September 2024
Five fined in Spanish cartel case 18 January 2012
Spain: Spain's competition watchdog CNC has imposed a fine of Euro11.1m on five cement companies, namely Cementos Portland, Beriain, Cetya, Vresa and Cemex España, which have been accused of setting up a cartel in northern Spain.
Cementos Portland was ordered to pay Euro5.72m, followed by Beriain with a Euro2.5m fine. Next came Cetya and Vresa with fines of Euro1.14m and Euro0.96m respectively. Cemex España will be forced to forfeit Euro0.5m.
2011 a record year for South Korean cement exports 18 January 2012
South Korea: South Korea's cement exports reached an all-time high in 2011 as domestic manufacturers turned their eyes overseas amid a deepening domestic property slump.
The Korea Cement Association (KCA) said that South Korean cement manufacturers exported a total of 4.49Mt of cement in 2011, up a massive 62% from the 2.77Mt exported in 2010. The total amount of clinker and cement exported by South Korea rose to 9.97Mt, surpassing the 2010 record of 7.53Mt.
The KCA said that the long-running slump in the local construction market had forced its domestic companies to make inroads into overseas markets and diversify their business portfolios. "Cement makers sought to sell their products in overseas markets because the local demand for cement was so low," said an official from a local cement manufacturer.
Dalmia Bharat picks up 50% stake in Calcom 18 January 2012
India: Dalmia Cement Bharat Ltd. (DCBL), a subsidiary of Dalmia Bharat Enterprises, has picked up a 50% stake in Assam-based Calcom Cement India (Calcom) for an investment US$47m. Calcom is in the process of expanding its consolidated cement manufacturing capacity to 2.1Mt/yr.
Amit Chaudhery, group corporate communications at Dalmia Bharat Group, said, "DCBL has arrived at an in-principle agreement with Assam-based Calcom Cement for a 50% stake in that company. Calcom Cement has a robust presence in markets of the northeast. The 50% ownership of this 2.1Mt/yr semi-commissioned plant is the first concrete example of the non-organic, acquisition-based growth strategy of DCBL."
DCBL's move is part of its larger aims to expand its cement business to northern and northeastern. Dalmia has 9.5Mt/yr capacity and holds little over 45% in Orissa Cements, which has a capacity of around 5.5M/yr. The company is also looking to set up two greenfield plants in Karnataka with a capacity of 2.5Mt/yr each.
Roanoke terminal gets Energy Star recognition 18 January 2012
US: Four Roanoke Cement Company distribution terminals have achieved the US Environmental Protection Agency's Energy Star Challenge for Industry, which recognises plants that demonstrate a commitment to the environment by achieving a 10% reduction in energy intensity within five or fewer years.
"This achievement was the result of a supreme team effort," said Don Ingerson, VP of Cement and Aggregates, Sales and Marketing at Roanoke Cement, "The focus on reducing energy by each and every one of our people at the terminals is an excellent example of our commitment to continuous improvement. With that, our energy management knowledge continues to grow as we share it with our customers and our community."
The recognised operations include terminals in Richmond, Front Royal and Chesapeake (all in Virginia) and Castle Hayne, North Carolina. The average energy intensity reduction for all four terminals was 21.76%. "We are proud that these four facilities are the first to be awarded among the cement sector," stated Steven Drzymala, Energy Systems Engineer with Titan's Corporate Engineering Department. "This is a great achievement."
Clinker plant threatened on two fronts 18 January 2012
Kenya: The activism of local Massai groups and environmental NGOs is preventing the National Cement Company from installing its clinker plant south of Nairobi.
Narendra Raval, head of the National Cement Company Ltd (NCC), known as 'Guru', is facing stiff resistance to installing a clinker plant south of Nairobi and operating limestone quarries. His company has acquired land from the local county council to build its second cement plant in the country, but environmental NGOs are opposed to this project. Massai groups are doing likewise, saying in their case, that the land belongs to them. The strongest resistance comes from state-owned Kenya Wildlife Services (KWS), which argues that the land should remain a migration corridor for wildlife between the national parks of Amboseli and Nairobi.
A subsidiary of the Devki Group (which is also the parent of DevkiSteel Mills), NCC argues its case by promising to reserve 200 new jobs for Massai youth.
Holcim issues profit warning over one-off charges 17 January 2012
Switzerland: Holcim surprised investors with a profit warning today, after announcing it would take a Euro641m hit in one-off charges on its 2011 accounts. The bulk of the impairment relates to a Holcim-specific issue in South Africa regarding AfriSam but analysts noted the decision to write down the value of assets in parts of Europe and the US on the back of sharply lower demand could be echoed by other cement makers.
"Some mature markets will never again see the record levels of profitability of the mid-2000s. Other players could be forced to do the same," warned Josep Pujal of Kepler Capital Markets.
Euro343m of Holcim's charges stemmed from completely writing down its remaining South Africa investment following a steep fall in demand for construction materials in the country since 2010. Holcim's South African exposure stems from its former local subsidiary, the country's biggest cement maker by sales, AfriSam. The remainder of the write-offs stem from adjusting property, equipment and goodwill lines in the group's accounts to much weaker markets. Some Euro271m in writedowns related to Spain and eastern Europe and Euro26m related to the US.
EAPCC worker shot amid cement plant chaos 17 January 2012
Kenya: Attempts by the suspended East African Portland Cement Company (EAPCC) managing director, Kephar Tande, to serve the management with court orders re-instating him ended in chaos yesterday when more than 1000 workers blocked him and his police escort as he attempted to leave the plant. One of the protesting workers was shot in the arm by a security officer at the plant who had wrestled a rifle from a nearby police officer. Following this the staff set fire to two vehicles and completely sealed the entries to the company premises.
Riot police used tear gas as workers shouted that they would only allow the police to escort Tande 'over their dead bodies.' The injured employee was given first aid at the company hospital and was later transferred to Mater Hospital in Nairobi.
Youth Affairs Assistant Minister Wavinya Ndeti had earlier addressed the staff at the site and appealed to them to return to work. Ndeti told the workers that she had attended a meeting with the prime minister, Raila Odinga, and three senior ministers on 15 January 2012, which had resolved that the entire board of EAPCC should be fired. "The Prime Minister was in agreement with us that the entire board of directors will have to go home," she said. "From next week you will be hearing good news of new board members," she said.
On 17 January 2012 Kenya's Capital Market Authority (CMA) imposed a 60-day trading ban on the already suspended shares of EAPCC to protect investors from the dispute.
Cemex bags massive contract in Bahamas 16 January 2012
Bahamas: The Mexican cement giant Cemex has been announced as the primary cement supplier for the Baha Mar tourist complex in Cable Beach, Nassau, Bahamas that is being built by CCA Bahamas Limited. It is expected that the complex will house the largest entertainment centre in the Caribbean and be completed by December 2014.
"This important project, which will generate many construction jobs, gives us great satisfaction because it will contribute to improving the quality of life of many people, which is in line with Cemex's objective of generating wellbeing through quality building solutions," said Carlos González, president of Cemex in the Bahamas.
As the primary supplier, Cemex will provide 110,000t of cement for the first phase of the project, which is currently being built on an area of 1000 acres.
HeidelbergCement opens new cement mill in Bangladesh 16 January 2012
Bangladesh: HeidelbergCement officially inaugurated a new cement mill at its plant in the seaport of Chittagong on 12 January 2012. The ball mill, which cost approximately US$16m to construct, has a grinding capacity of about 0.8Mt/yr. Test runs of the new mill were conducted successfully at the end of 2011 and production started in the first week of January 2012.
"We are very pleased that we are able to officially inaugurate our state-of-the-art cement mill today," said Dr Bernd Scheifele, Chairman of the Managing Board at HeidelbergCement. "Bangladesh is an interesting market for HeidelbergCement. We expect the need for high quality cement to increase significantly in the coming years, especially due to new government infrastructure projects. With the new mill we are very well prepared for this growth in demand. The investment in Bangladesh is part of our long-term strategy to expand our cement capacities in attractive emerging markets by brownfield or greenfield projects."
The IMF forecasts a GDP growth of 6.1% for Bangladesh in 2012. The country currently has one of the lowest per capita cement consumption ratios in the world, but it is also one of the fastest growing markets.
Ciments Français pushes to keep Euro50m payment from Sibtsem 13 January 2012
Russia: Ciments Français has gone to court to keep a Euro50m advance payment from OAO Sibtsem Holding for Turkish cement assets that the latter company did not acquire.
Ciments Français filed a suit with the Russian supreme arbitration court on 20 December 2011 to recognise the ruling of the Istanbul arbitration court as of 7 December 2010. Under this ruling the French company does not have to return the advance payment to Siberian Cement for the acquisition of Turkish Set Group, which has four cement plants with a capacity 5Mt/yr. On 26 December 2011 the court accepted the suit for consideration.
In March 2008 Sibtsement announced that it would acquire Set Group from Ciments Français, having paid Euro377m and about 5% of its shares, estimated at Euro200m. The first instalment stood at Euro50m. However, the world financial crisis prevented the companies from closing the deal. In the autumn of 2008 the parties began discussing payment for the deal by instalments but they failed to reach an agreement.
In the summer of 2010 the arbitration court of the Kemerovo region in Russia confirmed that Ciments Français had to return the advance payment as the agreement was null and void. In early 2011 the Kemerovo court refused to confirm the Istanbul court ruling.