September 2024
CCI to decide on LafargeHolcim merger in February 2015 20 January 2015
India: The Competition Commission of India (CCI) will soon decide on the proposed merger of Lafarge and Holcim, according to CCI chairman Ashok Chawla on 19 January 2015. "The final order on the case should be out within a month," said Chawla.
The CCI is examining the merger as it raises competition concerns. In a joint filing to CCI, Lafarge and Holcim had said that they would continue to face aggressive competition from Indian cement makers such as UltraTech, Shree Cement and Jaypee at a pan-India level.
The total installed capacity of cement in India is about 350 Mt. Domestic consumption, which stood at 242Mt in 2011 - 2012, was expected to increase to 265Mt in 2012 - 2013.
ANH Refractories rebrands as HarbisonWalker International 19 January 2015
US: ANH Refractories Company has announced the decision to rebrand itself under the new name of HarbisonWalker International (HWI), effective immediately. The decision was made following an exhaustive market research and branding initiative in which one of the company's legacy brands, Harbison-Walker, returned the highest awareness and positive customer perception of all of the company's brands, as well as the brands of its refractory competitors.
The new HWI said that it is 'positioning itself as the first and only choice for comprehensive solutions to address the needs of its growing international customer base.' It also hopes to reinvigorate the strong bond between the company and both its employees and its customers.
"We have hard-working, dedicated employees and generations of loyal customers who have successfully weathered a storm of uncertainty over a number of years," said Stephen M Delo, chairman and CEO of HWI. "With our branding decision and the launch of our new customer-centric mission, vision and values, we intend to send the message that HWI is committed to investing in and growing both our company's future, as well as that of our partner and customers."
US: The Michigan Department of Environmental Quality (DEQ) has granted approval for Lafarge North America to use scrap plastic and asphalt shingles at its cement kilns in Alpena, Michigan State.
Lafarge had requested to be allowed to burn additional fuels in the five cement kilns at its cement plant. Prior to receiving approval to use plastics and shingles as a fuel, the company had used coal, petroleum coke, clean wood and non-halogenated polyethylene and polypropylene as fuel. In its application, Lafarge said that it could use nearly 140,000t/yr of plastics, more than 82,000t/yr of wood and 54,673t/yr of shingles as a replacement fuel for the coal and coke.
Lafarge was issued a permit in 2012 to install technology to allow for a trial burn of shingles in the kilns. The permit required Lafarge to conduct stack testing for emissions of concern from the combustion of shingles. The emissions testing demonstrated that the emissions were less than what Lafarge had originally estimated, according to the DEQ.
Following analyses conducted by the DEQ, staff concluded that the proposed project would comply with all applicable federal air quality requirements and with all of the Michigan DEQ Air Quality Division regulations. The staff concluded that the project, as proposed, would not violate the federal policies.
JSW to boost cement capacity to 30Mt/yr by 2025 19 January 2015
India: JSW plans to expand its cement production capacity to 30Mt/yr from 5Mt/yr by setting up grinding units closer to its steel plants. As part of its diversification, it is also considering the production of aluminium, if the government allocates bauxite mines to it.
Seshagiri Rao, joint managing director of JSW Steel, said that the company's presence in the cement business is small compared with other companies with 60 – 70Mt/yr of production capacity. JSW's plan is to become a significant player in the sector, with 30Mt/yr of production capacity by 2025, he added.
For instance, a grinding unit installed closer to the Dolvi steel plant in Maharashtra State could source clinker from Gujarat State, mix it with slag available from the plant and tap the vibrant western market. "Alternatively, we could also set up grinding units closer to the cement market and take our slag there," said Rao. "We would source clinker from the closest available location so that we remain competitive."
The Tamil Nadu State Government recently notified a scheme whereby cement companies are asked to quote their factory gate price. Contractors were given the price list to source cement for their projects. JSW Cement has also placed its bids under the scheme. "I believe that other State Governments will also emulate the Tamil Nadu Government model to make cement available for their projects at a competitive price without any subsidy," said Rao.
Iran stops producing clinker for 30 days 19 January 2015
Iran: Iran's cement plants have all stopped producing clinker for 30 days, as of 14 January 2015. Abdolreza Sheykhan, an official with Iran's Cement Producers Association, said that the country currently has 17Mt of clinker in store.
"We have stopped producing clinker in order to turn the current inventory to cement," said Sheykhan, adding that the country's need is only 10Mt until the end of the current Iranian calendar year on 20 March 2014. The Iranian oil ministry will pay US$7/t of cement to production plants to compensate for their loss. "Iran's current cement output is around 6.5Mt/month," said Sheykhan. "The country's need, however, is around 4.5 – 5Mt/month."
Iran exported nearly 9.25Mt of cement in the first eight months of the current Iranian year, which started on 21 March 2014. This is 8.5% lower compared to the same period in the previous year. Sheykhan had previously said that the insecurity in Iraq and reduction in the number of destination markets for Iran's cement are the major reasons behind the fall in exports.
"Azerbaijan was one of the major importers of Iran's cement, but the country has now reached self-sufficiency and reduced its imports from Iran," said Sheykhan. He named Russia and African countries as new markets for Iran's cement exports, adding that by taking the mentioned markets, Iran can increase its cement and clinker exports by 1.5Mt/yr.
Steppe Cement reports 18% growth in cement production in 2014 16 January 2015
Kazakhstan: Steppe Cement produced 1.61Mt of cement in 2014, up by 18% from 1.37Mt in 2013. Its revenue was US$114m in 2014, up by 7% from US$106m in 2013.
In 2014, cement consumption in Kazakhstan was estimated to have increased to 8.5Mt, 4% higher than in 2013. Steppe Cement's market share increased from 17% in 2013 to 19% in 2014, broadly in line with its expectations. Kazakhstan imported 1.1Mt, a 26% fall on 2013, while exports amounted to 500,000t, 150% higher than in 2013.
Devaluation of the Kazakh Tenge combined with reduced cement prices helped local cement producers to gain market share. Steppe Cement's margins fell due to lower cement prices, the devalued Tenge and inflation. However, some of the cost increases should be compensated by the reduced operating costs of the plant's Line 5 following upgrades to increase its capacity.
Tajikistan plans for construction of six new cement plants 16 January 2015
Tajikistan: Tajikistan's Ministry of Industry and New Technologies plans to open six new cement plants in the next two years. Currently the country has 10 cement plants. The additional capacity will reportedly turn Tajikistan from a cement importer to an exporter.
Construction began on a 1.2Mt/yr capacity Tajikistan-China joint venture cement plant, Tajchina, which is expected to start production in 2015. Additionally, plans have been made for other cement plants in the Dangara, Bobokon, Gafurov and Isfara Districts and in Istiklol City. The country's largest cement plant at present is Huaxin Gayur Cement Co, a joint venture between a subsidiary of Huaxin Cement Co and Gaur Limited Liability Company.
Semen Indonesia may drop Myanmar investment plan 16 January 2015
Indonesia: State-run Semen Indonesia may cancel its plans to invest in Myanmar if the company and its local partner fail to reach an amicable agreement over the partnership deal. Semen Indonesia's corporate secretary Agung Wiharto said that his company was facing another difficult round of discussions with its partner in Myanmar.
"Negotiations are ongoing, but we still haven't reached an agreement with our local partner on certain problems, including share price and the size of the stake to be acquired," said Wiharto. He added that if the prices demanded by the local partner were too high, Semen Indonesia would either seek a different Myanmarese company to cooperate with or move the expansion plan to another Asian country such as Vietnam, Cambodia or even Bangladesh. "We want a more reasonable price, as we will not only acquire a stake, we will also provide expertise, technology and human resources," said Wiharto.
Semen Indonesia announced in 2014 that it had decided to postpone its plan to acquire a cement company in Myanmar in 2015 after it missed its deadline to conclude negotiations in the middle of the year. Wiharto added that, to date, the potential partner had not yet determined the portion of its shares to be sold to Semen Indonesia.
While Semen Indonesia had planned to acquire a majority stake in its potential partner, Wiharto said that his company would be satisfied even if did not become a controlling shareholder. He declined to disclose how much investment Semen Indonesia had prepared for the expansion, simply saying that the cement producer had 'enough internal cash to fund the required capital.'
Pending LafargeHolcim and Sika deals forge ahead despite SNB’s abandonment of Swiss Franc cap 16 January 2015
Switzerland: On 15 January 2015, the Swiss National Bank (SNB) abandoned the Euro1.20 cap on the Swiss Franc, causing market turmoil. However, deals involving domestic companies Holcim and Sika are expected to survive the impact of the shock decision.
Bigger deals are insulated against the effects of the sudden surge in the value of the Swiss currency because the companies involved are able to to buy insurance to protect them against such moves. However, some bankers said that the volatility introduced by the SNB decision to scrap the cap after three years could dampen deal-making in the longer term.
Holcim also said that it remained committed to a planned merger with France's Lafarge despite the move by the SNB that knocked almost Euro2.95bn (3bn Swiss Francs) off Holcim's market value.
"Regarding a possible impact on the combination with Lafarge, what we can say is that we remain committed to the merger," said Holcim spokesman Eike-Christian Meuter. According to Reuters, a spokesman for Lafarge said that it also remains committed to the merger.
Holcim was one of the companies caught up in a 10% all-in Swiss blue chip stocks on fears over the impact on their exporting power. Holcim slumped 20% at one point.
Fight against proposed Titan cement plant continues 15 January 2015
US: Titan America plans to build a cement plant in Castle Hayne, New Hanover County, North Carolina. However, NC Coastal Federation members, among others, are still fighting the proposal after six years. They say that the plant, which will burn more than 250,000t/yr of coal, will discharge pollutants into the Northeast Cape Fear River. Coastal Advocate Mike Giles said that they're still waiting on a decision for their challenge against Titan America's air quality permit. According to the Titan America website, the plant would bring about 160 full-time jobs to New Hanover County and have a US$120m/yr fiscal impact.