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UK: The Competition and Markets Authority (CMA) has welcomed the sale of plants by Lafarge Tarmac and Hanson.
In the Competition Commission's (CC) market investigation published in January 2014, the CC had ordered Lafarge Tarmac to sell one of two cement plants and Hanson to sell one of its ground granulated blast furnace slag (GGBS) plants to enhance competition in the cement and GGBS markets in the UK. Lafarge Tarmac appealed the CC's decision to the Competition Appeal Tribunal. However, in December 2014, the European Commission cleared the merger between Lafarge and Holcim, provided it divest certain assets to a new market entrant. In accordance with those commitments, the Lafarge Tarmac business in the UK, with the exception of the Cauldon cement plant, was sold to CRH and the legal challenges brought by Lafarge Tarmac to the CC have been withdrawn.
In addition, Hanson completed the sale of its GGBS plant in Scunthorpe, as required by the CC's report, to Francis Flower on 31 July 2015. This news means that the Competition and Markets Authority (CMA) has completed the divestment remedies arising from the CC's report.
Bestway Cement signs MoU with NUST Institute of Civil Engineering for research on innovative cement solutions 07 August 2015
Pakistan: Bestway Cement signed a Memorandum of Understanding (MoU) with NUST Institute of Civil Engineering on 27 July 2015. The MoU marks a collaborative effort between both organisations to promote research and development of cutting edge, innovative construction materials and building solutions in Pakistan.
Irfan Sheikh expressed his delight and stressed the need for construction materials related cutting-edge research and development in Pakistan. In July 2015, Bestway Cement commissioned two 13.5MW waste heat recovery (WHR) power plants at its cement plants in Hattar and Farooqia. Aimed at not only reducing Bestway Cement's reliance on national grid, the WHR plants will help to alleviate the country's power crisis to a certain extent and reduce greenhouse gas emissions.
"We aim to develop products through collaborative research and development that will add value for our customers. Innovation defines our focus on our customers' needs, provides solutions for improving quality of life and generates much needed economic activity in the country, while ensuring that our environment is safeguarded," said Irfan Sheikh, director of finance and CFO of Bestway Cement and Pakcem Limited.
Cement workers to get 33% wage hike 07 August 2015
India: Cement plant workers will see a 33% rise in wages following the conclusion of the Cement Manufacturers' Association's (CMA) wage accord. The decision applies to cement plant workers at 85 cement plants owned by 20 cement companies, according to The Times of India.
The settlement provides for an increase of US$94/month in gross pay. While a hike of US$47/month will be given with effect from April 2014, an increase of another US$47/month will come into force from September 2016. This translates into a 33% salary increase. The wage arrears for 16 months will be paid in two instalments. The settlement is for a duration of four years, from 1 April 2014 to 31 March 2018 and covers around 66% of the total annual cement production capacity in the country, or 189Mt/yr out of 285Mt/yr.
"The current settlement is unique as it is perhaps the only nationwide settlement reached for workers of a major organised industry in the private sector," said N Srinivasan, vice chairman and managing director of The India Cements, who spearheaded the negotiations on behalf of the CMA. "Despite the difficult conditions being faced by the industry due to subdued demand and lower capacity utilisation, it has agreed to implement the wage revision in the overall interest of a large number of workers."
Kenya: Kitengela-based quarry operator Karsan Ramji & Sons is stepping up its investments in the cement business with the planned construction of a cement plant in Nakuru, the second such project in the past 12 months.
Karsan Ramji & Sons has sought regulatory approval to set up a 700t/day (224,000t/yr) cement plant in Engashura, some 7km from Nakuru. The company recently completed the construction of a similar-sized cement plant in Athi River and in June 2015 began selling cement under the brand name Ndovu.
"If we secure regulatory approvals in time, construction will begin in December 2015 and the plant will begin operating by November 2016," said Kishor Varsani, Karsan Ramji & Sons' managing director. The plant will use imported clinker while pozzolana and gypsum will be sourced locally from its quarries.
Also in Kenya, Nigeria's Dangote Cement plans to build a US$395m cement plant in Kitui, while India's Sanghi Group plans to construct a US$119m cement plant in West Pokot. Kenya's 2014 cement production grew by 16.4% year-on-year to 5.88Mt, up from 5.05Mt in 2013 as a result of new players entering the industry. Cement production in the country has consistently outpaced consumption, which stood at 4.26Mt and 5.19Mt in 2013 and 2014 respectively.
"Everybody knows that there is currently an oversupply of cement in the Kenyan market," said Varsani. "However, our decision to diversify our business into this sector is based on the belief that demand for cement will soon outpace supply. This is in line with the expected growth of the economy and construction industry."
Karsan Ramji & Sons' maiden Athi River plant is located about 500m from the plants of its two rivals, Mombasa Cement and Bamburi Cement. Other competitors in the neighbourhood include ARM Cement and East Africa Portland Cement. The plant, which recently started operations was initially to be built in Kitengela, but residents opposed the project citing health and environmental concerns, forcing the investor to relocate the venture to Athi River.
Grey and white cement sales down in Tunisia 07 August 2015
Tunisia: According to the latest statistics from the Ministry of Industry, Mining and Energy, grey cement production grew by 0.99% year-on-year to 4.75Mt in the first six months of 2015 from 4.7Mt in the first half of 2014. The amount sold locally fell by 6.29% 3.73Mt, compared to 3.98Mt in the first half 2014. Exports increased by 33.8% from 722,248t to 966,095t. In the first half of 2015, white cement production fell by 11.1% to 222,408t from 250,096t in the same period in 2014. Local sales of white cement fell by 6.69% to 96,551t from 103,476 in 2014.