Global Cement News

Egypt: Production at Misr Beni Suef's cement plants was stopped for the second time in two months on 6 December 2012 due to shortage in natural gas supply. The company has reported that the lack of fuel has led to a loss of approximately US$16.5m and that it may lead to the dismissal of some of its workforce if continued.

Misr Beni Suef's managing director Farouk Moustafa said that the company had sent a letter to the Egyptian President Mohamed Mursi seeking a solution to the gas supply cut but that no response had yet been received.

Thailand/Cambodia: Owing to strong demand for cement in the country and the wider Far East region, Siam City Cement (SCCC) has announced plans to re-open one of the two clinker lines that it shut down in 2008, according to local press.

With the re-opening of the clinker factory in October 2013, SCCC's production capacity will rise by at least 1.4Mt/yr, or 10% of its current capacity, according to the company's managing director Philippe Arto.

SCCC shut down the two plants, which had total capacity of 2.25Mt/yr in 2008 because of an increase in production costs and a decline in demand for cement. However, the company has recently seen strong growth in demand. In 2013 it targets year-on-year growth of at least 5%, following an increase in both public and private sector projects.

Meanwhile, the company's board of directors has said that it will consider a plan to invest in Cambodia early in 2013. The company has been working on the plan since 2010. "Our board of directors will make a decision on this plan in 2013. This would be our first investment outside Thailand," said Arto.

If the plan is approved, SCCC will set up a cement plant in Cambodia via a joint venture with a local partner. "We are interested in investing in Cambodia because we have a more-than 40% share in the cement market in the country," said Arto.

SCCC's sales in the first nine months of 2012 climbed by 10.8% to US$653.8m from US$590.5m in the same period of 2011 due to growing demand. However, its net profit dropped by 5.3% to US$94.1m from US$99.3m due to rising energy costs.

Pakistan: The cement industry has faced a shortage of raw material since Friday 7 December 2012 because truck owners have stopped picking up coal consignments for factories from Port Qasim, according to the All Pakistan Cement Manufacturers Association (APCMA). They are observing a strike against increased incidences of theft, extortion and the charges from the motorway police. The Pakistan cement industry consumes around 4.5Mt/yr of coal.

Coal and various other raw materials are not currently being transported to any cement producer from Port Qasim, which is likely to hurt production in the coming days.

Aside from the thefts and extortion by criminals, the truck owners and drivers say that motorway police have imposed impractical restrictions on truck loading. Truck owners said that the load restriction of 58.5t including 28t from the trucks themselves, is too low. This requirement severely limits the coal-carrying capacity of many trucks, making the transportation cost per tonne unrealistically high.

The APCMA has demanded the government to resolve the issues of goods carrier at the earliest hence the supplies are made regular in order to continue uninterrupted cement production.

India: The talks between Jaypee Group and Aditya Birla Group regarding the sale of the former's Gujarat based cement units have finally moved to the final stages, according to local media. It was reported that valuations of the deal, which had already resulted in failed acquisition attempts by others, have continued to cause delays.

Birla has been negotiating the cost of Jaypee's Gujarat cement units with the aim of paying a total of US$800m. The reports say that Birla had offered to purchase the units at US$160/t of installed capacity. This is significantly lower than the US$200/t paid during deals between Holcim and ACC.

UK: A Lafarge cement plant in Cookstown, County Tyrone, Northern Ireland has invested Euro6m in new equipment and an apprenticeship scheme.

Northern Ireland Enterprise Minister Arlene Foster visited the plant, where she met employees and saw a refurbished electrostatic precipitator that will reduce overall dust emissions. She was also told about the Cement Kiln Dust (CKD) project, which has reduced some 8000t/yr of landfilled waste to almost zero.

Further plans for the Cookstown Works were also showcased, including a future upgrade of a central control room and the apprenticeship scheme, which saw two new apprentices join the works team in 2012. A further two apprentices will join the team in 2013.

The minister said that Lafarge's investment demonstrates its confidence in its workforce. "This is a difficult time for the construction industry and it is therefore particularly pleasing to see that the company is investing in its future by upgrading its current facilities and creating opportunities for apprenticeships," said Foster.

The investment in the Cookstown Works comes at a time when Lafarge is merging its UK building materials business interests with those of Tarmac Buxton. This has necessitated the sale of the French giant's Hope Works in Derbyshire, England.