Global Cement News

India: Strong sales from India's two largest cement makers, Aditya Birla Group's UltraTech and Swiss major Holcim's Ambuja Cements, in May 2012 are likely to return the industry to growth figures above 10% after a gap of two months.

Following India's 'disappointing' GDP growth of 5.3% for the first quarter of 2012, strong dispatches just before the start of the monsoon season has given hope to cement industry experts for better growth in 2012-13.

Ambuja Cements sold 1.93Mt in May 2012 against 1.73Mt in May 2011, a rise of 11.9%. UltraTech Cement, registered sales growth of 10.6%. However, Ambuja's sister concern, ACC, could not match up with the other key producers and reported a growth of 3%. It sold 2.05Mt compared to 1.99Mt in May 2011.

"With 10-12% growth from country's two top cement makers, it seems the industry will hit growth of 11-13% in May 2012," said the research head of a Mumbai-based brokerage firm.

The Indian Cement Manufacturers' Association (CMA) will be releasing the sector's overall statistics in June 2012. UltraTech Cement, ACC and Amubja Cements collectively control close to one-third of the country's cement market, which has an overall capacity of 330Mt/yr.

Mozambique: Domestic production in Mozambique reached a record high of 0.28Mt in the first quarter of 2012, with imports falling to 79,000t during the same period.

National Director of Industry, Sidonio dos Santos, has attributed this growth to a sharp increase in the availability of cement, although domestic production is yet to meet the demands of the market. Cimento Nacional, a new cement factory, has been commissioned with an installed annual capacity of 0.25Mt/yr. Cimentos de Mocambique, the largest cement factory in the country, has increased its capacity to 0.40Mt/yr with the inauguration of a new mill.

In 2010 total production capacity for the country was estimated at 1.3Mt, which increased to 2Mt in 2011. In January 2012 domestic production reached 79,000t while imports were just 16,000t. In February 2012 production was nearly 90,000t, with imports at 26,000t. In March 2012 production was 0.11Mt, with imports at 37,000t.

"We believe we will meet the government's five-year plan for cement production, because investors are implementing their projects to increase production and build new factories," said Dos Santos.

Currently there are five cement factories in Mozambique. The government expects to inaugurate another three cement factories in the province of Maputo: GS Cimentos, with a capacity of 0.5Mt/yr; ADIL Cement, with a capacity of 0.12Mt/yr; Maputo Cement and Steel Maputo with a capacity of 0.13Mt/yr. In January 2012 Industry and Trade Minister Armando Inroga announced that the government is considering imposing a quota system for imported cement later in 2012 in order to protect Mozambican cement producers.

Kenya: The head of sales and marketing at the East African Portland Cement Company (EAPCC), Francis Mwalili, has been fired. The EAPCC board accused him of inciting staff unrest and took advantage of his probationary contract to remove him. In addition EAPCC claims it had also received a letter in May 2011 from Mwalili's former employer, the Kenya Meat Commission, accusing him of extorting money from clients and potential customers.

Mwalili has denied the allegations accusing the EAPCC board of having a hidden agenda to sack him. He said his employment was on a five-year contract and he was not on any probation as alluded to in the termination letter. He is now calling on the relevant authorities to step in to avoid further disputes within the company, which have caused massive disruption since the start of 2012.

Belarus: A new dry 1.8Mt/yr cement line has been commissioned at Kostyukovichi in Belarus. Architecture and Construction Minister Anatoly Nichkasov presided over the opening ceremony for the joint Belarusian and Chinese project, which was constructed by the Chinese company CITIC Construction. Director of OAO Belarusian Cement Plant Vladimir Kiselev said that the launch of a further cement manufacturing line in July 2012 would raise domestic output to 3Mt/yr. He also noted that it would create 154 new jobs.

Since 2007 CITIC has been implementing an investment programme in Belarus to modernise cement mills and manufacturing lines, including building three new cement mills and modernising the power supply for three existing ones. In April 2012 a cement line was commissioned at OAO Krasnoselskstroimaterialy with a capacity of 1.8Mt/yr. OAO Krichevtsementnoshifer will have a similar line to be completed by 1 July 2012. Loans from China Export and Import Bank are the main source of funding.

Colombia: Cementera San Marcos has started operations in Yumbo, in the Valle del Cauca region of Colombia.

The company is a project of the Cobo family that partnered with Otoya and Armitage, and a consortium of the Solarte brothers. The Cobos already own a limestone mine. Manager Fernando de Francisco estimates that the Colombian cement market currently stands at 0.95Mt/month, with Cementera San Marcos aiming at a 1.5% share.

Meanwhile Miguel Angel Rubacalva, president of Holcim Colombia, expects market growth in 2012. In 2011 Holcim Colombia saw a 19.8% increase in sales, with operating income rising by 103.3% from US$20,000 to US$40,300. Holcim plans to increase the capacity of its plant at Nobsa, Boyacá by 5%.