September 2024
PPC AfriSam merger cancelled 31 March 2015
South Africa: PPC and AfriSam have called off a merger of two of South Africa's largest cement producers after failing to agree on the price.
The possibility that regulators may have blocked the proposed deal due to competition concerns was also discussed during the three months of talks, as the two companies would have controlled about 60% of the South African market. PPC spokeswoman Azola Lowan declined to comment on the reasons for the deal collapse.
PPC received an offer in December 2014 to combine with AfriSam and jointly expand into new African markets. "Over the last few months, we applied our minds extensively to the proposed merger with AfriSam," said PPC CEO Darryll Castle, who was appointed in December 2014. "Ultimately we decided not to proceed with the proposed deal."
Canada: Following a mediation session, McInnis Cement, the Centre québécois du droit de l'environnement (CQDE), the Conseil régional de l'environnement Gaspésie-Îles-de-la-Madeleine (CREGIM) and Nature Québec have agreed to the creation of an Environmental Committee to monitor McInnis Cement's plant in Gaspé, Quebec. The first meeting will be held as soon as possible. The mediation also led to specific commitments regarding greenhouse gases (GHG), emissions and impacts on marine mammals and aquatic fauna.
The mediation process resulted from the agreement with McInnis when the CQDE withdrew from the proceedings filed in August 2014 against the Environment Minister, in which McInnis Cement was a party. The role of the committee is to monitor environmental matters and issue recommendations. In addition to monitoring GHG emissions and emissions listed in the NESHAP 2015 US standards and monitoring the Fisheries and Oceans Canada (DFO) protocol on impacts on marine mammals and aquatic fauna, the committee will also address impacts on the physical environment, vegetation and wetlands, natural habitats and biodiversity, landscape, as well as any other environmental issue agreed to by the committee.
The committee will meet at least four times a year and report on its activities to the plant's Citizen Liaison Committee. An independent facilitator will ensure the efficient functioning of the committee. The parties appointed Richard Loiselle, a former director of the École des pêches et de l'aquaculture du Québec as facilitator. In the event of a disagreement, the Honourable Jacques Blanchard was appointed as an independent mediator.
The Environmental Committee will be comprised of eight members; two citizens from the plant's impact zone (one of which is a member of the cement plant's Citizen Liaison Committee), a representative of the CREGIM, a representative of Nature Québec, a representative of the Centre d'initiation, de recherche et d'aide au développement durable (CIRADD), a representative of the ZIP Baie-des-Chaleurs committee, a representative of the Conseil de l'eau Gaspésie-Sud and a representative of McInnis Cement. A professional from the Ministry of Sustainable Development, Environment and the Fight against Climate Change (MSDEFCC) will also be invited to attend meetings.
Following the mediation process, McInnis Cement reiterated its commitment to use biomass to substitute a significant portion of its fuel requirements. It committed US$470,957 over the next three years towards feasibility or technical studies and projects to reduce GHG. McInnis Cement also confirmed its commitment to use selective non-catalytic reduction (SNCR) technology to reduce emissions from the plant and comply with NESHAP standards. As for the impacts on aquatic fauna, the committee will follow-up on the commitments agreed to in the protocol signed with DFO.
Europe: Two major Holcim shareholders remain displeased with the revised deal terms that were designed to placate them, according to Reuters.
Russian businessman Filaret Galchev, who owns a 10.8% in Holcim via Eurocement Holding AG, has rejected the new terms and is seeking further improvement to the exchange ratio, according to a Eurocement source. Additionally, Harris Associates, which owns 3.19% of Holcim, has said that it will not back the LafargeHolcim merger until it knows who will replace Lafont as head of the new company.
"Before we decide on the transaction, we first want to know who will be put forward for this post," said David Herro, chief investment officer for international equities at Harris, in an interview with Swiss newspaper Finanz und Wirtschaft.
Koshal Cement abandons mini grinding plant in Odisha 31 March 2015
India: Koshal Cement has abandoned a 45,000t/yr mini grinding plant in Nagaon, Bargarh, Odisha. The plant was intended to produce 50% Portland pozzolana cement (PPC) and 50% Portland slag cement (PSC) using a ball mill.
Penna Cement plans grinding plant in Maharashtra 31 March 2015
India: Penna Cement Industries plans to set up a 700,000t/yr capacity grinding plant in Daund, Pune, Maharashtra. The plant will be set up on 93,077m2 of land and is estimated to cost US$31.9m. Gannon Dunkerley Co will be the contractor and Walchandnagar Industries will be machinery supplier.
Dalmia Cement starts trial production in Karnataka plant 31 March 2015
India: Dalmia Cement (Bharat) has commenced trial production at its 2.5Mt/yr greenfield cement plant in Karnataka. When commissioned, the plant will take the group's capacity to 24Mt/yr. "Dalmia Cement, a subsidiary of Dalmia Bharat Ltd, has commenced trial production at its new cement plant in Belgaum, Karnataka on 23 March 2015," said Dalmia Cement in a statement.
Seruji buys 60% stake in Savannah Cement 31 March 2015
Kenya: Mauritian company Seruji has acquired a 60% stake in Athi River-based Savannah Cement following approval from the Competition Authority of Kenya (CA).
Seruji completed the buyout from China's Wan Ho International, which held 40% and Acme Wanji, which owned 20%. Savannah Heights has retained a minority stake in Savannah Cement. The shareholding shake-up makes Savannah Cement Kenya's first fully-owned cement producer, as both Seruji and Savannah are owned by Savannah Cement founder Benson Ndeta.
The buyout comes ahead of a planned US$250m clinker plant project in Athi River by Savannah Cement, which aims to reduce its operating costs by eliminating clinker imports. Cement demand has risen steeply over the past two years in tandem with a host of several large projects in both the public and private sectors. The US$1.88bn Lamu coal power plant and the US$3.23bn standard gauge railway are among the projects that have increased domestic cement demand.
Domestic cement consumption grew by nearly 20% to hit a record 5Mt in 2014, driven mainly by robust growth in property development. However, Kenya's cement producers have been producing more cement than the market can absorb. In 2014 production hit 5.7Mt, up from 5.05Mt in 2013. The Standard Investment Bank has forecast that production will rise to 6.3Mt in 2015 and 6.7Mt in 2016.
Senegal/Cameroon: Dangote Cement's new plants in Senegal and Cameroon have commenced operations. Dangote Cement plants in Ethiopia and Zambia are expected to start production in April 2015.
The new Senegalese plant in Pout has a total production capacity of 1.5Mt/yr. With the new plant, Dangote Cement hopes to meet local demand and serve the export market demand of 2Mt/yr.
Country head of Dangote Industries Senegal, Luk Haelterman, disclosed that the group has invested about US$300m in the cement plant. He added that production and sales started on 10 January 2015. "Senegal is a market with overcapacity of cement, because it had two cement plants already. Dangote has become the biggest and best because we produce only 42.5R grade cement, which is better than 32.5R grade cement product there," said Haelterman.
India: Trinetra Cement Ltd's shareholders have approved the amalgamation of Trinetra Cement, Trishul Concrete Products Ltd and India Cements. The plan was first announced in 2014. "The company wants to consolidate cement operations and the merger of Trinetra Cement Ltd and Trishul Concrete Products with India Cements will bring operations under one company," said N Srinivasan, vice chairman and managing director of India Cements.
Holcim sells Siam City Cement stake for US$681m 30 March 2015
Thailand: Holcim has sold its stake in Siam City Cement (SCC) for US$681m. The sale of its 27.5% stake in the Thai company will result in a pre-tax gain of roughly US$378m. The sum was booked in the first quarter. Jardine Matheson Group, a Hong Kong conglomerate, bought 24.9% of SCC from Holcim, while institutional investors purchased 2.6%. Holcim had held a stake in SCC since 1998 and began selling off its investment in 2012. It said that the sale wasn't related to its pending US$44bn union with Lafarge.