Displaying items by tag: GCW167
Vietnam: Prime minister Nguyen Tan Dung has agreed to eliminate five more cement projects from the Zoning plan for the 2011 - 2020 period due to lower domestic cement consumption. The projects removed from the master plan have a combined capacity of 910,000t/yr. Earlier the prime minister had also approved the Ministry of Construction's proposal for removing nine clinker projects with a capacity of less than 2500t/day.
In 2013 the Vietnamese government decided to postpone the construction of nine other cement plants in Thanh Son, Tan Phu Xuan, Tan Tao, Yen Mao, Sai Gon Tan Ky, Phu Son, My Duc, Nam Dong and Minh Tam. While these cement plants face the axe, the government approved a project to develop Long Son Cement Plant, which will have a production capacity of 2.3Mt/yr in the northern province of Thanh Hoa. Construction commenced in early 2014 and will be put into operation in 2018.
Despite admitting the current cement glut on the local market, a number of projects are still underway as such schemes are enlisted in the nation's Zoning plan and project owners have invested huge sums in such plants, according Nguyen Van Thien, chairman of the Vietnam Cement Association. Project owners have no other choice but to continue the projects after injecting big funds, otherwise they cannot recover capital to service bank loans.
According to the Vietnam Cement Association, the combined capacity of all the country's cement plants is expected to reach more than 90Mt/yr by 2015, in line with the Zoning plan. Meanwhile, cement demand is forecast at 75 – 76Mt/yr by 2015. Vietnamese cement consumption was only 48Mt in 2012. Should demand rise by 5 - 10%/yr in 2014 and 2015, sales volumes would reach 60Mt, much lower than the expected figure.
UniCem ground breaking event attended by Nigerian President
04 September 2014Nigeria: The Nigerian President Goodluck Jonathan has spoken at the ground breaking ceremony of a new line at the 2.5Mt/yr Akamkpa cement plant, owned by United Cement Company of Nigeria (UniCem) in Cross River State. The company, which already operates a 2.5Mt/yr line on the same site, is the third largest producer of cement in Nigeria and aims to further secure this position when the new line comes online in 2016.
President Jonathan used the event to highlight the rapid development of the Nigerian cement industry. "In 2002 the Federal Government of Nigeria formulated the Backward Integration Policy (BIP) in the cement industry with a view to making Nigeria a self-sufficient cement producer," he said. "Within a decade, we have witnessed phenomenal growth in the industry from 2Mt/yr of cement produced locally in Nigeria to 28Mt/yr of installed capacity in 2013."
"Today's event by UniCem is yet another milestone for the company, the industry and the nation at large as this event brings additional 2.5Mt/yr to the nation's existing capacity," he continued. "I am particularly impressed that after five years of inauguration of the first line, we are gathered here today to break ground for the additional 2.5Mt/yr cement line."
Cemex negotiating refinancing deal
04 September 2014Mexico: Cemex has announced that it is negotiating with a number of banks in order to refinance part of its outstanding bank debt as it seeks to further lower financial costs and extend its debt maturity.
In a regulatory filing ahead of a possible private bond placement, Cemex said it is in advanced talks with a group of banks aimed at reaching a new agreement by the end of October 2014. Proceeds would be used to refinance part of an existing financing agreement with banks.
Cemex refinanced around US$15bn in bank debt during the 2009 global crisis and in 2012, with around half of the amount left to pay, agreed to reschedule some US$6bn in 2014 principal payments to 2017. Cemex has since lowered that further and owes around US$4.3bn under the agreement, which is due in 2017.
Cemex said the current talks with banks are part of its strategy to improve its financial flexibility and lower its overall debt costs. Company officials said recently that Cemex's main priority is to recover the investment-grade ratings that it lost during the 2009 crisis.
Vietnam cement exports rise in first seven months
04 September 2014Vietnam: In the first seven months of 2014, Vietnam earned US$563m from the export of 13.1Mt of clinker and cement, a 24% rise year-on-year in value terms and a 20.4% increase in terms of volume. Indonesia, Taiwan and Malaysia were the largest importers of Vietnamese clinker and cement in this period, according to the Vietnamese Ministry of Industry and Trade.
Indonesia imported 1.42Mt of clinker and cement (worth US$69m), Taiwan bought 0.86Mt (US$37.6m) and Malaysia purchased 0.7Mt (US$34.7m). Cambodia was fourth with 0.29Mt (US$15.6m).
Vietnam's domestic cement sales are expected to rise by 9% year-on-year to between 49 - 50Mt in 2014, while cement and clinker exports are likely to hit 16 - 20Mt. The country exported 15Mt in 2013.