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Sustainable expansion for Semen Indonesia
Written by Global Cement staff
28 May 2014
One of the ideas aired by several speakers at last week's 6th Brazilian Cement Congress was that using cement as a construction material is inherently a sustainable option.
The reasons for this included the durability of cement's construction products and the role cement plays in improving the living standards of a country. For example, under the onslaught of extreme weather like hurricanes, concrete structures are more likely to remain standing. Or, for a country like Brazil with sections of society living in long-term 'temporary' buildings in its favelas or shanty towns, providing affordable cement to help the country build better housing for its inhabitants is the only sustainable future that could be considered.
Perhaps in line with this concept of cement-as-sustainable-construction-material we see Semen Indonesia this week announcing expansion plans in three countries in South and Southeast Asia.
In West Sumatra a Semen Indonesia subsidiary has started building a 3Mt/yr cement plant in Padang. Then in Bangladesh Semen Indonesia revealed its intention to buy a 1Mt/yr plant. Finally, the state-owned Indonesian cement producer said that its Semen Gresik subsidiary was planning to build a new cement plant in Central Java at Rembang in June 2014. From previous press releases we can see that both new plants are FLSmidth builds. Both orders were announced in early 2014. Each has a capacity of 8000t/day.
The plans to expand outside of Indonesia echo reports that Semen Indonesia was set to buy a minority share in a Myanmar cement producer. Although the producer was unnamed as of early May 2014, Semen Indonesia CEO Dwi Soetjipto valued the stake at US$30m and the producer's production capacity at 1.5Mt/yr in comments to the Jakarta Globe.
Altogether the two new plants in Indonesia will place Semen Indonesia's total cement production capacity at 40Mt/yr by 2017 according to company figures. This would be enough to place the company within the top 20 of the world's largest cement producers by production capacity following the research from Global Cement's 'Top 75 global cement companies'.
In a nice coincidence, the company with a production capacity of 40Mt/yr on that list was Eurocement. Last week the Russian cement producer announced that it had signed contracts worth Euro387m with Chinese companies - including Sinoma, CNB, Sinomach and CAMC Engineering Co - to add 17Mt/yr cement production capacity across six plants in Russia. Another six or seven more construction agreements for cement plants are also expected to be signed in the coming months.
Certainly for the countries Semen Indonesia is focusing on – Indonesia, Bangladesh and Myanmar, with low gross domestic product per capita – providing the raw material for stronger and more durable buildings covers some of the sustainability bases. Yet if all these new plants only use fossil fuels and are subject to few environmental restrictions then that undermines some of this. However, whether all this expansion is sustainable or not, the cement industry never remains stationary.
Allied Cement Holdings appoints Li Chun Fung as company secretary
Written by Global Cement staff
28 May 2014
China: With effect from 26 May 2014, Wong Ka Hang resigned from her office as Allied Cement's company secretary. With effect from 26 May 2014 Li Chun Fung has been appointed as her replacement.
Italy: FLSmidth Ventomatic SpA a supplier of complete plants and single machines for high-accuracy and high-capacity storage, packaging and dispatching of products for the cement and building material industry, has strengthened its position in the minerals and chemical industries through the consolidation of its partnerships Imeco(R) and Italmeccanica, both with long-standing experience in the packaging of powdery and granulated products.
Thanks to these two strong business partnerships, Ventomatic says that it is now in the position to 'design, manufacture and supply' bagging solutions that are specifically designed for the dosing and weighing of cement, dry mortars and other building materials and industrial minerals into valve bags, open mouth bags and fill, form and seal bags.
India: India Cements plans to merge with its subsidiary, Trinetra Cements. N Srinivasan, vice-chairman and managing director of India Cements, said that the company wanted to consolidate cement operations. The merger will also include Trishul Concrete Products and involve selling land near its plants in Tamil Nadu and Andhra Pradesh.
"We will get the benefit of profitability of Trinetra and improve the performance of India Cements," said Srinivasan. He adding that, following the merger, the total cement production capacity of India Cements would rise to 15.8Mt/yr.
For its first quarterly results in 2014 India Cements reported a net loss of US$5.19m. The company has also been under a corporate debt-restructuring scheme since January 2003, which ended in March 2014 with a US$9.69m charge. India Cements has a production capacity of 15.5Mt/yr. It has seven integrated cement plants in Tamil Nadu and Andhra Pradesh, one in Rajasthan (through Trinetra Cements) and two grinding units, one each in Tamil Nadu and Maharashtra.
Ecuador: Lafarge has announced the sale of its cement operations in Ecuador for an enterprise value of US$553m to Union Andina de Cementos (UNACEM). Lafarge Cementos SA operates an integrated cement plant with a production capacity of 1.4Mt/yr in Otavalo.
The divestment will contribute to Lafarge's objective to reduce its net debt below Euro9bn in 2014. The transaction is subject to customary closing conditions.