Ambuja Cement ranks seventh in Dow Jones Sustainability Index
India: Ambuja Cement has been ranked seventh in the Construction Material category of the Dow Jones Sustainability Index (DJSJ) 2017. The subsidiary of LafargeHolcim was invited to participate in the DJSI Emerging Markets Index and beat its score from 2016. Each year about 2500 global companies, listed on the stock exchange, belonging to about 59 economic sectors, are invited to participate in the DJSI.
GICA reports nearly 14Mt of cement production in 2017
Algeria: Groupe des Ciments d’Algérie’s (GICA) cement production rose by 11% year-on-year to 14Mt in 2017 from 12.6Mt in 2016. The cement producer beat its own forecast of 13.2Mt for the year, according to the L’Expression newspaper. Production rose in 2017 due to the opening of its Aïn El Kebira, Sétif cement plant in the first quarter. Local production capacity is forecast to reach 40.6Mt/yr by 2020 with 20Mt/yr supplied by GICA, 11.1Mt/yr supplied by LafargeHolcim and the remainder from other companies.
New cement plants in Uganda expected to swamp demand
Uganda: Three new cement plants or upgrades to existing plants opening in 2018 are expected to dwarf local demand. Hima Cement, a subsidiary of LafargeHolcim, plans to open a new 1Mt/yr grinding plant at Nyakesi, Tororo Cement is expanding its plant to 3Mt/yr and Kenya's National Cement is building a plant at Mbale, according to the Ugandan Independent newspaper. Following completion of the three projects local production capacity will rise to 6.8Mt/yr from 3.6Mt/yr. Local demand is 2.4Mt/yr.
Cement industry executives are expecting growth in the construction industry as the government starts infrastructure projects in the oil and gas sector. The cement producers also expect export markets to support local production capacity growth, particularly in South Sudan, western Kenya and eastern Democratic Republic of Congo.
Farmers voice fears about Cheetah Cement plant project
Namibia: Famers have voiced their concerns that a new cement plant being built by Cheetah Cement will affect the water supply for their livestock. The fears have arisen following a notice by the company that it intends to start blasting at the construction site, according to the Namibian newspaper. The farmers have refused to take notice of eviction orders at the site by the Otjiwarongo municipality over risks that the water borehole will become contaminated. The cement plant is a joint venture between China’s Asia-Africa Business Management and Whale Rock Cement.
Pakistan sales drive continues in second half of 2017
Pakistan: Cement sales rose by 12% year-on-year to 22.2Mt in the last six months of 2017 from 19.8Mt in the same period in 2016. Data from the All Pakistan Cement Manufacturers' Association (APCMA) shows that domestic consumption rose by 17.4 % to 19.8Mt from 16.9Mt, according to the Express Tribune newspaper. However, exports continued to decline in the period by 17.3% to 2.9Mt from 2.4Mt. Exports fell in most parts of the country, particularly in the south, despite increases from plants in Punjab and Khyber-Pakhtunkhwa. The APCMA has blamed this on high industry costs, foreign imports and local legislation.
Cemex pays fine to Colombian competition body
Colombia: Cemex Colombia has paid a US$25.3m fine to the Superintendent of Industry and Commerce (SIC). The penalty follows an investigation into price fixing by Cemex, Cementos Argos, and Holcim and six senior managers, according to the El Economista newspaper. However Cemex plans to lodge an appeal with the Contentious Administrative Court to reverse the fine.
The fine covers behaviour by the companies between January 2010 and December 2012. SIC’s investigation discovered that collusion between the cement producers artificially increased the price of cement by 30% despite inflation being 9% during the period.
Gebr. Seibel Erwitte cement plant rebrands within Thomas Gruppe
Germany: The former Portland-Zementwerke Gebr. Seibel’s cement plant at Erwitte in North Rhine-Westphalia has rebranded within the Thomas Gruppe. The name change follows the purchase of the plant and its limestone deposits by Thomas Gruppe in late 2017.
Swiss cement deliveries down in 2017
Switzerland: Data from the Swiss Cement Industry Association (Cemsuisse) report that cement shipments fell by 2.8% year-on-year to 4.3Mt in 2017. In 2016 shipments rose by 4.2% to 4.4Mt, according to the Swiss Telegraphic Agency. An initial drop in shipments in the first half of 2017 was partly absorbed by better trading subsequently. However, the fourth quarter of 2017 saw falling sales volumes. Rail shipments increased considerably, by 53%, during 2017.
McInnis Cement owners consider sale options
Canada: Caisse de dépôt et placement du Québec (CDPQ), the owner of McInnis Cement, has hired advisors to consider options for the cement producer including a sale or bringing in a new investor. No final decision has been made and the pension investment management company may decide to keep McInnis Cement, according to sources quoted by Bloomberg. CDPQ took control of the McInnis Cement project in 2016 following cost overruns and delays. The plant eventually opened in mid-2017.
Sanghi Cement to expand production capacity to 8.1Mt/yr
India: Sanghi Cement plans to upgrade its production capacity to 8.1Mt/yr from 4.1Mt/yr. The expansion plan will consist of a 3.3Mt/yr upgrade to its cement plant at Sanghipuram in Gujarat and a 2Mt/yr upgrade to its satellite grinding plant. In addition the cement producer plans to build a 65MW thermal power plant at the main plant. The cost of the project will be US$197m and this will be mostly funded from borrowing.