Global Cement News

India: Jaypee Cement plans to sell a 51% stake in its 5Mt/yr cement plant in Gujarat to Ultratech. The value of the deal has been placed at around US$633m. A Jaypee official described the deal as 'finalised' to the Press Trust of India.

Jaypee and Ultratech have been in negotiations over the deal for a year. Ultratech reported to the Bombay Stock Exchange in December 2012 that it had not issued any press releases on the rumoured sale in a bid to calm market speculation.

In 2008 the owner of Jaypee Cement, Jaiprakash Associates, purchased purchased Bina Power Supply (BPSL) from the owner of Ultratech, Aditya Birla Group.

Indonesia: PT Cemindo Gemilang is due to start building a US$450m cement plant in Banten province following a groundbreaking ceremony on 11 September 2013. The 4Mt/yr plant will be situated on a 500 hectare plot in Bayah, Lebak regency. It is due to start commercial operations in the third quarter of 2015.

The subsidiary of oil palm plantation, mining and property business Ganda Group intends to spend a further US$150m on developing related infrastructure for the plant including a port and a power network. Cemindo will finance the project with external and internal funds. The majority of the funding, representing 70% of total investment, will be obtained from a syndicated loan led by the state-owned Bank Negara Indonesia.

Cemindo sells cement under the Semen Merah Putih brand in 20 provinces in Java, Kalimantan and Sumatra. In 2012 it acquired a majority stake in Vietnamese cement producer Chinfon Cement Corporation for US$250m.

India: The Central Bureau of Investigation (CBI) has filed separate chargesheets against Penna Cement, Raghuram Cements and India Cements for favours they allegedly received from the Andhra Pradesh state government in 2008 and 2009. According to newspaper The Hindu, YS Jaganmohan Reddy has been accused of influencing his father, deceased chief minister of Andhra Pradesh YS Rajasekhara Reddy, to grant government benefits to firms that invested in his own companies.

The CBI allege that Penna Group had invested US$7m in Jagati Publications and US$3.5m in Carmel Asia, both belonging to YSJ Reddy. In return, Penna Cements was allocated mining leases in Anantapur and Kurnool districts and the transfer of limestone mines originally allotted to Walchand Cements. Similar deals with Raghuram Cements (now Bharati Cements) and India Cements are noted in the CBI's charges.

Egypt: ASEC Minya, formally Arab National Cement Company, has begun cement production at its 2Mt/yr cement plant in Minya, Egypt. The ASEC Cement subsidiary has been producing clinker at the site since May 2013.

"We are extremely proud to have been able to see this project through to completion despite the challenging operational environment," said ASEC Cement CEO Giorgio Bodo. "The launch of cement production, which marks the official completion of this project, is a clear reflection of our confidence in the Egyptian economy and our belief in the country's ability to recover from the current volatility."

Bodo cited security issues, fuel scarcity and general 'instability' as causing major setbacks that the cement producer had to overcome. Construction of the plant originally began in December 2010 but work was interrupted by the Egyptian Revolution in January 2011.

ASEC Minya will be connected to the Egyptian national electric grid via a 42km transmission line to be completed by the end of 2014. Until then the plant will use rented generators. The new cement plant has created 400 direct and 800 indirect jobs.

US: Roanoke Cement Company has been accepted as an Exemplary Environmental Enterprise within the Virginia Environmental Excellence Program (VEEP). VEEP was established to encourage superior environmental performance by encouraging organisations within the state of Virginia, that have strong, established environmental records, to surpass their own performance levels.