September 2024
HeidelbergCement will not bid for Vulcan 22 December 2011
US: The German cement maker HeidelbergCement has said that it will not place a counter bid for US competitor Vulcan after US Martin Marietta offered US$4.8bn for Vulcan.
HeidelbergCement's CEO Bernd Scheifele said that HeidelbergCement would wait until the deal was closed and then see if any assets are put up for sale. He said that he does not expect any big consolidation moves in the industry in the short term, because companies are currently preoccupied with reducing their debts.
Scheifele stuck to the company's forecast to book US$15.3bn in revenue and US$1.82bn in operating profit in 2011, both above 2010's figures.
Report points to potential US cement growth 21 December 2011
US: According to the latest research report by RNCOS, US Cement Industry Analysis, an improvement in infrastructure spending along with growing domestic demand from almost all the prominent industry verticals will enable the cement consumption to grow at a compound annual growth rate of around 8% during 2011-2015. The cement industry in the US forms an important part of its economy and although recent years have been quite discouraging for the industry, the country sustained its position as the third largest cement consumer globally.
The RNCOS report highlights that the US will remain as one of the world's largest markets for OPC, with imports to fulfil the shortfall between domestic capacity and total US consumption. It expects that housing construction will boost cement demand in the US over the period to 2015 and says that biogas fuel is fast emerging as an alternative fuel for reduction of carbon dioxide emissions in the country.
Two new plants for Nepal by March 2012 20 December 2011
Nepal: Two large cement factories, which are nearing completion in Dudhrash and Gogli in Dang, are preparing to commence production in early 2012. It is expected that the two plants will replace around 10% of the cement imports that currently come from India.
Basu Pandey, director of Sonapur Cement Factory in Dudhrash, said that construction work has almost been completed. "Some technical work is remaining and we hope to finish that within a month," he said, adding that the company will begin test-production by the end of December 2011. "We will be able to launch the product in the market within two months," he added. According to Pandey, Sonapur Cement Factory targets to produce around 700t/day of cement.
Sonapur Cement Factory is launching its products under the brand of 'Sona Cement'. It will manufacture OPC and Portland Pozzolana Cement. Sonapur has invested a total of US$415m on the project.
The other factory, which will brand its products as Ghorahi Cement, is also preparing to bring its products in the market within two months. Bikash Sharma, factory coordinator of Ghorahi Cements, said, "Test production will begin from February 2012 and the final production will start in March 2012."
Ghorahi Cement Factory is targeting to produce 1200t/day. Located in Laxmi in Dang, it plans to double its production in the future. "We will double our daily production to 2400t/day in a year's time," Sharma said, adding that Ghorahi Cement Factory would become the largest cement factory in the country. Both of the factories will use limestone from local mines of Dang and surrounding districts, which are more than 200 years old.
Cement markets remain strong in Indonesia 19 December 2011
Indonesia: Domestic cement sales in Indonesia, the largest economy in south east Asia, rose by 26% in November 2011 from the same month in 2010, according to data released by the Indonesian cement association (ASI).
Sales volume reached 4.4Mt, compared to 3.5Mt in November 2010. Despite this, sales were down by 4.7% compared to October 2011, which saw 4.7Mt of cement sold. It should be noted that end of year deadlines for completion of government construction projects traditionally inflate November figures compared to those for December.
The ASI estimates that total domestic sales will reach around 45-46Mt in 2011, up by 15% from 2010, according to its chairman Urip Trimuryono.
In the longer term it is likely that cement demand growth will be more rapid in the country, with Indonesia's parliament stamping a long-awaited land acquisition bill on 16 December 2011. The bill will attempt to remove a bottleneck in infrastructure development that has long been seen as holding back growth in the country, providing a greater demand for cement.
Arabian Cement Company results 16 December 2011
Saudi Arabia: Saudi Arabian cement producer Arabian Cement Company (ACC) has seen its net profit for the first nine months of 2011 surge by 36% year-on-year to US$88.7m.The company attributed the increase in bottom-line figures to rising production and sales volumes but did not give exact figures.
ACC's operating profit jumped by 48.2% to US$96.9m in the first nine months of 2011. For the third quarter of 2011, the company registered a net profit of US$27.9m, an increase of 28.4% year-on-year.
Possible delay on Verkhnebakansky purchase 16 December 2011
Russia: Russia's Federal Antimonopoly Service (FAS) has said that it is considering the application by businessman Lev Kvetnoi, owner of cement producer Novoroscement, to buy the Verkhnebakansky cement plant from businesswoman Yelena Baturina.
The watchdog said it needed time to collect additional information on the deal, adding that it would extend the consideration period by two months.The application was submitted by Gazmetallproyekt, which runs Kvetnoi's assets. In November 2011 Baturina sold the Verkhnebakansky cement plant to Kvetnoi for around US$534m.
Sika picks up Italcementi’s admixture business 15 December 2011
Switzerland/Italy: Sika AG, the Swiss specialty chemicals company, is to acquire the global concrete admixture and cement grinding aid businesses of the Italcementi Group (directly or indirectly controlled by Italcementi or Ciments Français). The businesses are on the market under the brand Axim. Axim has approximately 150 employees in Italy, France, the US, Canada, Morocco and Spain. In 2010 it generated sales of around Euro61m.
"This agreement will allow the group to capitalise the value of this business," said Giovanni Ferrario, COO of Italcementi Group. "Moreover, this will further extend the relationship between Italcementi and Sika, enhancing the reputation of both companies as innovators in the field of concrete and cement."
This acquisition allows Sika to significantly strengthen its market position in the relevant countries. As Sika's CEO, Ernst Baertschi, said, "This acquisition is a major step for Sika in the process of expanding market shares in the admixture business worldwide."
MPA publishes Sustainable Development Report 14 December 2011
UK: The Mineral Products Association (MPA), which covers the cement and lime industries in the UK, has released its 3rd Sustainable Development Report, which shows the continued progress of its members in the realms of health and safety, carbon emissions, biodiversity, nature conservation and resource efficiency. It highlighted that, while growth prospects are uncertain and markets remain 20% to 40% below pre-recession levels, its members continue to be committed to stringent sustainability targets.
Highlights from the report include the planting of 1 million trees in the UK by MPA member since 2005 and a drop in direct carbon dioxide emission from cement production in 2010. The ratio of land prepared for quarrying to that which was restored to nature was 0.8:1. The report also showed the extent of the slump in UK cement demand. The UK consumed just 158kg/capita of cement in 2010 against the European average of 404kg/capita.
Nigel Jackson, Chief Executive MPA, said, "Our third Sustainable Development Report shows where we have gained considerable ground. For example, there is a growing awareness of the contribution that good building design can make to sustainability and how the use of concrete can significantly reduce the whole life energy performance of buildings through thermal mass benefits."
However, the MPA used the report to reiterate its stance on certain government policies. It believes that the government should not impose excessive costs on energy intensive industries, such cement and lime, which could drive the supply of essential and indigenously available resources overseas. "The MPA believes that genuine sustainable development demands that UK industries and supply chains are both resource efficient, where our industry is best in class in Europe, and also financially sustainable."
Holcim announces timeline for second phase of Guayaquil expansion 13 December 2011
Ecuador: The Ecuadorean unit of the Swiss cement multinational, Holcim, has announced that it will begin the second phase of its Guayaquil plant expansion in December 2012. The second phase will require an investment of nearly US$400m and it will see the construction of a third kiln at the plant. This will allow the South American country to sustain its growth in the coming decades, according to the company.
As well as aiming to supply the country's domestic cement needs, the investment will generate about 2500 direct and indirect jobs in the country during the construction phase, which will last approximately 24 months. The first phase of the expansion in early 2010, an investment of US$120m, will be inaugurated in the first quarter of 2012. Completion of the project will see Holcim Ecuador's cement capacity jump from 3.5Mt/yr to 5.4Mt/yr.
Thai industry waits for more on rebuilding plans 12 December 2011
Thailand: The Thai cement industry is still waiting to see more details of the government's programme for infrastructure projects following the recent devastating floods. It is anxious to determine whether growth will exceed the normal annual rate of 3-5%. The government so far has not laid out clear plans on repairing the flood damage to roads and other infrastructure installations or for how it intends to bolster the Kingdom's disaster-protection system with floodways and/or drainage tunnels.
Kan Trakulhoon, president and chief executive officer of Siam Cement Group, said that demand for the cement in 2012 was now anticipated to grow by 5%. This rate is expected to continue for several years thanks to the demand for repairs to roads, houses and other buildings, as well as improving the flood-protection system and constructing new homes. However, it has to wait for an outline of new infrastructure projects from the government before making a clear forecast of cement demand in 2012 and the medium-term.
Trakulhoon said that sales of building materials had bright growth prospects after the flood water recedes. "Because of the floods, the demand for high-rise condominiums in central Bangkok will be higher. I have always believed that the number of high-rise residences such as condominiums has not reached saturation. I have an optimistic view that demand for cement will keep growing."
Trakulhoon also pointed to the overall improved sales of building materials and cement in October 2011 as evidence for his optimism. In that month, sales of cement in the centre of Thailand dropped by 40% but sales in the north, south and northeast were good, indicating a strong background of cement growth.
Chantana Sukhumanont, executive vice president of Siam City Cement, the country's second-largest cement producer, pointed out that restoration itself does not require particularly large amounts of cement. She said that cement consumption in 2012 would not grow significantly from building restoration, highlighting a greater need for fittings and finishings such as plumbing fixtures and electrical wiring.