September 2024
Cosco Group signs logistics deal with Anhui Conch 17 June 2019
China: Cosco Shipping Bulk, part of Cosco Group, has signed a strategic deal with Conch Logistics, the logistics subsidiary of Anhui Conch. The agreement will see the two companies jointly develop in the cement logistics sector, according to Asia Shipping Media. In December 2018 Anhui Conch ordered four 12,500DWT bulk carriers from the Jiangdong Shipyard with delivery scheduled in 2020. Cosco Shipping Bulk operates the largest bulker fleet in the world with total capacity of over 33MDWT.
Falsely declared cement seized at Chattogram Port 17 June 2019
Bangladesh: The Chattogram Customs Authority has seized 30 containers of cement imported under false declaration by Pran Dairy at Chattogram Port. Sources quoted by the Daily Sun newspaper said that the company has attempted to avoid paying the correct import tariffs by falsely declaring the consignment as high-density polyethylene (HDPE) for the UAE. However, when custom officials examined the shipment they found Saudi Arabian-branded cement instead.
A total of 10,200 sacks of 50kg bags of cement were found. The duty payable on HDPE is 32% compared to 91% for cement. The importer was attempting to avoid paying import tariffs of over US$350,000.
Russia/Ukraine: Dyckerhoff cement plants in Russia and Ukraine have gained OHSAS 18001 or ISO 45001 certification in occupational safety. The OHSAS 18001 and ISO 45001 standards provide for a safe and healthy workplace environment and set forth guidelines for continually identifying and controlling health and safety risks, reducing accidents and improving overall performance.
US: Cemex has announced that it is supplying concrete, including a specialised self-consolidating mix, along with thousands of tonnes of aggregates for the replacement of the Sixth Street Viaduct Bridge in Los Angeles, California. The original 915m-long bridge, which has served as a backdrop in numerous films, was built in 1932 and is in need of replacement.
Cemex will supply 34,400m3 of ready-mix concrete. This will include 4800m3 of Evolution, Cemex’s range of self-consolidating concrete product that, in this instance, was tailored to fit the bridge’s design and the requirements of the client, CalTrans. Cemex will also supply a fibre-reinforced concrete solution for the bridge deck and structure itself. The US$482m structure, funded by a mixture of state and Federal funds, is expected to open in late 2020.
YTL increases Lafarge Malaysia stake in second deal 14 June 2019
Malaysia: YTL Cement has increased its shareholding in Lafarge Malaysia to 76.98% following the conclusion of a mandatory general offer (MGO). In a bourse filing, Maybank Investment Bank said the MGO had been concluded at the close of business on 14 June 2019, with YTL Cement acquiring an additional 220.72 million shares, or 25.98% of Lafarge Malaysia, for US$198m.
On 6 May 2019 YTL concluded its purchase of 51% of Lafarge Malaysia from Associated International Cement Ltd (AICL). It paid US$390m on that occasion.
Saudi Cement’s profit falls on weak local demand 14 June 2019
Saudi Arabia: Saudi Cement’s revenue for the first quarter of 2019 rose 18% higher year-on-year to US$103.9m, driven by higher export sales volume of cement and clinker. It said that its prices had risen, but that the price rise was not as great as that achieved by some other producers. Its profit for the quarter was US$35.2m, a 7% fall year-on-year. However its profit was 6% higher compared to the fourth quarter of 2018.
Saudi Cement’s cement export volumes increased to 0.25Mt for the quarter, while clinker sales volumes (mainly exports) jumped to 0.41Mt. In contrast, local cement sales volumes declined by 16.5% year-on-year to 1.19Mt. Going forward, the company says it will continue to focus on exports in light of weak domestic demand.
Turkey: Batıçim Çimento, part of Bati Anadolu Group, is considering selling up to a 75% stake in its subsidiary Batısöke Çimento. A source quoted by Reuters says that financial services group Unlu&Co has been hired to handle the sale. A document seen by Reuters indicates that due diligence for any potential offers is scheduled to be completed by September 2019. Batisöke Çimento operates one integrated and one grinding plant in Turkey.
In 2018 Turkish conglomerate Sabancı Group mandated Unlu&Co to sell cement producers Kayseri Çimento, Nigde Çimento and Ladik Çimento.
Grupo Argos in talks to merge with Summit Materials 14 June 2019
US: Colombia’s Grupo Argos is in talks with US-based Summit Materials about a potential merger. Sources quoted by Reuters said that the Colombian company would like to combine Cementos Argos with Summit Materials to gain economies of scale.
Summit Materials owns Continental Cement, a cement producer that runs two integrated cement plants at Hannibal, Missouri and Davenport, Iowa. It operates cement terminals at Minneapolis in Minnesota, St Paul in Minnesota, LaCrosse in Wisconsin, Bettendorf in Iowa, West Des Moines in Iowa, St Louis in Missouri, Memphis in Tennessee, Convent in Louisiana and New Orleans in Louisiana. Summit Materials also owns a number of building material companies in the aggregates, ready-mixed concrete and asphalt industries.
CSN planning US$390m cement plant in Paraná 13 June 2019
Brazil: CSN Cimentos is planning to spend around US$390m on building a new 3Mt/yr cement plant in Paraná. Eduardo Bekin, president of the Paraná State Development Agency, said that the company already had the authorisation to conduct economic viability studies and should confirm the plant by late August 2019, according to the Valor Econômico newspaper. CSN is also considering building the plant in Sergipe state, where it operates a limestone mine. The final decision will depend on the best tax environment for the cement producer.
France: Cem'In'Eu plans to raise Euro55m by the end of 2019 to support building new cement grinding plants in Europe. It opened its first 0.25Mt/yr grinding plant at Tonneins, Lot et Garonne in 2018, according to Les Echos newspaper. Construction of a new plant at Portes-lès-Valence, Drôme is scheduled to start in mid-2019. Construction of a larger 0.5Mt/yr plant at Montreuil-Bellay, Maine-et-Loire is anticipated to start in September 2019 for a commissioning date of February 2021. This project will cost Euro35m. Other projects are planned for Chalon-sur-Saône, Saône et Loire and Ottmarsheim.
International projects include a plant at Ottmarsheim, Haut-Rhin in Switzerland and Thamesport in the UK. The former is expected to gather all the necessary permits by September 2019 with construction to follow by the end of the year. An additional project is being planned at the port of Gdynia in Poland.