September 2024
Vietnam cement exports set to fall in 2016 12 December 2016
Vietnam: The Vietnam Building Material Association has predicted that revenue from cement exports is set to fall by 7% year-on-year to US$556m in 2016 from around 15Mt of cement and clinker. In the first 11 months of the year the country’s export volumes fell by 5.93% to 14Mt/yr. The decline has been blamed on competition from foreign companies inlcuding those in China, India, Pakistan and Thailand. The association also blamed the high cost of exports.
Siam Cement Group to open Laos plant in early 2017 12 December 2016
Laos: Siam Cement Group (SGG) plans to start commercial operations at a 1.8Mt/yr cement plant it is building in the first quarter of 2017. Construction of the plant is nearly complete, according to the Bangkok Post. SCG's president and chief executive Roongrote Rangsiyopash said that half of the output from the plant in will be used locally and the rest would be exported to the north-east of Thailand. He added that Laos consumes about 400,000t/yr and that SCG expects demand to grow by 6 - 7% in 2017 due to state funded infrastructure projects.
Dangote strikes gas deal with Tanzania 12 December 2016
Tanzania: Nigeria’s Dangote Cement has struck a deal with the government-run Tanzania Petroleum Development Corporation (TPDC) to supply gas to its cement plant. Company chairman Aliko Dangote met with President John Magufuli on 10 December 2016 to negotiate the agreement, according to Reuters. The agreement follows a dispute between Dangote and the TPDC over the price of gas. Magufuli said that Dangote could now buy gas directly from TPDC. No price details were released. In late November 2016 Dangote’s representative in the country denied that a stoppage at its plant was related to high production costs.
Belarus: The Belarusian Cement Company and Eurocement Group have signed a contract concerning deliveries of cement in 2017. In line with the agreement the deliveries will satisfy the demand for Belarusian cement on the Russian market. The deliveries in 2017 will be at least as large as in 2016, according to the Belarusian Telegraph Agency. The deal was signed by Eurocement Group President Mikhail Skorokhod, Director General of Belarusian Cement Plant Igor Lozhechnikov and Director General of Krichevcementnoshifer Vladimir Korchevsky.
Belarusian Architecture and Construction Minister Anatoly Cherny said that the Russian market is the key target market for Belarusian cement producers. He added that despite falling demand in Russia that the share of Belarusian cement on Russian Federation markets would grow larger.
Demonetisation halves cement demand in November 2016 09 December 2016
India: Demonetisation of high value Indian rupee currency notes reduced cement demand by 45 – 50% in November 2016. Demand for cement fell across regions with the central region including Uttar Pradesh and Madhya Pradesh suffering the least, according to the Hindu newspaper. The decline has hit the industry when it was expecting an increase in demand stimulated by infrastructure development following the monsoon season.
A slowdown in real estate activity has particularly affected the cement industry as the majority of cement in the country is used by the realty sector. RP Gupta, chairman and managing director of Shiva Cement, said that contractors are finding it difficult to make cash payments for buying raw materials such as sand, bricks and stones as well as paying wages. Cement companies are reportedly trying to help dealers install bank or credit card payment machines to reduce cash-based transactions.
Hyundai Cement sales expected to generate up to US$515m 09 December 2016
South Korea: The sale of Hyundai Cement is predicted to generate up to US$515m. Sources quoted by the Maeil Business Newspaper say that the auction in mid-December 2016 will receive attention from cement producers and private equity funds. Hyundai Cement is the seventh largest cement producer locally, holding about 7% of the market. Larger producers, such as Ssangyong Cement Industrial, Tongyang Cement & Energy and Lafarge Halla Cement, with production units in coastal regions, would all benefit from purchasing Hyundai Cement with its assets located internally in the country.
EAM, Mamba and Sungura to enter cement industry in Tanzania 09 December 2016
Tanzania: EAM, Mamba and Sungura are planning to invest in the cement industry. Industry, Trade and Investment Minister Charles Mwijage said that the companies have all requested to enter the industry at the Dar es Salaam International Trade Fair, according to the Tanzanian Daily News. EAM wants to build a 3Mt/yr plant in the Tanga region on condition that the government lets it export cement internationally. It has also requested other conditions that are in discussion with the government. Mamba and Sungura are also in discussion with the government regarding their projects.
Algeria: Groupe Industriel des Ciments d'Algérie (GICA), the government-owned cement producer, has launched the certification process of its oil well cement ahead of plans to produce the product itself. A sample batch of 300t was produced in November 2016, according to the Algeria Press Service. Rabah Guessoum, the chief executive officer of GICA, said that the cement will produced at the company’s Setif plant and sold to Sonatrach group and foreign oil companies. A national demand of around 300,000t/yr is anticipated.
Holcim Lanka rebrands as Insee Cement 08 December 2016
Sri Lanka: Holcim Lanka has been rebranded as Insee Cement following its acquisition by Thailand’s Siam City Cement. The company will continue to use its Sanstha and Mahaweli Marine brands of cement but it will also introduce Insee Pro, Insee Pro Plus and Insee Extra brands, according to the Daily Financial Times newspaper.
Camargo Corrêa exploring sale of 40% stake in Loma Negra 08 December 2016
Argentina: Brazilian cement producer Camargo Corrêa is in talks to sell a 40% stake in Loma Negra. The company is exploring a potential sale with an unspecified number of bidders, according to Reuters and Brazil Journal. The proceeds of any successful sale will be used to reduce the debts of InterCement, the holding company that Camargo Corrêa uses to manage assets it purchased from Cimpor. Loma Nega is the largest cement producer in Argentina.