Global Cement News

US/Colombia: Ceratech, Inc., a producer of alternative, non-OPC cementitious materials, has accepted another strategic equity investment, this time from Colombian cement powerhouse Cementos Argos. The Ceratech investment follows Argos' recent expansion of its US presence through a USD 760m purchase of Lafarge assets in the south east of the country. The strategic investment will help Argos meet its goal of building a competitive advantage based on sustainability and innovation.

Ceratech's manufacturing process produces technologically advanced, more durable, 'sustainable cements' comprising 95% waste fly ash generated by electric utilities. Its production does not generate any CO2 and the product is well-positioned for adoption by contractors, distributors and companies that are looking for new solutions that better conform to green building initiatives.

The two companies will cooperate to develop and distribute Ceratech's cement through Argos' established ready mix channels throughout the mid-Atlantic, southeastern and southwestern US markets.

"This strategic investment being made by Argos shows how important innovative, sustainable construction products are to the industry," stated Jon Hyman, CEO of Ceratech. "Ours is the only cement on the market composed of more than 90% fly ash. As the industry's only carbon-free cement, we exceed the requirements for green building practices such as USGBC's LEED rating system."

UAE: On 13 June 2011 Lafarge Emirates Cement inaugurated its first distribution centre in the region, in cooperation with Al Saeed AL Zaabi General Trading. The new centre in the Mussaffah Industrial Area in Abu Dhabi was inaugurated by Antoine Duclaux, CEO of Lafarge Emirates Cement in the presence of many of the company's strategic partners.

Duclaux said that the new 350m2 showroom in Mussaffah Industrial Area was a big achievement and that Lafarge Emirates was contributing to the growth of the construction growth market by offering its quality products in the UAE.

Adham El-Sharkawy, Commercial Director at Lafarge Emirates Cement said that the facility would present a new 'shopping experience' to cement end users by offering a full range of high quality products and various other building materials products under one roof in a highly modern showroom.

Japan: Major cement makers are dispersing their coal purchases to hedge against the risk of buying when prices are high. Traditionally, cement companies purchase a year's worth of coal in the month of April because price changes have tended to be small. With coal prices becoming more volatile, however, they are keeping a close eye on the market to gauge favourable times to buy.

Producers are hoping to keep costs in check in this way because coal purchases account for at least half of their materials expenses. Taiheiyo Cement has procured only about 30% of its coal supply for the current fiscal year, while Sumitomo Osaka Cement Co. and Mitsubishi Materials Corp. have each purchased around 60%. Sumitomo Osaka Cement, which began spreading out its purchases in the previous fiscal year, is reportedly considering whether or not to disperse costs even further.

Coal prices began rising in 2010 after major floods in Australia and the jump between January and March 2011, which served as the basis for purchase prices in April 2011, was particularly steep. Consequently, Taiheiyo Cement and Sumitomo Osaka Cement are believed to have paid nearly USD 150/t, an increase of 30% on April 2010. Wholesale coal prices are currently at around USD 135/t.

India: A Memorandum of Understanding (MoU) was signed on 13 June 2011 for the disposal of plastic waste between the Department of Environment, Government of Goa, and ACC's Wadi Cement plant. The MoU was signed by Michael D' Souza and M Sai Ramesh from ACC in the presence of Minister for Environment Aleixo Sequeira.

The MoU envisages establishing a collection and segregation mechanism for plastic waste from non-biodegradable solid waste for disposal through co-processing at the plant. It will be valid for a term of three years from the date of execution with an option of renewal by mutual consent on agreed terms and conditions. ACC will provide the services free of cost to the Department of Environment and to the state government.

Mexico: Cemex has announced that it has plans to cut 6% of its workforce worldwide (around 2800 jobs) as part of its wider plans for reorganisation that were announced at the start of 2011. Cemex said that it hopes to generate USD 400m in additional cash flow by the end of 2012 by cutting costs and improving underperforming business units.

Cemex has been struggling with its debt load after buying Australian rival Rinker just before the US housing crisis began. The company reported a wider-than-expected first-quarter loss in the first quarter of 2011, but said that increased sales were a sign of a slow recovery.