September 2024
Martin Riley appointed Senior Vice President of Tarmac 27 January 2016
UK: Martin Riley has been appointed Senior Vice President of Tarmac. He will report to Ken McKnight, President Europe Heavyside. Riley was previously Managing Director, Aggregates and Asphalt at Tarmac. The appointment is part of the transition of the businesses acquired from Lafarge Holcim into the European Heavyside business of CRH.
In addition, the Tarmac Cement and Lime business will integrate into a new CRH business cluster consisting of UK Cement, Ireland and Spain, led by Oliver Mahon, Senior Vice President, who will also report to Ken McKnight. As part of this reorganisation the former CEO of Tarmac since 2013, Cyrille Ragoucy, will leave the business.
Bheki Sibiya retires as chairman from PPC 27 January 2016
South Africa: Bheki Lindinkosi Sibiya retired as Chairman of the Board of PPC on 25 January 2016 following the company's annual general meeting. He held the post since 2008. No successor has yet been announced.
PPC acknowledged that Sibiya had overseen the successful conversion of the company's mining rights and the initiation of its African expansion strategy during his tenure. It also mentioned his role in ensuring board continuity and preservation of corporate expertise during a 'challenging phase' in the company's history.
Other retirements announced include Mangalani Peter Malungani, who has served as Non-Executive Director of PPC since February 2009, and Zibusiso Kganyago, who has been a member of the board since October 2007.
Salukazi Dakile-Hlongwane has been elected as a Non-Executive Director of the Board. Dakile-Hlongwane is currently the Chairperson and co-founder of Nozala Investments Pty Limited. Her career includes posts at Lesotho National Development Corporation, African Development Bank (Abidjan-Cote d'Ivoire), the Development Bank of Southern Africa, FirstCorp Merchant Bank and BOE Specialised Finance. She holds a Bachelor's degree in economics and statistics from the National University of Lesotho and a Master's degree in development economics from Williams College in Massachusetts, USA.
Steve Rowley to retire as president and CEO from Eagle Materials 27 January 2016
US: Steve Rowley will retire as president and CEO of Eagle Materials on 31 March 2016. Dave Powers, Executive Vice President for Gypsum Wallboard at Eagle since 2005, will succeed Rowley as President and CEO. He will also be appointed to the Board of Directors.
"Steve has positioned Eagle for an exciting future. He has led the doubling of the scale of our cement business and has guided the growth of our gypsum wallboard business in achieving its nation-wide scope. He also has successfully led the company through the longest and most challenging construction market down-cycle in US history," said Larry Hirsch, Chairman of the Board. Health reasons were cited for Rowley's retirement.
Dave Powers, aged 65, holds over 35 years of experience in the building materials industry. He joined Eagle Materials (formerly Centex Construction Products) in 2002 as Executive Vice President, Sales and Marketing. In January 2005, he was promoted to his role as Eagle's Executive Vice President for Gypsum (and President, American Gypsum Company LLC).
Sudan cement industry update 27 January 2016
Sudan made a rare mention in the cement news this week when state plans to increase production capacity were revealed. Minister of Investment Mudathir Abdul-Ghani commented on a visit to a cement plant in River Nile State that the government wants to increase production capacity from 3Mt/yr to 5Mt/yr.
It's likely that the minister meant cement production as opposed to production capacity and that something was lost in translation from the original source via the Sudan News Agency. Global Cement Directory 2016 data places the country's cement production capacity at just under 7Mt/yr from six plants. ASEC and the United States Geological Survey (USGS) have cited similar figures in recent years too. A Global Cement contact reported in June 2015 that only three of the six cement plants were generally operational. These were Atbara Cement, Alshamal Cement and Al Takamol Cement (ASEC). The last available figures from the Bank of Sudan reported cement production was 2.9Mt in 2013, excluding data from one plant.
Regardless, the focus on Sudan is worth attention. The usual African demographic factors and rebuilding potential following the secession of South Sudan in 2011 suggest that the country is ready for increases in cement consumption. In 2009 per capita cement consumption was placed at 65kg/capita, an extremely low figure. After this point cement production leapt up from 0.6Mt/yr in 2009 to 2.91Mt/yr in 2013. This was due to expansion projects and new plant builds such as the Al Takamol (ASEC) cement plant. Using the current 2015 estimate for population this would still keep the country's per capita consumption below 100kg/capita.
Back in its 2012 annual report ASEC described the Sudanese market as one 'plagued' by oversupply and fuel shortages, creating a difficult environment to operate within. Transportation challenges, political instability, economic sanctions and the separation with South Sudan were all mentioned as problems to the local cement industry, hitting utilisation rates. ASEC's stated plan at the time was to reduce costs to stay in business. This all chimes with direct reports to Global Cement placing the utilisation rate at 50%. Demand for cement reportedly fell in January 2016 due to high inflation rates, at about 35%, and a poor economy.
With these kinds of conditions it would take a brave investor to spend their money in Sudan despite the golden demographic trends. State investment or incentives could be instrumental. This makes the Minister of Investment's comments noteworthy. Despite all the problems ASEC reported a 'marked' rise in sales revenue in 2013 to US$70m for its subsidiary Al-Takamol in Sudan.
Qatar National Cement Company profit increases by 10% in 2015 26 January 2016
Qatar: Qatar National Cement Company has reported that its profit rose by 10% year-on-year to US$127m in 2015 compared to US$115m in 2014. Revenue increased by 11% to US$321m from US$288m. Gross profit increased by 6% to US$130m from US$123m.
Sudan: The Minister of Investment Mudathir Abdul-Ghani has revealed state plans to increase cement production capacity from 3Mt/yr to 5Mt/yr. The aim is to achieve self-sufficiency and to build an export surplus according to local media. The announcement was given at a meeting with the managers of a cement plant in River Nile State.
PPC reports 3% drop in sales in first trading quarter of 2016 26 January 2016
South Africa: PPC has reported that its cement sales fell by 3% for its first trading that ran from October to December 2015. Cement sales in its South African business declined by 1.6% while its international businesses recorded an 8% decline, according to a trading update.
The South African cement producer reported that coastal regions in South Africa achieved positive volume growth. However this was offset by declines recorded in Gauteng and inland regions. During this period, average selling prices fell by 4%.
In Zimbabwe the completion of major infrastructure projects in Zimbabwe has led to declines of over 10% in local sales. Cement exports have also reduced due to exchange rate effects. In Botswana cement sales fell due to competition and weak demand. In Rwanda sales fell due to high rainfall and limited exports. However, the company's new 0.6Mt/yr cement plant was reported to be performing 'satisfactorily' and the kiln has passed its performance test for output and heat consumption.
Essroc Cement Speed plant to hold public hearing on waste fuels 25 January 2016
US: The Indiana Department of Environmental Management will hold a public hearing about the use of liquid waste-derived fuel at the Essroc Cement Speed plant. Essroc Cement is applying for a state environmental permit to burn liquid waste-derived fuel in one of its cement kilns in the unincorporated Clark County community of Speed. Residents have expressed concerns about the plants. No date for the meeting has been set, according to Associated Press.
Mike McHugh, the Speed plant's director, said Essroc plans to use products mostly from the petroleum industry, such as paint thinners, antifreeze and acetone. The plant will have to build two small storage facilities for it to start replacing about 25 – 30% of the coal it burns with liquid waste-derived fuel.
Essroc Corporate Environmental Engineer Luis Rodriguez said the company welcomes the public's questions. The company hosted an open house and talked with community leaders in 2014 before it submitted its application. "We actually want it to go to public comment so we can answer some of these questions... We've wanted to be as upfront on this as possible," said Rodriguez.
Ghanaian cement producers praise higher Freight on Board value 25 January 2016
Ghana: The Ghana Cement Manufacturers Association (GCMA) has praised the Ghana Revenue Authority (GRA) for introducing a Freight on Board (FOB) value of US$60/t for cement, a rise from US$26/t previously. The GRA has been investigating allegations of under-declaration in the cost and freight value for imported bagged cement from China, according to local press.
"We commend the GRA for playing a vital role in this adjustment, and urge its sustenance in order to maximise revenue as well as protect the local cement industry," said George Dawson-Ahmoah, chairman of the GCMA. The GCMA maintains that imported bagged cement into Ghana is unnecessary give the country's surplus of locally manufactured cement. Members of the GCMA include Ghacem Limited, Diamond Cement, Savanna Diamond Cement and Western Diamond Cement.
Song Lam cement plant orders four Loesche mills 25 January 2016
Vietnam: The Song Lam cement plant has ordered four Loesche mills via Sinoma. The greenfield project is being organised by the Hoang Phat Vissai Group Company.
Two type LM 60.6 Loesche mills have been ordered to grind raw material to a fineness of 12% R90μ, with a capacity of 2 x 520t/hour and a gearbox power of 4600kW. Metal detectors and sealing air fans are also included in the scope of supply. The lead time for the main components of the mill and for the additional units included in the scope of supply is 10 months. The commissioning of the vertical roller mills is planned for the fourth quarter of 2016.
Two type LM 63.3+3 CS Loesche mills have been ordered to grind clinker. These mills are designed with a capacity of 300t/hour Ordinary Portland Cement in order to grind the material to a fineness of 4000 Blaine. The gearboxes of these mills each have a power of 7000 kW.