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Indonesian government to tackle cement industry expansion 10 October 2016
Indonesia: Industry Minister Airlangga Hartarto has said that the government is preparing regulations to restrict new cement plant permits being issued in a bid to maintain stable cement prices. The ministry’s director general for chemicals, textile and miscellaneous industry, Achmad Sigit Dwiwahjono, has also confirmed the proposed regulation, according to the Jakarta Post. Airlangga added that his ministry has also been considering other measures to tackle cement oversupply.
The Indonesian Cement Association (ASI) has lobbied the government to take action on oversupply. Cement production capacity has nearly doubled from 59.3Mt/yr in 2012 to 92.7Mt/yr in 2016. However, demand is projected to only reach 65Mt in 2016, leaving a production oversupply of 27.7Mt.
LafargeHolcim to sell stake in Cemento Polpaico for US$225m 10 October 2016
Chile: LafargeHolcim has signed an agreement with Inversiones Caburga, part of the Hurtado Vicuña Group, to sell its 54.3% stake in Cemento Polpaico for US$225m. The transaction will be carried out by a public tender offer by Inversiones Caburga to all shareholders of Cemento Polpaico.
Cemento Polpaico operates one integrated plant and two grinding plants with an annual cement capacity of 2.3Mt/yr. The company is also a leading ready-mix concrete producer operating 25 plants and produces aggregates. The launch of the public tender offer is subject to the approval of the Chilean competition authorities, which is expected for the first half of 2017. Following the successful completion LafargeHolcim would exit Chile completely.
Malabar Cements to resume operations this month 07 October 2016
India: Malabar Cements will restart operations later in October 2016, says EP Jayarajan, the Industry Minister of Kerala. The publicly owned cement producer stopped production due to lack of supply of raw materials in late September 2016, according to the Hindu newspaper. Laterite and limestone required for production will be sourced from Kasaragod and Rajasthan respectively.
Ugandan government to build cement plant in Karamoja 07 October 2016
Uganda: The government intends to build a cement plant in Karamoja in partnership with Moroto Ateker Cement. The company is a formation of Uganda Development Corporation and Savannah Mines, a local firm based in Karamoja, with a shareholding of 51% and 49% respectively, according to the Monitor newspaper. Moroto Aterer has contracted India’s Saboo Technologies to build the cement plant in the Moroto Industrial Park. Saboo has completed a feasibility study and say that the plant will be completed in two phases.
ARM Cement secures US$140m from CDC Group 07 October 2016
Kenya: ARM Cement has completed an equity deal to secure US$140m in funding from CDC Group. The investment is believed to be the largest equity deal in Kenya and East Africa in 2016, and one of the largest equity deals in Kenya to date. The cement producer intends to use the investment to build a new cement plant in Kitui County.
“This deal is indicative of the increased infrastructure development in the East African region. The demand for quality and sustainably produced cement has never been higher, and this deal capacitates ARM to meet this demand head-on. The deal is good news as it is expected to create jobs due to increased production and opportunities all along the supply chain,” said Paras Shah, a partner with Bowmans Kenya, the firm that advised ARM on the legal aspects of the transaction.