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News GCW152

Displaying items by tag: GCW152

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Sustainable expansion for Semen Indonesia

28 May 2014

One of the ideas aired by several speakers at last week's 6th Brazilian Cement Congress was that using cement as a construction material is inherently a sustainable option.

The reasons for this included the durability of cement's construction products and the role cement plays in improving the living standards of a country. For example, under the onslaught of extreme weather like hurricanes, concrete structures are more likely to remain standing. Or, for a country like Brazil with sections of society living in long-term 'temporary' buildings in its favelas or shanty towns, providing affordable cement to help the country build better housing for its inhabitants is the only sustainable future that could be considered.

Perhaps in line with this concept of cement-as-sustainable-construction-material we see Semen Indonesia this week announcing expansion plans in three countries in South and Southeast Asia.

In West Sumatra a Semen Indonesia subsidiary has started building a 3Mt/yr cement plant in Padang. Then in Bangladesh Semen Indonesia revealed its intention to buy a 1Mt/yr plant. Finally, the state-owned Indonesian cement producer said that its Semen Gresik subsidiary was planning to build a new cement plant in Central Java at Rembang in June 2014. From previous press releases we can see that both new plants are FLSmidth builds. Both orders were announced in early 2014. Each has a capacity of 8000t/day.

The plans to expand outside of Indonesia echo reports that Semen Indonesia was set to buy a minority share in a Myanmar cement producer. Although the producer was unnamed as of early May 2014, Semen Indonesia CEO Dwi Soetjipto valued the stake at US$30m and the producer's production capacity at 1.5Mt/yr in comments to the Jakarta Globe.

Altogether the two new plants in Indonesia will place Semen Indonesia's total cement production capacity at 40Mt/yr by 2017 according to company figures. This would be enough to place the company within the top 20 of the world's largest cement producers by production capacity following the research from Global Cement's 'Top 75 global cement companies'.

In a nice coincidence, the company with a production capacity of 40Mt/yr on that list was Eurocement. Last week the Russian cement producer announced that it had signed contracts worth Euro387m with Chinese companies - including Sinoma, CNB, Sinomach and CAMC Engineering Co - to add 17Mt/yr cement production capacity across six plants in Russia. Another six or seven more construction agreements for cement plants are also expected to be signed in the coming months.

Certainly for the countries Semen Indonesia is focusing on – Indonesia, Bangladesh and Myanmar, with low gross domestic product per capita – providing the raw material for stronger and more durable buildings covers some of the sustainability bases. Yet if all these new plants only use fossil fuels and are subject to few environmental restrictions then that undermines some of this. However, whether all this expansion is sustainable or not, the cement industry never remains stationary.

Published in Analysis
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Additional management adjustments at Cemex

23 May 2014

Mexico: Further management changes have been implemented at Cemex, including the inclusion of six executive vice presidents, instead of five. The six vice presidents will report directly to the director general, Fernando Gonzalez, with the position of executive vice president of finance to be filled by Jose Antonio Gonzalez.

Juan Pablo San Agustín will continue as executive vice president of strategic planning and business development, while Maher Al-Haffar has been appointed as executive vice president of investor relations, corporate communications and public affairs. Luis Hernandez will continue as executive vice president of organisation and human resources, as well as security and administrative services, while he will also be responsible for processes, IT, innovation, global service organisation (GSO), the securities funding corporation (VMO) and the Neoris project. Ramiro Villarreal will remain head of legal affairs, taking up the position of executive vice president of legal, while he will continue as secretary of the board of directors. Mauricio Doehner has been appointed as executive vice president of corporate affairs and business risk management.

No changes have been made at the regional director level. Cemex executives have also expressed a desire to recover investment grade at the firm, lost during the crisis in 2009.

Published in People
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Allied Cement Holdings appoints Li Chun Fung as company secretary

28 May 2014

China: With effect from 26 May 2014, Wong Ka Hang resigned from her office as Allied Cement's company secretary. With effect from 26 May 2014 Li Chun Fung has been appointed as her replacement.

Published in People
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FLSmidth Ventomatic consolidates its presence in the minerals and chemical industries

28 May 2014

Italy: FLSmidth Ventomatic SpA a supplier of complete plants and single machines for high-accuracy and high-capacity storage, packaging and dispatching of products for the cement and building material industry, has strengthened its position in the minerals and chemical industries through the consolidation of its partnerships Imeco(R) and Italmeccanica, both with long-standing experience in the packaging of powdery and granulated products.

Thanks to these two strong business partnerships, Ventomatic says that it is now in the position to 'design, manufacture and supply' bagging solutions that are specifically designed for the dosing and weighing of cement, dry mortars and other building materials and industrial minerals into valve bags, open mouth bags and fill, form and seal bags.

Published in Global Cement News
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India Cements to merge with subsidiary Trinetra Cements

28 May 2014

India: India Cements plans to merge with its subsidiary, Trinetra Cements. N Srinivasan, vice-chairman and managing director of India Cements, said that the company wanted to consolidate cement operations. The merger will also include Trishul Concrete Products and involve selling land near its plants in Tamil Nadu and Andhra Pradesh.

"We will get the benefit of profitability of Trinetra and improve the performance of India Cements," said Srinivasan. He adding that, following the merger, the total cement production capacity of India Cements would rise to 15.8Mt/yr.

For its first quarterly results in 2014 India Cements reported a net loss of US$5.19m. The company has also been under a corporate debt-restructuring scheme since January 2003, which ended in March 2014 with a US$9.69m charge. India Cements has a production capacity of 15.5Mt/yr. It has seven integrated cement plants in Tamil Nadu and Andhra Pradesh, one in Rajasthan (through Trinetra Cements) and two grinding units, one each in Tamil Nadu and Maharashtra.

Published in Global Cement News
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Lafarge sells cement operations in Ecuador for US$553m

28 May 2014

Ecuador: Lafarge has announced the sale of its cement operations in Ecuador for an enterprise value of US$553m to Union Andina de Cementos (UNACEM). Lafarge Cementos SA operates an integrated cement plant with a production capacity of 1.4Mt/yr in Otavalo.

The divestment will contribute to Lafarge's objective to reduce its net debt below Euro9bn in 2014. The transaction is subject to customary closing conditions.

Published in Global Cement News
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Nippon Paper to sell fly ash

28 May 2014

Japan: Nippon Paper Industries has announced that it will jointly launch a new project with Zerotechno, located in Oita city, to produce and sell fly ash to the cement industry. Both companies will establish the Nippon Paper Zerotechno Tohoku limited liability partnership on 1 July 2014, which is to be based at the site of Nippon Paper Ishinomaki Mill in Ishinomaki city, Miyagi prefecture. The purpose of the project is to contribute to restoration of Tohoku district from the earthquake disaster by expanding use of carbon-free fly ash derived from coal ash that coal-fired boilers emit at Ishinomaki Mill.

Published in Global Cement News
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Imasa, Polysius and Valoriza to build US$244m cement plant in Bolivia

28 May 2014

Bolivia: A Spanish-German consortium, formed by Imasa, Polysius and Valoriza, intends to build a US$244m cement plant in Bolivia. The consortium has received the order from Bolivia's state-run cement producer Empresa Publica Productiva Cementos de Bolivia (Ecebol).

The new factory will be located in the Oruro department near a limestone quarry that has reserves of 209Mt. This has the capability to supply raw material for 90 years. The plant will have an annual production capacity of 1.3Mt/yr.

Published in Global Cement News
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Novoroscement to build Euro250m cement plant in Novorossiysk

28 May 2014

Russia: Novoroscement plans to launch a cement production line at its Pervomaisky plant near Novorossiysk. The plant will have a cement production capacity of 2.2Mt/yr and Euro250m has been invested in the project.

Published in Global Cement News
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Eurocement seeks funding from Sberbank for expansion

28 May 2014

Russia: Sberbank and Eurocement signed a cooperation agreement at the XVIII St Petersburg International Economic Forum to secure funding for expansion by the Russian cement producer. Herman Gref, the bank's CEO and Chairman of the Board, signed the agreement for Sberbank and Filaret Galchev, the Chairman of the Board of Directors, signed for Eurocement, according to SKRIN Newswire.

The agreement also stipulates that the two parties will cooperate on a whole range of issues, from settlement and cash services to the provision of investment and banking products (via Sberbank CIB1) and other financial services, both for Eurocement group itself and for its affiliates and dependent companies.

"The signing of the agreement with Sberbank will serve as a guarantee that the Holding company's investment programme will receive sufficient funding until 2018 and that the transition to the active phase of the construction of new cement manufacturing facilities will be made. The implementation of this project will give a significant boost to growth in Russia's construction sector as a whole, by providing high-quality cement for infrastructural and residential projects in the country," said Filaret Galchev, the Chairman of the Board of Directors at Eurocement.

Published in Global Cement News
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