September 2024
Cement means prizes for Cimerwa 16 September 2016
Rwanda: As part of efforts to promote consumption of ‘Made in Rwanda’ products, local cement manufacturer Cimerwa has launched a campaign in which more than 100 lucky winners will walk away with cash prizes worth a total of US$85,000. Busisiwe Legodi, the company chief executive officer, said the ‘Buy, Build & Win’ campaign would encourage Rwandans to buy locally-produced cement and enhance the competitiveness of the country's sole cement producer.
LafargeHolcim cuts 250 jobs as it completes merger 16 September 2016
Switzerland: LafargeHolcim has announced that it will shed around 250 jobs as part of a reorganisation of its global operations. The announcement comes following the completion of merger proceedings between the former Lafarge and Holcim.
There will be 250 job reductions in corporate functions by the end of 2017, of which around 130 will be in Holderbank, Switzerland, 80 in L'Isle d'Abeau, France, and the remainder in other global sites in the rest of the world. This represents around 0.25% of LafargeHolcim’s 100,000 staff.
Sarbottam launches cement brands in Nepal 15 September 2016
Nepal: Sarbottam Cement, part of the Saurabh Group, has launched its Ordinary Portland Cement and Portland Slag Cement brands. The company operates a 0.4Mt/yr cement grinding plant at Ramnagar.
European Bank for Reconstruction & Development confirms decision to raise stake in Holcim Azerbaijan cement plant 15 September 2016
Azerbaijan: The board of directors of the European Bank for Reconstruction & Development's (EBRD) has decided to raise its stake in Holcim Azerbaijan to 20%. The move is intended to support the company’s energy efficiency through the use of alternative fuels.
“The bank will continue to support a major company in Azerbaijan, demonstrating continued support for the country's non-oil sector,” said the bank in a statement. “In addition, the company is committed to sustainability standards and will pursue the use of alternative fuels in its operations.”
LafargeHolcim acquired a controlling stake in Holcim Azerbaijan, formerly Garadagh OJSC, during a privatization process in 1999. The EBRD currently owns a 10% share in the cement producer.
Procemcol opens cement plant in Sogamoso 15 September 2016
Colombia: Procemcol has opened its 0.24Mt/yr Productora de Cemento SAS cement plant in Sogamoso. The project had an investment of US$10.2m and it will create 65 jobs, according to the El Tiempo newspaper. Sogamoso also has two other cement plants, owned by Cementos Argos and Cementos del Oriente, which are upgrading their equipment.
Hima Cement signs cement supply deal with Guangzhou Dongsong 15 September 2016
Uganda: Hima Cement has signed a memorandum of understanding with Guangzhou Dongsong Energy Group Company for the supply of over 40,000t of cement. The deal is to support the construction of industrial projects on an industrial park in Sukulu, according to the Kampala Observer. Guangzhou Dongsong Energy Group is a Chinese company that holds a lease to mine and process phosphates in Sukulu, Tororo district.
"The purpose of this memorandum of understanding is to establish the relationship between Hima and Guangzhou Dongsong. This cooperation of both parties shall cover the project of construction of the phosphate plant and steel plant, and any other projects within the Sukulu industrial park," said Daniel Pettersson, the chief executive officer of Hima Cement Uganda. Hima Cement also hopes to be able to purchase slag from the steel plant once it is built.
Lafarge North America to lay off workers at Joppa cement plant 15 September 2016
US: Lafarge North America plans to lay off an estimated 40 workers at his Joppa cement plant in Illinois. The move follows a decision to shut down one of the plants two kilns due to poor demand, according to WSIL-TV. The announcement follows the cement producer’s decision to scrap its expansion at the plant in May 2016. It previously said that no job losses were anticipated.
FLSmidth signs operation and maintenance contract with Wadi El Nile Cement Company 15 September 2016
Egypt: FLSmidth has signed a contract with Wadi El Nile Cement Company (WNCC) for operation and maintenance of its cement plant. The contract is a five-year continuation of the existing contract signed in 2010. In addition, WNCC also ordered an upgrade of the plant from 6000t/day to 7200t/day of clinker. The upgrade will be executed as part of the operation and maintenance contract. The value of the deal has not been disclosed.
"The continuation of the contract is visible proof of the successful partnership we have with WNCC. We have now operated their 6000t/day for almost five years. The performance delivered was the main driver for WNCC to expand and continue its partnership with FLSmidth. The extension of the operation and maintenance contract reflects our ability to increase our customers' productivity and preserve asset value," said FLSmdith Group Executive Vice President, Cement Division, Per Mejnert Kristensen.
The initial contract will expire at the end of 2016 and the new contract term is from January 2017 to December 2021. The upgrade to 7200t/day is planned to be operational from the summer of 2017.
Update on Kenya 14 September 2016
Tensions have boiled over regarding imports of cement to Kenya in recent weeks as different importers have received opprobrium in the local press. Last week Dangote Cement was attacked for importing cheap cement into the country from Ethiopia, allegedly off the back of a cheap electricity deal. This week, Chinese imports have been in the firing line, following data reportedly seen by the Business Daily newspaper that showed that the value of Chinese cement imports rose tenfold year-on-year in the first half of 2016.
At the heart of these rows lies a strong demand for cement: Kenya had a cement production utilisation rate of 90% in 2015 according to Kenya National Bureau of Statistics (KNBS) data. It produced 6.35Mt in that year and used 5.71Mt for consumption and stocks. Its utilisation rate has been rising steadily since 2012. It was 93% for the first six months of 2016.
Unfortunately for the local producers this kind of demand attracts competition from within and without. Nigeria’s Dangote Cement is planning to build a 3Mt/yr plant at Kitui and Cemtech Kenya, a subsidiary of India’s Sanghi Group, is planning to build a 1.2Mt/yr plant at Pakot.
Local producer ARM Cement reported both falling turnover and a loss for the first half of 2016. It blamed this on increased competition in Tanzania. However, in 2015 it increased its turnover in Kenya by importing clinker over the border from its new Tanga plant in Tanzania. It also noted a ‘competitive landscape’ in Kenya and lamented the effects of currency devaluation on its financies as a whole. East African Portland Cement had a tougher time of it for its half-year that ended on 31 December 2015, issuing a profit warning of a loss and expected reduced profits despite a rise of 12% in sales revenue. By contrast, Bamburi Cement, LafargeHolcim’s subsidiary, reported both increases in revenue and operating profit in 2015. Although it too noted problems with interest rates and currency depreciation in the country during this period.
The focus on Chinese imports follows Chinese contractors winning some of the biggest infrastructure projects in the country. The China Rail & Bridge Corporation (CRBC), for example, is building a railway between Mombasa and Nairobi. The Business Daily newspaper has found data showing that Chinese cement imports worth US$19.8m to Kenya in the first half of 2016 compared to US$1.99m in the same period of 2015. The background to this is that China has more than doubled the value of all of its imports to Kenya since 2011 according to the KNBS. Total import volumes of clinker from all foreign countries increased by 51% in 2015 from 1.31Mt in 2014, the largest increase in at least five years.
If local cement producers are being locked out of supplying these kind of deals no wonder they are getting angry. However, another angle on what’s happening here might be that local producers who are suffering from increased competition, falling prices and a precarious national financial situation are lashing out at the easiest target. The local press doesn’t appear to have criticised ARM Cement for moving its Tanzanian clinker north of the border for example. Likewise, a Bamburi Cement spokesperson previously said that the producer had supplied 300,000t of cement to the rail project since September 2014, earning it nearly US$10m. Kenya needs cement as it builds its infrastructure. Fortunes will be made and tempers will be lost as it does so.
Loma Negra to spend US$17.5m on upgrades for Catamarca cement plant 14 September 2016
Argentina: Loma Negra, a subsidiary of Brazil’s Intercement, is to spend US$17.5m towards upgrading the baghouse at its Catamarca cement plant in Catamarca province. Work is scheduled to start in September 2016 and continue for 12 months, according to the El Cronista newspaper.