September 2024
Eurocement orders 300MW power plants from Wärtsilä 23 September 2014
Russia: Eurocement has signed a contract for more than Euro116.8m with Finnish power solutions company Wärtsilä for the supply of thermal power plants as part of its modernisation programme for reducing power costs. The total investments in the project will amount to Euro156m. The plants will have a combined capacity of over 300MW, which will meet 60% of the group's power needs and cut costs by 15 - 20%.
Grupo Cementos de Chihuahua appoints new US division CEO 22 September 2014
US: The board of directors of Grupo Cementos de Chihuahua (GCC) has announced that Enrique Escalante will become the CEO of its American division effective from 1 January 2015. The current CEO, Manual Milan, has announced that he will retire at the end of 2014.
"It's a privilege to be selected to lead GCC and I look forward to continuing to grow the organisation," said Escalante. "We remain committed to delivering high value and meeting our customers' needs through leading-edge technology."
Escalante has served as president of GCC of America since 2000. He joined the company in 1999 as president of its Mexican division. Prior to joining GCC, Escalante had more than 20 years experience in management and sales positions in heavy industry and construction materials.
With this change, Ron Henley, vice president of ready-mix and aggregates for GCC of America, will succeed Escalante as president of the company's US division. Henley started with GCC of America in 2012 as vice president of its logistics / supply chain department. In 2013, he assumed his current role. Prior to coming to GCC, Henley was president of Boral Construction Materials.
Under Milan's leadership GCC grew from six to 116 ready-mix concrete plants and from two to six cement plants, achieved an important expansion into the US market and developed a solid distribution network that transformed it into a major supplier in the cement and ready-mix markets it serves. After the 2008 completion of the new plant in Pueblo, Colorado, GCC has now reached an installed a cement capacity of 4.4Mt/yr of cement: 2.4Mt/yr output from the three plants in the US and 2Mt/yr from three plants in Mexico.
Saudi Cement keeps Hofuf kilns closed due to weak demand 22 September 2014
Saudi Arabia: Saudi Cement Co has announced that it will not restart cement production after refurbishment work on two kilns at its Hofuf, Eastern Province plant due to high inventory levels and weak demand. The company has reported falling year-on-year profits in the first half of 2014. Between January and August 2014, sales fell by 14% year-on-year because of increased volumes being produced by Saudi cement firms and stagnant demand.
"The feasibility of operating the two kilns shall be reconsidered whenever market conditions warrants it," said Saudi Cement. The company expects to record annual depreciation charges of about US$2m related to the kilns from the fourth quarter of 2014 onwards.
Eight dead at site of Cementos Progreso’s cement plant 22 September 2014
Guatemala: Eight local inhabitants have died after a clash that saw residents turn guns on their neighbours over plans to build a road and a cement plant. Interior minister Mauricio Lopez said that the authorities were working to determine what actions would be taken after the clashes that began on 20 September 2014 and continued into 21 September 2014 in San Juan, Suchitepéquez Department. Several homes and five vehicles were burned.
"We need a greater security presence in the area to regain control," said Lopez, noting that about 600 policemen were deployed in the area where the incident took place. The conflict escalated because some of the local community are being forced to leave their homes due to the construction, while others have been in favour of the cement plant and sold land for the road. According to farming community leader Daniel Pascual, gunmen had fired on villagers opposed to the project. He stated that some of the attackers were employees of the cement company.
In July 2013 Cementos Progreso began to construct a cement plant in San Gabriel, Suchitepéquez for US$720m. It is expected to begin operations in 2017. However, the project has divided the local population between those who support the company and those who oppose the construction due to fears it will damage groundwater sources and cause other environmental damage.
Lafarge to sell 53% Mexican joint venture stake to Elementia 22 September 2014
Mexico: Lafarge has announced plans to sell its 47% stake in its Mexican cement business to Mexico's Elementia SA de CV for US$225m in cash. Lafarge and Elementia operate three cement plants in Mexico, with the former owning 53% of their joint venture. The transaction is pending regulatory clearance and has to fulfil a number of customary closing conditions. Lafarge said that the proceeds from the sale would be used to reduce the company's net debt.
Oetelshofen Kalk considers a lime plant with Geoinženjering 19 September 2014
Bosnia and Herzegovina: Oetelshofen Kalk, a family-owned company with a 114-year-long tradition in the production of lime in Germany, is considering acting as a strategic partner to open a lime plant with Geoinženjering in Tuzla Canton. The first stage of investment involves the production of aggregates and drawing up plans to build a lime plant. Prime minister Bahrija Umihanić said that the government of Tuzla Canton was available to all investors, especially those who have long-term plans and create new jobs for the citizens of Tuzla Canton.
Bruno Roux appointed president and CEO for Lafarge Eastern Canada 19 September 2014
Canada: Bruno Roux has been appointed president and CEO for the Eastern Canada business unit of Lafarge Canada. His appointment is effective from 15 September 2014 and he succeeds Bob Cartmel. Cartmel will remain with the Lafarge Group, assisting with the LafargeHolcim merger.
In his new role, Roux will serve as Lafarge's senior leader for all market areas and product lines in Ontario, Quebec and the Atlantic provinces. Roux will also join the Board of Directors of Lafarge Canada. Roux's responsibilities include all operational, sales, marketing and functional elements of the cement, aggregates and ready-mix concrete product lines. He will lead these teams from the Eastern Canada head office in Toronto.
"I am very excited for the opportunity to lead an extremely talented team in Eastern Canada," said Roux. "I am looking forward to working with our customers, architects and other stakeholders in achieving our ambition of building better cities."
Roux most recently held the position of president and CEO of Lafarge's operations in Poland. A native of France, Roux is a graduate of l'École Nationale Supérieure d'Arts et Métiers.
Fomento de Construcciones & Contratas to transfer rescue funds to Portland Valderrivas 19 September 2014
Spain: Spanish builder Fomento de Construcciones & Contratas SA (FCC) is to help its cement unit Cementos Portland Valderrivas make a debt payment by transferring rescue funds, according to Bloomberg. FCC has reportedly received approval to creditors to transfer Euro20m to Cementos Portland Valderrivas, which owes lenders Euro50m on 30 September 2014. Meeting the payment deadline will buy Cementos Portland Valderrivas more time to restructure about Euro1Bn of loans with creditors.
Zambian minister accuses Dangote Cement of bribery 19 September 2014
Zambia: A Zambian government minister, Fackson Shamenda, has accused a Dangote Industries Zambia (DIZ) executive of attempting to bribe him, according to local media. DIZ has described the allegations as 'malicious misinformation.' DIZ has 400 workers building a US$400m cement plant in Zambia. The staff count should rise to 2000 when production starts in November 2014.
"For the record, DIZ categorically deny any claims of corruption and bribery and reserve our rights on this matter," said DIZ in a statement. Shamenda did not specify what was offered by the executive and said that he had rejected it because he had critical labour issues to sort out with DIZ and did not want to be compromised.
"He told me that it was a tradition in their culture to give someone a token of appreciation. Maybe his idea was that I turn a blind eye to what is happening at Dangote," said Shamenda, according to local media reports.
Shamenda also said that DIZ should offer workers at the company permanent employment and allow them to join unions. "There is no union and according to the reports I have received, those who have attempted to join unions have had their contracts terminated.
I have asked the labour commissioner to investigate and tell me all the categories of employees, because the reports we have received indicate there are no permanent employees."
DIZ said in its statement that Shamenda had made four surprise visits to the cement plant in the last four months, prompting the company to complain about his conduct as it felt that the minister was deliberately looking for wrongdoing. "DIZ was beginning to feel harassed and unwelcome in Zambia and immediately brought this to the attention of the Ministry of Commerce, Trade and Industry," said DIZ in a statement.
Holcim and Lafarge enter talks with EU to expedite merger 19 September 2014
Europe: Holcim and Lafarge are holding talks with the European Union (EU) in a bid to obtain fasterapproval of their merger plan. Holcim and Lafarge plan to iron out possible EU concerns over the merged company's market power before filing for approval of the deal, the step that starts the EU's review.
Addressing EU issues at an early stage may allow regulators to approve the deal without opening an in-depth probe, which could add about four months to the process. The companies announced a wave of divestments in July 2014 in an attempt to ward off regulatory obstacles. Planned sales are weighted toward Europe, cutting exposure of both companies to the slower-growing region. European plants earmarked for divestment include sites in Austria, France, Germany and Romania. Under the EU's merger-review process, most deals are cleared at the first hurdle.