Global Cement News

India: Shree Cement Ltd announced on 25 November 2013 that Shri Mahendra Singhi, Executive Director of the Company, had resigned with effect from 6 December 2013. No further details were made provided.

Mexico: Cemex's Assisted Self-Construction Integrated Programme (Programa Integral de Autoconstrucción Asistada – PIAC) won a 2012/2013 Corporate Citizen of the Americas award in the Citizen Security category in November 2013.

The awards recognise innovative programmes that benefit the community and serve as a model for socially responsible practices. The Citizen Security category focuses on initiatives that promote public-private partnerships in order to create more secure communities. The awards programme is run by the Trust for the Americas with support from the Organisation of American States, the Inter-American Development Bank and AES Corporation.

PIAC provides low-income families with access to an integral housing solution that can enhance their quality of life while developing a social ecosystem. The initiative has helped more than 58,000 families as of 30 September 2013. In addition, 110,000 people have become self-employed and 915,000m² of construction has been achieved to date.

"We are pleased that PIAC has been recognised as a programme that allows families to improve their quality of life and increase their wealth, while strengthening the social tissue," said Juan Romero, President of Cemex Mexico. "In Cemex, we strive to reinforce our social responsibility commitment by contributing to social development."

US: The Portland Cement Association (PCA) expects 2013 cement consumption to reach nearly 80Mt, a 4.5% increase on 2012. Consumption levels are projected to reach 86Mt in 2014, an 8.1% year-on-year growth.

During 2014 it is possible that all construction sectors will record growth, according to the PCA. While the growth will be broad-based, half of it will come from residential construction activity where there is the largest amount of pent-up demand from the recession. The commercial and institutional sector will contribute another 25%. Typically, when each sector contributes to growth, robust growth rates in cement consumption materialises. Growth in US construction markets could, however, be dampened by congressional drama that erodes consumer confidence and hinders recovery, according to the latest forecast.

"American consumers love drama. Moreover, congress knows how to create it, with more on the way when the debt ceiling talks resume in early in 2014," said Edward Sullivan, PCA group vice president and chief economist. "Each time the political circus on Capitol Hill addresses extensions of the debt limit, budget approvals or the fiscal cliff, it harms the burgeoning economic momentum." Consumer and business confidence is a key ingredient for stronger economic gains, said Sullivan. Congress could easily derail recovery momentum with political drama created by the federal shutdown and debt ceilings.

The PCA predicts real construction spending to grow by 1.3% in 2013 and by 8% in 2014. By 2018 cement consumption is expected to reach nearly 119Mt, 3% below the past cyclical peak in 2005. This implies a 14 year recovery.

Colombia: Mexican cement maker Cemex has opened its fifth plant in Clemencia, Colombia. The US$50m plant in northern Colombia has a cement production capacity of 0.45Mt/yr.

Cemex plans to begin building its sixth plant in Colombia at the start of 2014 with a US$125m investment. The construction is expected to last 24 months and have a cement production capacity of 0.50Mt/yr.

Cemex foresees strong growth in the Colombian market, specifically in infrastructure, as President Juan Manuel Santos has been investing heavily in roads, ports, railways and airports, with some US$25bn invested in the past four years.

India: Ambuja Cements announced on 21 November 2013 that shareholders had approved a proposal by Swiss parent firm Holcim to rejig its Indian cement units, winning 377m of the 550m votes placed (68.5%). 173m votes were placed against the merger.

The resolution for the scheme of amalgamation between Holcim India and Ambuja Cements was passed through postal ballots with the majority of public shareholders voting in favour.

Holcim had proposed in July 2013 the restructuring of its Indian operations by merging subsidiary Holcim India with Ambuja Cements and transferring Holcim India's 50.01% stake in ACC to Ambuja, making it a holding company of ACC. Holcim now has a 61.4% stake in Ambuja.

Public institutional holders, which hold 614m shares in the company, cast 534m votes. Of them, 67.9% voted in favour and 32.0% against the merger. Other public holders cast 15.4m votes. Of these, 13.6m were in favour and 1.80m were against.

As per the new regulation of the market regulator SEBI, companies require approval from the majority of the minority shareholders for mergers and acquisitions.

Holcim claims that this transaction will further improve its holding structure in India, strengthen the platform for future growth and generate synergy benefits of US$144m/yr. "These benefits, which will be realised in a phased manner over two years, will be shared by both companies equally through supply chain," said Bernard Fontana, CEO of Holcim.