Global Cement News

Kenya: ARM Cement’s net loss more than doubled to US$55m in 2017 due to poor demand in Kenya and Tanzania. Its sales fell by 32% year-on-year to US$85m from US$127m. Elections in Kenya reduced cement demand, a coal import ban in Tanzania caused production issues at its Tanga cement plant and both countries saw increased competition.

“2017 was the most challenging for the group since the company’s listing on the Nairobi Securities Exchange in 1997. Whilst the management has navigated many business difficulties well in the past, raised capital for expansion, increased net profits and market capitalisation continuously over a 14 year period up to 2015, the challenges of the past year have been unprecedented,” the company said in a statement.

The cement producer says it is undergoing a ‘significant’ review of its current operations, asset base and financing structure to address its problems. It has also been cutting staff benefits as part of its plan to save money.

UK-government investor CDC Group, which holds a 41% stake in the company, has also replaced its board members Ketso Gordhan and Pepe Meijer with Sofia Bianchi and Rohit Anand.

Vietnam: The Ministry of Industry and Trade has proposed that the government transfers the management of Quang Son cement plant to the Vietnam Cement Industry Corporation (Vicem) from the Vietnam Industrial Construction Corporation (Vinaincon) due to high losses and mounting loans. Both companies are run by the government, according to the Viet Nam News newspaper. The loans have grown to 95% of the total investment of US$153m of the project, putting financial pressure on Vinaincon.

Under the proposal, Vicem will have to take care of all the loans taken by Vinaincon for Quang Son cement plant, formerly known as Thai Nguyen cement plant. The project started commercial operation in July 2011 with a production capacity of 1.5Mt/yr of cement.

India: Police have arrested the owner of a factory near Gaurichak in Bihar manufacturing counterfeit cement. Over 5000 bags of cement were seized, according to the Telegraph of India newspaper. Cement bags falsely branded as Birla Gold, Lafarge and other companies were found at the site. Packaging machines were also impounded. Police said the unit was collecting expired bags of cement and reusing them. The investigation will now move on to finding contractors who have been selling the fake products.

Senegal: Trade minister Alioune Sarr says that the government will investigate a rise in the price of cement. He said that a committee has been set up to review the prices of essential commodoties including cement, according to PressAfrik. The decision follows a rise in the price of cement at the end of May 2018.

Italy: Colacem has purchased the Maddaloni cement plant from Italcementi. The transaction was part of the measures requried by the Italian Competition Authority when Italcementi acquired Cementir.