September 2024
Cement market to grow in India but not in China in 2024 12 December 2023
China/India: Research organisation Fitch Ratings has forecast continued ‘steady’ growth of 6 – 8% year-on-year in cement demand in India in 2024. Meanwhile, it expects demand in China to remain ‘weak,’ amid low activity levels in the residential construction sector. Nonetheless, Fitch Ratings said that rising installed cement capacity will limit growth in producers’ profit margins in India, while producers’ profit margins will stabilise in China.
Neighbours of Lafarge Canada’s Exshaw cement plant launch lawsuit over alleged dust spills 12 December 2023
Canada: Residents of Exshaw and Lac des Arcs, Alberta, near Lafarge Canada’s Exshaw cement plant, have filed a lawsuit over allegedly increasing dust emissions from the plant. Postmedia Breaking News has reported that law firm Napoli Shkolnik Canada said that dust spills occur ‘regularly.’ The plant’s operations allegedly also blacken snow on the ground in the area and have caused ‘severe’ odours and ‘violent’ tremors.
Türkiye: Taiwan Cement Corporation (TCC) has concluded an agreement to acquire an additional 20% stake in OYAK Denizli Çimento from OYAK Çimento. Reuters has reported that this will raise TCC’s stake in the company to 60%. The deal aligns with a previous memorandum of understanding (MoU) between the two parent companies.
OYAK Denizli Çimento operates the 3Mt/yr Honaz cement plant in Denizli Province. It reportedly has an enterprise value of Euro1.4bn. OYAK Çimento bought the business from Eren Holding and Ireland-based CRH for US$400 – 450m in 2014.
Ramco Cements expands Kolimigundla cement plant 11 December 2023
India: Ramco Cements has raised the clinker capacity of its Kolimigundla cement plant by 26%, to 3.15Mt/yr from 2.5Mt/yr. The Hindu newspaper has reported that Ramco Cements plans to invest US$192m in capital expenditure (CAPEX) during the 2024 financial year (1 April 2023 – 31 March 2024), and a further US$24 – 30m in on-going projects in the 2025 financial year. The producer said that its projects, involving its cement, concrete and energy operations, are proceeding ‘on track.’ These include an expansion of its Odisha grinding plant to double its capacity to 1.8Mt/yr.
NI Capital to sell Misr Cement Qena stake 11 December 2023
Egypt: NI Capital, the investment arm of Egypt’s National Investment Bank, plans to sell its 10% stake in Misr Cement Qena. The Al Borsa newspaper has reported that the company is preparing to tender for a financial advisor for the intended sale. The divestment would form part of a US$5bn International Monetary Fund (IMF)-mandated privatisation programme, due to conclude before June 2024.
Star Cement contemplates expansion into southern India 11 December 2023
India: Star Cement is reportedly considering acquiring new cement assets in the southern India market. The Hindu newspaper has reported that the producer expects cement production capacity there to have a lower valuation than in its native north east India, due to its larger scale.
CEO Vinit Kumar Tiwari said “We have to find a target which is suitable for our appetite. We are open to all the areas. Obviously, the southern market is a more glut market. So, if we find any opportunity there at a good valuation, only then will we go for it.” He added “The next round of consolidation in the industry should be in the southern market because this market is quite fragmented and players are operating at a very low capacity utilisation.”
Star cement expects to raise its capacity by 70% to 9.7Mt/yr by early 2026 through US$264m-worth of expansion projects, including an expansion to the clinker line of its Lumshnong cement plant in Meghalaya. To date, it has invested US$108m in the projects.
Cemex raises European reduced-CO2 cement volumes to 20% of sales 11 December 2023
Europe: Cemex says that sales of reduced-CO2 cement from its Vertua range comprised 20% of its sales in Europe by volume in November 2023. The range includes Vertua Supreme cement, which offers 55% lower CO2 emissions than ordinary Portland cement (OPC). Cemex attributed its success in developing Vertua Supreme cement to advances in product design and manufacturing technology, including the use of hydrogen in its cement kilns.
Sinoma International Engineering to build Euro218m clinker line for Holcim Belgique 08 December 2023
Belgium: China National Building Material subsidiary Sinoma International Engineering won a contract to build a new clinker line for Holcim Belgique on 8 December 2023. Yicai Global News has reported that Sinoma International Engineering will design the line, supply its mechanical and electrical equipment, procure steel structures and provide technical services under a contract worth Euro218m. The supplier expects to commission the line within 38 months of commencement of the project.
Holcim Belgique operates the 1.7Mt/yr Obourg cement plant in Mons. The plant is upgrading to net zero CO2 cement production under the GO4ZERO project, as part of which Holcim Belgique previously announced plans to install a new kiln in the place of the plant’s existing ones.
Holcim Hrvatska secures Euro117m in EU funding for Koromačno cement plant carbon capture project 08 December 2023
Croatia: The European Climate, Infrastructure and Environment Executive Agency (CINEA) has granted Holcim Hrvatska Euro117m-worth of EU funding for its KOdeCO Net Zero decarbonisation project. The project aims to decarbonise cement production at the company’s 500,000t/yr Koromačno cement plant in Istria by building a Euro237m carbon capture system there.
Holcim Hrvatska says that the project will commence in January 2024 and conclude by the end of 2028.
Bamburi Cement and Cementia Holding to sell Hima Cement for US$15m 08 December 2023
Uganda: Holcim subsidiaries Bamburi Cement and Cementia Holding have negotiated a price of US$120m for Hima Cement with buyer Sarrai Group. Business Daily News has reported that the price is 14% higher than the company’s previous valuation. The parties said that the agreed price takes into consideration ‘multiple factors,’ including Hima Cement’s performance in 2022 and forecast performance for 2023.