Global Cement News

India: Holcim-controlled Associated Cement Companies (ACC) is mulling a US$913m integrated cement complex in the state of Andhra Pradesh. The company is planning a 5Mt/yr integrated cement complex, along with an 8Mt/yr cement grinding unit and a 100MW captive power plant at Gollapalli village in Kadapa district in Andhra Pradesh. To support the cement plant the company is also creating a 7Mt/yr captive limestone mine.

While ACC has made no official comment, industry insiders have expressed surprise that ACC is planning further cement capacity in south India, which is already reeling under excess capacity. ACC has already announced its plans to increase its capacity by 5Mt/yr through brownfield expansion at its Jamul plant in Chattisgarh.

Pakistan: Lucky Cement has started supplying 20MW/hr of electricity to Hyderabad Electricity Supply Company Limited (Hesco), according to a company announcement. The company said that it was aiming to start selling the same amount of electricity to Peshawar Electricity Supply Company Limited (Pesco) by the middle of July 2012. Speaking on 2 July 2012, a company spokesman said that the talks were underway on the sale and purchase agreement with Pesco.

Since 2010 Lucky Cement has operated 22MW waste-heat recovery units on two cement plants in Karachi and Pezu. The sale of surplus power has enhanced the company's balance sheet, as it struggles against continued low demand in the Pakistan market.

Canada: The Cement Association of Canada has applauded the Government of Canada's announcement that it will invest almost US$1m in Ontario-based Pond Biofuels for the advancement of Canadian biofuel technology and expertise. The investment will be made under the Federal Economic Development Agency for Southern Ontario's 'Investing in Business Innovation' initiative.

The contribution will help Pond Biofuels complete a pilot demonstration of a technology developed jointly with St Marys Cement to capture and convert CO₂ and other emissions from the cement manufacturing process into oxygen and biomass.

"This technology pioneered by Pond Biofuels in partnership with St Marys Cement speaks to the Canadian cement industry's commitment to innovation and commitment to reducing its carbon footprint," said Michael McSweeney, President and CEO of the Cement Association of Canada. "Government support plays a critical role in fostering innovation and we warmly welcome the investment in this groundbreaking initiative as an important step in the future of sustainable development for Canada's cement industry."

France: Under its Euro Medium-Term Note programme, Lafarge has today issued a Euro500m bond with a 7 year maturity and fixed annual coupon of 5.875% to institutional investors. While the French cement and building materials giant had said that it had no immediate refinancing needs, the proceeds of this bond issuance will reinforce the already strong liquidity position of the group.

The settlement and issuance of the bond are expected to occur on 9 July 2012.