September 2024
Uzbekistan: Eurocement has become the third Russian company to risk losing assets in Uzbekistan after Wimm-Bill-Dann Foods (WDB) and MTS. The president of Eurocement, Mikhail Skorokhod, said that the Tashkent Region's Economic Court has granted a suit brought by Uzbekistan's State Competition Committee to invalidate the privatisation of JSC Akhangarancement, which was based on a decree that was signed in the mid-1990s. Eurocement became a shareholder in Akhangarancement eight years after it was privatised, buying 75% of its shares on the secondary market in 2006.
"We bought Akhangarancement in 2006," said Skorokhod. "We met all of the local legislative requirements, paid taxes and contributed to the solution of social and environmental problems. The enterprise was inspected from time to time, but no serious complaints were made. A few months ago a spot check involving nearly 20 organisations began. Despite the unprecedented scale of the inspection, nothing was found that violated the law. We found out on 16 July 2014 about the State Competition Committee's lawsuit to overturn the decree of 30 August 1994 on the privatisation of Akhangarancement. The Tashkent region's Economic Court accepted the suit on 17 July 2014 and the ruling was made on 21 July 2014 morning, in literally a few hours."
According to Skorokhod, the lawsuit cites items that were not taken into account in the privatisation, but none of them are capital assets (such as seedlings, furniture, enclosures, printers and trailers). Uzstroymaterialy, the state company that oversees the industry and Uzbekistan's Justice Ministry have deemed the lawsuit unfounded, but the court did not take its position into account.
Eurocement has 30 days to file an appeal. If the court upholds the first ruling, this will essentially mean the nationalisation of the asset. The plant is continuing to produce cement as usual. "If we don't get a positive court ruling in Uzbekistan, we will file a lawsuit in the International Centre for Settlement of Investment Disputes (ICSID) at the World Bank in Washington," said Skorokhod.
The attempted nationalisation is particularly troubling to Eurocement in light of the expansion plan it has for the plant. Eurocement has signed a contract with China CAMC Engineering Co Ltd for the provision of equipment, designs, installation supervision and employee training worth Euro95.0m for the construction of a new dry-process cement plant as part of the Akhangarancement plant. The new plant's capacity will be 2.4Mt/yr of cement. The launch is expected in 2016.
The contract includes the provision of the full range of equipment required for cement production, including mechanical equipment, furnaces, cyclone pre-heaters, grinders, mills, electrical and automatic equipment and monitoring and measuring devices.
US: Holcim has broken ground on the two-year US$95m modernisation project of its Hagerstown, Maryland cement plant. The project is expected to reduce the plant's environmental footprint and create hundreds of construction jobs in the process.
In addition to creating between 200 and 300 construction jobs during peak construction, Hagerstown plant manager Fernando Valencia said that the plant modernisation will decrease NOx emissions by an estimated 60% and SO2 emissions by about 48%. The project includes shortening the plant's existing rotating kiln, installing a new preheater tower over the top of the remaining kiln and installing an energy-efficient clinker cooler to replace the existing one, according to Holcim spokeswoman Robin DeCarlo.
The project comes after Holcim was hit with federal Clean Air Act violations from the US Environmental Protection Agency (EPA) in 2013. Holcim and the plant's former owner, St Lawrence Cement, agreed to a settlement with the EPA and planned to invest US$20m or more to upgrade the Hagerstown plant to significantly reduce NOx and SO2 emissions. The settlement, which was reached in July 2013, required Holcim to reduce SO2 emissions by 230t/yr and NOx emissions by 92t/yr by 9 September 2016. That would limit the SO2 emissions to 655t/yr and 0.82kg (1.8lb) of NOx per 0.89t (1 short ton) of clinker produced.
US: Eagle Materials has reported financial results for the first quarter of its 2015 fiscal year, which ended on 30 June 2014. First quarter earnings before interest and income taxes increased by 21% year-on-year to US$59.8m, as first quarter sales volumes improved across nearly all businesses areas and sales prices improved in all businesses.
Operating earnings from cement for the first quarter were US$20.5m, an 8% increase from the same quarter of the 2014 fiscal year. The earnings increase was driven by record cement sales volumes and a 5% increase in average net cement sales prices. While cement demand continues to recover, extraordinary rail congestion associated with the harsh winter weather adversely impacted the timing of cement shipments during the first quarter. Cement revenues, including joint venture and intersegment revenues, totalled US$128m, up by 9% year-on-year. Cement sales volumes were 1.3Mt, up by 4% year-on-year. The average net sales price grew by 5% year-on-year.
Tunisia: Carthage Cement Company's turnover for the first six months of 2014 amounted to US$87.5m excluding VAT, up by 419% compared to the same period of 2013. Clinker sales totalled US$16.6m, while cement sales amounted to US$55.1m, including US$14.5m of exports. Sales of ready-mix concrete grew by 25% compared to the same period in 2013.
India: Shree Cement is planning an expansion of its captive limestone-mining project at Baloda Bazar, Raipur District, Chhattisgarh from 4.8Mt/yr to 8.6Mt/yr on 5.31km2 of land. The project will be part of its integrated cement plant and will be designed by JM Enviro Net. The expansion is currently waiting for environmental clearance. Mining work is expected to commence within two years.
Maha Cement plans Sri Lanka market entry 22 July 2014
India: Maha Cement has announced that it plans to enter the Sri Lanka cement market with its joint venture company, My Home Industries Limited (MHIL), which is part-owned by Ireland's CRH. MHIL has 8.40Mt/yr of cement production capacity and plans to increase its capacity to 10Mt/yr by 2015. It plans to set up a cement plant in the east coast of Tamil Nadu, India, for import to nearby Sri Lanka.
Loesche completes work on world’s largest slag mill for Shanxi Taigang Stainless Steel Co 21 July 2014
China: Loesche GmbH has completed work on the largest slag mill in the world for Shanxi Taigang Stainless Steel Co (TISCO) in Taiyuan, China achieving a new record product rate of producing 255t/hr blast-furnace slag meal. The Loesche type LM 63.3+3 vertical mill for grinding granulated blastfurnace slag was originally ordered by the Taigang Group International Trade Co in September 2011. It started operation in March 2014.
At the TISCO steelworks the LM 63.3+3 has now been used for the pure grinding of granulated blast-furnace slag for the first time. The mill is driven by a motor with an output of 7400kW, the most powerful motor to have been installed so far by Loesche in a mill. The projected guarantee values of 255t/ hr granulated blast-furnace slag at a fineness of 4400 Blaine are reliably attained here. This is also ensured by the newly developed Loesche LDC classifier, used in the grinding plant and ideally customised to the Loesche mills.
The first Loesche LM 63.3+3 mill started production at Nallalingayapalli, India in 2009. It attains a peak value of 367t/hr ordinary portland cement at 3000 Blaine or 371t/hr portland pozzolana cement at 3400 Blaine.
World: Holcim and Lafarge have begun to formally notify regulators as to how they will tackle antitrust concerns, according to Holcim's CEO Bernard Fontana. The two companies have filed formal notifications, which generally include information on what the combined entity will look like and steps it will take to prevent it from abusing its size, in about two-thirds of the 15 jurisdictions that require a review of the proposed deal. Those include the US, Canada, Mexico, India and Russia, among others.
Fontana said that discussions with the European Union (EU), where the two companies have some of their greatest overlap, were at an 'advanced' stage. He added that he expects formal notification to be made in the summer of 2014. "We are on track," said Fontana, who has run Holcim since 2012. "We will do what we planned to do."
Holcim and France's Lafarge have moved quickly to satisfy regulators since unveiling their proposed transaction, which will create a cement company with combined sales of Euro31.8bn. The deal is expected to face significant challenges from competition authorities. EU antitrust chief Joaquin Almunia has already said that the deal is likely to face an extended probe by his agency.
Fontana said that the list of proposed businesses and plants it would sell in order to satisfy regulators, which it announced recently, would maintain entire businesses that function well and generate the greatest proceeds from the sale process. According to Fontana, Holcim and Lafarge have received more than 100 expressions of interest from potential buyers of the assets.
"We have had marks of interest from all kinds of prospective buyers," said Fontana. He added that potential buyers include private-equity groups and companies in the cement industry, including some from emerging markets. Holcim and Lafarge could also choose to sell some assets via initial public offerings.
Cement demand drops by 40% in Qatar during Ramadan 21 July 2014
Qatar: Domestic cement demand has plunged 40% during Ramadan, which has prompted cement companies to start maintenance work.
Mohamed Al Sulaiti, general manager of Qatar National Cement Company, said that the company has utilised this as an opportunity to conduct maintenance of equipment in its plant. Maintenance work will enable it to meet the busy season starting from mid-August, when demand will increase.
Qatar National Cement Company is setting up a new plant in Umm Bab, Jariyan al Batnah Municipality, which is expected to start production in 2016. The new plant, which is its fifth, is being set up to help the company meet demand of the construction sector. Al Sulaiti said that the capacity would be 5000t/day of clinker and 5500t/day of cement. FCB has been given the contract for setting up the plant.
Kenya: Strong sales of cement and fertiliser have boosted Kenya's ARM Cement's pre-tax profit by 20% to US$13.68m in the first half of 2014. Total revenue jumped by 16% to US$86.6m, after cement sales rose by 10% in Kenya and by more than 33% in Tanzania. The improved sales were attributed to an improved distribution network.
"The east African regional economies are growing briskly and demand for cement, as well as the other products, are expected to grow further," said ARM. The company expects earnings to grow further in the second half of 2014, mainly due to improving margins driven by investments in its plants in Tanzania and Kenya.
ARM has invested a total of US$171m in a clinker plant in Tanga, Tanzania and a cement plant in Dar es Salaam, also in Tanzania. The plants have a combined capacity of 1.8Mt/yr. The investments have helped the earnings before interest, taxes, depreciation and amortisation (EBITDA) to hold steady at 24% in the first half of 2014, defying pressure from higher input costs, such as energy.