Displaying items by tag: Government
Police raid fake cement operation in West Delhi
16 November 2021India: Police have successfully raided a fake cement mixing and bagging operation in the Patel Nagar district of West Delhi. The Times of India newspaper has reported that the accused perpetrators claim to have recorded a profit of US$2.69/bag by contaminating cement purchased for US$3.36/bag with expired cement from building sites. Two people were processing a 350 bag order at the time of the raid.
Police continue to work to trace all cement dispatches from the factory in the interest of public safety.
National Mining Corporation to establish building materials complex including a cement plant at Bani Walid
15 November 2021Libya: The National Mining Corporation and Abraj Al-Ghad Company have contracted AstroPlan, FLSmidth and Grenzebach for the construction of a five-factory building materials production complex at Bani Walid. The Libya Herald newspaper has reported that the 16,300ha complex will include a new cement plant. The Libyan Ministry of Industry and Materials said that a total of 4000 new jobs will be available at the complex.
Canada, Germany, India, the UAE and the UK to support development of low-carbon cement and concrete markets
15 November 2021World: The governments of Canada, Germany, India, the UAE and the UK have signed a commitment to support the development of markets for low-carbon cement and concrete in their countries. The governments will create market incentives for purchasers, review and update product standards to allow low-carbon materials to be used in all safe settings and promote their use through their public sector tendering rules.
World Cement Association (WCA) chief executive officer Ian Riley said “I’m delighted to see that governments are heeding our call for urgent action to accelerate decarbonisation of the cement industry around the world, and we look forward to hearing more details from the UK, India, Germany, Canada and UAE on the steps they will take.” He added “This commitment marks a hugely significant shift in mindset that we hope will be followed by other countries in the months ahead. When it comes to hard-to-abate industries like cement, it is vital to work together with governments to create the conditions in which we can get to net zero and beyond, as quickly as possible. We cannot do this alone in time.”
Portland Cement Association welcomes US House of Representatives' US$1.2Tn infrastructure act
10 November 2021US: The Portland Cement Association (PCA) has expressed its support of the House of Representatives' new Infrastructure and Jobs Act, consisting of a US$1.2Tn infrastructure spending plan. The plan includes US$550bn in new federal investments before 2027. US$16bn is set aside for 'major projects' requiring special funding arrangements. The legislative body voted in favour of the bill on 7 November 2021. The act awaits the signature of US President Joe Biden. Biden previously unveiled a proposed US$2.25Tn infrastructure package in March 2021.
PCA president and chief executive officer Michael Ireland said "The PCA applauds the US House of Representatives for finally passing the Infrastructure Investment and Jobs Act. This bipartisan infrastructure bill not only addresses years of underinvestment in the nation’s infrastructure but will spur economic growth and job creation in communities across the country, improving the quality of life and our nation’s global competitiveness. As many are still recovering from the Covid-19 pandemic, this legislation will further our nation’s recovery, creating thousands of well-paying jobs."
He continued "PCA members across the country appreciate the legislation passing a long-term reauthorisation of the surface transportation programme, including significant investments in our water infrastructure, providing funding for the department of energy to focus on the research, developmentand deployment of technologies for manufacturers to capture carbon emissions, and the exemption of cement from Buy America requirements. We are eager for President Biden to sign this legislation into law and start building a better future for America.”
Colombia: Cemex Colombia has received a US$16.8m fine from the Colombian Directorate of National Taxes and Customs (DIAN) for irregularities in its 2012 income tax payment. The company reportedly made an improper imputation of its balance for the year. Cemex Colombia says that it will take the matter to court. It has until March 2022 to file a suit.
Uzbekistan government extends cement import tariff suspension
04 November 2021Uzbekistan: The government has extended its suspension of tariffs on imports of cement until 1 November 2021. Business World Magazine News has reported that the policy aims to reduce the cost of housing. In order to support the domestic cement industry, producers’ tax rate will be reduced to 15% from 20%. The government will also halve taxes on natural resources.
Kerala government announces plan to reduce cement prices
04 November 2021India: The government of Kerala plans to increase its cement production in order to help lower the price of cement in the state. The Times of India newspaper has reported that the state owns 10% of its cement industry. It plans for state-owned Travancore Cements to increase grey cement, white cement and wall putty production at its Nattakom grinding plant in Moolavattom. Its other cement company, Malabar Cement, previously increased its cement production.
The state government also convened a meeting of private sector cement producers in order to discuss the possibility of a reduction in the price of cement.
Update on Sri Lanka: November 2021
03 November 2021The news from Sri Lanka this week is that Lanwa Sanstha Cement is preparing to commission a new 3Mt/yr grinding plant in January 2022. The timing is apposite given the current shortages in the country.
Some inkling of local problems can be seen in the cement news over the last few months. In August 2021 Insee Cement said that it was operating at full capacity utilisation across its network. Later, at the end of October 2021, the government intervened in the import market by opening up the use of Trincomalee Harbour. This was followed by the nation’s other main producer, Tokyo Cement, announcing that it too was operating its grinding plant at Trincomalee at full capacity. It also said that, at the government’s behest, it was going to increase its import rate.
The new Lanwa Sanstha Cement unit originally came to international attention when Germany-based Gebr. Pfeiffer revealed details in 2019 of an order of two MVR 5000 C-4 type roller mills from Onyx Group. Lanwa Sanstha Cement has since said that the plant will cost US$80m. Once operational the unit at the Mirijjawila export processing zone of the Hambantota International Port will manufacture ordinary Portland cement, Portland slag cement, Portland limestone cement and blended hydraulic cement. A further equipment order for the project was announced this week when the Chinese-run Hambantota International Port Group signed an agreement with Lanwa Sanstha Cement to build a conveyor from the port to the plant. The deal also includes two ship unloaders.
Other new cement units on the horizon include an integrated plant project from Nepalese businessman Binod Chaudhary that was announced in mid-2019. The US$150m plant was planned for Mannar in the north of the island. However, not much more has been heard since then. Chaudhary’s company CG Cement operates a grinding plant in Nepal. More recently, in October 2021, local press reported that the government had tentative plans to build a new plant at the old state-owned Kankesanthurai site, also in the north. The plant was originally built in the 1950s and production ran until 1990 when the military took over the unit amid the then on-going civil war. Earlier in 2021 the government agreed to sell off the machinery at the site. However, much of it has gone missing in the intervening period! Proposals to revive the plant have circulated since the mid-2010s.
Graph 1: Cement production and imports in Sri Lanka, 2015 – 2021. Estimate for 2021 based on January to August data. Source: Central Bank of Sri Lanka.
The Sri Lankan cement market has faced a tough time over the last two years. First, total local production and imports fell by 11% year-on-year to 7.2Mt in 2020 from 8.1Mt in 2019. Then, imports fell by 18% year-on-year to 1.83Mt from January to August 2021 from 2.24Mt in the same period in 2020. Local production has more than compensated though, leading to growth in the total so far in 2021. There have been general economic reasons for why the ratio of imports to local production has fallen in 2020 and 2019 and this is explained in more detail below. Yet, imports hit a high of 5.68Mt in 2017 and have been declining since then both in real terms and proportionately.
Insee Cement summed up the local situation in its third quarter results by blaming cement shortages on input cost rises, supply chain disruption and negative exchange rates effects. The first two problems are issues everywhere around the world as economies speed up again following the coronavirus lockdowns but the last one is more specific to Sri Lanka. The country has faced a recession in its economy because the pandemic shut down tourism. The government initially introduced import limits to try and control foreign currency reserves. It then imposed price controls on essential foods and commodities, including cement, in September 2021 to try and stop shortages but this plan was abandoned a month later. Focusing on cement, some idea of the input cost inflation facing the sector can be seen in Tokyo Cement’s latest quarterly financial results. Its cost of sales rose by 72% year-on-year to US$59.5m in the six months to end of September 2021 from US$34.5m in the same period in 2020.
Lasantha Alagiyawanna, the State Minister of Consumer Protection, said at the end of October 2021 that it would take three weeks to import the required cement into the country. Whether this is enough to end the shortage remains to be seen. Yet, whatever does happen, it is likely that more production capacity from the likes of Lanwa Sanstha Cement and others will be welcome in 2022 and beyond.
Iranian cement sector preparing for gas shortages in the winter
03 November 2021Iran: The Cement Industry Employers' Association has confirmed that cement plants will store heavy fuel oil to cope with a potential shortage of gas in the winter. The association told the Iranian Labour News Agency that plants had been granted permission to store up to 15 days worth of heavy fuel oil following negotiation with the Ministry of Oil. Fuel storage is a sensitive issue locally due to the potential for misuse in the black market. The cement sector faced gas and electricity shortages earlier in 2021.
LafargeHolcim US reveals more detail on carbon capture study at Ste. Genevieve cement plant
03 November 2021US: LafargeHolcim US has revealed more information about a commercial-scale carbon-capture study based at its integrated Ste. Genevieve cement plant in Missouri. The project aims to deliver a front-end engineering design (FEED) study for a carbon capture retrofit that can separate up to 95% of CO2 emissions at the plant. The captured CO2 will be ‘pipeline ready’ for geological storage and analysis of the project socio-economic impact will also be part of the study. The US Department of Energy’s National Energy Technology Laboratory awarded US$4m to the Prairie Research Institute at the University of Illinois to work on the project in early October 2021. LafargeHolcim and Air Liquide are also making cost share contributions.
The design will use Air Liquide’s Crycocap FG system at the cement plant. LafargeHolcim US says that it combines pressure swing adsorption capabilities with cryogenic refrigeration technologies to achieve high CO2 capture rates with high CO2 purity rates. Notably, for a carbon capture project, the Ste. Genevieve plant has one of the largest single clinker kilns in the world.