September 2024
Cementos Argos resumes Panamanian operations 16 June 2020
Panama: Grupo Argos subsidiary Cementos Argos has announced the “gradual reactivation” of its operations in Panama. The first stage of the post-coronavirus start of operations consists of “supply to prioritised public infrastructure works and sale to hardware stores,” begun on 9 June 2020. Presently the company is awaiting clearance from the Panamanian government to resume deliveries to “construction customers and other types of projects.”
Cementos Argos to enter Guatemalan market 16 June 2020
Guatemala: Colombia-based Cementos Argos has announced that it is “exploring opportunities for importing cement into Guatemala.” Subsidiary Argos Guatemala will be responsible for the import and commercialisation of the cement, which will be produced by Cementos Argos in Panama.
Cemex UK lobbies for sustainable development 16 June 2020
UK: Cemex has joined the Aldersgate Group alliance of companies in calling on the UK government to support an economic recovery, “aligned with the UK’s climate and environmental goal.” In a policy briefing, the Aldersgate Group said that a low-carbon recovery plan should: address regional inequality and unemployment; strengthen the UK’s economic competitiveness and productivity through investment in the sectors and technologies of the future; deliver critical public goods including clean air, better health and improved resilience to future environmental shocks; build a more resilient financial system fit to withstand future climate shocks ;deliver the Global Britain agenda by strengthening the UK government’s influence ahead of the G7 and COP26 summits that it will be hosting in 2021; and enable UK businesses to be competitive providers of low carbon goods and services.
Cemex Europe director of public affairs Martin Casey said, “Our aim is to enable the development of climate-smart urban projects, sustainable buildings and climate-resilient infrastructures. Setting a clear policy direction for restarting the economy will enable to play its part in the recovery in a way that advances our climate and environmental goals.”
PPC Botswana urges customers to “Buy Botswana” 16 June 2020
Botswana: PPC Botswana has taken up a slogan of the Botswana government in encouraging Botswanans to “Buy Botswana” in order to reduce their import bills and utilise local suppliers post-coronavirus lockdown. The Sunday Standard newspaper has reported that, after the economy shrank by 13% since the start of the coronavirus lockdown, PPC announced that it would “continue engaging with more stakeholders on the road to economic recovery.” Regarding the possibility of layoffs in the company, PPC Botswana managing director Tuelo Bolthole said, “The situation is still very fluid, therefore it is difficult to tell whether it will reach that point. We however believe that our workforce is an important asset.” The company is currently producing cement at 100% of its capacity in anticipation of pent-up demand.
JSW Cement delays capacity expansion 15 June 2020
India: JSW Cement has said that it will delay a planned US$382m expansion of its installed capacity of 14Mt/yr to 25Mt/yr in 2023 until at least January 2021. The Business Standard newspaper has reported that JSW Cement previously postponed work to raise its capacity to 20Mt/yr in 2020, and that the economic situation following the coronavirus lockdown is “not conducive to the construction agenda.” JSW Cement chief executive officer (CEO) Nilesh Narwekar said, “The plans are being deferred by 6 – 12 months but we are not sure that they will happen.” Financing for the work was due to be split 50:50 between internal accruals and bank loans.
India: In the fourth quarter of the fiscal year ending 31 March 2020 Dalmia Bharat sold 5.17Mt of cement worth US$326m, down by 13% year-on-year from US$374m in the same period of the previous fiscal year. Net profit for the quarter was US$3.16m. The company said that the figure was “not comparable to the previous year’s fourth quarter profit of US$34.6 due to a change in reporting standards, according to the Press Trust of India. Full year net profit fell by 32% to US$31.3m from US$45.9m and revenues grew by 2% to US$1.27bn from US$1.25bn.
India: The government of Tamil Nadu has responded to a labour shortage resulting from the coronavirus lockdown by training up local minors for construction jobs. The Hindu newspaper has reported that the regular workforce consists mainly of some of India’s 9m annual migrant workers who travel from rural areas to construction hubs such as Tamil Nadu’s state capital of Chennai.
The state-owned Tamil Nadu Cement Corporation (TANCEM) has said that it will increase cement production at its Arasu plant in Ariyalur to 3000t/day from 2000t/day in anticipation of construction growth in the second half of 2020.
Barbados: The Caribbean Court of Justice (CCJ) has ruled in favour of the Council for Trade and Economic Development (COTED) in its dispute with Trinidad and Tobago-based Rock Hard Cement. Stabroek News has reported that Rock Hard’s products had previously attracted a 5% import duty due to their classification as ‘other hydraulic cements.’ However, in mid-2019 COTED approved a decision by the Caribbean Community (CARICOM) to permit Barbados to enforce a tariff of 35% on this class of goods, compared to 15% on ’grey cement’ until mid-2021 in order to protect domestic producer Arawak Cement. The court found this reason to be, “within the rule of law.”
Japanese cement consumption back to normal 12 June 2020
Japan: The Japan Cement Association (JCA) has reported that cement demand has resumed its pre-coronavirus outbreak levels, with all planned construction projects from mid-May 2020 going ahead. R&I News has reported that this follows the suspension of multiple major works during the crisis, leading to a domestic demand of 3.19Mt in April 2020, down by 7% year-on-year from 3.43Mt in April 2019. Although the JCA’s 2020 cement consumption forecast is 41.0Mt, the lowest since 1990, contractors will reportedly have a backlog of projects “even after the completion of projects related to the Tokyo Olympics and Paralympics,” suggesting the likelihood of a considerable rise in demand year-on-year in 2021, set against a moderate decrease in the medium to long term.
India: The state government of Telangana has instructed cement producers that the price of cement must fall to support the construction sector. Telangana Minister for IT, Industry, Municipal Administration and Urban Development Rama Rao said, “There is a need to extend a helping hand to the sector and the government is therefore seeking cooperation of the cement companies in bringing down the prices so that real estate picks up momentum.” The Hindu newspaper has reported that producers “responded positively to the request.” Each will decide internally on the measure of price reductions.
All Telangana producers will continue to supply cement to government projects at a pre-agreed rate.