
Displaying items by tag: GCW169
Fighting for the crumbs
24 September 2014A significant amount of recent news has come from the fallout from the proposed LafargeHolcim merger. Lafarge and Holcim, as well as a raft of global cement producers, are stepping up activity and those outside the deal are starting to jostle for position. They will want to take advantage of the many opportunities to snap something up from the long list of assets to be sold.
First up, Turkey's Sabançi Holding has been reported to be investigating the LafargeHolcim divestments, although the actual targets were not reported. There are none on offer in Turkey itself but potential Sabançi interests could lie in nearby Romania, Serbia or Hungary. Of course, it isn't possible to rule out any wider ambitions.
Next we have Elementia, which has acquired Lafarge's former stake in their Mexican joint venture, prior to the announcement of its initial public offering there. In Singapore, CVC Partners and the Government entered discussions over the purchase of assets. It was earlier agreed by the Singaporean competition authorities that Lafarge and Holcim would be able to merge due to them being relatively small players in that market.
Meanwhile, in the UK and the US, HeidelbergCement is positioning itself via share deals in its subsidiary Hanson Building Products so that it may bid for the LafargeHolcim divestments in the US and UK. Hanson Building Products has filed for an Initial Public Offering in the US in preparation for HeidelbergCement to sell it later in the year. This sounds like a case of HeidelbergCement focusing on its core markets of cement.
There have also been moves by Lafarge and Holcim, most notably their approach this week to the European Union (EU) prior to the merger. The multinationals plan to iron out possible EU concerns over the merged company's market power before filing for approval of the deal, the step that starts an EU review.
Activity seems to be hotting up ahead of the LafargeHolcim merge and it will only intensify. It will be interesting to see which other multinational and regional players decide to 'show their hand' through the rest of the merger process. There are many more assets in Austria, France, Germany, the UK, Canada, Mauritius, the Philippines and Brazil to be divided up before the LafargeHolcim merger can be completed.
Chamber of mines chief executive replaces Gordhan
24 September 2014South Africa: Chamber of Mines chief executive Bheki Sibiya had been appointed interim executive chairman of PPC. "This interim appointment has been approved by the office-bearers of the Chamber of Mines and is with immediate effect and until 31 December 2014," said a Chamber of Mines statement. The chamber's chief operating officer, Roger Baxter, will serve as acting chief executive until the end of December 2014.
PPC chief executive Ketso Gordhan resigned on 22 September 2014 with immediate effect, Business Day reported. He was appointed in January 2013.
Eastern Province Cement general manager steps down
24 September 2014Saudi Arabia: Eastern Province Cement has announced that the board accepted the resignation of general manager Zamil Al-Muqrin on 21 September 2014, effective from 1 January 2015.
Star Ferro and Cement appoints new CEO and CFO
24 September 2014India: Star Ferro and Cement has announced that the board of directors has appointed Sanjay Kumar Gupta as company CEO and Dilip Kumar Agarwal as company CFO, both with effect from 20 September 2014.
Sabancı plans bid for LafargeHolcim divestments
24 September 2014Turkey: Turkish conglomerate Sabancı Holding plans to bid for some of the assets that cement makers Lafarge and Holcim must sell to steer their mega-merger past competition watchdogs, according to Reuters.
"Sabancı Cement Group is interested in these sales. Preparations are being made to make a bid in December 2014. Before the bid, preliminary information has been obtained on the assets so it can be assessed," said a source quoted by Reuters.
New LC3 cement mixture developed
24 September 2014India: Swiss, Indian and Cuban researchers have come together to develop limestone calcined clay cement (LC3), which can help reduce the carbon dioxide emissions of cement by almost 30%.
"The LC3 project is an example of scientific and technical collaboration between Switzerland and India. The innovative cement production process on which these institutions are working is of great economic and environmental significance," said Switzerland Ambassador to India Linus von Castelmur.
The LC3 is a synergetic hydration of clinker, calcined clay and crushed limestone to achieve the performance required from commercial cements, with clinker factors as low as 0.40. It also costs less than traditional types of cement.
"The testing and application phase is over, now it has to pass through standardisation committee before it is accepted by the industries. The research that has been done will not be patent protected but available to everyone," said Castelmur.
Iran-built cement plant begins production in Caracas
24 September 2014Venezuela: Iranian Mines & Mining Industries Development & Renovation Organisation (IMIDRO) has announced that Venezuela's Iranian-built 1Mt/yr capacity cement plant has started pilot production. IMIDRO, via its subsidiary company Ehdas Sanat Company, began the implementation of the project eight months ago. It is expected to go on stream shortly.
JSW Cement plans 4.3Mt/yr capacity cement plant in Karnataka
24 September 2014India: JSW Cement is considering the construction of a 4.3Mt/yr cement plant in Gulbarga, Karnataka. The company is optimistic about demand revival in the south of India, as economic activity picks up in Andhra Pradesh and Telangana, according to SS Sandhu, associate vice president of JSW Cement.
At present, JSW Cement has 6.4Mt/yr of cement production capacity in Karnataka, Andhra Pradesh and Maharashtra. Sandhu said that the company already has land in Gulbarga and the region is rich in limestone. Another advantage is that supplies could be made from Gulbarga to cement markets in Maharashtra and Gujarat. Since the group company, JSW Steel, produces slag, JSW Cement could manufacture slag cement.
When asked about the economic slow-down, Sandhu conceded that there has been a contraction in construction activity in the south of the country, but that stability has now returned. A lot of projects are expected to come up in the near future in Andhra Pradesh and Telangana, including ones at the new Andhra Pradesh capital that is planned at Vijayawada. The company expects that a pick-up in demand will drive its capacity utilisation to 75% by the end of the current fiscal year from 55 – 60% at present.
Spanish watchdog inspects cement companies over cartel suspicions
24 September 2014Spain: The Spanish competition watchdog CNMC has carried out inspections at the headquarters of companies that produce cement, concrete and their derivatives.
The cause for the inspections, which were conducted on 16 - 18 September 2014, was suspicions of anticompetitive practices, including division of markets and price fixing agreements. Should suspicions be confirmed, the regulator will initiate disciplinary proceedings on the basis of 'very serious' misconduct, which could result in fines amounting to 10% of the companies' revenue.
Lafarge to open 4000t cement silo in the Seychelles
24 September 2014Seychelles: Lafarge is constructing a 4000t cement silo in the Seychelles in partnership with the Sri Lankan engineering company Dynamic Technologies. The silo will be built in Sri Lanka and shipped to the Seychelles. Lafarge and Dynamic Technologies developed a similar facility in Mayotte, an overseas department of France, earlier in 2014.