September 2024
Russia: Sberbank CIB, the investment banking arm of Russian lender Sberbank, has announced that it holds 6% of LafargeHolcim following a repurchase deal with Eurocement. Under the terms of the agreement, Sberbank CIB had organised financing for Eurocement Holding AG in return for 37m shares in LafargeHolcim. Eurocement has the right to buy back the shares at a specific price and on a certain date.
The agreement was implemented on 21 January 2016. No further details were disclosed. Before the repurchase deal Eurocement was among the largest shareholders of LafargeHolcim.
Shanshui Cement defaults on US$270m bond 25 January 2016
China: Shandong Shanshui defaulted on a US$270m three-year bond that matured on 21 January 2016. It is the second default for its owners, China Shanshui Cement, since November 2015. The move places Shanshui Cement at increased risk of bankruptcy and complicates plans by Tianrui Group to purchase the company. The previous debt default triggered multiple lawsuits from creditors that have already seen some of its assets frozen or put into impending auctioning, according to the South China Morning Post.
"The underlying cause of Shandong Shanshui's debt problems is unresolved disputes over shareholders' control, which restricted its fund-raising channels," said Shandong Shanshui in a statement. Since the estimated value of the company's assets far exceeds its debt, it expects court-ordered assets sales to bring in less proceeds than claims made by creditors, it added.
Vietnam: The Ministry of Agriculture and Rural Development has demanded that rice growers do not use cement as a fertiliser for their fields, state media has reported. The announcement follows local media reports that some farmers in the Mekong Delta province of Dong Thap were using cement on their rice fields. In a letter sent to local Departments of Agriculture and Rural Development, the Crop Cultivation Department asked local authorities to prevent cement being used in this way because it has no nutrition value for rice and it make soil unviable for crop cultivation.
Turkmenistan increasing cement production 22 January 2016
Turkmentistan: Turkmenistan produced over 3Mt of cement from January to November 2015, exceeding its annual plant according to local media. Between 2007 and 2015 the country has increased its cement production by 3.8 times.
Aşkale Çimento orders KHD grinding units for two plants 22 January 2016
Turkey: Aşkale Çimento has placed orders with KHD for new cement grinding systems at cement plants in Akoluk and Bilecik. Commissioning of both COMFLEX® systems is planned for the first part of 2017.
At Akoluk the new COMFLEX system will be installed in front of a new 100t/hour ball mill. At Bilecik the COMFLEX unit will allow Aşkale Çimento to increase the existing capacity from 100t/hour to 210t/hour at 3800 blaine. Between 2006 and 2011 KHD supplied three kiln lines to Aşkale plants in Askale, Van and Gümüshane.
KHD's scope includes engineering as well as the supply of mechanical and electrical equipment. KHD will also supervise erection and commissioning of the new systems.
The core equipment of the COMFLEX SC16-3500 clinker grinding system includes: Roller Press RPS 16-170/180 with ROLCOX® system for control and monitoring; Cascade separator, type VS 618 as static classifier; High efficiency separator SEPMASTER, type SKS-VC 3500 as dynamic classifier; System fan HKSK 212/275.
With this new order KHD has now sold six COMFLEX plants in Turkey. Other COMFLEX systems are in operation in Denizli, KCS, Aslan and Batisöke.
Kiran Global launches environment-friendly cement 22 January 2016
India: Kiran Global Chems has launched Geocement, an environmentally-friendly branded cement. The company claims that the product is stronger than Ordinary Portland Cement and that it does not require water for mixing or curing, according to local media.
Geocement is made from Geopowder and Geobinder, other products also made by Kiran Global Chems. Geopowder uses industrial by-products such as fly ash, rice husk ash, slag, activated clay and alumina. At construction sites it can be mixed with the company's proprietary Geobinder liquid and aggregates to make concrete. The company claims that Geocement does not require water curing and attains maximum strength within seven hours. Kiran Global Chems has also launched Geocrete, a Geocement concrete made with its powder and binder for various industrial applications.
"We have started distributing this to the bulk customers, such as builders and now we are launching the brand for retail. We are planning to sell it through e-commerce," said M S Jain, chairman of Kiran Global Chems. The price of Geocement will be slightly higher than normal cement, but it promises lower finished building cost and less construction time and labour. The company intends to target southern Indian states in 2016.
Kiran Global is also preparing a US$29m expansion programme to set up 12 Geobinder units, 12 Geopowder plants, two precast concrete units and four grinding units across the country. The expansion, is intended to cut logistics cost, will result in 4Mt of capacity with a potential turnover of up to US$300m by the 2018 – 2019 financial year. The company has an in-house research and development centre, accredited by the Union Ministry of Science and Technology, and has been conducting geopolymer research in collaboration with leading research institutes.
China: China has decided to implement a tiered electricity pricing system for the cement plants to promote 'structural adjustment' in the cement industry, according to a circular released by the National Development and Reform Commission (NDRC) according to Chinese state news.
The tiered electricity pricing system for the domestic cement industry will be based on comprehensive electricity consumption of clinker (cement) and implemented on an annual basis from 1 January to 31 December. Local governments will also be able to implement the system and raise the electricity prices for cement plants.
Ultratech Cement net profit rises by 37% to US$83m in Q3 21 January 2016
India: Ultratech Cement has reported a 37% rise in its net profit to US$83m for the quarter that ended on December 2015. It attributed the growth to lower operating costs and higher sales. The subsidiary of Aditya Birla Group reported a net profit of US$59m in the same period of the 2014 – 2015 financial year.
The company's total income rose by 4% year-on-year to US$910m from US$875m. Grey cement sales rose by 7% to 11.26Mt/yr from 10.51Mt.
"Though cement prices remained subdued, the performance during the quarter was encouraging, driven by operational efficiencies, judicious fuel mix and lower energy costs. This has resulted in lower operating costs," Ultratech said in a statement. However, this benefit was partially offset by rise in costs due to District Mineral Foundation levy in terms of the provisions of the Mines and Minerals (Development) Amendment Act, 2015 and amendment to the Payment of Bonus Act.
FLSmidth takes process and quality optimisation order from CRH 21 January 2016
Denmark: FLSmidth has been awarded a contract for process and quality optimisation of 17 cement plants acquired by the CRH Group in 2015. FLSmidth's ability to deliver the large number of systems within 14 months was a factor in the order.
The order is the largest advanced process optimisation project awarded to FLSmidth and includes process optimisation of 12 kilns and 40 grinding mills, as well as quality optimisation of 14 raw mills. In addition, the order includes a service agreement, covering all 66 applications, where FLSmidth will provide support and on-going remote monitoring and optimisation by its process specialists.
The contract uses FLSmidth's ECS/ProcessExpert and QCX/BlendExpert products. The ECS/ProcessExpert system aims to improve plant performance by stabilising the process of the plant, optimising the production, managing and correcting process disruptions and minimising wear on plant equipment.
The QCX/BlendExpert system controls the proportioning of raw material feed to raw mills to obtain the desired chemical product quality with respect to chemical constraints, process constraints and material costs.
CRH is the third largest building materials supplier in the world and has more than doubled its cement production volume due to the recent acquisition of 34 plants (including grinding stations), divested as part of the Lafarge/Holcim merger in 2015. Many of the plants are already using optimisation systems, but CRH chose to standardise on FLSmidth's ECS/ProcessExpert and QCX/BlendExpert solutions.
Nepal: Cement producers have suggested that consumers wait for cement prices to fall before they build new homes. Bishnu Prasd Neupane, managing director of Jagadamba Cement, made the comment at a forum organised and reported upon by Nepal Republic Media. He said that end users could benefit from the fall in the international price of crude oil. A drop in fuel prices is expected to cut transport and production costs. Overall, the price of construction materials could drop by 20%.
Tara Prasad Pokharel, general secretary of Cement Manufacturer's Association Nepal (CMAN), asked customers not to pay more than a transportation cost of more than US$1.4/bag or more than 20% dealer costs on top of factory prices. The retail price of cement has increased by more than 50% due to high transportation costs caused by fuels shortages.
"The price of diesel is expected to come down to US$0.55/litre from US$0.69/litre. It will obviously lower our cost of production," said Pashupati Murarka, promoter of Arghakhanchi Cement and also the president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI). Use of diesel-run generators increases the price of cement by around US$0.74/bag at current oil prices. Use of the country's national grid increases is also expected to cut the cost of production significantly.