, has started commercial operations with a consignment of coal in early May 2017. The US$285mn Muhammad Bin Qasim Port, which was built with support from the World Bank, will also be used to export cement and clinker, according to the Express Tribune newspaper. The terminal is capable of handling 12Mt/yr of cargo and has a storage yard spread over 62 acres. PIBT, under a 30-year build, operate and transfer agreement with the Port Qasim Authority, built its own jetty and is equipped with two coal ship unloading cranes and one cement and clinker loading crane.
India: Y V Ramana Rao, president of Confederation of Real Estate Developers’ Associations of India (CREDAI) Vijayawada chapter has said that the building associations have solicited quotes for cement from Chinese producers because local prices are too high. The government has asked local cement producers to cap their prices, according to the Economic Times. However the builders associations have rejected some of the fixed prices as being too high.
India: Dalmia Bharat Cement has been selected as the preferred bidder for the Kesla II limestone block in Raipur District, Chhattisgarh. The block, with reserves of 215Mt, has an estimated value of US$1.6bn, according to the Hindu newspaper.