Global Cement News

Germany: Cemex achieved an alternative fuels substitution rate of 82.6% for its cement plants in Germany in April 2012. According to a press release, this is the first country that the Mexico-based multinational cement producer operates in to reach this level. Its Kollenbach cement plant in Beckum, Germany, averaged a 90.9% substitution rate for the month.

"Beyond significantly reducing fuel costs, our expanding use of alternative fuels fosters the sustainable management of our earth's natural resources," said Eric Wittman, president of Cemex in Germany. "In April 2012, our Kollenbach plant replaced 12,000t of coal with refuse-derived fuel, bone meal and old tires."

In 2012, Cemex reached an alternative fuel substitution rate of 27.1%. Overall, the company's alternative fuel strategy enabled it to avoid the use of 2.3Mt of coal and the emission of 1.8Mt of CO₂.

Saudi Arabia: Najran Cement has said in a bourse filing that it has awarded a contract to Chinese firm CEIC, for the installation and maintenance of a third production line. The new production line will have a cement production capacity of 7000t/day and is expected to start trial operations in the third quarter of 2013. No financial details were made available.

Poland: Cement production in Poland has fallen by 33.5% to 2.69Mt for the first four months of 2013, according to the Polish Cement Association. January to April 2013 sales fell by 31.1% to 2.82Mt. In April 2013, production dropped by 33.8% year-on-year to 1.04Mt and sales dropped by 24.1% to 1.19Mt.

India: Sanghi Industries has posted a 234% increase in net profit to US$7.65m for the third quarter of its 2012 – 2013 financial year, compared to US$2.28m for the same period in 2011 – 2012. Net sales remained stable at US$54.4m.

For the financial year to date, profit after tax rose to US$14.9m in 2012 – 2013 from a loss of US$3.98m in 2011 – 2012. Net sales rose by 17.3% to US$146m from US$124m.

Commenting on the financial performance of the company, director Alok Sanghi said that the company's strategy of diversifying sales to markets in Maharashtra and Rajasthan outside of its core market of Gujarat had begun to pay off as the company operated at near full capacity. Additional cost saving measures such as debt reduction, higher captive power generation and increasing utilisation of cheaper sea route for transport of cement had further boosted profit margins.

Mongolia: The European Bank for Reconstruction and Development (EBRD) has signed an agreement to provide a US$20m equity investment to Senj Sant, which will build and operate a 1Mt/yr green-field cement plant in Mongolia. This equity investment is part of a financing package that also includes a loan of up to US$130m. Half of the loan will be syndicated to other lenders.

"This investment marks a milestone in our activities in Mongolia. Not only is the volume of funds we are providing significant but it also signifies an important step in the diversification of the local economy," said EBRD First Vice President Phil Bennett.

Mongolia's economy grew by 17% in 2011. The new Senj Sant plant will be located in southern Mongolia about 450km from the capital Ulaanbaatar in a strategic location to supply cement and clinker to nearby large mining projects. Mongolia's Monpolymet Group owns Senj Sant.