Global Cement News

National: China's cement output grew by 8.7% year-on-year in April 2013, rising from a 4% increase in the same month of last year, according to the latest statistics released by the National Development and Reform Commission (NDRC). In the first four months of 2013, the country's total cement output reached 641Mt, an increase of 8.4% year-on-year from the same period in 2012. Profits for the cement industry fell by 29.4% for the first quarter of 2013 to US$606m.

Regional: In southwest China, Chongqing Municipality produced 17.7Mt of cement over the first four months of 2013, a year-on-year increase of 11.2%, according to the local statistics bureau. Yunnan Province produced 28.4Mt of cement in the first four months of 2013, a year-on-year increase of 27.8%.

The central Hubei Province saw cement output slide by 2.6% year-on-year to 31Mt for the first four months of 2013. Hunan Province saw its cement output rise by 8.3% year-on-year to 9.33Mt in April 2013.

Eastern China's Jiangsu Province saw cement output grow by 15.1% year-on-year to 55.5Mt for the first four months of 2013.

Government: China has confirmed that it intends to release a blueprint for urbanisation in 2013, the state-run Xinhua News Agency has reported, citing officials with China's top economic planner. Officials with the NDRC said the urbanisation development plan is 'very important' and that the NDRC was leading the drafting. Shares in cement suppliers and other construction-related companies have already benefited from expectations of more housing and infrastructure projects.

Corporate: Chinares Cement has announced it is in discussion with Fujian Cement about setting up a joint-venture to build cement grinding lines, and to coordinate marketing and sales. No agreement has been reached yet.

Saudi Arabia: Saudi cement producer Southern Province Cement (SPC), the nation's largest cement firm by market value, posted a US$71.6m net profit for the first quarter of 2013, down from US$75.8m a year ago. Without providing exact figures, the company attributed the decrease to lower cement prices.

The cement manufacturer registered an operating profit of US$72.7m for the first three months of 2013, down from US$76.8m in the first quarter of 2012.

Saudi Arabia: Hail Cement has booked a US$3.7m net loss for the first quarter of 2013, more than double the loss of US$1.7m suffered in the first quarter of 2012. Without providing any exact figures, the company attributed the loss to higher expenses related to launching production, coupled with higher salary costs due to the growing number of employees.

Hail Cement, established in 2010, is yet to start commercial production. According to the current plans, this is expected by the end of the second quarter of 2013. In February 2013 Hail Cement said that its rotary cement kiln had started trial production and that the trial operations were expected to take three months.

Philippines: San Miguel Corporation has purchased a 35% stake in Northern Cement Corporation for US$72.1m and plans to finance the aggressive expansion of the company. San Miguel president Ramon Ang said the conglomerate would spend US$750m for the construction of new cement plants for Northern Cement, a company that is controlled by San Miguel chairman Eduardo Cojuangco.

Ang, who is also the chief of operations of San Miguel, said the company plans to expand the operation of Northern Cement by building three more plants at a cost of US$250m each.

Ang said that one plant would be built in the existing site in Pangasinan, another in Southern Luzon and a third in Cebu. Each plant will have a capacity of 2Mt/yr.

"All of these projects will happen within 2013 and are likely to be completed within two years," said Ang. "Eventually, San Miguel wants to build more plants to become the dominant cement manufacturing company in the Philippines." He added that Northern Cement aims to secure at least a 30% share of the cement market, which had 'huge potential.' "The revenue potential for each 2Mt/yr plant is estimated at US$200m/yr," he said.

Oman: On 23 May 2012 Oman Cement Company (OCC) said that the Public Authority for Consumer Protection (PACP) has initiated an investigation on the quality of cement imported by the company. A team from PACP visited the company to inspect the cement imported and locally purchased for blending with its own cement, which the team considered to be a violation.

However, the company assured the team that the cement purchased after tender process is manufactured by reputable local and foreign cement companies according to the specifications better than the British-European and Omani standards and conform to high quality standard followed by OCC.

The clarification was in response to a newspaper report on deceptive commercial practices carried out by a company in importing 30,000t of 'inferior' quality cement, which was allegedly re-packed and sold as high quality product at a high price.

OCC also assured the authority that the cement purchased has been subjected to laboratory test and harmonising it with OCC-manufactured cement is undertaken with adherence to high quality standards.

"The purchase of cement, which amounts to about 30,000t and is hardly 1% of the annual capacity of the firm, had been necessitated due to breakdown of one of the cement mills of the company in April 2013," added OCC in a statement.

In a separate statement Raysut Cement sought to distance itself from the communication between OCC and the PACP.