Displaying items by tag: GCW604

Poland: Lafarge Cement Polska has signed a 15-year power purchase agreement (PPA) with KGAL Investment Management. The KGAL ESPF 4 renewable energy fund will provide the cement producer with around 230GWh/yr of electrical energy from two onshore wind farms. These will be the 35MW Krasin unit, which opened in 2022, and the 27MW Rywald unit, which is scheduled to start feeding the local grid from October 2023. With this latest agreement in place, Lafarge Cement Polska will be able to cover over half of its electrical supply requirements from renewable sources.

KGAL is an independent investment and asset manager based in Germany. It focuses its investments in real estate, sustainable infrastructure and aviation sectors.

Image credit: KGAL GmbH & Co. KG.

Ethiopia: China-based Sinoma International Engineering has signed an agreement with National West International Holding (WIH) Building Materials to build an industrial park development project at Dire Dawa. The project has an investment of US$600m and will include a 6000t/day cement plant and a 1000t/day lime unit, according to the Xinhua News Agency. The proposed industrial park is relatively close to the Port of Djibouti, in neighbouring Djibouti, to allow for access to raw materials and potential export markets.

WIH, a joint-venture between companies based in Ethiopia and China, already operates a cement plant at Lemi in Amhara Region.

UK: Legal & General Capital, an alternative investment arm of financial services company Legal & General, has invested around US$15.5m in Cambridge Electric Cement (CEC) and other companies as part of its strategy to decarbonise the residential sector. It is also investing in Hometree and SunRoof, as well as increasing its existing investment in Sero Technologies.

CEC is developing process to create net zero-CO₂ cement product using recycled concrete paste. It launched a two-year industrial trial of its Cement 2 Zero project in February 2023.

Türkiye: Çimentaş has signed a contract to order an electrical switch facility and transmission line from Girisim Elektrik. The price of the deal is around US$3m.

Girisim Elektrik is an engineering, sales and marketing company in the electrical and energy sectors based in Türkiye. Çimentaş is a subsidiary of Italy-based Cementir Holding. It operates cement factories in İzmir, Edirne, Elazığ and Kars.

Kazakhstan: Steppe Cement recorded sales of US$10.9m in the first quarter of 2023, down by 22% from US$14m during the first quarter of 2022. The producer sold 215,000t of cement during the quarter, down by 22% from 282,000t.

Steppe Cement said that Kazakh cement demand fell by 13% year-on-year in the first quarter of 2023. Its market share was 13%, compared to 14% in the corresponding quarter of 2022.

Ethiopia: China-based China National Building Material (CNBM) and its engineering subsidiary Sinoma International have expressed interest in investing in the local cement sector. The comments were made in a meeting with Tefera Derbew, Ethiopia’s ambassador to China, and Liu Yan, an executive director of CNBM and the chair of Sinoma International, according to Fana. During the gathering Derbew noted Sinoma’s contribution so far towards helping build cement plants in the country. CNBM has accepted an invitation to participate in the Invest Ethiopia forum taking place in Addis Ababa in late April 2023.

Kenya: A court has prevented the takeover of a US$47.8m parcel of land belonging to East African Portland Cement Company (EAPCC) by the government. The court found that the government had not followed proper consultation processes. The East African newspaper has reported that the government had already concluded a deal with China and Oman-based investors for affordable property developments on the land.

EAPCC says that it now plans to use the site to build its own green smart city. The cement producer says that this will help to diversify its income streams.

Russia/Uzbekistan: The US Department of State has imposed sanctions upon USM Holding including its subsidiaries Akkermann Cement and USM Cement in Russia, and Akhangarancement in Uzbekistan. The action is intended to target company owner Alisher Burhanovich Usmanov and his various business interests. Other USM companies in the iron, steel, copper, gold, telecommunications and real estate sectors are also affected.

The US Department of the Treasury’s Office of Foreign Assets Control noted that Usmanov was, “one of Russia’s wealthiest billionaires, with vast holdings across multiple sectors of the Russian Federation economy as well as internationally.” It added that he was linked to multiple senior Russian officials, including Russian President Vladimir Putin as well as Dmitry Medvedev, current Deputy Chairman of the Security Council of Russia and former President and Prime Minister of Russia. Usmanov has also been sanctioned by Australia, Canada, the European Union (EU), Japan, New Zealand, Switzerland and the UK.

These latest US sanctions are in response to the Russian invasion of Ukraine in February 2022. Companies on the sanction list are forbidden to conduct business transactions with any US citizens.

Akkermann Cement operates two cement plants and a network of 12 terminals in Russia. It acquired a majority stake in Uzbekistan-based Akhangarancement in early 2022.

Paraguay: Industria Nacional del Cemento (INC) is investigating the large-scale theft of cement from its plants involving company employees. Company president Ernesto Benítez told local radio that at least 10 workers had been stealing around 600 bags of cement on average five times a week to a value of around US$21,000/week, according to the Ultima Hora newspaper. They had been using the company computer system to hide their activities. However, the theft was discovered when company officials noticed that the number of trucks recorded leaving the plant concerned did not match CCTV footage.

Staff members so far found to be part of the fraudulent activity include those working in cargo dispatch, bagging, security and refuse collection. They have all been removed from duty. However the investigation continues and more perpetrators may be found.

Russia: Cemros has started a US$3m upgrade project on cement mill five at its integrated Katavsky plant near Chelyabinsk. The work will see the introduction of a new closed-loop system with a separator. Following its installation, the mill will have a cement output of 114,000t/yr. The upgrade should also deliver an energy saving of up to 30%. Just under half the funding for the project was supplied in the form of a loan from the government. The upgraded mill is expected to be operational in September 2023.