September 2024
Spain: Cementos Molins cut 310 jobs in Spain in 2012. The Spanish cement producer launched a downsizing plan for 165 people and shut down plants in Leon and Malaga. At present Molins needs to refinance a gross debt of Euro167m in 2013. On 15 March 2013 Molins launched a project to cut 56 jobs at its plant in Sant Vicenc dels Horts, a 29.3% reduction in staff numbers at the plant.
South India Cement plant re-opens 20 March 2013
India: Production at the South India Cement plant in Malkhed, Sedam Taluk, has recently restarted after a mothball and upgrade period that had lasted several years. N M Hemnur, regional manager of South India Cements, said that the factory's production capacity had been increased to 30,000t/yr but that it would dramatically increase to 1Mt/yr in the future.
ACC orders two Loesche mills for Jamul plant 20 March 2013
India/Germany: ACC has ordered two vertical roller mills from Loesche, in a consortium with KHD, for its Jamul cement plant.
The Holcim subsidiary has ordered a Loesche Mill Type LM 56.3+3 CS equipped with a classifier type LDC to grind clinker. The vertical roller mill will be operated with the power of a 5600kW motor and will have a capacity of 195t/hr. In addition a Loesche vertical roller mill Type LM 43.4 D will be part of the project and is designed to have a capacity of 90t/hr. The gearbox has a capacity of 1300kW.
Loesche's scope of supply for the Jamul project of Holcim will include additional equipment which is delivered in a joint venture by Loesche GmbH, Duesseldorf, as well as by Loesche India Pvt. Ltd.
Nigeria to raise tariff on cement imports 20 March 2013
Nigeria: Minister of Trade and Investment, Olusegun Aganga, has announced plans to create a new tariff on imported bulk cement. The move follows the alleged cement 'glut' surrounding a dispute between importer Ibeto Cement and leading producer Dangote Cement in late 2012. The current duty on imported bulk cement is 10% but no levy is imposed on the commodity.
At a meeting on Nigerian business competitiveness organised by the Nigerian Economic Summit Group (NESG), Aganga said that there was no basis for importing cement clinker since Nigeria has a cement production capacity of 28.6Mt/yr. He also stated that at no time did he issue any import permit for bulk cement in 2012.
Indocement cuts cement exports to meet domestic demand 20 March 2013
Indonesia: PT Indocement Tunggal Prakarsa reportedly reduced its exports by 84.5% in 2012 in order to meet rising domestic demand for cement in Indonesia, according to a company spokesman.
The state-run company cut its exports to 0.1Mt in 2012 from 0.6Mt in 2011, and witnessed a rise of 12.3% in its domestic sales, which reached 17.9Mt in 2012. In 2011 the company sold 15.4Mt of cement at home.
In 2012 the company's cement brand, Tiga Roda, accounted for a major part of its market share with sales of the branded cement rising by 32%. In 2011 the company's brand covered 31.5% of Indocement's entire market share.
The positive performance in the company's cement sales in 2012 was due to Indocement's strategic expansion plans that involved building new cement plants in the country. In addition, the cement producer has signed an initial agreement on equipment provision services, construction and implementation with the Chinese Sinoma Group.
Burundi Cement doubles profit to US$22m in 2012 20 March 2013
Burundi: Burundi Cement Company (BUCECO) doubled its production and profits in its first two years of operations and is expected to reach capacity later in 2013, according to its founder and owner Tribert Rujugiro Ayabatwa.
Burundi's first and only cement producer, which employs 80 people, began production in January 2011. It produced 70,500t of cement in 2012 compared to 34,500t in 2011. It made a profit of US$22m in 2012 compared to US$10m in 2011.
"Clearly, this country has great demand for high-quality, affordable cement and we are delighted that BUCECO can help meet the need," said Ayabatwa.
BUCECO's cement plant has a production capacity of 100,000t/yr and the producer has plans to double its capacity. Before BUCECO was operational, Burundi imported all of its cement from other East African countries including Uganda, Kenya and Tanzania.
Tanzania: The Tanzania Portland Cement Company (TPCC) has reported a 22% increase in net profit to US$37.9m in 2012 from US$31.2m in 2011.
The company's turnover increased by 15% to US$153m from US$134m. Cost of sales rose due to double-digit inflation rates and energy tariffs rising to US$80m in 2012 compared to tariffs of US$72.5m in 2011. The Tanzanian Shilling remained relatively stable compared with major trading world currencies in 2012, depreciating by less than 1% against the US Dollar.
According to the TPCC statement of audited results, local cement producers were exposed to foreign imports in 2012 as East African Community (EAC) governments decided not to reinstate suspended duties on cement in the common external tariff. The TPCC board has also approved further expansion with a new cement mill in 2013.
China cement news round-up 20 March 2013
Production: China saw cement output increase by 10.8% year-on-year to 237Mt in the first two months of 2013, according to recent data released by the National Bureau of Statistics.
45 companies in Xinjiang Uyghur Autonomous Region produced a total 466,000t of cement and 2.67Mt of clinker in the first two months of 2013, a year- on-year decrease of 9.28% and 37.27% respectively, according to sources quoted by China Business Newswire.
Guangdong Province produced 118Mt of cement in 2012.
Company news: China Shanshui Cement has reported that its net profit fell by 31.8% to US$245m in 2012. Its revenue fell by 4.2% to US$2.6bn in 2012. Total sales volume of cement and clinker rose by 3.5% to 56.9Mt. It attributed the decrease in net profit to the fall of selling prices as a result of decline in demand.
West China Cement has reported that its net profit rose by 44.9% to US$57.9m in 2012. Operating revenue grow by 10.5% to US$566m. The company saw cement sales rise by 22.2% to 14.3Mt.
Fujian Cement has reported a slump in net profit of 76.9% to US$4.63bn in 2012. Operating revenue fell by 13.7% to US$261m. The company expects to earn US$359m in operating revenue in 2013.
Gansu Qilianshan Cement Group sold 15.3Mt of cement and cement clinker in 2012, a year-on-year increase of 29.2%. Currently the company has a cement production capacity of 21.3Mt/yr and it aims to reach a capacity of 45Mt/yr by the end of 2015. Gansu Qilianshan Cement Group Co has announced in its annual report for 2012 that the company saw its net profit drop by 47.8% year-on-year to US$28m in 2012. The company's operating revenue rose by 17.28% year-on-year to US$684m in 2012.
Xinjiang Tianshan Cement Co Ltd has reported that it saw net profit drop by 71.8% year-on-year to US$51.3m in 2012. The company attributed the net profit drop to overcapacity in the cement industry in 2012. Tianshan Cement's operating revenue for 2012 fell by 6.99% year-on-year to US$1.24bn.
Shenzhen-listed cement producer, Sichuan Shuangma Cement Co has announced that it earned a net profit of US$1.37m in 2012, a year-on-year decline of 90%. The company's operating revenue for 2012 decreased by 8.3% on-year to US$301m.
China to promote cement alternative fuels policy 19 March 2013
China: China is expected to introduce rules to boost the use of waste treatment as an alternative fuel in cement kilns, a China Securities Journal report has said.
Xu Yongmo, vice chairman of the China Building Materials Federation, said at a forum that the National Development and Reform Commission (NDRC), together with other six ministries, were mulling over policies to boost co-processing in cement industry. The waste used in the cement kilns covers municipal sludge, household garbage and industrial solid waste.
Producers speak out against Assam clinker tax rise 18 March 2013
India: A 4% rise in the entry tax on clinker in the Indian state of Assam has riled local cement producers. In the state budget, chief minister Tarun Gogoi had proposed to raise the entry tax on clinker from 2% to 6%, applicable only to small and medium units.
Industry sources quoted by the Telegraph of India said the proposal to raise the entry tax would adversely affect small grinding units in the state. "Given the budget proposal, there is an apprehension that the small units might not be able to bear the additional cost burden and become unviable," said a source.
The total procurement of clinker from outside Assam is estimated at 1.8Mt/yr, of which 24 small units procure 475,000/t. The source added that these units had invested US$74m in the state, employing over 3000 people directly or indirectly.
However, two large cement manufacturers - Cement Manufacturing Company Ltd (Star Cement, CMAL) and Meghalaya Cement Ltd (Topcem, MCL) - have been exempted from the tax. CMCL and MCL have units at Sonapur and Amingaon in Assam respectively. The source added that these large units had invested up to US$92m in the state, creating jobs for about 600 people.
"The government has accorded mega project status to large cement manufacturers, exempting them from entry tax, but imposed the same on small units. This is contrary to its vision of development," said Dilip Goenka, director of KD Cement.