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The Brazilian cement industry took a knock last week when the competition watchdog Cade (Administrative Council for Economic Defence) confirmed its intention to issue the sector with fines worth a combined US$1.4bn.

Under the terms of the ruling, Votorantim will have to pay US$672m, Cimpor will pay US$133m, InterCement Brasil will pay US$108m, Itabira will pay US$184m, Holcim will pay US$227m and Itambé will have to pay US$39.4m. The companies involved will be forced on average to sell 24% of their assets. Votorantim, for example, will be compelled to divest 35% of its cement assets or 11Mt/yr of production capacity. In addition a fine of nearly US$2m is to be imposed on the cement associations ABCP and SNIC.

To give these figures some context, Votorantim reported a net profit of US$105m in 2013 across all its business lines including cement, metals, mining and pulp. The fine Cade wants to impose is over six times greater than this! A fine of this size will be a serious setback for Votorantim if it goes through. Votorantim's net revenue for its cement business in 2013 was about US$5.5bn. This places the fine at just over 10% of company annual turnover, a common upper limit for fines imposed by anti-competition authorities around the world. 10% of turnover, for example, is the maximum percentage fine that European Union competition regulators can impose.

Although hard to compare with the other Brazilian cement producers due to differences in financial reporting, the proposed fines seem equally tough on the other companies. Before the acquisition of Cimpor inflated its financial figures, InterCement reported a net revenue of US$1.2bn in 2011. This places its fine at 9% of annual turnover. Holcim's net sales in its Latin American region as a whole, including operations in Brazil, totalled US$3.73bn in 2013.

Both Holcim and Cimpor have issued corporate rebuttals to Cade insisting that they followed and still follow all the necessary competition laws. Both companies intend to fight the decision. Votorantim went further in its response saying that it considering the fine 'unjust and unprecedented' and it warned that the ruling would cripple any investments in the Brazilian cement sector. The ruling also forbids the company from opening new factories within the next five years, places limits on the company taking out new loans and prevents it from consolidating its market share.

Internationally, the Cade fine surpasses the US$1.1bn Competition Commission of India penalty imposed against 11 producers in India in 2013. Other recent anti-trust fines against the cement industry include a Euro80m fine in Poland that was upheld on appeal in 2013 and the US$19.3m Lafarge was charged in South Africa in 2012.

The prosecutors pointed out that work on public roads had been inflated by nearly US$8m. Overall they reckon that the cartel cost the Brazilian economy US$6.3bn. Examples likes this are unlikely to gain sympathy for the accused cement producers from a Brazilian public already angry about the amount of public money spent on building excessive sports stadiums and the like for the Football World Cup later in June 2014 and the Olympic Games in 2016. In the meantime though – over to the lawyers.

Oman: Raysut Cement has appointed Salem Alawi Mohammed Baabood as chief executive, the company announced in a bourse statement. The cement producer is the largest company by market value in Oman with a cement production capacity of 3Mt/yr at its Salalah plant.

Zimbabwe: Lafarge Cement Zimbabwe plans to increase its cement production capacity to 0.5Mt/yr once a current plant upgrade is complete, according to an official. At present Lafarge reports a 70% capacity utilisation rate at its Manresa cement plant, producing 0.37Mt/yr.

"Capital to the tune of US$15m has been earmarked to eradicate bottlenecks and to boost volumes," said Lafarge Zimbabwe chief executive Amal Tantawi in an interview reported by the Herald newspaper. Lafarge has spent about US$5m on plant refurbishments over the past five years and it is now focusing on improving the cement production capacity of its existing plant.

Lafarge Zimbabwe is also in the process of conducting feasibility studies to establish a new manufacturing plant to complement the existing one. Tantawi added that Lafarge Zimbabwe was still keen on exporting cement despite a decline in export volumes in 2013. The company has been focusing on the local market since 2013 due to increased demand. Despite high demand for cement Tantawi highlighted liquidity issues with the local economy as the biggest challenge facing Lafarge. To tackle this Lafarge is rolling out different incentives to encourage its customers to make cash payments.

Lafarge Zimbabwe has also launched Supaset cement in the country following its use on other African states. The product is as a fast setting solution for the block making and precast segments of the construction industry.

Nigeria/South Africa: French cement maker Lafarge intends to combine its businesses in Nigeria and South Africa. The new company Lafarge Africa, which will be 73% owned by Lafarge Group, will remain listed on the Nigerian Stock Exchange. The new company will have a cement production capacity of about 12Mt/yr in South Africa and Nigeria as well as operations in aggregates, ready-mix and fly ash. The new company will be worth more than US$3bn.

"I am proud to be part of the creation of this leading African building materials platform. It will provide access to growth in two of the largest economies on the continent. It will mean that our shareholders are invested in a larger and more geographically diverse business and it will contribute significantly to the economic growth of both our nations, " said Chairman of Lafarge WAPCO, Chief Olusegun Osunkeye.

Under the proposed terms, Lafarge Group will transfer its direct and indirect shareholdings in Lafarge South Africa Holdings (Pty) Limited (100% - representing 72.4% of underlying companies in South Africa), United Cement Company of Nigeria Limited (35%), Ashakacem plc (58.61%) and Atlas Cement Company Limited (100%) to Lafarge WAPCO. The transaction is subject to Lafarge WAPCO shareholder approvals and obtaining required regulatory and other customary authorisations. The group anticipates completion during the second half of 2014.

Spain: Cemex has opened a new distribution centre in Rubi, Catalonia. Cemex Spain CEO Jaime Ruiz de Haro and Rubi Mayor Carme Garcia cut the ribbon on the new facility. The centre will distribute cement and other construction materials.

"We are the top producer of white cement in the world and the number three producer of grey cement. Centres like this allow us to get closer (to our customers) and improve our offerings," said Ruiz de Haro.

Cemex expects sales to hit Euro250m in 2014 in Spain. It employs about 200 people in the country.

Pakistan: The Federal Excise Duty (FED) on cement is likely to be rise by US$1/t in the upcoming budget for the 2014 - 2015 Pakistan financial year. Federal Board of Revenue (FBR) officials said that the government had reduced the FED on cement from US$7.6/t to US$5/t in the 2011 – 2012 financial year and from US$5/t to US$4/t in the 2012 – 2013 financial year.

According to local press the government promised local cement producers that the FED would be gradually reduced and phased out. However, FBR sources spoken to by the Nation reported that the FED was likely to be increased by US$1/t to US$5/t to make up for a shortfall in tax revenue. However no final decision has been made so far.

If the FED does increase during the next budget then the cost of cement is likely to rise for consumers.

Norway/Austria: Yara International intends to acquire the flue gas cleaning division of STRABAG SE, in a move that consolidates Yara's position as a global, full-service emissions-to-air control company. STRABAG stated that it is selling its flue gas cleaning division in order to focus on its core construction business.

"Our acquisition of STRABAG's flue gas cleaning division will increase our capacities in, and beyond, NO_x control systems. It will also give us access to great teams in key growth markets like Asia and Eastern Europe, where we can help customers meet increasingly stringent environmental regulations," said Yves Bonte, Senior Vice-President and head of Yara's Industrial Segment.

With flue gas cleaning, Yara can provide an end-to-end service that includes the production of Selective Catalytic Reduction (SCR) and Selective Non-Catalytic Reduction (SNCR) systems to reduce Nitrogen Oxide (NO_x) emissions, along with the reagents needed to operate them.

The STRABAG acquisition is part of Yara's broader strategic direction to invest in products and services that address the related issues of environment, resources and food security. In January 2014 Yara acquired H+H Umwelt-und-Industrietechnik GmbH, which primarily produces SCR systems to reduce Nitrogen Oxide (NO_x) emissions on ships. In April 2014 Yara also took a majority stake in Green Tech Marine, a leading Sulphur Oxide (SO_x) scrubber supplier to the marine industry.

The transaction is subject to approval by the Austrian competition authority and other regulatory approvals. It is expected to be completed by the end of August 2014.

Germany: KHD has reported that it has started two modernisation projects for HeidelbergCement's cement plant in Lengfurt, Germany. These projects include the modernisation of the raw meal grinding unit with KHD SKS VC 3000 dynamic separator and the modernisation of an existing preheater with KHD's new PH5835 cyclones.

KHD's responsibility includes manufacturing, erection and commissioning for both projects. The raw meal grinding unit has been in operation since its successful installation in April 2014 and the installation of the new preheater cyclones is scheduled to begin in the winter of 2015.

Egypt: The Egyptian Natural Gas Holding Company (EGAS) has cut the amount of gas it supplies to cement plants due to natural decreases in well productivity. Egyptian gas production dropped to 133Mm³/day from 166Mm³/day in May 2014, according to Mohammed Hassan, Assistant Deputy Chairman of EGAS. Subsequently EGAS has cut the volume of has it supplies to cement plants from 11.6Mm³/day by 7.08Mm³/day, a drop of 61%.

US/Cuba: A lawsuit in Spain has revealed documents indicating that Holcim may have invested in a cement plant in Cuba despite warnings the deal might violate US law because the plant sits on land seized from US citizens. The deal took place in 2000, when Holcim was known as Holderbank, but allegedly the ownership went through a string of companies in Spain, the Netherlands and Panama, according to documents filed in a lawsuit reported upon by the Miami Herald.

"Holderbank's investment in the Cienfuegos property clearly would constitute 'trafficking' in confiscated property under Title IV of Helms-Burton," wrote US lawyers hired to advise Holcim. Holcim denies that it owns a business or a stake in a business in Cuba.

The court documents are part of a lawsuit involving three Spanish firms. Firebrick SA and Acedos Trading allege that Inversiones Ibersuizas owes them more than US$2m from an investment in Cuba in 2000. The documents suggest that Ibersuizas created a Spanish firm, Las Pailas de Cemento, in 2000 that paid US$70m to Cuba for 50% of the joint venture, Cementos Cienfuegos plant. Holcim allegedly controlled the project through a Panama company, Windward Overseas. The deal subsequently began to break down in 2004.

Since 2004, the US Treasury Department's Office of Foreign Assets Control, which enforces the US embargo on Cuba, has fined foreign companies more than US$1.25bn for violating US laws and regulations.