EAPCC to cut workforce by September 2019
Kenya: The East African Portland Cement Company (EAPCC) plans to reduce its costs by making 220 workers redundant. It says it needs US$170m to return to profitability, according to the Business Daily newspaper. Other plans to reduce its debts include raising money through land sales and reducing its energy costs. It is considering selling over 2400 hectares of land in Athi River. It has already sold around 360 hectares to Kenya Railways for around US$50m.
The company currently has 821 contracted and permanent and pensionable employees. It intends to reduce its workforce by September 2019.
Penna Cement cleared for initial public offering
India: Penna Cement has received approval from the Securities and Exchange Board of India (SEBI) for a US$220m initial public offering (IPO). The company intends to use the funds to pay off debts and for general corporate purposes, according to the Hindu newspaper. The cement producer operates four integrated plants and two grinding plants in Andhra Pradesh, Telangana and Maharashtra that share a total production capacity of 10Mt/yr.
Colombia: Cementos Argos plans to sell its stake in Omya Andina for US$18.6m. It said it was focusing on the cement, concrete and aggregates business, according to the La República newspaper. Omya Andina is a subsidiary of Switzerland’s Omya that operates in Colombia. It produces calcium carbonate and speciality chemicals for a range of industries including construction and agriculture.
Dominican Republic: Alexander Medina Herasme, the director of the General Directorate of Mining, says that the country exported grey cement worth US$72.3m in 2018, according to the El Caribe newspaper. The nation has five integrated cement plants and two grinding plants.
CalPortland wins grant for new railcar mover
US: CalPortland has been awarded a US$0.34m grant by the Mojave Desert Air Quality Management District (MDAQMD) as a partner in the replacement of a 1987 Trackmobile with a 2019 Rail King RK330 railcar mover at its Oro Grande cement plant in California. The new machine has been chosen to reduce its air emissions in accordance with the California Clean Air Act.
UK: Aggregate Industries has launched its Lafarge Endure SR, a CEM II blended cement product that uses fly ash. It says that the product has a lower embodied CO2, has improved plastic and hardened properties when used in concrete and has enhanced suitability for all ground types. Lafarge Endure SR is resistant to sulphates, allowing contractors and suppliers to scope a wider variety of projects. It also uses 10% less water than CEM I products to reach a workable consistency and offers improved pumpability and mixing efficiency.
“As its name suggests, Lafarge Endure SR is designed to dramatically increase the longevity of the concrete it forms a part of. It is a great solution for contractors that want to reduce the environmental impact of their build while simultaneously improving its life span,” said Steve Curley, Commercial Director at Aggregate Industries.
Denmark: FLSmidth has completed its acquisition of IMP Automation Group following the approval by the competition authorities. The purchase was first announced in February 2019 when FLSmidth said it was adding the company as part to its portfolio of automated laboratory solutions for the mining industry. It said that the integration of IMP would enable FLSmidth to support the expanding market for automated laboratories, which has experienced recent growth due to a combination of high exploration activity and increased focus on productivity, automation and digitalisation.
"We also see great potential from the joining of our new colleagues to further enhance the development of our digital solutions for mining. For instance, data collected from online analysers and the laboratory can be used to optimise the entire flow sheet for mining operations. Using this data to augment our process optimisation initiatives is an exciting prospect," said Tina Knudsen, FLSmidth’s general manager for Sampling, Preparation and Analysis – Mining.
FLSmidth gains 130 IMP employees, including IMP's managing director, Boyne Hohenstein. The IMP business will be consolidated into FLSmidth from 1 June 2019 and the cost of the purchase will be paid out in the second quarter of 2019.
Armenia to impose tariffs on Iranian cement
Armenia/Iran: The Armenian parliament has approved a tariff of US$29/t on imported cement from Iran. A previous attempt to pass the bill was blocked in April 2019, according to the Armenpress News Agency. During the recent vote construction workers demonstrated outside the parliament building warning that prices could price as a result of the new duty.
South Africa introduces carbon tax
South Africa: The government has introduced a carbon tax of around US$8/t for carbon dioxide-equivalent (CO2e) emissions. The carbon tax will initially only apply to scope 1 emitters in the first phase. The first phase will be from 1 June 2019 to 31 December 2022, and the second phase from 2023 to 2030. Large-scale tax-free emission allowances from 60 – 95% will be provided in the first phase. Industries such as cement or iron production will benefit from a basic threshold of 70%.
A review will be held before the second phase starts to measure progress. The treasury reinforced that the introduction of the carbon tax would not raise electricity prices due to tax breaks for renewable energy sources and credits for existing generation capacity.
US: Mississippi Lime has declared a force majeure event due to flooding by the Mississippi River caused by ‘significant’ precipitation in the central US. The flooding has impacted the lime producer’s distribution and supply capabilities. This is expected to cause delays in supplying products to customers and will incur additional costs that it will pass through as a surcharge. The company added that, despite this, the flooding has not affected production.
Flooding on the Mississippi River forced the closure of Mississippi Lime’s barge loading facilities in early May 2019 and an alternate barge loading facility later in the month. The company does not anticipate re-opening its facility until the flood waters recede to a safe level, possibly in late June 2019. In the meantime the closure of flood gates near the company’s Ste Genevieve, Missouri unit has forced the company to use an alternate rail route with reduced shipment capacity, additional transit time and higher cost for both inbound and outbound shipments. Mississippi Lime anticipates resuming rail shipments in late June 2019, depending on weather conditions.