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Venezuela: AVIC International Beijing Co Ltd and its customer Industria Venezolana del Cemento (INVECEM) have ordered two vertical roller mills for INVECEM's new cement plant in Monay, Trujillo, Venezuela. The order comprises a LM 53.3+3C for grinding clinker and an LM 48.4 raw meal mill.
The new cement plant is a joint venture project of the governments of Venezuela and China, which have agreed to build three new cement plants in Venezuela, each with 2500t/day of cement production capacity.
The LM 48.4 LOESCHE vertical roller mill will grind cement raw material with a capacity of 280t/hr at 12% R0.09mm. The LM 53.3+3C cement mill will produce 200t/hr of Ordinary Portland cement with a fineness of 3200 Blaine. LDC classifiers are also included. Delivery of the key parts is planned for November 2015.
Holcim's top shareholder supports Olsen as new CEO 09 April 2015
Europe: Holcim's largest shareholder Thomas Schmidheiny is happy with the appointment of Lafarge executive Eric Olsen as the future head of LafargeHolcim once the merger is completed. "Thomas Schmidheiny views Eric Olsen as a very good appointment," said Schmidheiny's spokesman. Shareholders of Holcim still need to ratify the merger at a vote in May 2015.
Eric Olsen named as future CEO of LafargeHolcim
Written by Global Cement staff
09 April 2015
Europe: The boards of directors of Lafarge and Holcim have approved the appointment of Eric Olsen as future Chief Executive Officer of LafargeHolcim, to be in office as from the closing of the merger project.
At present Eric Olsen is Lafarge Executive Vice-President of Operations. He has been a member of the Group's Executive Committee since 2007. Aged 51, Olsen has dual American and French nationalities. He has extensive international experience and has held senior positions in operations and in the fields of finance, human resources and strategy.
Commenting on the appointment, Wolfgang Reitzle, Chairman of the Holcim Board and future co-Chairman of LafargeHolcim, said, "I very much welcome Eric Olsen as future CEO for LafargeHolcim. With his broad international experience and insights in key markets, he is best positioned to lead the combined company for the benefit of employees, shareholders and customers. Bruno Lafont and I will support Eric in creating a new joint culture that will be the key driver for our premier competitive position."
Lafarge Chairman and CEO, and future LafargeHolcim co-Chairman, Bruno Lafont, added, "I have every confidence in his ability to deliver the synergies announced and ensure the development and the success of LafargeHolcim."
Indian inefficiency and China running out of options
Written by Peter Edwards
08 April 2015
The news this week that construction companies in the Indian state of Telengana are considering cement imports from China in order to circumvent a local dispute over cement prices highlights several issues. Firstly, state politics in India can create some interesting and not altogether logical situations. Secondly, it throws the spotlight on the changing situation in China, where the cement industry will be increasingly squeezed from all sides in the coming years. Thirdly, it shows that the global cement industry is exactly that – Global.
The first reaction when hearing of Chinese imports into India might reasonably be one of shock. How can it be that it is cheaper (21% less by local estimates) to import cement from 5500km away, into the world's second-largest cement producer, than it is to send it down the road from Andhra Pradesh? Overall, India is 'swimming in' excess cement capacity, which should make it cheap across the board. Large, well-run and efficient plants, coupled to current low diesel (transport) prices, should give the industry significant advantages on the international stage. So what's going on?
Poor local and national infrastructure is the 'obvious' culprit here, but it is only part of the story. The Telengana state government has imposed extra taxes on trucks bringing cement into the state from neighbouring Andhra Pradesh. By suggesting imports from China, it is possible that the Real Estate Developers' Associations of India (CREDAI) wants to make a point to the state government. Spotting a local imbalance of cement supply and demand, Telengana appears, in this instance, to have acted to make a quick buck. However, it has done so to the detriment of many other stakeholders. The extra tax deprives cement producers of higher sales, robs hauliers of business and stops the public getting a fair market price for cement. This highlights that India has not only physical infrastructure to build (in terms of highways and new railways), but also a more effective political infrastructure that can put aside state-on-state one-upmanship. This is a long-term task and not straightforward when you consider India's 1.25 billion inhabitants.
Of course the fact that China has been mentioned by CREDAI as a likely source of cement is far less surprising. The largest cement producer in the world has had excess capacity for several years now (regardless of who is supplying the statistics) and takes the opportunity to export whenever it can.
However, the sands are shifting under China at the moment. The country has not been able to rely on domestic demand to keep its over-inflated cement industry in business for many years now. It is indeed highly questionable whether it ever needed a cement industry the size of the one that it built.
Indeed, economic growth is slowing for the economy as a whole and this week there were even calls for the national housing bank to reduce interest rates for lower and middle income earners, effectively propping the sector up. This comes on top of tax breaks for home-buyers, which came in at the end of March 2015. Falling house prices have bred uncertainty and a lack of demand for new constructions and hence cement. Could China's absurd cement demand bubble finally be about to pop?
Whether or not the bubble pops next week or in a couple of years, the government has long been making preparations, in the cement sector at least. It has started to aggressively remove older and inefficient capacity, encourage cement exports and helped finance new plants overseas. China is changing its emphasis from cement production to cement plant project management. This is a good move, especially as there will be fewer opportunities for conventional exports in the coming years. Neighbouring Vietnam expects to have an incredible 20Mt of cement for export at less than US$50/t in 2015, flooding China's traditional sphere of influence. At the same time, the number of countries that are self-sufficient in terms of cement production are on the rise, meaning fewer importers.
Even opportunities for Chinese firms to build cement plants outside China are likely to become fewer and further between in the future. The most promising markets in Africa already have Chinese cement plants or cement plant projects, joined this week by Zambia. Chinese cement and cement engineering firms also have interests in Central Asia, Nepal, Mongolia and elsewhere. These markets, while promising, will have nothing like the potential to consume cement like China did in the recent past. As China reduces its capacity, its growing cement plant engineering sector may well find it hard to do enough business to survive...
Votorantim Cimentos increases investments 08 April 2015
Brazil: Votorantim Cimentos has announced a new investment package for 2015 – 2018. US$1.6bn will be invested in five new plants in Brazil, one in Turkey and one in Bolivia, as well as in the expansion and modernisation of existing plants. The announcement comes after an investment plan of US$3.2bn, completed in the period between 2007 - 2014, when the company expanded its global production capacity by 51%.
In Brazil, Votorantim's priority is to increase production in the central-north and northeast regions. It has identified growth potential in the construction sector and in cement consumption in those regions. Two of the new cement plants will begin operating in 2015, one in Edealina, Goiás and another in Primavera, Pará. In the second phase, the construction of two plants in Sobral and Pecém in Ceará is planned and one in Caaporã, Paraíba. The plants are expected to come on stream in the second half of 2017.
With its new plants, Votorantim will increase its cement production capacity in Brazil by 18%, adding about 6Mt/yr to the current capacity of 32Mt/yr of cement. The investments are in line with the company's preparation for a new cycle of growth in the country. "We are concentrating investments in attractive and profitable markets, always with long-term vision and thinking of the future market demand," said Walter Dissinger, Votorantim Cimentos' CEO.
In the Americas and Europe, investments include one cement plant in Yacuses, Bolivia in partnership with two other companies and one new plant in Turkey. The company is also considering the construction of a new plant in Morocco. In the US there is a project for the expansion of the Charlevoix plant in Michigan. "The American market is recovering and is also attractive," said Dissinger. The new projects outside of Brazil will add 2.5Mt/yr to the company's installed capacity. "We prepared ourselves to confront a challenging scenario in Brazil and follow our policy of thinking in the long term. Our discipline and financial solidity allows us to keep investing to be ready for the recovery of the markets," said Dissinger.