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US cement growth to meet expectation 08 December 2014
US: Despite a late start to the construction season and weaker than expected housing start numbers, a recently released report from the Portland Cement Association (PCA) shows that cement consumption in the USA will meet 2014 forecast expectations.
The PCA's cement forecast remains essentially unchanged since the September 2014 forecast. "The United States' cement market is expected to grow by 8.2% in 2014, followed by similar rates of growth in 2015 and 2016," said PCA Chief Economist and Group Vice President Edward Sullivan. "However, minor adjustments have been made regarding the construction sub-sectors. Housing starts, for example, have been trimmed slightly compared to forecasts released earlier in 2014."
While single-family housing starts are not reaching projected levels, the report indicates a new emphasis on multi-family starts. Demographic trends and strict mortgage standards are pushing more potential homebuyers into rental units.
Additionally, the oil price environment has changed significantly since summer 2014 and these new impacts have been integrated into the forecast projections for the paving sector. Going forward, Sullivan noted that the underlying economic fundamentals are strengthening and are reflected in the labour market. Sustained gains in monthly job creation, stronger state and local tax receipts, more favourable return on investments for commercial building and stronger household formation can lead to stronger construction spending in 2015.
Nyumba Cement project granted US$60m loan 05 December 2014
DRC: The Nyumba Ya Akiba Cement project in the Democratic Republic of Congo marked a significant milestone on 27 November 2014 with a loan signing of US$135m, making it a strong step towards country's industrialisation through improvement of the cement market. The project will add 1.18Mt/yr of cement capacity to the national market.
The project has attracted financial support from the African Development Bank (AfDB), Eksport Kredit Fonden (EKF, as guarantor to AfDB), the Emerging Africa Infrastructure Fund (EAIF), Habib Bank Limited (HBL, as lead arranger) and the International Finance Corporation (IFC).
Total project costs of US$270m will be funded by the US$135m loans. The AfDB will contribute two tranches of up to US$30m each, with one tranche being fully guaranteed by the Danish Export Credit Agency (EKF).
Nyumba Cement will address the rising cement demand fuelled by infrastructure development and reconstruction needs. The plant will be located in the Songololo, Bas Congo Province, DRC. The limestone and clay quarries are located on the plant site, 250km from Kinshasa. The Matadi port, located 100km from the plant, will allow easy access for importing raw materials and for cement exports to the regional markets.
The project is sponsored by a 50/50 joint venture between Pakistan's Lucky Cement Limited and the DRC's Groupe Rawji. Nyumba Cement will ease the country's dependency on expensive imports, which stand at over 50% of total cement consumption. The Nyumba cement output will target a vast area of the country and stimulate infrastructure development while supporting the local private sector, particularly small and medium enterprises, by promoting the reinforcement of the local supply value chain.
As a cost competitive import substitution project, Nyumba Cement will enhance the efficiency of the domestic markets, boost infrastructure, create jobs and transfer knowledge to the local workforce and is expected to have a significant demonstration effect to attract direct investments to the DRC.
Hungary: Lafarge Cement Magyarorszag has inaugurated a Euro2.28m alternative fuel warehouse at its cement plant in Kiralyegyhaza in the south-west of Hungary. The warehouse will store waste rubber and plastic, as well as industrial and farm waste.
Ashaka Cement plant attacked again 05 December 2014
Nigeria: Nigerian police officers and soldiers repelled an attack on 4 December 2014 by gunmen on Lafarge's Ashaka Cement plant in northeast Nigeria, where security forces are battling an Islamic uprising, according to a police official.
The gunmen tried to shoot their way into the Ashaka Cement compound. The same plant in Gombe State was attacked in November 2014 by gunmen suspected of being Boko Haram extremists. A Lafarge spokeswoman in Paris said that no one was wounded in the latest attack. Boko Haram has been blamed for numerous deadly bombings and has taken control of around 25 towns and villages along the northeast border with Cameroon in recent months.
UNACEM completes Ecuador acquisition 04 December 2014
Ecuador/Peru: Peruvian cement producer Union Andina de Cementos (UNACEM) has completed the purchase of Lafarge's cement operations in Ecuador. "We are pleased with the closing of the transaction, which represents an important step in our growth strategy," said Carlos Ugás, managing director of UNACEM. The company closed the acquisition, which was initially announced in May 2014, for approximately US$517m. The deal involves the purchase of a 1.4Mt/yr cement plant located in Otavalo, in the north of Ecuador.