Global Cement News

Russia: RATM Holding's Iskitimcement Cement Plant has reported a rise in its output by 23.1% year-on-year to 1.12Mt for January to September 2012. Deliveries rose by 28.9% to 1.29Mt in the same period.

In July to September 2012 Iskitimtsement produced 535,000t of cement and sold 579,369t. In September 2012 the company's output reached 168,000t and sales were 187,434t. Iskitimtsement has said that it plans to boost 2012 production by 9.4% year-on-year to 1.4Mt/yr.

Nationally, cement production in Russia to expected to reach 61Mt in 2012 as the construction industry continues to drive growth. During the first half of 2012, construction output managed to maintain a growth pace above that of the gross domestic product (GDP), recording a 5.4% expansion in year-on-year terms while GDP managed to expand by only 4.5% for the same period. At the same time, the production of cement in Russia totalled nearly 27.8Mt in the first half of 2012, representing a 14.1% annual increase. The sector is expected to further intensify in the near future due to large investments by public authorities in construction projects.

Lithuania: Akmenes Cementas, Lithuania's biggest cement producer, is operating almost at full capacity as its strategy to push exports has provide successful. For 2012 Akmenes Cement is aiming for at least a 10% increase in annual sales and a rise of around 15% in revenues thanks to growing exports.

"Today we rely on exports for growth," said Akmenes Cementas CEO Arturas Zaremba. He added a forecast that cement consumption in Lithuania will decline by 5% in 2012.

Akmenes Cementas expects that its Euro101.4m modernisation project will further aid its efforts to gain a foothold in export markets. A new dry production line increasing the plant's capacity to 1.5Mt/yr is due to be completed in mid-2013. This line should reduce fuels costs by almost one third. Two existing lines, with a capacity of over 1Mt/yr, will then be decommissioned.

Kyrgyzstan: A rally against the Aravan Cement Plant had been held in the Aravan district of the Osh region in southern Kyrgyzstan.

Protestors demanded that cleaning filters be installed at the plant, funds be allocated to the local budget and local infrastructure be improved. In addition, they demanded that the plant owners sell cement to residents of the Aravan district at discounted prices.

The protesters have vowed to block the Aravan-Osh road if the plant's management ignores their demands. Additionally they have threatened to revoke the mandate of member of parliament Azamat Arapbaev, who is one of the plant's owners. The rally follows a residents meeting held on 12 September 2012 where similar demands were raised.

Critics of the protest have blamed professional agitators seeking money. In May 2012, a special commission conducted analysis of the air, water and soil at the plant and concluded that all the data met the required standards.

The Aravan Cement Plant started operation in September 2008 with a capacity of 200,000t/yr. About 380 people work at the site. The Aravan Cement Plant is a Kyrgyz-Chinese company.

Belarus: Belarusian President Alyaksandr Lukashenka has ordered the Homel Regional Executive Committee to cancel an investment agreement under which Iran's Azarab Industries Company was to build a cement plant in the Vetka district.

Under the agreement, signed in May 2010, the Iranian company was to invest at least US$200m dollars in the project and complete the plant within three years. The Belarusian authorities hoped that the plant would be put into operation within 24 months. The investor was also to be granted the right to develop two chalk deposits near Vetka for a period of 50 years and export up to 70% of the output of the 1Mt/yr plant.

Uladzimir Dvornik, head of the Homel Regional Executive Committee, said in March 2011 that although the first stage of the project was to be completed on 7 February 2011, Azarab Industries Company had not submitted an implementation report. Instead, in January 2011, the regional government received a draft lease agreement for land plots from the company, which contained provisions contravening Belarusian regulations. In March 2011 the Homel Regional Executive Committee sent a letter to the Iranian company to assure it of a favourable decision on its suggestions with regard to a fixed lease rate for 50 years.

"There has yet been neither reply nor action from the Iranian company, which does not contribute to the implementation of the investment project," said Dvornik. The regional government is now looking for new investors for the plant.

Venezuela: Managing Director of the Organization for Development and Renovation of Mines and Mining Industry, Majid Tooklani, has said that Iran is constructing a 1Mt/yr cement plant in Servasul, Venezuela.

"The first phase of the project is underway and the second phase will begin within four months," Tooklani said. He added that the project is a joint investment venture by Iran and Venezuela with 30 Iranian companies providing the host country with technical and engineering services.