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St Marys to reopen Dixon cement plant in Spring 2015 12 March 2015
US: St. Marys Cement plans to reopen its Dixon, Illinois plant in the spring of 2015. Citing a downturn in the economy, the St Marys Cement closed the plant in December 2008. About 90 jobs were lost.
At the time, the US Enviornmental Protection Agency (EPA) had fined St Marys and co-owner St Barbara Cement US$800,000 for violations of the federal Clean Air Act. In addition, the settlement with the government called for the companies to spend nearly US$2m to upgrade pollution control on three of its four kilns. The fourth kiln had to be replaced or shut down.
The settlement was the first completed as a result of an EPA crackdown on cement plants. The EPA said that the companies had illegally modified the kilns at the Dixon plant in a manner that increased SO2 and NOx emissions. In addition to failing to install the proper pollution-control equipment, the companies were cited for failing to get the proper permit before making modifications.
Mayor Jim Burke said that representatives from St Marys approached him nearly a year ago about the possibility of restarting operations. A small maintenance crew has been working at the plant for a while to prepare for a reopening. St Marys said that the decision was based on increased demand due to the improving economy. St Marys also plans to invest US$130m in its Charlevoix, Michigan, plant to increase capacity there.
"St Marys Cement is pleased to announce that after a seven-year downturn in the economy, we will be reopening our cement plant in Dixon, Illinois," said spokesman Steve Gallagher. Gallagher provided a spring timeline for the reopening process. He also said that all regulatory issues with the EPA had been addressed. "We've been working since January 2015 with a small crew performing the necessary routine maintenance," said Gallagher. "By the end of March 2015, we will be completely staffed, bringing around 60 jobs back to Dixon. The plant will resume operation shortly thereafter with all required environmental permits in place."
Ash Grove Cement helps March for Meals 12 March 2015
US: Ash Grove Cement Company has helped Meals-on-Wheels celebrate March for Meals, a national campaign to end hunger in the elderly population, by sponsoring all breakfasts and lunches delivered to clients in Midlothian on 9 March 2015. During the month-long campaign, meal programmes throughout the nation will work within their communities to raise much-needed funds and recruit volunteers.
Lafarge and Holcim in talks to renegotiate merger 12 March 2015
Europe: Holcim and Lafarge are in talks to renegotiate the terms of their Euro41bn merger after a divergence in the value of the two companies over the past year. The two sides are holding discussions that might result in changes to the terms of the one-for-one share deal announced last April 2015, according to The Financial Times.
It in unclear how the renegotiation might affect CRH, which agreed in February 2015 to pay Euro6.5bn for assets being sold by the two companies as they sought to address potential competition concerns over the deal.
In recent weeks Holcim shareholders have raised concerns over the terms of the deal, most vocally a representative for the Schmidheiny family, which is Holcim's largest investor. Thomas Schmidheiny, head of the family and a former Holcim chairman, wanted the terms of the deal renegotiated. Holcim's second largest shareholder, Eurocement, which is owned by Russian Filaret Galchev and holds 10% of the shares, has not publicly supported the deal.
HeidelbergCement expand presence in Sub-Saharan Africa… and other stories
Written by David Perilli, Global Cement
11 March 2015
HeidelbergCement has been reportedly showing interest in South Africa and Mozambique this week following the opening of new production capacity in West Africa. The Germany-based cement producer has beefed up its presence in the region with the inauguration of a 1.5Mt/yr clinker plant in in Togo and a 0.7Mt/yr grinding plant in neighbouring Burkina Faso. An additional 0.25Mt/yr grinding plant in the north of Togo is also planned for commissioning in late 2016. Other new projects in Africa include a new 0.8Mt/yr grinding plant in Tanzania that was commissioned in October 2014 and a new 0.8Mt/yr grinding mill at the Takoradi grinding plant in Ghana.
HeidelbergCement has repeatedly stated that it is considering production capacity expansions in other African countries. It currently operates in Ghana, Benin, Liberia, Tanzania, Sierra Leone, Togo, Burkina Faso and the Democratic Republic of Congo. Mostly it's a network of grinding plants with actual clinker producing plants in Tanzania, the Democratic Republic of Congo, Gabon and Togo. Its presence covers a band across central sub-Saharan Africa. Moving out of this zone into southern Africa would start to give HeidelbergCement a truly continental presence. However, from Dangote to PPC to Lafarge Africa other players are hard at work building their own cement empires.
The wild card here is how involved Chinese firms are in this process. Chinese companies like Jidong Development are building their own cement plants like the Mamba Cement plant in South Africa or Gweru in Zimbabwe, where upgrades are currently taking place. More commonly though Chinese companies like Sinoma are building new African cement plants such as a new PPC cement plant in the Democratic Republic of Congo or a new United Cement Company of Nigeria Limited (Unicem) cement line in Nigeria or several Dangote projects.
As part of the commissioning process for HeidelbergCement's new clinker plant in Togo, the Chengdu Design and Research Institute of Building Materials Industry (CDI, part of Sinoma) has emphasised that it will transfer the maintenance responsibility to local Togolese workers. The fact that the CDI's chairman made a point of saying this underlines tensions about both existing and changing international business influences in the region. Contrast this with the more sympathetic way in which Dangote's expansions in Africa that are portrayed by local media. Or look at this week's announcement by Egypt's ASEC Engineering and Management to help run a cement plant in Ethiopia. There is no need for calming statements from ASEC.
Finally, after all the discussion of the effect of oil prices on alternative fuels usage by cement producers it is worth noting what HeidelbergCement stated in its February 2015 trading statement. Principally, a drop in the price of oil is expected to present a positive impact on costs and market demand for the group. HeidelbergCement generates 86% of group earnings before interest, taxes, depreciation and amortisation (EBITDA) in net oil importing countries. In these places lower oil prices means potentially faster GDP growth and greater infrastructure spending. It is also worth considering the impact lower oil prices might have on the group's total oil and diesel bull of Euro250m/yr.
HeidelbergCement's full annual results for 2014 are due to be published on 19 March 2015. Maybe they will be more forthcoming about its intentions in Africa then.
Brazil: Merck Marra Jr, chief executive of Cemento Tupi, has confirmed his company's plans to build a US$295m cement plant in Adrianople, Paraná. The announcement came when Tupi representatives met with state officials to discuss state government support with infrastructure and licencing issues.