September 2024
India: Sanghi Industries suspended operations at it Sanghipuram cement plant in Gujarat from 13 June 2023, ahead of the landfall of Cyclone Biparjoy on 15 June 2023. EB News has reported that Sanghi Industries has established refuges for its workers and host community, and has prepared food and first aid deliveries, emergency transport and monitoring. The company said that it will restart operations when normal conditions resume and in compliance with the advice of the government.
Times Now News has reported that Cyclone Biparjoy killed two people and injured 22 on the coast of Gujarat. Extremely heavy rain is forecast for 17 June 2023 in Kachchh District, where the Sanghipuram cement plant is located.
Cembureau welcomes EU Nature Restoration Law 16 June 2023
Europe: The European cement industry association, Cembureau, has welcomed the enactment of the Nature Restoration Law, which aims to restore ecosystems through binding targets in line with the EU Biodiversity Strategy. The European Commission says that the law provides a framework to 'secure the things nature does for free, like cleaning our water and air, pollinating crops and protecting us from floods,' as well as to help limit climate change to +1.5°C.
In a joint statement with other extractive industry bodies, Cembureau told the EU that member states' national restoration plans should take into account industry efforts to plan and implement nature restoration, that member states should protect pioneer species in line with the Nature Directives Species Protection Guidelines' definition of temporary nature and that restoration efforts outside of designated Natura 2000 areas should be addressed on a case-by-case basis in recognition of sectoral specificities.
Europe/India: Finland-based Betolar has secured EU-wide and Indian patents for a new waste-based alternative concrete produced without cement and capable of storing energy. Betolar said that the material, which is already patented in Finland, is especially suited for use in renewable energy infrastructure, where it can provide a storage solution for dealing with short-term peaks. Chief commercial officer Ville Voipio said that the company will now seek to establish a partnership for commercialisation of its new alternative building material.
Betolar produces and markets the Geoprime additive used to produce cement-free concrete from supplementary cementitious materials, including ground granulated blast furnace slag (GGBFS), in regions that include India and the EU.
Cemento Polpaico to invest US$67m in growth 15 June 2023
Chile: Cemento Polpaico plans to invest US$67m in expanding its operations, with a focus on its Cerro Blanco cement plant in Santiago. Work will include the construction of a solar power plant and the expansion of the plant's limestone quarry. Meanwhile, Cemento Polpaico will upgrade the plant's kiln to increase its alternative fuel (AF) substitution rate to 75% from 13%. The upgrade will increase the production line's clinker capacity by 13% and reduce its CO2 emissions by 20,000t/yr. Additionally, the producer will build a new 3000t cement silo.
Peru: Unacem and Grupo Calidra have received clearance from the National Institute for the Defense of Competition and Protection of Intellectual Property (Indecopi) to launch a joint venture in the lime sector. Carretera News has reported that the new company will establish a 600t/day lime plant, at an investment cost of US$40m. The partners expect to commission the plant in early-mid 2025. Unacem, which holds a 51% stake in the venture, has reported that it and Grupo Calidra will fund the growth from a combination of their own finances and bank loans.
Europe: Sustainability policy organisation ECOS says that the European Parliament must enact the recommended Sustainable Products Regulation. The parliament received the recommendation from its Environment, Public Health and Food Safety committee (ENVI). ECOS says that the regulation would submit cement to the EU's Ecodesign environmental impact framework.
Environmental Coalition on Standards (ECOS) programme manager Joren Verschaeve said “Members of the ENVI committee have voted to regulate one of the most polluting products on the market. The Ecodesign for Sustainable Products Regulation will provide the cement industry with a stable and predictable framework towards decarbonisation.”
ECOS founded the Alliance for Low-Carbon Cement & Concrete (ALCCC), an association of companies focused on alternative building materials production, in May 2023.
Holcim acquires Minerales y Agregados 15 June 2023
Guatemala: Switzerland-based Holcim has acquired mortars and adhesives producer Minerales y Agregados, Reuters has reported. Holcim described Guatemala as a 'high-growth market.'
Argentina: Holcim Argentina has commissioned its new 120,000t/yr mortar plant at its Malagueño cement plant in Córdoba. The plant cost US$5m to build. It is equipped with six 100t raw material silos and eight 1t additive silos. It also has a 2000l mixer, three packing machines and an automated palletiser. Holcim Argentina says that the plant will produce its Tector Adhesive and Tector Revoques ranges of mortar.
Holcim Argentina chief executive officer Christian Dedeu said “This new plant is aligned with our purpose of generating progress for people and the planet, accompanied by a diversification of our product portfolio. It consolidates us as the leading company in innovative solutions for construction.”
Update on Bangladesh, June 2023 14 June 2023
Cement producers in Bangladesh received a surprise at the start of June 2023 when the government budget proposed increasing the duty on imported clinker. The Bangladesh Cement Manufacturers Association (BCMA) reacted this week by calling for the duty on clinker to be reduced, while also calling for the same for a non-adjustable advance income tax (AIT) applied to associated imports and sales.
During a press conference, reported upon by the Financial Express newspaper and other media, BCMA president Alamgir Kabir said that the customs duty on key raw materials for the sector had previously been around 5% of the import value. However, he argued that the new suggested increased tariff was “disproportionate” because it placed the burden at 12 - 13%. He urged the government to treat the cement sector as a "priority sector" given that it was facing higher prices generally due to the aftermath of the Covid-19 pandemic, the energy shocks from the Russian invasion of Ukraine and negative currency exchange effects.
The BCMA’s latest lobbying call may sound familiar because it follows a similar battle against import charges from late 2022. A supplementary duty was introduced in November 2022 when the National Board of Revenue (NBR) changed the way limestone was coded in response to a significant increase in imports from 2020. At the time, the price of limestone imports reportedly nearly doubled. The BCMA may have won this battle because in March 2023 the NBR withdrew its supplementary duty. It did require that importers submit to further scrutiny including an updated Import Registration Certificate and various tax related requirements.
The timing of the NBR’s decision to relax the limestone duty is telling given that the previous month or so six of the country’s seven publicly listed cement producers reported either falling profits or losses for the second half of 2022 or the year as a whole. Only LafargeHolcim Bangladesh bucked the trend with an increase year-on-year in its annual profit after tax in 2022, although it attributed this to 95% volume growth in its aggregates business.
As discussed previously a characteristic of the cement sector in Bangladesh is that the country has no domestic limestone reserves. It all has to be imported. Arusha Ahmed Khan, Shun Shing Group presented a summary of the national industry at the Global Slag Conference that took place in early June 2023 in Düsseldorf. The country has two integrated cement plants and 36 grinding mills operated by 31 companies with a total capacity of 84Mt/yr. At present around 14Mt/yr of new cement grinding production capacity is planned by UK Bangla Cement, MI Cement, Confidence Cement and Dubai Bangla with commissioning dates expected from mid-2023 to mid-2025. Khan revealed that the government switched from British to European standards in the early 2000s leading to a high level (95%) of blended cements on the market. Use of slag cements has grown as more producers commission vertical roller mills and more uptake of slag and other blended cements using secondary cementitious materials (SCM) is expected in the future.
A key vulnerability for a grinding-heavy cement sector, like the one in Bangladesh, is any burden on imports such as logistic costs, currency exchange effects and government tariffs. Sure enough each of these examples has been reported locally. The government says that its proposed higher import tariff on clinker is the first such change in a decade. Cement producers have reacted, predictably, in a negative manner. Whether the authorities go ahead with the planned increase and how well the cement sector could absorb it remains to be seen. There may never be a good time for a tax rise but the BCMA has been able to present the current period as being especially bad.
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Nigeria: Lafarge Africa has appointed Lolu Alade-Akinyemi as its group managing director and chief executive officer with effect from 1 July 2023. He succeeds Khaled El-Dokani, who has been in post since 2020. Following his resignation El-Dokani will continue to work as a non-executive director of the company.
Alade-Akinyemi previously worked as the chief financial officer and the supply chain director of Lafarge Africa. Before joining the cement producer in 2014, he was the finance director for PZ Cussons Nigeria. Prior to this he worked for Coca-Cola Company for 16 years with positions in finance, business development, supply chain and sales in the UK, Belgium, Ghana and Nigeria. Alade-Akinyemi started his career as a trainee at ExxonMobil. He is a certified accountant and holds a bachelor’s degree in economics from the University of Essex and a master’s degree in business administration (MBA) from the Edinburgh Business School in the UK.