Global Cement News

Brazil: Portuguese cement producer Cimpor, which has been controlled by the Brazilian diversified holding group Camargo Corrêa since June 2012, has started its first exports to northern Brazil.

The first shipment of 28,000t/yr of cement reached the port of Manaus, northwestern Brazil in July 2013, according to local press. Cimpor's main rivals in this region will be Brazilian sector players Votorantim Cimentos and Joao Santos.

Camargo Corrêa's subsidiary InterCement, which owns directly Cimpor, projects to import some 70,000t/yr of Portuguese cement to Brazil in 2013. Cimpor is also targeting exports to Bolivia amid the continuing severe economic downturn in Portugal.

India: Madras Cements is to set up limestone beneficiation plants to help it improve its cement raw material resources and extend the lifespan of its limestone mines. Once the beneficiation plant is in place, low-grade limestone will be processed to 12.5% SiO2 content. The cement plant will then use equal quantities of beneficiated and high grade limestone.

Madras will install the first of such plant at a cost of US$5m at Alathiyur in Tamil Nadu, where it has a 3Mt/yr cement plant. Once the 400t/hr beneficiation unit is stabilised, the company will establish similar facilities at other plants, according to A V Dharmakrishnan, Mardas' CEO. He said that, following the installation of the plants, the company will be able to avoid wasting huge quantities of its limestone supplies, extending the life of its limestone quarries.

Currently Madras' limestone can have up to 30% SiO2 content can be as high as 30%. It is either rejected or blended with high-quality limestone (8% SiO2) purchased from an outside source.

India: Birla Corporation has announced that it will increase cement production capacity by 4.5Mt/yr with an investment of around US$416m over a period of three years. Of the proposed 4.5Mt/yr, the company plans to set up two 1.5Mt/yr facilities at Chanderia, Rajasthan and a 1.5Mt/yr plant at Satna, Madhya Pradesh.

The total cement production capacity of the company at present is 9.3Mt/yr. The proposed expansion therefore represents around half of its current installed capacity.

Guatemala: Local press has indicated that Guatemalan residents are protesting against local cement manufacturer Cementos Progreso's plans to build a cement factory in San Juan Sacatepéquez, 30km north west of Guatemala City. Members of 12 local communities claim that they were not consulted prior to works commencing and they say that the cement plant will contaminate the local environment.

The cement factory will be built in the area to serve construction of a 24km highway known as the 'Anillo Regional' that will connect the departments of Guatemala, Quiché, Baja Verapaz and Chimaltenango. The highway is expected to cost US$19.2m and works are being carried out under a public-private partnership, in which Cementos Progreso is participating.

The Guatemalan president Otto Pérez inaugurated the start of construction works in May 2013 and defended the project, saying that it would bring development to the area, according to a presidential statement. "I want to ask the local population, which will benefit from the project, to help us and collaborate," said Pérez. The president also characterised claims that the highway will damage the environment, affect local farming and reduce water resources in the area as 'lies.'

Following on from last week's analysis column (Global Cement Weekly #107: Gimmie Water - water conservation in the cement industry) Irish cement producer CRH has released its 2012 Sustainability Report.

Unfortunately, no comparable figures for water usage per cement production were published and CRH noted usage measurement as a group objective. Its best estimate was that the group used 36Mm³ of water in 2012, with 12% of that figure (4.4Mm³) used in cement production.

Otherwise plenty of good news filled the report with improvements shown for most of the key indicators. Notably chief executive office Myles Lee pointed out that CRH had substantially increased alternative fuel usage in its European cement operations in 2012 and that this helped with rising energy costs.

Sticking with CRH, the Irish cement producer recently released information on its development strategy for the first half of 2013.

Despite - or perhaps because – of decreasing profits in 2012, CRH's development spend has nearly doubled year-on-year to Euro470m from Euro250m. The increase is mainly due to the asset swap with Cementos Portland Valderrivas (CPV), which was announced in February 2013. CRH agreed to transfer a 26% stake in Corporacion Uniland to CPV. In return, CPV agreed to transfer its 99% stake in Cementos Lemona to CRH, as well as giving CRH its UK-based cement importer Southern Cement.

In its press release CPV specifically mentioned that the asset swap would reduce its exposure to the Spanish cement market. On CRH's side the inclusion into the deal of a UK cement importer may be incidental but having an additional destination for potential excess Spanish cement production capacity can only be prudent.

Elsewhere this week, Turkmenistan's decision to protect domestic cement production with a 100% import duty raises interesting implications for exporters in the region such as Iran. It is unclear whether Turkmenistan is blocking Iranian exports altogether or just taxing them more. Either way, following news of a Iraqi block on Iranian exports, it seems likely to dent Iran's ambition to reach 18Mt of exports in the 2013 – 2014 Iranian calendar year, which will end on 20 March 2014.