September 2024
Lafarge to axe a further 97 jobs at home 27 June 2012
France: On 22 June 2012 Lafarge announced that it expected to cut a further 97 jobs in France as part of a plan to merge its three French divisions, based around its different product lines, into one national unit to be headquartered in the Paris region.
The move came just a week after the cement maker unveiled plans to cut costs by Euro1.3bn and boost profits over the next four years as it seeks to cut its debt and regain an investment-grade rating. At the start of 2012 the group, which employs a total of 68,000 people around the globe, said that it would cut 460 jobs worldwide, including 90 in France, as part of corporate reshuffling.
Lafarge details expansion plan at Exshaw 27 June 2012
Canada: Lafarge Canada is planning to develop a community outreach plan as part of the plant expansion and modernisation project set to begin at its Exshaw plant in Alberta in the autumn of 2012. The Canadian unit of French cement giant Lafarge is looking to build a new kiln line on the western side of the current facility and intends to increase production by 60%. It will do this by replacing outdated technology at the 107-year-old cement facility.
The company submitted its development permit application at the start of June 2012 in order to begin constructing the necessary foundations to support the new equipment, including a five-stage preheater, precalciner tower and a new rotary kiln. The Alberta government has already given Lafarge permission to proceed with the project.
On 19 June 2012 Exshaw plant manager Heinze Knopfel said that the community outreach plan would address how Lafarge intends to keep residents informed and address the negative effects of constructing a large industrial plant could have on Bow Valley communities, specifically Exshaw.
"Over the next three years during the construction phase we anticipate that there is going to be additional traffic and extra contractors on site. We will be sharing regular updates with the community and will continue to respond as quickly as possible to complaints," said Knopfel. "Our neighbours are really important to us. We recognise it is a partnership. We meet regularly with the surrounding communities. We want to understand how they feel about their operations and what we can do to improve their life or lifestyle."
Lafarge expects that the construction will take approximately three years with the foundation work beginning in the autumn of 2012. Knopfel said that he expects that this first phase would not have a significant effect on traffic or noise as the number of contractors working on site would be low with only cement trucks and the drilling contractor coming to the site. Two cranes will also be working to move equipment stored on the project site.
Construction on the kiln line itself will likely begin in 2013 with the peak of activity seen in 2014. At that point, Knopfel said he expects there could be 200-350 contractors at the site. He added that the plant's expansion and modernisation project would also provide a good opportunity to improve traffic flows at the plant. Instead of having resource and product trucks enter the plant at the same point, which is what currently occurs, trucks will leave the plant through the current main entrance and enter through a new gate to the west of the plant.
"Instead of the entrance, which is a real bottleneck, we're going to streamline the flow of traffic, which we know will mitigate a lot of the concerns of the community," he said. The upgrade will also increase the amount of cement leaving the plant by rail.
Overall, Knopfel said that he expects the project to have a positive effect in the Bow Valley, environmentally, socially and economically. "I expect the plant expansion will provide tremendous benefits for the community."
Environmentally the standards will be raised beyond the new Alberta requirements. "We're consciously aware of where we are relocating equipment and we're trying to relocate the equipment as far away as possible from the community," Knopfel said. "(The new kiln) is going to be state of the art as far as technology is concerned. It is going to be the newest and the best technology on the market," he said.
The Municipal Planning Commission for the MD of Bighorn is scheduled to review Lafarge's municipal development permit application on 18 July 2012.
Cemex introduces ‘Ecoperating’ seal 27 June 2012
Mexico: Cemex has introduced a new 'Ecoperating' seal that will identify the products and services from its portfolio of building solutions that have an outstanding sustainability performance. Ecoperating is a seal that was developed through a rigorous internal process that measured the environmental or social impact of a wide range of building solutions that Cemex offers, from low-CO2 cement and other building materials to services such as paperless invoicing. Among the most relevant criteria for a product or service to qualify for the Ecoperating seal are sustainable attributes, like thermal insulation, use of recycled raw material and contribution to a reduction in CO2 Footprint.
"Cemex is well known for a number of services and initiatives that significantly reduce environmental impacts or have a highly positive effect on society," said Vicente Saiso, Cemex's sustainability director. "The Ecoperating seal will help our clients identify Cemex's initiative to foster its sustainable development through the building solutions Cemex provides to the markets it serves."
The Ecoperating seal is being introduced around the world gradually. In June 2012 in a number of Cemex's cement and concrete products were given the seal in Croatia and the seal will reach Egypt, the Philippines, Colombia, Costa Rica and Mexico during the third quarter of 2012. Countries in northern Europe, South America and the Caribbean and the remainder of Asia will be given the seal in the fourth quarter of 2012 and the first half of 2013.
Southern Province estimated first half results 26 June 2012
Saudi Arabia: Southern Province Cement Company has estimated that its net profit for the second quarter of 2012 will be 9.6% higher than the comparable period in 2011 at US$69.9m compared to US$63.7m.
Its estimated gross profit during the second quarter was US$71.9m compared to US$67.2m, a year-on-year increase of 7.1%. The company estimated its operating profit during the second quarter as US$69.8m compared to US$63.7m for the corresponding quarter of 2011, an increase of 9.6%.
Over the course of the six months to 30 June 2012, Southern Province estimates that its net profit will be in the region of US$154.6m compared to US$124.0m and that its operating profit will be US$146.7m compared to US$125.1m in the corresponding period of 2011.
Southern Province said that the rise in net profit for the second quarter and for the six month period was due to operation of the second production line at its Tahama plant, which had no unforeseen stoppages. There was also an increase in demand for cement in the local market.
The company noted that its second quarter 2012 net profit was marginally weaker than that of the first quarter of 2012 due to industry-wide pressure from the Ministry of Commerce to reduce cement prices.
Builders call for harsher cartel penalty 25 June 2012
India: Having welcomed the Competition Commission of India's (CCI) decision to impose a record US$1.1bn penalty on 11 cement companies, the Builders' Association of India (BAI) has asked the competition watchdog to review the size of penalty.
The BAI has urged the CCI to, "review the quantum of the penalty and also to conduct an inquiry into the losses incurred by contractors due to such profiteering by cement manufacturers and to consider reimbursing the losses to the contractors."
D L Desai, a trustee of the BAI, said that it had urged the CCI to impose a fixed percentage of the penalty as a deposit with the CCI in case the cement manufacturers approach the Appellate Authority in an attempt to challenge the fine.
"We are happy that the CCI has taken action to penalise the cement companies. It (will) give a boost to the construction industry, leading to the revival of our economy, which is currently going through a difficult phase," said BAI Secretary Anand Gupta.
"The construction industry is a major driver of the Indian economy and any unfair practices as indulged in by the cement companies have adverse impact not only on this industry but the overall economy," he added.
Cimpor bought by Camargo Corrêa 22 June 2012
Portugal: The Brazilian industrial conglomerate Camargo Corrêa has completed its takeover of Portugal's Cimpor on 20 June 2012 and now controls 94.8% of the cement-maker.
The success of the move was largely expected by analysts who will now look at the terms in which the company's assets will be split between Camargo and its Brazilian rival Votorantim. The deal includes an asset swap with Votorantim, Cimpor's second largest shareholder.
Camargo will integrate its South American and Angolan cement operations into Cimpor. Votorantim will then have the opportunity to buy Cimpor's operations in China, India, Morocco, Tunisia, Turkey and Peru and part of its Spanish business at a set price defined by independent auditing companies.
Camargo, which was already the largest single shareholder in Cimpor with a 33% stake, launched a Euro2.5bn bid for the rest of the company in March 2012. Portugal's state-owned bank CGD, investor Manuel Fino and Millennium BCP's pension fund all accepted Camargo's Euro5.50/share offer.
The Portuguese government has said a Cimpor deal will help CGD deleverage and defended Camargo's bid from suggestions that it was against the national interest. Cimpor has been one of Portugal's most successful and internationally-diversified companies.
India fines cement firms US$1.1bn over cartel 22 June 2012
India: In one of the largest fines of its kind, India's antitrust body has imposed a penalty of a combined US$1.1bn on 11 cement companies for price fixing. The companies penalised by the Competition Commission of India (CCI) include ACC and Ambuja Cements (both units of Swiss cement-maker Holcim), UltraTech Cement, Jaiprakash Associates, India Cements, Madras Cements and the local unit of France's Lafarge.
"The commission has found that the cement companies have not utilised the available capacity, so as to reduce supplies and raise prices in times of higher demand," said the CCI in its judgement. It said that the penalty on each company amounted to 50% of their profit for the financial years 2009-10 and 2010-11.
ACC has been fined US$201m and Ambuja has to pay US$204m. India's largest producer of the building material, Ultratech Cement, has to pay US$206m, while Lafarge's Indian unit will have to shell out US$84m. Jaiprakash Associates has been fined US$232m.
On 21 June 2012 the CCI said that the cement companies' action of limiting supplies to the market through an 'anti-competitive agreement' was not only detrimental to consumers but also to the economy, as the building material is a critical input for infrastructure projects. The regulator asked the companies to pay the fine within 90 days. The companies can challenge the regulator's orders in the Competition Appellate Tribunal, a quasi-judicial body and can then appeal to India's Supreme Court.
In response UltraTech said that it hasn't indulged in any cartelisation and that it would appeal against the order in the appellate tribunal. In Zurich Holcim said it would, "contest the allegations and findings against (ACC and Ambuja) in the order and will pursue all available legal steps to defend their respective positions." In Paris Lafarge said, "We will see the detailed report and decide the suitable actions to take. Lafarge has a strict policy to comply with competition laws."
The CCI started accepting cases in 2009, replacing a relatively toothless antitrust body that had been in place since 1970, and has been becoming increasingly assertive. The biggest penalty it had imposed so far was in 2011, when it ordered DLF Ltd., India's biggest property developer by sales, to pay US$120m for abusing its dominant market position by changing agreements signed with some property buyers.
The judgement comes at a bad time for cement companies, as demand for construction materials is weak due to sluggish economic growth and a fall in spending on infrastructure projects. The cost of raw materials such as coal is on the rise as well, pressuring margins.
Global CemPower 19 June 2012
The Global CemPower conference took place last week in London, attracting 103 delegates from 25 countries. The conference looked at waste heat recovery options in the global cement industry. 'Back-of-the-envelope' calculations suggest that the value of the waste heat recovery units that could be installed in the global cement industry in the next ten years might total US$50bn - well worth thinking about.
Robert McCaffrey, the conference convenor, gave a listing at the event of the seven megatrends that will shape the future of the global cement industry, including demographic trends (aging of both developing and developed nations), urbanisation (with 70-75% of humanity due to live in cities by 2050), the growth of new country superpowers, the possibility of further climate change, paradigm shifts in the cement industry business model, ever-increasing energy costs and the influence of Rumsfeldian known-unknowns and unknown-unknowns.
Whatever else happens in the next 50 years, increased energy costs and energy efficiency will be the order of the day. In the global cement industry, waste heat recovery is here to stay.
Presentations, videos and a full review of the Global CemPower conference are available here, www.globalcement.com/conferences/global-cempower/introduction.
ANH Refractories Europe hires Frank to drive sales 19 June 2012
UK: ANH Refractories Europe has hired Stefan Frank, a senior engineer with more than 20 years' experience, to drive export sales across Europe.
The senior refractory engineer has joined the Wirral based firm to bolster expertise in the cement sector. He has been charged with kickstarting a new campaign to increase ANH's profile and drive sales in emerging cement markets in countries including Turkey, Ukraine and Italy.
Frank holds more than 20 years' experience in the refractory industry. This has included roles at HeidelbergCement Group's Technology Center in Leimen, Baden-Württemberg, in Germany, and extensive work in the rotary kiln field.
ANH Refractories Europe managing director Peter Rooney said, " The European cement market has been a solid area for sales in the last 12 months and we believe Stefan has the knowledge and skills to build on this."
The American owned firm, which has a US turnover of US$550m, manufactures materials used in linings for furnaces, kilns and incinerators operating at high temperatures. It delivers refractory solutions, services and products to many industries including aluminium, petrochemical, power, incineration, mineral and glass.
EPA may slacken PM emissions rules 19 June 2012
US: The US Environmental Protection Agency (EPA) appears poised to soften particulate matter (PM) limits in its pending revised air toxics rule for cement plants, while separately pursuing an extended compliance deadline for the rule. Both moves would represent major concessions to industry groups that sought a weaker rule but have the potential to rile environmentalists who say such changes would be unlawful.
According to an industry source, EPA will propose to soften the rule's PM limits on smokestacks for existing cement plants. New data submitted to EPA by the industry shows that the limit of 0.02kg/t of clinker set by the final rule prior to reconsideration is not realistically attainable. Instead, the EPA will probably revert to a higher number, closer to the 0.043kg/t that it offered in its original proposal.
Environmentalists oppose softening the air toxics rule and recently warned the agency in written comments that, "any changes diminishing or replacing the existing standards would be flatly unlawful." The likely changes to the rule follow a series of 11th-hour meetings that industry officials and others have held with EPA and White House Office of Management & Budget (OMB) staff seeking to shape the proposal.
The Portland Cement Association previously presented a paper to the EPA arguing for an increase in the emissions limit for PM. "The current PM limit of 0.02kg/t of clinker is very stringent," reported the paper. "Very few facilities can comply with the clinker limit without major investments in new and upgraded PM controls."