Displaying items by tag: Budget

Nigeria: Ebonyi State Governor Francis Nwifuru has presented a proposed US$604m budget for 2026, including plans to construct a US$102m state-owned cement plant.

Nwifuru said most of the spending would target infrastructure and economic growth projects. He attributed the rise from previous annual budgets, averaging about US$60m, to expanded fiscal space following the removal of the federal fuel subsidy.

The cement plant, conceived as a successor to the defunct NIGERCEM, will be financed through a US$102m self-repaying loan. “We agreed in council that this project will borrow money to fund itself from beginning to end. And this project will generate the same money to repay the loan,” Nwifuru said.

Geological assessments are currently underway to determine the most viable location with adequate limestone reserves.

Kenya: Cement sales fell by 8% year-on-year to 8.47Mt in 2024, the sharpest annual decline in over two decades, according to the Kenya National Bureau of Statistics (KNBS). The fall reflects budgetary cuts on public infrastructure projects and a broader slowdown in construction activity, which contracted by 3% in the third quarter of 2024, following a 2% drop in the second quarter.

KNBS said in its report “The contraction was reflected by trends in key industry indicators. For instance, cement consumption declined by 10% to 2.2Mt in the third quarter of 2024, from 2.4Mt in the same quarter of 2023.”

According to the Nation newspaper, the slowdown follows delays in the government’s payments to contractors and the stalling of infrastructure projects. The government indicated that most of the stalled projects will begin to receive funding in the next few days and weeks.

Bangladesh: The Bangladesh Cement Manufacturers Association (BCMA) has requested that the National Board of Revenue (NBR) lower an import tax on clinker to US$1.7/t. The lobbying is taking place ahead of the upcoming budget for the 2025 – 2026 financial year, according to the Financial Express newspaper. The association also expressed concern that a 10% duty was levied on limestone imports, but it expects this to be relaxed in the upcoming budget. The BCMA has urged the NBR to simplify customs regulations and impose a tariff system on value-added tax (VAT) calculations.

India: The Cement Manufacturers’ Association (CMA) has praised the Indian government’s Union Budget 2025 – 2026 for its ‘sustained core focus’ on infrastructure, housing and sustainable development. United News of India has reported that the budget provides for interest-free loans for state governments’ infrastructure projects and additional funding for research and development.

The CMA said that this aligns with its own development goals, within which it envisions the cement sector playing a growing role in a ‘sustainable, resilient’ economy.

Canada: The Cement Association of Canada (CAC) says that provisions for investments and supportive measures in the government’s Fall Economic Statement 2023 will help to ensure the successful roll-out of carbon capture, utilisation and storage (CCUS) for industrial decarbonisation. The statement commits the government to advancing a CCUS Investment Tax Credits (ITC) scheme.

CAC president and CEO Adam Auer said “We commend the government’s recognition of the importance of CCUS in achieving our climate objectives. The cement industry is committed to reducing its carbon footprint, and these investments will facilitate the deployment of innovative technologies that are essential for achieving our Concrete Zero sustainability action plan objectives.”

India: Grasim Industries raised its sales during the first quarter of the 2024 financial year by 11% year-on-year, to US$3.57bn from US$3.39bn. Its net profit was US$311m, down by 7% from US$333m. During the quarter, Grasim Industries launched its Birla Pivot building materials e-commerce platform in Maharashtra, Madhya Pradesh and the National Capital Territory. The Hindu BusinessLine newspaper has reported that the company has a capital expenditure (CAPEX) budget of US$699m for the 2024 financial year.

Peru: Cementos Inka has announced the successful commissioning of its new 800,000t/yr Pisco grinding plant. The new plant is equipped with Christian Pfeiffer grinding and separation equipment. El Comercio News has reported that the producer invested US$55m in the plant. This exceeded previous budgets by 15 - 22%, due to coronavirus-related costs rises. This latest commissioning triples Cementos Inka's installed capacity to 1.2Mt/yr. General manager Carlos Choy estimated that the producer's market share has risen to 10% from 3.9%.

Choy said that the producer's next project will be the construction of a 1 - 1.5Mt/yr kiln line to produce clinker at the site.

Bangladesh: The Bangladesh Cement Manufacturers Association (BCMA) has called for a 60% cut to duties on clinker imports, to US$1.84/t from US$4.61/t. The Financial Express newspaper has reported that BCMA members are struggling with high shipping costs and supply issues due to Russia’s war in Ukraine.

The Bangladesh government published plans to raise the duty on imports of clinker by 40% to US$6.46/t in its 2023 budget on 13 June 2023.

Canada: Heidelberg Materials and the Canadian government have signed a memorandum of understanding (MoU) to collaborate on the installation of a carbon capture system at the company’s Edmonton cement plant in Alberta. The project is scheduled for completion in 2026, at a total cost of US$1.01bn. When operational, the system will capture 100% of the Edmonton cement plant’s CO₂ emissions - 1Mt/yr – for transportation and storage in nearby Wabamun. Canada Newswire has reported that construction of the system will create 2000 jobs.

The government said that it would be a ‘significant partner’ for the project. The size of funding will depend on other provisions under its Investment Tax Credit for Carbon Capture, Utilisation and Storage scheme, which is currently being finalised.

India: The government of Telangana has asked the Indian government for US$612m in funding for the planned reopening of state-owned Cement Corporation of India's Adilabad cement plant, alongside other projects. The Indian government will publish its 2023 - 2024 Union Budget in January 2023. The Times of India newspaper has reported that funding has been insufficient for the Telangana state government to realise its industrial growth plans over eight successive previous budgets.