Displaying items by tag: Investment

Madagascar: Oman-based Raysut Cement has shared plans for a US$30m, 0.75Mt/yr clinker grinding plant in Toamasina, Madagascar. L’Express de Madagascar newspaper has reported that Raysut Cement will begin construction in June 2020 and enter production at the facility in mid-2022 at the latest. Raysut Cement Indian Ocean regional director Pascal Naud said, “Madagascar’s pre-capita cement consumption is around 22kg/yr, compared to 125kg/yr on average in sub-Saharan countries. It is therefore a market with high potential for this investment.”

On 2 February 2020 Raysut Cement entered into talks with Switzerland-based Cementia for acquisition of the latter’s 75% stake in the latter’s LH Maldives cement terminal. The group said it is currently ‘developing an external growth strategy by investing in several African countries such as Kenya and Uganda.’

Gabon: Dangote Cement has shared plans for the construction of a 1.1Mt/yr grinding plant on a greenfield site near the New Owendo Internation Port in Owendo, Komo-Mondah department. Dangote Cement has stated that the US$75m facility, scheduled for completion in early-2021, will ‘close the cement production gap in this emerging country.’ It will supply cement to Gabon and the central African region.

China: The China Commodities Watch 2020 Outlook and Health Check has forecast a ‘one-off impact on operating cash flow’ for Chinese construction materials producers, including cement producers, due to reduced demand during the on-going coronavirus outbreak. “After the outbreak, the government may increase investment in infrastructure,” in order to boost the economy, according to the report.

India: Udaipur Cement Works has applied for environmental clearance to the government of Rajasthan for the construction of a 5.0Mt/yr integrated cement plant in the state. It plans for the plant to have an additional 2.0Mt/yr grinding capacity, a 30MW waste heat recovery (WHR) power plant and a 25MW coal-fired power plant. Project Today has reported a conjectured value for the project of US$224m.

France: HeidelbergCement subsidiary Ciments Calcia has announced a planned investment of Euro30m of upgrades in early 2021 to its 1.0Mt/yr integrated Couvrot plant in Marne department. L’Union Ardennes newspaper has reported that the upgrades will be ‘process improvements’ to grinding and energy consumption rather than expansions to the plant’s capacity. HeidelbergCement director Didier Faure said the group wants to turn the Couvrot plant into its ‘leading site in Western Europe.’ Faure also called for improvements to safety procedures after three people were injured on site in 2019 – up by 50% from two in 2018.

Mexico: Cemex has announced that it will expand its 7.2Mt/yr integrated Tepeaca plant in the state of Pueblo in 2020 into ‘the largest Cemex plant in the world and one of the largest in the entire American continent.’ It did not enclose the capacity of the upgrade, which will cost a total of US$530m.

Visiting the plant on 24 January 2020, Mexican President Andrés Manuel López Obrador expressed hope in a boost in private investment in the Mexican economy, which fell by 12% year-on-year in 2019, in the wake of the new Free Trade Agreement between Canada, Mexico and the US. Cemex said that its planned investment ‘indicates its trust in the country.’

Russia: KuzbassTransCement’s total volume of cement transported by rail in 2019 was 2.98Mt – up by 8% from 2.76Mt in 2018. Throughout the year, it implemented upgrades worth US$29m to its transportation facilities, including the lease of an additional 145 covered wagons, 346 cement hoppers and 90 dump cars, representing roughly a 14% expansion to its fleet.

India: Having announced that it will not participate in bidding for Emami Cement, Shree Cement has announced a planned increase to its production capacity of at least 13.1Mt/yr to 55.0Mt/yr or more by 28 February 2023 from 41.9Mt/yr. It would do this through as yet undisclosed upgrades worth a total of US$1.26bn. The Business Standard newspaper has suggested that the measure is aimed at taking on UltraTech, the expected winner in the auction for Emami Cement’s 5.6Mt/yr-capacity installed assets (under expansion to 8.7Mt/yr).

A source of additional capital for Shree Cement’s planned expansion will be a qualified institutional placement (QIP) through which it has raised US$337m. The company acknowledged that it might reach its target through acquisitions from other producers, for which it would not exceed US$80/t of capacity.

Philippines: Phinma Corp.’s cement subsidiary Philcement has ramped up its return to production with the commissioning of a 2.0Mt/yr integrated cement plant with attached terminal facilities in the port of Bataan. The Philippine Star has reported that the company, whose six integrated plants had a majority market share in the country prior to the Asian Financial Crisis of 1997, has invested US$100m on its re-entry to production, including on the Bataan facility, since it announced the return of its Union cement brand to the market in 2018.

Phinma Corp. president and CEO Ramón del Rosario said, “We believe in this government’s ‘Build Build Build’ program and we want to help ensure the success of this program by augmenting supply and offering the highest quality cement to support critical projects.”

Phinma Corp. is among domestic producers awaiting the result of an appeal by the country’s importers against the legality of the government’s safeguard duty on imported cement.

India: Dalmia Bharat has successfully lobbied the Sundargarh, Orisha district government to request the inclusion of the company’s proposed 446 acre expansion to its Lanjiberna limestone and dolomite mine in the agenda of a village meeting in Kukuda, in which public opinion and suggestions will be recorded. The New India Express Newspaper has reported that, due to the special status of Kukuda as a Scheduled Tribal area, the village meeting forms a necessary preliminary step prior to district government permission of planned works. In October 2018, villagers in nearby Jhagarpur successfully blocked construction of Dalmia Bharat’s proposed Industrial Training Institute. The Lanjiberna mine will serve Dalmia Bharat’s 2.3Mt/yr integrated Rajgangpur plant, which was completed in 2019 at a cost of US$281m and awaits commissioning.