Global Cement News

India: UltraTech Cement has raised its direct offer to buy Binani Cement to US$1.21bn. Previously it made a direct offer of US$1.11bn to Binani Cement in the form of a so-called ‘comfort letter’ that Binani Industries used to stop the insolvency process. UltraTech Cement made this latest offer to the resolution professional handling the insolvency process of Binani Cement, according to the Economic Times newspaper. The move follows a decision by the Supreme Court on 13 April 2018 to block UltraTech Cement’s first offer. However, the court will consider a plea by a group of operational creditors that is backing the higher offer in late-April 2018.

Kenya: East African Portland Cement (EAPC) is relying on a US$100m land sale to the government to remain solvent. The company is in discussions to sell over 14,000 acres of land to the newly established Special Economy Zones Authority funds, according to the East African newspaper. The cement producer has seen its production halted, cement stocks depleted and staff salaries delayed over the last two months. It reported a loss of US$9.58m in the second half of 2017 from a loss of US$2.45m in the same period in 2016.

Tanzania: Dangote Cement plans to start using natural gas at its Mtwara plant by the end of May 2018. The decision follows the completion of a new gas pipeline near the plant, according to the Citizen newspaper. The plant has been using temporary diesel generators. A source quoted by the newspaper said that the unit has been using 6Ml/month of diesel at a cost of about US$4.4m. In late 2016 Dangote Cement made a deal with the government to supply natural gas to its cement plant at Mtwara following a temporary shutdown at the site.

Uganda: Hima Cement’s new US$40m grinding plant at Nyakesi in Tororo District is expected to start production in early May 2018. Originally the 0.8Mt/yr plant was scheduled to open in June 2018, according to the East African Business Week newspaper. Opening early is dependent on the subsidiary of LafargeHolcim receiving a government mining licence.

Nigeria: The Methodist Church of Nigeria has called on the local government to support the reopening of the Nkalagu Cement plant. The Diocese of Onitsha wants the unit restored so it can create local jobs, according to the Vanguard newspaper. The plant was the first in Nigeria when it opened in 1954. It later closed in 2003 after it was privatised. The Ebonyi state government signed a memorandum of understanding with Ibeto Group in 2016 to revive the plant.