Global Cement News

Indonesia: Domestic cement sales in Indonesia, the largest economy in south east Asia, rose by 26% in November 2011 from the same month in 2010, according to data released by the Indonesian cement association (ASI).

Sales volume reached 4.4Mt, compared to 3.5Mt in November 2010. Despite this, sales were down by 4.7% compared to October 2011, which saw 4.7Mt of cement sold. It should be noted that end of year deadlines for completion of government construction projects traditionally inflate November figures compared to those for December.

The ASI estimates that total domestic sales will reach around 45-46Mt in 2011, up by 15% from 2010, according to its chairman Urip Trimuryono.

In the longer term it is likely that cement demand growth will be more rapid in the country, with Indonesia's parliament stamping a long-awaited land acquisition bill on 16 December 2011. The bill will attempt to remove a bottleneck in infrastructure development that has long been seen as holding back growth in the country, providing a greater demand for cement.

Saudi Arabia: Saudi Arabian cement producer Arabian Cement Company (ACC) has seen its net profit for the first nine months of 2011 surge by 36% year-on-year to US$88.7m.The company attributed the increase in bottom-line figures to rising production and sales volumes but did not give exact figures.

ACC's operating profit jumped by 48.2% to US$96.9m in the first nine months of 2011. For the third quarter of 2011, the company registered a net profit of US$27.9m, an increase of 28.4% year-on-year.

Russia: Russia's Federal Antimonopoly Service (FAS) has said that it is considering the application by businessman Lev Kvetnoi, owner of cement producer Novoroscement, to buy the Verkhnebakansky cement plant from businesswoman Yelena Baturina.

The watchdog said it needed time to collect additional information on the deal, adding that it would extend the consideration period by two months.The application was submitted by Gazmetallproyekt, which runs Kvetnoi's assets. In November 2011 Baturina sold the Verkhnebakansky cement plant to Kvetnoi for around US$534m.

Switzerland/Italy: Sika AG, the Swiss specialty chemicals company, is to acquire the global concrete admixture and cement grinding aid businesses of the Italcementi Group (directly or indirectly controlled by Italcementi or Ciments Français). The businesses are on the market under the brand Axim. Axim has approximately 150 employees in Italy, France, the US, Canada, Morocco and Spain. In 2010 it generated sales of around Euro61m.

"This agreement will allow the group to capitalise the value of this business," said Giovanni Ferrario, COO of Italcementi Group. "Moreover, this will further extend the relationship between Italcementi and Sika, enhancing the reputation of both companies as innovators in the field of concrete and cement."

This acquisition allows Sika to significantly strengthen its market position in the relevant countries. As Sika's CEO, Ernst Baertschi, said, "This acquisition is a major step for Sika in the process of expanding market shares in the admixture business worldwide."

UK: The Mineral Products Association (MPA), which covers the cement and lime industries in the UK, has released its 3rd Sustainable Development Report, which shows the continued progress of its members in the realms of health and safety, carbon emissions, biodiversity, nature conservation and resource efficiency. It highlighted that, while growth prospects are uncertain and markets remain 20% to 40% below pre-recession levels, its members continue to be committed to stringent sustainability targets.

Highlights from the report include the planting of 1 million trees in the UK by MPA member since 2005 and a drop in direct carbon dioxide emission from cement production in 2010. The ratio of land prepared for quarrying to that which was restored to nature was 0.8:1. The report also showed the extent of the slump in UK cement demand. The UK consumed just 158kg/capita of cement in 2010 against the European average of 404kg/capita.

Nigel Jackson, Chief Executive MPA, said, "Our third Sustainable Development Report shows where we have gained considerable ground. For example, there is a growing awareness of the contribution that good building design can make to sustainability and how the use of concrete can significantly reduce the whole life energy performance of buildings through thermal mass benefits."

However, the MPA used the report to reiterate its stance on certain government policies. It believes that the government should not impose excessive costs on energy intensive industries, such cement and lime, which could drive the supply of essential and indigenously available resources overseas. "The MPA believes that genuine sustainable development demands that UK industries and supply chains are both resource efficient, where our industry is best in class in Europe, and also financially sustainable."