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Egypt/Sudan: According to Daily News Egypt, Qalaa Holding for Investment has signed an agreement with Financial Holding International (FHI) to sell FHI some of Qalaa's units. This is in line with Qalaa's aim to exit from some of its non-basic businesses and to reduce its consolidated debts of US$105m.
Qalaa will sell FHI its stakes in MENA Homes, Grandview and Dina Farms Land Companies, which will be separated from Dina for Agricultural Investments. In return, Qalaa will buy FHI's stakes in several affiliated companies, including cement producer ASEC Holding, as well as Taqa Arabia and Mashreq Petroleum in the energy sector. Qalaa will also buy FHI's stakes in Nile Logistics International in the Transport and logistics sector, Dina Farms Supermarkets in the retail sector and United Company for Foundries (UCF) in the metallurgical industry sector. The deal is expected to be finalised by December 2015, after the customary conditions and requirements are met.
Abdallah El-Ebiary, managing director of Qalaa's cement division, said that the cement sector is a main strategic area for Qalaa and that it has no intention of exiting it, nor the transport and energy sectors. He added that FHI plans to build a new pulveriser mill at the ASEC Cement plant in Minya, Egypt within the company's plan to convert to alternative energy due to the energy deficit and gas crisis. The cost will be US$30.2m and it will be built in the fourth quarter of 2015. "The company's strategy for the next period is to diversify to new and cheap energy sources instead of the traditional and unavailable sources. The investment cost is at US$30.2m, with US$1.31m for a pulveriser mill and US$11.8m for alternative fuel production," said El-Ebiary.
Qalaa also plans to increase the production capacity of its Takamol cement plant in Sudan from 430,000t/yr to 800,000t/yr in 2016. Qalaa aims to establish a new coal mine for the plant. The plant is 51% owned by ASEC Cement and 49% controlled by the Sudanese Social Security Investment Authority (SSIA), the entity that manages all pension funds in Sudan.
India: According to Finalaya News, Mauritius Debt Management has sold a 0.65% stake in Saurashtra Cement for US$210,807. It sold 330,000 shares at an average price of US$0.63 on the Bombay Stock Exchange (BSE).
Cement plant utilisation jumps to 85% in Philippines 26 June 2015
Philippines: The Manila Bulletin has reported that the capacity utilisation of local cement plants has increased to 85% from 68% in 2014 due to strong domestic construction activities, according to the Department of Trade and Industry (DTI).
DTI undersecretary Victorio Mario Dimagiba said that there is enough cement supply to meet demand. He added that the Philippines had 31.3Mt/yr of cement production capacity in 2014, when consumption was 21.3Mt, or 68%. At present, however, plant capacity utilisation has reached 85%.
The increase in demand in the Visayas and Mindanao areas in the past two weeks was to pre-empt the onset of the rainy season. Dimagiba said that, even though there are cement plants in these regions, there is a huge logistical challenge in the transport of cement to the islands. He added that should local demand in these regions exceed production, imports could augment the shortfall.
Lafarge India names Ujjwal Batria as CEO
Written by Global Cement staff
26 June 2015
India: Lafarge India has appointed Ujjwal Batria as CEO of the company effective from 22 June 2015. Batria will take over the responsibility from Martin Kriegner, who has been named as area manager for Central Europe of LafargeHolcim.
The development comes shortly before the expected completion of the LafargeHolcim merger. The Indian Competition Commission of India (CCI) has already approved the Indian leg of the proposed merger, with certain provisions, including divestment of two cement plants; Lafarge's plants at Jojobera, Jharkhand and Sonadih, Chhattisgarh. The two plants have a combined capacity of 5.15Mt/yr. Holcim's business in India is run through ACC and Ambuja Cements. It is not clear what Batria's role will be in the merged LafargeHolcim entity. Since ACC and Ambuja Cements are public listed firms, Lafarge's Indian unit may continue to operate separately, at least to begin with.
Prior to his appointment as CEO of Lafarge India, Batria was managing director of the company and was managing its cement business. He has been with Lafarge for 16 years. He had joined the company in 1999 and has served on different position across functions since then.
EAPCC renews hunt for COO
Written by Global Cement staff
26 June 2015
Kenya: According to Business Daily, East African Portland Cement Company (EAPCC) has renewed its efforts to recruit a new COO after the candidates who applied to fill the new position in August 2014 'fell short' of the required qualifications. EAPCC has now re-advertised the position, which is expected to strengthen its governance structure.
The Athi River-based manufacturer first sought to recruit a COO and CFO in 2014 through consultancy PricewaterhouseCoopers. Kephar Tande, the company's managing director, said that the board deemed the applicants to be unqualified. "The first attempt in 2014 did not yield a suitable candidate from the shortlisted four, hence this new advertisement," said Tande. "This position is primarily required to improve the efficiency of our supply chain to make the company more competitive. We expect the position to be filled by August 2015."
EAPCC's current management executive structure is made up of heads of sections and divisions like financial management, research and development, internal audit and risk management, as well as strategy performance improvement. The new COO will be responsible for cement production operations, production engineering, product research and development, as well as sales and marketing.
EAPPC has not said whether it will re-advertise the CFO job, also a new position. The CFO is expected to streamline financial management at the company, which has recently faced accusations of having reported inaccurate accounts. "The position of CFO will be filled as soon as internal procedures are completed," said Tande.