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Shree Cement to acquire Jaiprakash grinding unit 27 August 2014
India: Shree Cement has received the approval to acquire a 1.5Mt/yr cement grinding unit in Panipat, Haryana, which is currently owned by Jaiprakash Associates. The unit will reportedly be sold for US$59.6m.
The deal is subject to adjustments for any financial indebtedness and net working capital taken over as of the closing date and subject to satisfactory completion of due diligence and obtaining necessary approvals and consents.
Dalmia Bharat and OCL India in merger talks 27 August 2014
India: Dalmia Group is looking at a merger of its listed cement companies Dalmia Bharat and OCL India, according to industry sources. As part of the restructuring plan, Dalmia Bharat will also merge its unlisted arm, Dalmia Bharat Enterprises, with itself. Global private equity firm KKR owns a 14.5% stake in Dalmia. Bharat Enterprises will eventually own a minority stake in the merged listed entity.
Dalmia Bharat and OCL India have revived plans of the merger after a failed attempt in 2008. Dalmia Bharat owns 48% stake in OCL India and both companies together have a cement capacity of close to 20Mt/yr. The new entity would be the fourth largest cement producer in the Indian cement industry.
Azerbaijan: Corporation Accord has reported that LLC Gazakh Cement Plant has started clinker production. It reports that the company will increase its rate of production to 70% by mid-September 2014 before ramping up to 100% of its 2500t/day (~0.8Mt/yr) clinker capacity in October 2014.
There are plans for the Sinoma-built plant to undergo capacity expansion in the coming years, with an increase to a capacity of 3Mt/yr of cement in 2017.
Venezuela: The Venezuelan government is considering centralising the running of all the state-run cement firms in the country under a single entity, Corporacion Socialista del Cemento. In 2009, the state took over the three main cement companies, and while the aforementioned firm owns Industria Venezolana de Cemento, Fabrica Nacional de Cementos, Cemento Andino and Venezolana de Cementos, each company currently operates autonomously.
Pakistan dumping investigation moves to International Trade Administration Commission 26 August 2014
South Africa: The International Trade Administration Commission (ITAC) is investigating claims by cement producers that cement from Pakistan is being dumped in the Southern African Customs Union (SACU), of which Botswana, Lesotho, Namibia and Swaziland are also members.
Afrisam, Lafarge, NPC Cimpor and PPC allege that bagged cement from Pakistan has been dumped at a 48% lower price than is the normal value in Pakistan. In 2013 imports from Pakistan accounted for just under 99% of all cement imports into SACU. According to statistics released by XA International Trade Advisors, annual imports from Pakistan alone were 1.1Mt in 2013.
Managing Director for PPC's cement activities, Richard Tomes, claimed that the dumping by Pakistan led to a decline in sales volumes, profit, output and the market share of producers in the region. He claimed that the effect of dumping included negative effects on cash flow and reduced levels of staffing in SACU cement producers, with the number of staff employed in the SACU cement industry decreasing by 15% between 2010 and 2013.