September 2024
Tokyo Cement upgrades research centre in Sri Lanka 21 August 2018
Sri Lanka: Tokyo Cement has opened an upgrade to its research centre in Colombo. The centre will test and certify cement, concrete and dry mortar products, according to the Daily News newspaper. It is also intended to be an innovation hub for the cement producer to develop new products. Facilities at the site include a wet concrete lab and mini plants to test different blends of cement.
Nairobi Securities Exchange suspends trading of ARM Cement 21 August 2018
Kenya: The Nairobi Securities Exchange has suspended trading of ARM Cement following the company going into administration. The suspension took effect from 20 August 2018 and will last for seven days, according to Reuters. On 18 August 2018 PricewaterhouseCoopers said that the cement producer had been placed into administration following the resignation of its chief executive officer (CEO) Pradeep Paunrana. However, Paunrana intends to remain on the board of the company. PricewaterhouseCoopers has appointed Muniu Thoiti and George Weru as joint administrators.
In June 2017 ARM Cement reported that its net loss more than doubled to US$55m in 2017 due to poor demand in Kenya and Tanzania. UK-government investor CDC Group, which holds a 41% stake in the company, then forced the replacement of board members Ketso Gordhan and Pepe Meijer with Sofia Bianchi and Rohit Anand.
Government and Dangote Cement sign gas deal in Tanzania 21 August 2018
Tanzania: The Petroleum Development Corporation (PDC) and Dangote Industries Tanzania have signed a 20-year deal to supply gas to Dangote Cement’s plant at Mtwara. The cement plant will produce up to 35MW of electricity from natural gas and this will later increase to 45MW, according to the Daily News newspaper. The energy supply will allow the unit to increase it production capacity to 6000t/day from 2000t/day and reduce its production costs.
At the ceremony marking the signing, Dangote Industries chief executive officer (CEO) Jagat Rathee said the company has been using an average of 106,000l/day of diesel to produce 2000 – 2500t/day of cement. The 3Mt/yr plant was commissioned in 2015 and is supported by 500Mt of limestone reserves. It is hoped that the new gas deal will reduce the price of cement in the country.
UK: Aggregate Industries has signed a Euro3.3m deal with Siemens for technology and training services.
The agreement positions Siemens as Aggregate Industries’ preferred technology supplier across the company’s 330 UK sites. The partnership is intended to improve efficiency, make maintenance savings, and reduce the company’s carbon footprint. Siemens technology solutions include inverter drives, gearboxes, motors and control panels.
Siemens will also provide access to training and education facilities for all Aggregate Industries apprentices at Stephenson College in Coalville, Leicestershire. The focus on training will be supported regionally with Siemens supplying safety panels, which are to be utilised for staff training sessions across Aggregate Industries’ regional site network.
“This agreement positions Siemens as our preferred UK technology supplier, ensuring that we benefit from enhanced operational efficiencies over the long-term. This will deliver cost savings and improve system reliability. The technology solutions we will install will also help us reach our sustainability goals, as we seek to reduce the impact we have on the environment,” said Gerard Cantwell, Head of Procurement Europe at Aggregate Industries.
UK: Refractory producer RHI Magnesita says that its cement and lime segment was ‘flat’ in the first half of 2018. It blamed this on on-going low capacity utilisation in China and Brazil and ‘some’ market share losses due to its prices. The adjusted sales revenue of its Industrial Division, including cement and lime, rose by 14.3% year-on-year to Euro413m in the first half of 2018 from Euro362m in the same period of 2017. Overall, the company reported a 24.6% increase in revenue to Euro1.51bn from Euro1.21bn.
In a separate release RHI Magnesita subsidiary Magnesita said that the company’s revenue rose by 81.6% to US$133m. This was attributed to sales to the cement business in North America and higher deliveries in Europe in 2018. However, Magnesita’s services business suffered from a poor cement market in Brazil.
Wonder Cement plant launched in Maharashtra 20 August 2018
India: Wonder Cement, a part of the Rajasthan-headquartered RK Group, has announced that it will set up a 2Mt/yr clinker grinding unit in Dhule, Maharashtra at a cost of US$64.7m. The plan marks the company’s first foray into the state. This is in addition to the earlier-announced plan to invest US$359m by the end of the 2020 financial year.
“The Dhule plant will distribute cement mainly across Maharashtra, while a minimal quantity will be supplied to Madhya Pradesh,” said Managing Director JC Toshniwal, who added that the company is also in the process of developing a railway siding for the unit.
Following the commencement of the Dhule facility, Wonder Cement’s production capacity will increase to 8.75Mt/yr from the present 6.75Mt/yr. The clinker required for the unit will be supplied from Nimbahera plant in Rajasthan. Gypsum, another raw material used for manufacturing cement, will be procured from Gujarat and fly ash from a nearby thermal power plant.
In addition to the plants in Nimbahera and Dhule, Wonder Cement is in the process of setting up a third clinker facility of about 2.5Mt/yr in Nimbahera, Rajasthan. “The civil works for the third clinker unit is in full swing,,” confirmed Toshniwal. “We will commission it by mid-2019. This will help to increase our cement production capacity to 11Mt/yr.”
Under its expansion plans, the company will look at setting up two more clinker units. One will be in Madhya Pradesh, but the location for the other is yet to be finalised.
Cement production rises in Azerbaijan 20 August 2018
Azerbaijan: In the first seven months of 2018, Azerbaijan produced 1.92Mt of cement, a 21.6% increase compared to the same period of 2017. The country also produced 17,000t of lime (a 27.3% increase) and 811,100t of finished concrete (an increase of 2.2 times).
Scramble for LafargeHolcim’s Indonesian unit 17 August 2018
Indonesia: The sale of LafargeHolcim's Indonesian unit has sparked the interest of several potential buyers in the region. Names in the ring include Japan's Taiheiyo Cement, Malaysia’s YTL Corp and Indonesia’s PT Semen Indonesia, according to Bloomberg reports that cite unnamed sources. PT Indocement Tunggal Prakarsa is also reported to be interested. Bloomberg reports that LafargeHolcim could seek as much as US$2bn for the unit, which has 15.5Mt/yr of capacity across seven plants.
Sungshin Cement to buy controlling stake in Halla Encom 17 August 2018
South Korea: Sungshin Cement will become the new owner of bigger rival Halla Encom Corporation, a ready-mixed concrete (RMC) manufacturer from Halla Corporation, by purchasing an 85% stake in it for US$49.3m.
Sungshin said that it had signed a share purchase agreement by forming a consortium with BCH Peregrine Investment, a private equity fund, to take over Halla Encom. It said that that the purpose of the sale was to improve its financial soundness and raise funds for new businesses.
Halla Encom ranked seventh among South Korea’s eight RMC producers in 2017, producing 3.44Mm3 of concrete. Sungshin Cement was eigth, with shipments of 1.91Mm3. The combined entity is expected to become the third largest producer of RMC in South Korea, larger than Ssangyong Remicon (5.34Mm3) Sampyo Industry (7.59Mm3) and Eugene Corporation (7.5Mm3).
EAPCC sites to be auctioned to pay for staff claims 17 August 2018
Kenya: East Africa Portland Cement Company (EAPCC) properties are set to be auctioned to recover US$13.9m owed to workers following the firm’s failure to fully implement a collective bargaining agreement (CBA).
The Kenya Chemical and Allied Workers Union (KCAWU) has already obtained the services of an auctioneer, who will start auctioning EAPCC property upon expiry of the notice. The auctioneer will be seeking to recover the money for more than 400 workers covered in the 2013–2015 CBA.
The said CBA was the subject of a dispute before the Labour Court and the Court of Appeal. EAPCC was aggrieved that the court had directed it to increase wages for contract employees.
Court of Appeal judges GBM Kariuki, Fatuma Sichale and Sankale ole Kantai, held that upon the contract staff who were not part of management becoming members of KCAWU on payment of union dues, they were entitled to benefit from the negotiated CBA.