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Demand for cement is so intense in Saudi Arabia that certain producers have reported production line shutdowns in dedicated stock market statements. Notably, industry newcomer Hail Cement reported a scheduled shutdown for late October/early November 2013, Al Jouf Cement reported unscheduled shutdowns in October and June 2013 and Najran Cement reported scheduled maintenance in July 2013. Even a short delay to cement production is a newsworthy event for both investors and analysts.

Saudi cement producers have risen to the infrastructure challenges of the country's Ninth Development Plan, increasing cement production by 6% year-on-year to 42.7Mt for the first nine months of 2013. In this febrile environment, the king ordered 10Mt of cement imports in April 2013 followed by government demands for producers to build up a two-month 'strategic' inventory reserve. Unsurprisingly, as we report this week, exports of cement from Saudi Arabia have fallen by 55% for the first nine months of 2013.

At the time of Global Cement's feature on Saudi Arabia in December 2012 only two of the country's cement producers had an inventory of joint clinker and cement stock meeting the government's stockpiling request. For the first nine months of 2013 the situation remains the same although the overall inventory has increased by 18% year-on-year to 10.3Mt. This compares to the end of 2012 where inventories fell year-on-year by 14% to 7Mt.

Unsurprisingly again, the Kingdom's major cement producers have seen balance sheets bulge so far in 2013. Yamama Cement reported a 12% year-on-year rise in net profit to US$145m for the first half of 2013 on the back of local demand. Saudi Cement Company reported a 5% year-on-year rise in its net profits to US$173m and Southern Province Cement saw a 4% year-on-year rise in its net profits to US$150m for the same period. Yanbu Cement saw its net profit rise by 29% year-on-year to US$176m for the first nine months of 2013.

With more large government infrastructure contracts pending, analysts expect the Saudi cement market to remain heated. Although as NCB Capital pointed out in September 2013, uncertainties over fuel supplies for coming cement plant expansions provide uncertainty to the situation. Nobody wants a repeat of the Yanbu - Aramco spat over fuel supplies that occurred in 2011. Irony would barely describe the situation if a Saudi Arabian cement boom was dented by a lack of fuel in one of the countries with the biggest oil reserves in the world.

Global Cement will be at stand T9 at the 18th Arab-International Cement Conference and Exhibition in Jordan from 11 – 13 November 2013

Switzerland: Bernard Terver, Member of the Holcim Executive Committee, has been appointed head of a company region encompassing Africa, Middle East and the Indian subcontinent. The appointment caps a series of changes in the company's senior management. All changes become effective on 1 January 2014.

Onne van der Weijde will remain Area Manager for India and will assist in the restructuring of Holcim's subsidiaries, ACC and Ambuja Cements. Javier de Benito will remain Area Manager for Africa and the Middle East, reporting directly to Terver. Member of the Holcim Executive Committee, Ian Thackwray will become responsible for East Asia, South East Asia, Oceania and Holcim Trading.

Daniel Bach, currently CEO of Holcim Romania, will be appointed Area Manager for South East Asia and member of senior management of Holcim. Alain Bourguignon, currently CEO of Aggregate Industries UK, will be appointed Area Manager for North America / UK and member of senior management of Holcim. He will report directly to the CEO of Holcim. Investor Relations and Risk Management will now report to CFO Thomas Aebischer.

Member of the Holcim Executive Committee Paul Hugentobler, currently responsible for South Asia and the ASEAN nations (Association of Southeast Asian Nations excluding the Philippines), will be retiring upon reaching the statutory age limit in February 2014. He will act as an advisor to the CEO of Holcim starting from 1 January 2014.

The area of responsibility of Holcim Executive Committee members Roland Köhler, in charge of Europe excluding the UK, and Andreas Leu, responsible for Latin America, will remain unchanged.

France: Lafarge has reported that its sales fell by 4% year-on-year to Euro4.24bn for the third quarter of 2013 from Euro4.39bn for the same period in 2012. The France-based building materials multinational blamed the results on adverse exchange rates which had a negative impact of 7% on both sales and profit indicators such as earnings before interest, taxes, depreciation and amortisation (EBITDA). Lafarge reported that its EBITDA fell by 6% year-on-year to Euro 1.01bn for the third quarter of 2013. Cement volumes remained stable at 36.7Mt.

By business region, cement sales volumes fell in North America, Western Europe, Central and Eastern Europe and Latin America for both the third quarter and the year to date. Mixed results were reported in the Middle East and Africa where cement sales volumes have fallen overall so far in 2013 but rose in the third quarter. Asia saw cement volumes rise in both periods.

Lafarge expects that the cement sector will grow at 0 - 3% in 2013 compared to 2012 due to market recovery in the US, continuing growth in most emerging markets and 'stabilisation' in Europe. The company intends to reduce its net debt to below Euro10bn in 2013, and below Euro9bn in 2014.

France: The Vicat Group has reported that its consolidated cement sales have fallen by 2.8% year-on-year to Euro855m for the first nine months of 2013 from Euro879 in 2012. No reason was given for the decline. Cement sales volumes rose by 1.4% year-on-year to 13.7Mt. Overall the company saw its total sales remain stable year-on-year at Euro1.74bn.

"The United States, Switzerland, Turkey and Kazakhstan again delivered healthy business levels while political and security factors in Egypt and competition in India and Senegal continued to weigh on the Group's performance in these regions," said Guy Sidos, CEO of Vicat.

Turkey: Engineering supplier Loesche has released information about a contract it signed in July 2013 to supply Göltas Cimento with a Type LM 56.3+3 vertical roller mill for cement grinding for its plant 130km north of Antalya. Loesche has previously supplied the company with vertical roller mills for cement raw material and coal grinding. The mill will produce at least three different types of cement, a standard OPC cement and various types of composite cements, at a production rate of up to 230t/hr.

Ethiopia: A TEC has released progress information on contracts to provide an alternative fuel system, which can process sesame straw and stalks, and a cement big-bag filling station for Messebo Building Materials Production in Mekelle. Both commissions were awarded in the first quarter of 2013 and local manufacturing and the erection will be performed by Mesfin Industrial Engineering PLC, a sister company of Messebo.

Installation of the alternative fuels system will start in the fourth quarter of 2013 with a planned start-up in the first quarter of 2014. Collection and preparation of straw and the production of bales will take place at Kafta Humera. The first phase of the project includes building a baling capacity of 50t/hr and an alternative fuel feeding capacity to the calciner of 10t/hr at the cement plant in Mekelle. A future upgrade, phase two, will scale the system up to a baling capacity of 71t/hr and an alternative fuel feeding capacity of 20t/hr.

The new station for big-bag filling will be installed at the cement plant in Mekelle. The system will consist of three filling stations in modular design. Each station can handle 15 bags/hr. A total number of 45 big-bags/hr with an overall capacity of 90t/hr can be reached. The big-bag filling station will be installed and commissioned at the end of 2013.

Zambia: The Competition and Consumer Protection Commission (CCPC) of Zambia has started a study to investigate cement price rises in South Africa, Botswana, Tanzania and Zambia. The four sub-Saharan countries were chosen by the CCPC as a case study because they had similar companies producing and selling cement locally according to CCPC public relations officer Hanford Chaaba.

"We have been monitoring this situation concerning price changes for quite some time now and a study has been focused on these countries because the same producers of cement in Zambia have established factories in South Africa, Tanzania and Botswana," said Chaaba. He added that a similar study is also being conducted for the sugar and poultry industries.

Saudi Arabia: MAN Diesel & Turbo has received an order from the United Cement Industrial Company to build a 54.5MW captive power plant for a new 5000t/day cement plant located in the south of the country.

MAN Diesel & Turbo is building the power plant under an Engineering, procurement and construction (EPC) agreement covering delivery of the engines and the erection of all essential ancillary equipment. A consortium partner is responsible for local deliveries and services. Construction of the plant is set to begin in late 2013, with delivery of the engines due to take place in mid-2014.

"We believe there is tremendous potential in the domain of local power plant solutions for independent energy generation in particular, for example for cement or steel works. The United Cement Industrial Company is a new client for us and one we have convinced with our technical concept," said Dr Rene Umlauft, CEO of MAN Diesel & Turbo.

China: China Resources Cement has entered into a strategic co-operative framework agreement with Jianhua Construction Materials (China) Investment Company Limited regarding the supply of cement for a term of five years.

Jianhua will give priority to China Resources Cement for the purchase of cement in all regions where both parties have established production facilities. China Resources Cement will ensure the timely delivery of the required grades and quantities of cement as required by Jianhua at the most 'favourable' market prices.

Jianhua is the largest concrete pile manufacturer in China in terms of production capacity, sales volume and the market share.

Egypt: The managing director of Suez Cement has announced that the company intends to invest US$145m by 2016 energy security measures. US$72.5m will be spent on converting two of its five cement plants for the use of coal instead of gas and diesel. The remaining US$72.5m will be spent on environmental upgrades.