September 2024
Semen Indonesia sales rise by 3% in 2014 15 January 2015
Indonesia: PT Semen Indonesia Tbk has reported that cement sales grew by 3% to 26.4Mt in 2014. Domestic sales contributed 13.9Mt of the total sales, up by 7% from 2013.
Can Peru’s cement industry continue to grow? 14 January 2015
If you ever visit Lima be sure to try the wonton soup! One of the surprises of the Peruvian capital is the large number of Chinese restaurants. Peru has one of the largest proportions of inhabitants of Chinese-descent in Latin America. This adds a spoonful of historical context to this week's news of China's Jidong Development Group's intentions to buy Cementos Interoceanicos. It is one of a few stories affirming Peru's growth in recent years, although this trend may be changing.
The major Chinese producer is acquiring a cement plant with mineral rights that was first proposed in 2008. Originally the 1.6Mt/yr plant was budgeted at US$250m with construction set to start in 2009 and production intended to start in early 2011. At the time company executive director Armando Belfiore told local press that reserves of 700Mt of limestone and 390Mt of pozzolan exist in the Macusani, Ajoyani and Potoni districts in the Carabaya province of Puno. Subsequent plans were to develop lime and calcium carbide also. However, at present the project still appears to be in the development phase. No doubt Chinese money will be very welcome.
Meanwhile Peru's local producers have steadily been making their own progress towards becoming regional players in their own right. In December 2014 Union Andina de Cementos (Unacem) completed its purchase of Lafarge's cement assets in Ecuador. The US$517m deal included a 1.4Mt/yr cement plant in Otavalo. This followed Holding Cementero del Peru, a subsidiary of Gloria which operates Cementos Yura, paying US$300m to buy up to 98.4% in Sociedad Boliviana de Cemento (Soboce), Bolivia's largest cement producer. Media analysts have predicted that Cementos Pacasmayo is also likely to expand internationally once it has finished its local projects.
Internally, each of the major Peruvian cement producers has its own projects. Unacem is investing US$374m on its Atocongo and Condorcocha plants between 2014 and 2018, with a focus on the cement mill, the development of the Carpapata III hydroelectricity project and the construction of bagging facilities in Condorcocha. Cementos Yura targeted US$50m towards machinery and equipment at its Yura plant near Arequipa. Cementos Pacasmayo's new US$385m cement plant at Piura is due to start operation in the second half of 2015. The new plant in northwest Peru will have a production capacity of 1.6Mt/yr of cement and 1Mt/yr of clinker.
Cement production in Peru has slowed since 2012 when the country saw production rise by 16% year-on-year to 9.85Mt. 2013 saw production rise by 6% to 10.5Mt. Currently released figures from the association of cement manufacturers in Peru (Asocem) to November 2014 suggest that this growth has continued to fall to 1.5% year-on-year.
Cementos Pacasmayo reported in its third quarter report for 2014 that the Peruvian economy had experienced a slowdown during the first nine months of the year although it was expected to recover in the final quarter and beyond due to impending infrastructure projects and spending. Given Peru's continued growth in gross domestic product (GDP), Jidong, Pacasmayo and Peru's other cement producers could do worse than order a nice bowl of wonton soup while they wait and see what happens.
Scancem applies to International Finance Corporation for Euro11m grinding plant in Guinea-Bissau 14 January 2015
Guinea-Bissau: Maxime Cardoz and HeidelbergCement subsidiary Scancem has applied to the International Finance Corporation (IFC) for a loan of Euro11m to help finance Guinea-Bissau's first cement grinding plant. The project is estimated to cost a total of Euro22m.
The Cardoz Cimentos de Bissau project is 60% under the ownership of Cardoz and 40% by Scancem. Its location will be 1.5km from the port of Bissau, a plant location in an area which at present absorbs 50% of the country's cement consumption. A decision on the funding will likely be finalised on 27 February 2015.
Cement consumption in Guinea-Bissau is dependent upon imports, mainly sourced from Senegal via the country's sole port at Bissau and accounts for 80% of its international trade.
Itacamba Cemento to import 50,000t of cement in 2015 14 January 2015
Bolivia: Itacamba Cemento intends to import 50,000t of cement in 2015 to guarantee supplies in Santa Cruz. Itacamba Cemento will also raise its production by 6% in 2015 to 3.6 million bags.
Cement demand in Bolivia is expected to increase by 8 - 10% in 2015 according to estimates by the local cement industry. However, due to insufficient local production, cement has to be imported. In 2014 the government used Insumos Bolivia to import about 600,000 bags of cement. A similar amount is planned for import in 2015.
Guillermo Schrupp, the president of the Construction Chamber in the Santa Cruz department of Bolivia, Cadecocruz, has said at least two or three more cement plants are needed in the medium to long term in order to meet rising demand until the Rositas hydroelectric dam is completed in 2018.
Yamama Cement reports drop in net profit of 23% to US$179m 14 January 2015
Saudi Arabia: Yamama Cement has reported that its net profit in 2014 has fallen by 23% year-on-year to US$179m from US$232m in 2013. The decrease was attributed to lower sales due to poor cement demand in 2014. Its operating profit fell by 21% to US$175m from US$221m.
Osvaldo Ayres Filho resigns from Shree Digvijay Cement 14 January 2015
India: Osvaldo Ayres Filho has resigned as a director from Shree Digvijay Cement Company. His resignation was effective from the close of business on 13 January 2015.
US: Continental Building Products (CBP) has appointed James 'Jay' Bachmann to the position of president and CEO, effective immediately. Bachmann has served as interim CEO since November 2014 and CFO since January 2014. He will continue to serve as CFO in an interim role, pending the appointment of a permanent CFO.
CBP has also announced the appointment of Dennis Romps to the position of chief accounting officer (CAO). Romps will also continue to serve as senior vice president and corporate controller, positions he has held since January 2014.
Bachmann formerly served as CFO at Lafarge USA and co-chief financial officer of Lafarge North America from November 2012 through December 2013. He also held multiple executive responsibilities at Lafarge since 2002, including senior vice president of finance (Investor Relations) of Lafarge SA from January 2008 through October 2012 and senior vice president and controller of Lafarge North America from November 2005 to June 2006. Prior to Lafarge, he worked at Arthur Anderson from September 1990 to April 2002.
Romps previously served as CBP's CFO from August 2013 to December 2013. He formerly served as co-chief financial officer of Lafarge North America from December 2006 until August 2013, while also holding a variety of vice president positions in finance, IT and supply chain of the gypsum division of Lafarge North America from 2005 until August 2013.
Kohat Cement plant allegedly causing pollution 13 January 2015
Pakistan: People living in the vicinity of Kohat Cement Factory have complained that dust and fumes emitted from the plant's two kilns are causing serious diseases. A group of local elders said that continuous blasts in the mountains near the factory had also caused cracks in the houses of local people, but that the factory administration was not ready to listen to their complaints or provide assistance to repair them.
The elders said that the plant administration was bound under an agreement to pay surface rent to the people on whose collective land the plant had been built, but no dues had been paid to the people since 1992. The agreement also included providing 80% of the jobs in the plant to local people, which the elders said was also being violated.
Lafarge Tarmac sells land for new Euro2.56bn theme park 13 January 2015
UK: Lafarge Tarmac has agreed to sell land that once housed the UK's largest cement plant to allow the construction of a Euro2.56bn theme park.
The 1.37km2 Swanscombe Peninsula site in Kent has been earmarked as the home for the proposed London Paramount Entertainment Resort after developer London Resort Holding Company agreed a deal to buy the land. The sale follows an announcement in May 2014 that the resort would be designated a 'nationally significant' project.
"We take a long-term view of our landholdings from mineral extraction to development and restoration; creating jobs, supporting communities and continuing responsible environmental stewardship," said Lafarge Tarmac chief executive Cyrille Ragoucy. "We are proud to be part of this exciting project. This is a fitting legacy for land which has been owned by Lafarge Tarmac for over 140 years."
The sale is expected to go through once planning permission for the scheme is granted. London Resort Holding has already held two stages of public consultation, involving more than 4000 local people. Two more stages are planned ahead of a submission to the Planning Inspectorate in Autumn 2015.
"With this agreement in place, the vision for Kent as the home of a nationally-significant, multi-billion pound entertainment resort employing thousands of people is moving closer to becoming a reality," said David Testa, executive director of London Resort Holding. "It further underlies our commitment to delivering the project and is welcome news as we continue to consultant and engagement with the local Dartford and Gravesham communities living near the site and more widely with our interested parties."
Cameroon: Dangote Cement's cement plant in Cameroon is set to enter production in January 2015, according to project chief, Baba Abduhallï. The plant was built on the banks of the Wouri River. It has already received its first raw material shipments from a quarry in the city of Tombel, which Dangote Cement Cameroon has approval to use for five years.
Initially, Dangote Cement Cameroon plans to produce 1.5Mt/yr of cement, raising national production to around 3.6Mt/yr, including 500,000t/yr from the Moroccan company, CIMAF and 1.6Mt/yr for Cimencam, Lafarge's subsidiary.