Global Cement News

Philippines: Lafarge Republic plans to increase its production capacity by roughly 1Mt/yr starting in 2013 to meet strong public and private sector demand for cement in the Philippines.

The firm, whose production capacity was reported at 7.7Mt/yr in early 2011, said it will be refurbishing its grinding plant in Danao, Cebu and the mill at its plant in Norzagaray, Bulacan, yielding a capacity of 650,000t/yr in Visayas, as well as another 200,000t/yr in Luzon and 100,000t/yr in Mindanao.

"Based upon the strong demand growth for building materials during the first half of 2012 and our understanding of the order backlog of construction projects for the leading construction companies, we expect another year of sales and earnings growth in 2013," said Dong H Lee, country chief executive of Lafarge in the Philippines.

Israel: Mashav Initiation and Development, a subsidiary of Clal Industries and Investments, will invest US$90m to expand its private power station, which supplies electricity to Nesher Cement Enterprises. The power station's production capacity will be initially expanded by 50MW and then by 70MW.

Clal Industries owns 75% of Mashav, and Ireland's CRH owns 25%. Mashav's 50MW natural gas-driven power station received a 20 year independent power producer license in 2010. The expansion, scheduled for mid-2014, will increase production capacity to 100MW and then to 120MW in the second half of that year. The surplus power not used by Nesher will be sold to private customers.

Clal Industries' board of directors has instructed Mashav's management to secure financing for the project from external sources.

China: An accidental explosion at a quarry supplying a cement plant in southern China has killed ten people and left 18 with confirmed injuries.

Workers were in the process of unloading 13t of explosives from three trucks at a quarry of the Longshan Cement Company in Yingde city in Guangdong Province when some of the explosives ignited on 27 August 2012. Of the 18 injured, nine are workers from the cement company and the others are residents in the nearby town of Yinghong, which is separated from the quarry by a river.

At least nine people living in a nearby town were also injured in the blast when windows shattered. Among the dead were quarry workers and others who transported and unloaded the explosives.

An investigation team has been set up and sent to the site of the accident to search for evidence and handle the remains of the explosives. A probe into the cause of the blast is underway.

Longshan Cement Company, a subsidiary of Anhui Conch Cement, employs 950 people, including 240 who work at the quarry.

In July 2012 L&T filed for arbitration proceedings against the cement maker to claim US$33.8m in unpaid bills and payment delays. L&T alleged that Zuari failed to pay US$5.66m it owed to the engineering company for the construction of a 5500t/day cement plant at Yeraguntala in Andhra Pradesh. L&T claimed the rest of the amount as a penalty for payment delay and for cashing a performance guarantee.

US: Texas Industries (TXI) has requested that the US Department of Commerce and the Interagency Trade Enforcement Center investigate and counteract 'unfairly' priced portland cement imports from Greece and the Republic of Korea.

In a letter to the organisations, TXI, the largest producer of cement in Texas and a major cement producer in California, stated that it believes that imports from Greece and Korea are being sold at less than a 'fair' value and are benefiting from government subsidies. In addition it alleged that these imports have materially injured Texas cement producers and their employees.

Imports from Greece and Korea to Texas increased by almost 40% from 2009 to 2011, and increased another 14% from the first half of 2011 to the first half of 2012. Allegedly these imports have taken substantial sales volumes from Texan producers resulting in underutilisation of local production capacity and reduced profits.