Global Cement News

India: Binani Cement is back on the market after its liabilities were revised upwards, according to sources close to the deal. JSW Cement had previously emerged as the winner of a very competitive bidding process earlier in 2018 with an offer of US$919m. The creditors have now sought fresh bids from interested parties, which previously included LafargeHolcim, HeidelbergCement, Ramco Cement, UltraTech Cement, Dalmia Bharat and the Bain Piramal Resurgence Fund. The resolution professional, Deloitte Touche Tohmatsu India LLP partner Vijaykumar Iyer, has set a new deadline of 12 February 2018, extended from 5 February 2018.

The additional liability of around US$250m has emerged due to Binani Cement’s corporate guarantee for the acquisition of a fibreglass asset in Europe known as 3B in 2012 by group company Binani Industries. As one of the contacts close to the deal is reported to have said, ‘this is not a small amount.’

Uzbekistan: In 2017 Qizilqumsement JSC, the biggest cement plant in Uzbekistan, increased cement production to 3.6Mt, 1.9% more than in 2016. 60% of the production volume was sold through exchange trades, 23% to direct contracts with regulated prices, 15% was exported and 2% was sold according to direct contracts based on exchange quotations. According to the business plan of Qizilqumsement JSC, cement production is expected to be at least 3.5Mt in 2018.

There are five large cement facilities and several small ones with total capacity of 8.5Mt/yr in Uzbekistan. The country exports cement to Afghanistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan.

Argentina: Cement producers in Argentina sold 1.03Mt of Portland cement in January 2018, including exports. This represented a 3.2% increase compared to sales in December 2017 and was 17.3% higher than sales made in January 2017, according to data from AFCP. Domestic sales, including imports, totalled 1.04Mt, 3.9% above the same sales in December 2017 and 19.4% higher than sales in January 2017.

Mexico: Cruz Azul has been forced to partially close its cement plant in Tula, Hidalgo due to a lack of an active environmental clearance certificate. Personnel from the Federal Attorney for Environmental Protection made an inspection of the facilities at the cement plant. When verifying the documentation, they found that it lacked the current authorisation issued by the Ministry of Environment and Natural Resources. In this situation, the temporary partial closure of the plant was imposed as a safety measure.

Bolivia: Itacamba plans exports of 119,000t of cement to Paraguay and Argentina in 2018. It will send over 60,000t to Argentina alone. It will also begin exports to Paraguay. Itacamba exported 4000t to Argentina and 158,000t of clinker to Paraguay in 2017.