September 2024
Ndola Lime forced to suspend production 22 June 2011
Zambia: The Zambian Environment Management Agency (ZEMA) has ordered Ndola Lime Company to shut down its plant, which has caused public outcry by releasing dust emissions higher than the lawful allowable limits. ZEMA's northern region manager Patson Zulu said that ZEMA had revoked the plant's license for its rotary kiln.
"The complaints from some Ndola residents about excessive dust emissions are justified." said Zulu. "At ZEMA, we have no option than to act accordingly. The onus is now on Ndola Lime to see to it that measures are put in place to comply with the country's environmental laws." Zulu warned other companies breaching the regulations, which are believed to include Lafarge operations, that they also risked being shut down. "People should be allowed to enjoy a good quality of life by having air which is not polluted. We shall no longer tolerate environmental mischief," he said.
Ndola Lime's acting general manager Abraham Witika confirmed that his company was failing to meet the lawful allowable dust emission standards because its kiln's dust abetment unit had developed a fault." Ndola Lime Company has already done an assessment on the damaged abatement unit that is responsible for regulating the levels of dust emission and the process to order the replacement has started," he said, adding that it was unfortunate that the plant had developed a fault despite having only having had the dust abetment unit replaced (at a cost of USD 3.5m) in August 2010.
Iraq approves USD 692m cement plant 22 June 2011
Iraq: Iraq's cabinet has approved a USD 692m contract for the construction of a massive cement factory in southern Iraq. The 185-acre factory will be built in Diwaniya province, around 150km south of Baghdad according to government spokesman Ali al-Dabbagh.
The contract was awarded to a joint venture group consisting of an Iraqi company and an Italian firm, but officials declined to give further details. "(The cabinet) has given approval to award an investment licence to erect a cement factory in Diwaniya province to a (local) firm, which is in a joint venture with an Italian firm for a total value of USD 692m," said the cabinet in a statement.
Iraq has some of the world's largest oil reserves and is opening itself up to foreign investors to help it rebuild after decades of war and economic isolation. The government has set a target of USD 30bn for total investment in 2011, mostly in the energy, housing and agriculture sectors.
The National Investment Commission has previously put together an investment plan of 750 projects valued at USD 600bn for rebuilding the country. Its five-year plan totals USD 186bn, of which USD 86bn is to come from foreign and local private investment.
Cementos Argos funds Ceratech 21 June 2011
US/Colombia: Ceratech, Inc., a producer of alternative, non-OPC cementitious materials, has accepted another strategic equity investment, this time from Colombian cement powerhouse Cementos Argos. The Ceratech investment follows Argos' recent expansion of its US presence through a USD 760m purchase of Lafarge assets in the south east of the country. The strategic investment will help Argos meet its goal of building a competitive advantage based on sustainability and innovation.
Ceratech's manufacturing process produces technologically advanced, more durable, 'sustainable cements' comprising 95% waste fly ash generated by electric utilities. Its production does not generate any CO2 and the product is well-positioned for adoption by contractors, distributors and companies that are looking for new solutions that better conform to green building initiatives.
The two companies will cooperate to develop and distribute Ceratech's cement through Argos' established ready mix channels throughout the mid-Atlantic, southeastern and southwestern US markets.
"This strategic investment being made by Argos shows how important innovative, sustainable construction products are to the industry," stated Jon Hyman, CEO of Ceratech. "Ours is the only cement on the market composed of more than 90% fly ash. As the industry's only carbon-free cement, we exceed the requirements for green building practices such as USGBC's LEED rating system."
Lafarge Emirates inaugurates new distribution centre 20 June 2011
UAE: On 13 June 2011 Lafarge Emirates Cement inaugurated its first distribution centre in the region, in cooperation with Al Saeed AL Zaabi General Trading. The new centre in the Mussaffah Industrial Area in Abu Dhabi was inaugurated by Antoine Duclaux, CEO of Lafarge Emirates Cement in the presence of many of the company's strategic partners.
Duclaux said that the new 350m2 showroom in Mussaffah Industrial Area was a big achievement and that Lafarge Emirates was contributing to the growth of the construction growth market by offering its quality products in the UAE.
Adham El-Sharkawy, Commercial Director at Lafarge Emirates Cement said that the facility would present a new 'shopping experience' to cement end users by offering a full range of high quality products and various other building materials products under one roof in a highly modern showroom.
Producers split coal purchases to avoid high prices 17 June 2011
Japan: Major cement makers are dispersing their coal purchases to hedge against the risk of buying when prices are high. Traditionally, cement companies purchase a year's worth of coal in the month of April because price changes have tended to be small. With coal prices becoming more volatile, however, they are keeping a close eye on the market to gauge favourable times to buy.
Producers are hoping to keep costs in check in this way because coal purchases account for at least half of their materials expenses. Taiheiyo Cement has procured only about 30% of its coal supply for the current fiscal year, while Sumitomo Osaka Cement Co. and Mitsubishi Materials Corp. have each purchased around 60%. Sumitomo Osaka Cement, which began spreading out its purchases in the previous fiscal year, is reportedly considering whether or not to disperse costs even further.
Coal prices began rising in 2010 after major floods in Australia and the jump between January and March 2011, which served as the basis for purchase prices in April 2011, was particularly steep. Consequently, Taiheiyo Cement and Sumitomo Osaka Cement are believed to have paid nearly USD 150/t, an increase of 30% on April 2010. Wholesale coal prices are currently at around USD 135/t.
ACC and Goa sign alternative fuels deal 16 June 2011
India: A Memorandum of Understanding (MoU) was signed on 13 June 2011 for the disposal of plastic waste between the Department of Environment, Government of Goa, and ACC's Wadi Cement plant. The MoU was signed by Michael D' Souza and M Sai Ramesh from ACC in the presence of Minister for Environment Aleixo Sequeira.
The MoU envisages establishing a collection and segregation mechanism for plastic waste from non-biodegradable solid waste for disposal through co-processing at the plant. It will be valid for a term of three years from the date of execution with an option of renewal by mutual consent on agreed terms and conditions. ACC will provide the services free of cost to the Department of Environment and to the state government.
Cemex to cut 6% of total workforce 15 June 2011
Mexico: Cemex has announced that it has plans to cut 6% of its workforce worldwide (around 2800 jobs) as part of its wider plans for reorganisation that were announced at the start of 2011. Cemex said that it hopes to generate USD 400m in additional cash flow by the end of 2012 by cutting costs and improving underperforming business units.
Cemex has been struggling with its debt load after buying Australian rival Rinker just before the US housing crisis began. The company reported a wider-than-expected first-quarter loss in the first quarter of 2011, but said that increased sales were a sign of a slow recovery.
Lafarge buys strategic interest in port 14 June 2011
Spain: French cement group Lafarge has announced that it has acquired a 35% stake in the cement plant of Spanish construction and property development group Lubasa at the port of Castellon.
Under the agreement, the facility will receive clinker supplies from Lafarge cement plants. The company declined to reveal financial details of the deal.
APCMA appeals to government after losses 13 June 2011
Pakistan: All Pakistan Cement Manufacturers Association (APCMA) has appealed to the government to rescue the ailing cement industry, which has suffered net accumulated losses of USD16.3m during the first nine months of the current fiscal year (which ends 30 June 2011).
A spokesman for the APCMA said that the cement industry suffered losses mainly due to rapid increase in input prices like coal, furnace oil, electricity, paper bags, interest rate, diesel and transportation. He said that prevailing market cement prices were inadequate to meet the increased cost of production.
In the first nine months only three cement units earned a profit. The spokesman said that this lopsided performance of the sector is mainly due to stagnant domestic demand and a steep decline in exports of 12.52%. The units located in the northern part of the country had lost export viability due to higher transportation costs between their production sites and the coast.
Industry experts fear a total collapse of the sector if immediate remedial steps are not taken and that the decline in domestic sales of cement is a direct reflection of subdued economic activities. However, as the global economy shows signs of recovery, the decline in cement exports should be a matter of grave concern for the economic managers of the country.
Saudi cement firms make large year-on-year gain 10 June 2011
Saudi Arabia: Cement companies in Saudi Arabia recorded a 16% increase in sales in April 2011, the highest in more than a year. Domestic cement sales grew to 4.2Mt in April 2011, compared with 3.6Mt in the same period of 2010. Private projects, notably those for housing and schools boosted demand for the material.
"In 2010 people were very wary. The last thing they wanted to do was commit money, but now the outlook is looking brighter," said Farouk Miah, an analyst at NCB Capital in Riyadh. "There is also a lot of activity for plans to develop the rest of the country, in Makkah, Madina and Jeddah," he added.
Saudi Arabia is expected to need two million more homes by 2014 to keep up with the demands of a population that has quadrupled in 40 years. Shares of cement companies have already had a decent run in 2011, up an average of 24% over the same period of 2010.
It is expected that Saudi Cement, Southern Province Cement and Yamama Cement should benefit from the demand because they have the largest volume. Smaller cement companies, which are already running at full capacity, will be less well positioned to benefit.