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All Pakistan Cement Manufacturers Association say production capacity plans to grow by 10Mt by 2018 13 April 2016
Pakistan: The Pakistan cement industry plans to invest up to US$1bn towards production capacity growth of 10Mt/yr by 2018. The growth will be targeted at the growing real estate market and expected China Pakistan Economic Corridor (CPEC) projects said Mohammad Ali Tabba, chairman of the All Pakistan Cement Manufacturers Association (APCMA) in comments to the Business Recorder.
"Four companies have already announced their plans in this regard. Cherat Cement is going to do it from next year, and then Attock Cement, DG Khan Cement and Lucky Cement will materialise their plans," said Tabba.
He added that at present the country has a production capacity of 46Mt/yr, a demand of 38Mt/yr and a capacity utilisation rate of 80 – 85%. His argument for cement industry growth rests on the industry hitting this capacity utilisation rate. The last time a significant increase in industry capacity was made was in 2005 -2006 when it was increased from 17.9Mt/yr to 42.3Mt/yr in 2008 – 2009.
Saudi Arabia reported to have lifted cement export ban 13 April 2016
Saudi Arabia: Saudi Arabia has lifted a ban on exporting cement, the chief executive of Yanbu Cement has said to local press. Ahmed bin Abduh Zugail, who is also the deputy head of the Saudi national committee of cement companies, added that cement companies have welcomed the relaxation of the ban. However, full details of the new regulations are yet to be released by the Ministry of Commerce.
Local press reported in late November 2015 that government bodies were considering cutting the ban on cement exports. The ban was originally introduced in Saudi Arabia to keep prices down and production flowing for large infrastructure projects built using oil revenue.
Cambodia: Chip Mong Group has ordered three vertical roller mills from Gebr. Pfeiffer for a new cement production line in Touk Meas. The order comprises a MPS 3350 BK for coal, a MVR 5000 R-4 for raw material and a MVR 6000 C-6 for cement grinding. The cement mill will come equipped with a MultiDrive consisting of four drive modules. This drive system has an installed power of 7200kW to allow redundant operation.
The MVR 6000 C-6 cement mill will be the largest vertical roller mill in the Association of Southeast Asian Nations (ASEAN) region. It will be set up in cooperation with CITIC Heavy Industries. Delivery of the mills is scheduled to take place in the first quarter of 2017.
Dilip Gaur starts tenure as managing director of Grasim Industries
Written by Global Cement staff
13 April 2016
India: Dilip Gaur has replaced K K Maheshwari as the managing director of Grasim Industries, with effect from 1 April 2016. Maheshwari will remain on the board as a non-executive director.
Gaur was previously the deputy-managing director of Ultratech Cement. Before that he worked for Birla Copper, Alexandria Carbon Black and Pan Century Edible Oils. He also worked for over 20 years with Hindustan Unilever. Gaur holds a bachelor of engineering degree in chemicals and took the Advanced Management Program at Harvard, US.
Ratings agency says LafargeHolcim to benefit from Indian infrastructure spending growth 12 April 2016
India: Government plans to increase spending on infrastructure projects will benefit LafargeHolcim according to Moody's Investor Service. The second largest cement producer in India will gain from uneven regional demand, with a much larger scale and more prominent operations in northern India, where it sells almost 42% of its local cement volume.
LafargeHolcim and other European cement manufacturers with a presence in India are likely to benefit if the Indian government's plans to ramp up infrastructure spending happen in the next 12 to 18 months. The 2016 Union Budget contained plans to hike public infrastructure spending, especially on roads, which could revive stagnant cement demand in the country.
According to the government's 12th Five Year Plan (2012 - 17) investment in infrastructure should increase from 7.6% of gross domestic product (GDP) in 2014 to 9% in 2017. However, cement demand for government-funded projects has been weak in the last four years with many construction schemes delayed or put on hold. As a result, while infrastructure investment will be a key growth driver, the timing of such investment remains uncertain.
However, Moody’s also noted that European multinational cement producers based in the south of the country with limited geographical spread would be more exposed to local overcapacity in this region. This included HeidelbergCement, Italcementi and CRH.