Displaying items by tag: Government
Jamaica: A strike has closed down the Caribbean Cement Company’s Rockfort plant. The industrial action also prevented locals accessing a ship-based book fair via the plant’s jetty, according to the Jamaica Observer newspaper. The cement company says it is in negotiations with the National Workers' Union (NWU) to reach a new collective labour agreement. It has also informed the Ministry of Labour and Social Security about the industrial action. Work at the site was expected to resume in late May 2017. Cemex took over Trinidad Cement, the majority shareholder of the Caribbean Cement Company in early 2017.
Tunisia: Al Karama Holding, a state-owned company, has initiated a bidding process to sell its stake in Carthage Cement. The company has started a consultation process with investment banks and consultation firms to help it sell its direct and indirect stakes in BINA Group, that includes Carthage Cement, according to the African Manager website. The deadline for bids is 16 June 2017. The government owns an estimated 41% share of the cement producer.
Hail Cement Company secures export licence
19 May 2017Saudi Arabia: Hail Cement Company has obtained an export licence from the Ministry of Commerce and Investment. The licence is valid for one year from the date of issue. No significant financial impact is expected upon the financial results of the company.
Show US the infrastructure
17 May 20172017 has started more uncertainly for the US cement industry than 2016 did according to the latest data from the United States Geological Survey (USGS). Cement shipment data from just two months, January and February 2017, can only present a limited impression of the state of the industry. Yet the key trend to look for in Graph 1 is the growth in Midwestern US states against a decline in the Western ones. Previously in 2016 this region’s shipments sunk below those in the West in December and didn’t overtake them until the spring. This time round they’ve stuck closely and overtaken them already in February 2017.
Graph 1: Portland and blended cement shipments by US Census Bureau region for 2016 to February 2017. Source: USGS.
The Midwest’s cement shipments jumped by 21% year-on-year to 2.2Mt for those first two months. Buzzi Unicem concurred with this picture in the Midwest with its first quarter financial results this week, reporting a boost in deliveries in the region. HeidelbergCement agreed, reporting sales volumes increases in the north of the country and a decrease in the West. In that region the USGS data shows an 8% fall in shipments to 2.2Mt. HeidelbergCement blamed heavy rain and flooding in California and Oregon as the cause of the problems. Another potential reason that the USGS hints at are increasing imports of cement that it says have been rising faster than sales. For example, imports of cement to the US as a whole grew by 23.9% year-on-year to 0.81Mt in February 2017.
Overall though the situation for the larger cement producers has been subdued. Many of them blamed good weather in the first quarter of 2016 giving them a hard quarter to measure against in 2017. For example, LafargeHolcim’s sales volumes of cement fell by 4.5% in North America although it did report sales growth off the back of cement pricing and cost controls. HeidelbergCement may have looked good on paper following its integration of the Italcementi/Essroc assets but its cement volumes only grew by 1% in the period. Cemex too reported a similar scenario with falling sales volumes of 5% but growing sales revenue.
To put this in perspective, as the Portland Cement Association’s (PCA) chief economist Ed Sullivan says in the May 2017 issue of Global Cement Magazine, cement production in the US grew in 2016 and it is expected to continue growing in 2017 and 2018. Just like the start of 2016 (see GCW251) the potential for US construction growth in the year ahead is a quietly confident one but it isn’t assured.
Cemex points out that housing starts rose by 8% in the first quarter of 2017, as did construction spending in the industrial and commercial sector. However, it says that infrastructure spending fell by 9% in February 2017. Indeed this last point is an important one given that one of the major Trump campaign pledges in the 2016 presidential campaign was to build more infrastructure. As commentators in Washington DC including the PCA have asked: where is the Bill? Rightly, the PCA are not letting the lawmakers forget this during ‘Infrastructure week’ as the issue is discussed. The US cement industry needs this.
For further information on the US cement industry take a look at the May 2017 issue of Global Cement Magazine
UK: It is hoped that a Euro23m upgrade project at Hanson’s Padeswood cement plant will be completed in early 2019. A planning application will be submitted to the local government in the summer of 2017 following consultation with local residents. The plant intends to install a new vertical roller mill to grind cement and to build a new rail loading facilities at the site.
“The plan is to mothball three of the old mills and install a new vertical roller mill capable of grinding up to 0.65Mt/yr of clinker. The new mill will be fully enclosed in a building, minimising noise and reducing the potential for escape of cement dust,” said plant manager Steve Hall. The project also includes construction of new cement silos alongside the existing railway line to load trains for delivery. At present the rail link is used to bring in coal to fire the kilns. In future, three trains a week will be despatched to Hanson’s depots in London, Bristol and Scotland or around 15% of total cement production.
Jordan: The Labour Ministry has helped to resolve a dispute between workers and management at Lafarge Jordan. Following several days of work stoppages the employees have agreed to sign a collective work contract and resume work as normal, according to the Jordan Times. In return workers at the Rashadia cement plant will receive a bonus payment at Eid Al Fitr and then pay increases based on performance. The parties have also agreed to let the ministry lead future talks on early retirement and workers’ association bans on employees.
Philippines: Two cement importers have asked the Regional Trial Court of Makati to issue a temporary restraining order against a Department of Trade and Industry (DTI) order restricting imports of cement. Fortem Cement and Cohaco Merchandising and Development allege that the Administrative Order 17-02 prevents imports of cement into the country, with the exception of importers operating integrated cement plants, according to the Manilla Bulletin newspaper. The importers say that the legislation will destroy their business. They also allege that the new rules violate anti-competition rules.
The DTI has defended its legislation, although it recognises the freedom of the importers to challenge it through the legal process. The government department says it issued the revised order to help safeguard the safety of consumers by requiring the strict conduct of standards compliance tests on cement imports. The order requires the application of the Philippine Standards licenses on foreign producers of cement imports, Import Commodity Clearance on cement imports and a minimum capitalisation level for importers to prevent smaller importers.
Quebec state government plans to rebuild railway line offer boost to McInnis Cement distribution
09 May 2017Canada: Plans by the state government of Quebec to rebuild the Gaspésie railway between Matapédia and Gaspé will allow McInnis Cement to increase its distribution of cement by rail significantly. Once the line has been restored the cement producer says the number of wagons it uses could rise to 2000/yr from 300/yr.
”The flexibility of the railway combined with our maritime distribution mode allows us to improve our logistics chain and reach certain markets more efficiently, in all seasons,” said McInnis Cement chief executive officer Herve Mallet.
In December 2016 McInnis Cement confirmed its use of the rail for a volume of approximately 28,000t/yr over five years, through a transshipment facility in New Richmond, fed by truck from Port-Daniel–Gascons. Railway repairs are expected to result in the transport of at least 200,000t/yr of cement by rail.
India: The Enforcement Directorate (ED) has filed a prosecution complaint against Penna Cement for alleged irregularities related to the allocation of land and the granting of a mining lease. The agency has also named the deceased YSR Congress chief Y S Jaganmohan Reddy, V Vijaysai Reddy, Penna Group chairman Putta Pratap Reddy and Pioneer Holdings in the case, according to the Hans India newspaper. The complaint accuses the former Andhra Pradesh state government, run by Reddy, of allocating 231 acres in Yadiki mandal of Anantapur district to Penna Cements for setting up a cement plant and officials for allowing the allocation in violation of land acquisition rules.
The ED’s complaint also says that the government at the time refused mining leases to UltraTech Cement, granted a prospecting lease to Penna Cement and was complicit in other irregularities. In return for these actions the ED alleges that Penna Group invested US$10.6m in companies owned by Reddy, in violation of money laundering regulations. Previously, the Central Bureau of Investigation (CBI) filed charges against Penna Cement, Raghuram Cements and India Cements for favours they allegedly received from the Andhra Pradesh state government in 2008 and 2009.
India: Y V Ramana Rao, president of Confederation of Real Estate Developers’ Associations of India (CREDAI) Vijayawada chapter has said that the building associations have solicited quotes for cement from Chinese producers because local prices are too high. The government has asked local cement producers to cap their prices, according to the Economic Times. However the builders associations have rejected some of the fixed prices as being too high.