Global Cement News

China: China is expected to introduce rules to boost the use of waste treatment as an alternative fuel in cement kilns, a China Securities Journal report has said.

Xu Yongmo, vice chairman of the China Building Materials Federation, said at a forum that the National Development and Reform Commission (NDRC), together with other six ministries, were mulling over policies to boost co-processing in cement industry. The waste used in the cement kilns covers municipal sludge, household garbage and industrial solid waste.

India: A 4% rise in the entry tax on clinker in the Indian state of Assam has riled local cement producers. In the state budget, chief minister Tarun Gogoi had proposed to raise the entry tax on clinker from 2% to 6%, applicable only to small and medium units.

Industry sources quoted by the Telegraph of India said the proposal to raise the entry tax would adversely affect small grinding units in the state. "Given the budget proposal, there is an apprehension that the small units might not be able to bear the additional cost burden and become unviable," said a source.

The total procurement of clinker from outside Assam is estimated at 1.8Mt/yr, of which 24 small units procure 475,000/t. The source added that these units had invested US$74m in the state, employing over 3000 people directly or indirectly.

However, two large cement manufacturers - Cement Manufacturing Company Ltd (Star Cement, CMAL) and Meghalaya Cement Ltd (Topcem, MCL) - have been exempted from the tax. CMCL and MCL have units at Sonapur and Amingaon in Assam respectively. The source added that these large units had invested up to US$92m in the state, creating jobs for about 600 people.

"The government has accorded mega project status to large cement manufacturers, exempting them from entry tax, but imposed the same on small units. This is contrary to its vision of development," said Dilip Goenka, director of KD Cement.

Germany: Dyckerhoff Group has reported that its net profit in 2012 has decreased as expected. Net profit fell by 59% to Euro26.9m in 2012 from Euro65.9m in 2011. The German cement producer explained in a press release that cement volumes fell by 2.5% in Europe and that this couldn't be counterbalanced by volume increases in Russia and the US.

Sales remained stable overall at Euro1.6bn in 2012. Earnings before interest, taxes, depreciation and amortisation fell by 3.1% to Euro284m from Euro293m. Average cement prices decreased in Luxembourg and in Poland. In the Czech Republic cement prices remained almost stable, while they increased in Germany, Ukraine, Russia and the US. About 48% of total Group sales can be ascribed to the division Germany/Western Europe, 39% to Eastern Europe and 13% to the USA.

The group's complete consolidated financial statements will be published on 26 March 2013.

Egypt: The Shura Council's housing committee, in Egypt's upper house of parliament, has suggested imposing mandatory pricing for the country's cement firms. The move follows recent rises in cement price of up to 25%.

"The Egyptian Competition Authority will be tasked with setting the price if the government approves the Shura Council's recommendation," said Atef Yacub, the head of Egypt's Consumer Protection Agency, to Al Ahramonline. He explained that the 'unjustified increase in cement prices' is the main reason behind the suggestion of the mandatory pricing. Yacub dismissed suggestions that energy price rises were solely responsible for the rises in overall cement prices.

In February 2013 the Egyptian government said that the price of fuel oil, which is widely used in energy-intensive local industries such as cement, would be increased by 50% to US$220/t.

Brazil: Haver & Boecker has celebrated the expansion of its headquarters in Brazil with over 200 guests from North and South America, Europe and Asia in attendance. Haver & Boecker Latinoamericana (HBL), the Brazilian subsidiary of the German engineering specialists for the raw material processing industry, is based in Monte Mor near Sao Paulo.

The expansion of HBL's building represents part of the investments made by the company to meet the growing demand registered in the Brazilian and Latin American market. Sales in Latin America have more than doubled since 2008. The growing share of engineering services required an expansion of office space to more than 1500m².

Haver & Boecker also announced at the event held on 1 March 2013 that they have created Haver & Boecker Holding Americas to support technical, financial and communications for all branches in Latin America and North America. Adrián Gamburgo, who was previously the director of HBL, will lead the holding company. Rodrigo Campos becomes the managing director for the branch in Brazil.