Global Cement News

US: Gregory M Scott has become the president and chief executive of the Portland Cement Association (PCA), effective from 2 January 2013. Scott joined the PCA in January 2012 as the senior president of government affairs and was promoted to president in September 2012.

Scott holds a background in trade association leadership with legislative campaigns on federal transportation, environmental and energy issues. Most recently he served as executive vice president and general counsel for the National Petrochemical and Refiners Association (NPRA) in Washington, DC. Prior to joining the NPRA, Scott served as vice president of National Strategies, Inc, a trade association representing CEOs of Fortune 100 firms on corporate finance and tax issues.

He began his career serving on the staff of Senator Timothy E Wirth. From 1991-2008 Scott was a partner/member of Kelley Drye Collier Shannon, where he gained extensive expertise in petroleum refining and motor fuel marketing as well as legislative and regulatory issues.

Scott received his Bachelor of Arts degree from Colorado College in Colorado Springs and a law doctorate from the American University's Washington College of Law in Washington, DC.

Mexico: The French building materials giant Lafarge has announced a joint venture with new Mexican cement player Elementia, only a day after announcing that its UK joint venture with Tarmac received competition commission approval. The new joint venture formed will be held 47% by Lafarge and held 53% by Elementia, which will fully consolidate the venture's financial results.

The deal, announced on 8 January 2013, will see Lafarge contribute its two Mexican plants at Vito and Tula, which have a combined capacity of just under 1Mt/yr. Elementia will contribute its cement plant project, a 1Mt/yr installation, which is currently undergoing construction in central Mexico.

A Lafarge press release stated that the combination between Lafarge and Elementia would 'significantly' strengthen its position in Mexico. The transaction, which involves no cash and is subject to regulatory approvals, is expected to close in the second half of 2013, pursuant to the start up of the new Elementia plant.

India: Private sector ship builder ABG Group is in talks with private equity and financial firms to sell a minority stake in its cement business for about US$150m. According to Dhananjay L Datar, director of ABG Group, a potential deal is at a preliminary stage with several parties showing interest in the cement unit.

The group's cement business, ABG Cement, has a 6.5Mt/yr plant in Kutch, Gujarat, which is expected to be commissioned by the end of January 2013. India media has linked equity firms Blackstone and KKR to the deal. ABG Group originally announced its plans to enter the cement sector in 2008 with an initial investment of US$328m.

China: TCC International Holdings has reported that it has signed an agreement with Southwestern Cement, a subsidiary of China National Building Material Group Corp (CNBM), to 'increase cooperation on several businesses'.

According to agreement, TCC will buy cement assets in Sichuan Province from Southwestern Cement for US$8.52m to expand its share of the local market, while TCC will sell its cement assets in Guizhou Province to Southwestern Cement for US$17.8m. TCC will earn US$137m in profit from the deal and will use the profit to replenish working capital and fund future acquisition projects.

Liberia: President Ellen Johnson Sirleaf of Liberia has suspended tariffs on cement. The government cited that the move was in the interest of national reconstruction and development.

Under Executive Order No. 46, titled 'Re-Instituting the Suspension of the Protective Tariff on Cement,' the Liberian government has repealed a US$2 protective tariff per 50kg bag of Portland cement imposed under the Revenue Code of Liberia, tariff No. 25.23. The mandate added that the need still exists to encourage local industries to supply cement to the general public at reasonable prices.

Liberia currently has one cement grinding plant, the Liberia Cement Corporation, a subsidiary of HeidelbergCement which employs 63 people. In 2012 Nigerian cement producer Dangote announced plants to build a US$35m plant in the country.