September 2024
Harish Badami appointed as CEO and managing director at ACC 20 August 2014
India: Harish Badami has taken over as CEO and managing director of ACC effective from 13 August 2014. The former CEO and managing director, Kuldip Kaura, left his position on the same date. The board of ACC, in which Holcim has a majority stake, had approved Badami's appointment in June 2014.
Immediately before joining ACC on 1 August 2014, Badami had served as managing director of Celanese India. He has held similar positions of president and managing director of Dow Chemical India, as well as managing director of Rohm and Haas India, before its acquisition in 2009 by Dow Chemical.
Dangote breaks cover 20 August 2014
Of the five African cement news stories in this edition of Global Cement Weekly, three concern the actions of Nigerian cement giant Dangote Cement. This week it has announced a new captive power plant in Nigeria and the fact that Sephaku Cement, which is owned by Dangote to the tune of 64%, is now in a position to produce cement from its Aganang plant in South Africa. These two items are fairly typical of the type of announcement that Dangote makes in the African market, and the high frequency with which it makes them. It is the third story, of course, which is unusual.
We have heard, for a couple of years now, that Dangote has designs on becoming a pan-African cement giant. Certainly it is the pre-eminent producer in west Africa, with its influence rapidly spreading to the east, north west and south of this vast continent. Few others, (but perhaps South Africa's PPC), can claim to have such influence and, unopposed, there seems no limit to Dangote's ambitions.
This week we heard just how bold those ambitions are. For the first time Africa's No. 1 cement producer has said that it wants to break out of Africa and enter new markets. No longer satisfied with operating at home, a company release has identified the Middle East and Latin America as potential hunting grounds, either for new capacity or acquisitions. The proposed list of LafargeHolcim cast-offs, which includes few assets in either region (LINK), will also have received significant attention in the Dangote boardroom.
The selection of the Middle East and Latin America, however, is not accidental. The Middle East is a high growth area and provides a platform for possible 'pincer-movement' expansion into more impenetrable markets in central Africa like Chad and (South) Sudan. The Middle East also means proximity to India. Dangote may also want to dampen the influence that Indian, Pakistani and Iranian exports have in the region. Potential tie-ups with Dangote's growing operations in east Africa are clear.
The selection of Latin America, on the face of it at least, is less obvious. There are numerous strong and growing local and regional producers. Not least of these is Colombia's Cementos Argos, which has increased its influence in the USA through strategic acquisitions. There are also numerous domestic large Brazilian producers but Dangote may feel like there is room for more to joint the party. Cade, the Brazilian competition authority, has certainly agreed that competition could be improved in Brazil following its recent investigations. Could Brazil be a prime target?
Wherever Dangote decides to play its first non-African card, it will be a major step for the company and African cement producers. How long until we see the first African-owned cement plant on another continent?
Randall Vance is new president at Ash Grove Cement 20 August 2014
US: Ash Grove Cement Company has appointed J Randall Vance as its new President and COO. Vance, who served three years as senior vice president of administration and CFO, assumes responsibility for manufacturing and sales of the company's cement operations, as well as continuing to lead its finance, accounting, risk management, information technology and human resources departments.
"Since joining Ash Grove, Vance has demonstrated outstanding leadership skills that fit well in the Ash Grove culture," said Charles T Sunderland, chairman and CEO. "Vance brings a breadth of business experience to Ash Grove, which gives us confidence that he will be a catalyst in guiding the company's performance." Sunderland will remain in his position.
"It is a privilege to be selected to lead such a talented and dedicated team," said Vance. "Our focus on safety, quality and customer service is exceptional in the cement industry. I am eager to continue to grow our business as a supplier of choice."
Before joining Ash Grove, Vance served as senior vice president, CFO and treasurer of Interstate Bakeries Corporation. Prior to Interstate Bakeries, Vance served in a number of corporate finance roles at Farmland Industries. Ash Grove Cement has launched a search for a new CFO.
World: Dangote Cement is preparing to expand its cement production plants beyond the continent of Africa to the Middle East and Latin American countries. The company is optimistic that the planned investment will propel it to be ranked among the top 10 global cement manufacturers.
"We are currently operating in 14 African countries and we shall soon move across the continent to other continents," said Sunday Adondua, deputy general manager of production at the Ibese plant in Nigeria. "By the time we have consolidated our hold in the African markets, we shall go beyond the borders. Specifically, we are targeting the Middle East and Latin America. The idea is to be a world leader in cement production. We are also planning to start a plant in Mauritania and we are also planning projects in Gabon."
The Dangote Ibese plant in Nigeria has undergone recent upgrades, including the construction of new production lines. Lines 3 and 4 will be commissioned by the end of 2014, which will double the plant's cement production capacity to 12Mt/yr. Line 3 is complete and line 4 is 96% complete. As a result of the works, Dangote's three Nigerian cement plants in Ibese, Obajana and Gboko, will have a combined production capacity of 29.2Mt/yr.
Sephaku Cement set to produce clinker at Aganang plant 20 August 2014
South Africa: Sephaku Cement, an associate of Sephaku Holdings, has completed the commissioning of the Aganang clinker plant in Lichtenburg, North West Province and is ready to commence production. Lelau Mohuba, the chief executive of Sephaku Holdings, said that the first consignment of clinker would be delivered to Sephaku Holdings' Delmas grinding plant by the end of August 2014. The Aganang plant also has a cement production capacity of 1.1Mt/yr.
Commercial production at the Delmas grinding plant commenced in January 2014 following a successful commissioning phase. Once it is operating at full capacity, it will be capable of producing 1.4Mt/yr of cement. About US$312m has been invested in establishing these new cement plants, which will have a total annual capacity of 2.2Mt/yr once they are fully operational.
Sephaku Holdings has a 36% stake in Sephaku Cement, with the remaining 64% owned by Dangote Cement. Mohuba said that the production of its own clinker was an important step for Sephaku Cement in enabling it to become a fully-integrated producer of cement. Mohuba said that Sephaku Cement had to date been purchasing clinker to grind at Delmas, where the company had achieved more than 60% capacity utilisation. He said this had enabled Sephaku Cement to enter the market while strengthening its sales function in preparation for increasing volumes.
FLSmidth selected for Ada plant modernisation 20 August 2014
US: FLSmidth has been selected to supply the major equipment for the modernisation of the Holcim (US) Ada plant in Oklahoma. The modernisation of the pyro process is expected to deliver lower emissions of nearly all air pollutants while anticipating an increase in the plant's production capacity.
The contract includes a dryer crusher, a single stage preheater with an ILC-calciner, a dedusting cyclone, a ROTAX-2® kiln, a kiln bypass system, a Duoflex® kiln burner and an FLSmidth® Cross-Bar® cooler. With the installation of two new FLSmidth dust collectors, the project will significantly improve the plant's ability to reduce emissions of particulate matter.
The parties have decided not to disclose the value of the contract.
Iranian cement exports rise significantly 20 August 2014
Iran: Iran exported approximately 6.62Mt of cement and clinker in the first four months of the current Iranian year, a period that encompasses the period from 21 March 2014 to 22 July 2014. The Iranian Ministry of Industries, Mines and Trade added that the country's cement and clinker exports rose by over 378% in the 12 months to 20 March 2014 compared to the 12 months to 20 March 2013.
Vicem cement output rises 4.7% in year to date 20 August 2014
Vietnam: State-owned Vietnam Cement Industry Corporation (Vicem) produced 10.2Mt of cement in the first seven months of 2014, a 4.7% increase compared to the same period of 2013. Vicem's clinker output, however, dipped by 1% year-on-year to 9.43Mt. In July 2014, Vicem's cement output rose by 7.8% year-on-year to 1.54Mt, while clinker output rose to 1.47Mt, a 8.1% rise.
In the first seven months of 2014, Vicem's total clinker and cement sales rose by 7% year-on-year to 12.7Mt, including 1.88Mt in July 2014, a 3.9% fall year-on-year. Of the total, 10.6Mt of cement and clinker were sold in Vietnam, down by 7.7% year-on-year. 2.12Mt were exported, an 86% rise year-on-year.
Shiva Cement gets nod for 200,000t/yr capacity expansion 20 August 2014
India: Shiva Cement has received approval for an Interim Business Plan for a 200,000Mt/yr capacity expansion as proposed by the Project Management Committee (PMC). Shiva Cement's board of directors has also approved the project. Besides, the PMC has been authorised to take decisions for leasing, sale, disposal, or to deal with the idle fixed assets in the best interest of the Shiva Cement.
US: Cemex USA is pleased to announce that six of its cement plants have earned the US Environmental Protection Agency (EPA) Energy Star certification. The recognition of Cemex USA's plants in Brooksville (Florida), Miami (Florida), Clinchfield (Georgia), Fairborn (Ohio), Louisville (Kentucky) and Victorville (California), demonstrates that these plants perform among the top 25% of similar US plants for energy conservation.
2014 marks the eighth consecutive year of certification for the Clinchfield plant, an achievement realised by only one other cement plant in the US. It is also the fourth consecutive certification for the Miami plant, the third for Brooksville, Victorville and Fairborn plants and the sixth year for the Louisville plant.
Throughout the year, all of the recognised plants put into practice the energy-efficiency principles established by the Energy Star guidelines for energy management that were developed by the EPA. These plants implemented energy conservation and monitoring technologies, promoted energy-efficiency awareness among employees and completed energy-reduction projects.
"Cemex is committed to sustainable practices throughout our operations, including energy-efficiency," said Karl Watson Jr., president of Cemex USA. "We are honoured to again be recognised by the EPA and Energy Star for our commitment to sustainable practices."