Global Cement News

Ireland/India: International building materials group CRH has said that negotiations with Jaypee Cement Corporation have been terminated because the parties were unable to agree terms.

On 7 August 2012 CRH announced that it had entered into talks with Jaypee regarding the possible purchase by CRH of an equity stake in Jaypee's Gujarat cement business. The operations in Gujurat consisted of clinker plants with a total capacity of 3.6Mt/yr. There are also two cement grinding plants with a total capacity of 2.8Mt/yr.

Nigeria: Chairman of the Cement Manufacturing Association of Nigeria (CMAN), Joseph Makoju, has announced that Nigeria is producing more cement than it consumes, at a meeting held in Calabar, Cross River State.

Makoju said that the Nigerian cement industry was recording success at a time when the manufacturing sector as a whole in the country was shrinking. He attributed the slide in the price of cement to a surplus in the market, a feat he described as a first in the country.

"We believe that Nigeria has arrived as a cement manufacturing country. We are out to encourage local production against importation. The government has been very faithful as local production rose from 2Mt in 2002 to 13Mt in 2011 and so far this year to 17Mt," said Makoju. He added that for the first time in the country's history it had gone nine months without the government issuing licenses for cement imports. CMAN is now working out ways to export cement to other countries in the west African sub-region. Yet despite the surplus CMAN is still encouraging investors to build more cement plants.

Other issues raised at the meeting included the effect the poor state of Nigeria's roads has on the price of cement. Makoju estimated that 30% of the price comes from haulage fees which CMAN has no control over. CMAN has taken up the issue with the government and recommended the use of concrete road construction.

Saudi Arabia: Saudi Cement Company (SCC) has announced that its net profit for the six months to 30 June 2012 surged by 45% year-on-year, to US$164m from US$113m in the same period of 2011. The company attributed the increase to rising local demand. SCC's operating profit increased to US$166m for the first half of 2012 from US$118m in 2011.

Mexico: Based on results for the months of July and August 2012 and preliminary estimates for the month of September 2012, the Mexican cement giant Cemex currently expects to report an improvement in its like-for-like net sales and earnings before tax, depreciation and amortisation (EBITDA) its 2012 third quarter results, on a consolidated basis.

Cemex expects that net sales for the quarter will decline by approximately 2%, although net sales on a like-to-like basis, which considers currency fluctuations, are expected to grow by approximately 3%. It expects its operating EBITDA to grow by about 9% and operating EBITDA, on a like-to-like basis, is expected to grow by approximately 13%.

The expected improvements are broadly in line with improvements seen in the first half of 2012 compared to the first half of 2011.

South Africa: Pretoria Portland Cement (PPC) has been granted environmental authorisation by the Western Cape Department of Environmental Affairs and Development Planning for the second phase of its Western Cape modernisation project. This includes replacing two ageing cement kilns at its Riebeeck plant with a new five stage preheater kiln. However, interested and affected parties could still appeal the decision.

PPC has completed the first phase of its modernisation strategy, a US$33m upgrade of a cement kiln at the De Hoek plant near Piketberg, resulting in improved environmental performance and thermal efficiency. PPC embarked on its modernisation strategy to ensure that it will have competitive, energy-efficient plants that comply with future changes to South African environmental legislation. It estimates that the complete modernisation strategy will be sufficient to meet Western Cape cement demand until 2022.