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Pakistan: The Federal Excise Duty (FED) on cement is likely to be rise by US$1/t in the upcoming budget for the 2014 - 2015 Pakistan financial year. Federal Board of Revenue (FBR) officials said that the government had reduced the FED on cement from US$7.6/t to US$5/t in the 2011 – 2012 financial year and from US$5/t to US$4/t in the 2012 – 2013 financial year.
According to local press the government promised local cement producers that the FED would be gradually reduced and phased out. However, FBR sources spoken to by the Nation reported that the FED was likely to be increased by US$1/t to US$5/t to make up for a shortfall in tax revenue. However no final decision has been made so far.
If the FED does increase during the next budget then the cost of cement is likely to rise for consumers.
Yara acquires STRABAG’s flue gas cleaning division 04 June 2014
Norway/Austria: Yara International intends to acquire the flue gas cleaning division of STRABAG SE, in a move that consolidates Yara's position as a global, full-service emissions-to-air control company. STRABAG stated that it is selling its flue gas cleaning division in order to focus on its core construction business.
"Our acquisition of STRABAG's flue gas cleaning division will increase our capacities in, and beyond, NOx control systems. It will also give us access to great teams in key growth markets like Asia and Eastern Europe, where we can help customers meet increasingly stringent environmental regulations," said Yves Bonte, Senior Vice-President and head of Yara's Industrial Segment.
With flue gas cleaning, Yara can provide an end-to-end service that includes the production of Selective Catalytic Reduction (SCR) and Selective Non-Catalytic Reduction (SNCR) systems to reduce Nitrogen Oxide (NOx) emissions, along with the reagents needed to operate them.
The STRABAG acquisition is part of Yara's broader strategic direction to invest in products and services that address the related issues of environment, resources and food security. In January 2014 Yara acquired H+H Umwelt-und-Industrietechnik GmbH, which primarily produces SCR systems to reduce Nitrogen Oxide (NOx) emissions on ships. In April 2014 Yara also took a majority stake in Green Tech Marine, a leading Sulphur Oxide (SOx) scrubber supplier to the marine industry.
The transaction is subject to approval by the Austrian competition authority and other regulatory approvals. It is expected to be completed by the end of August 2014.
Germany: KHD has reported that it has started two modernisation projects for HeidelbergCement's cement plant in Lengfurt, Germany. These projects include the modernisation of the raw meal grinding unit with KHD SKS VC 3000 dynamic separator and the modernisation of an existing preheater with KHD's new PH5835 cyclones.
KHD's responsibility includes manufacturing, erection and commissioning for both projects. The raw meal grinding unit has been in operation since its successful installation in April 2014 and the installation of the new preheater cyclones is scheduled to begin in the winter of 2015.
Egypt: The Egyptian Natural Gas Holding Company (EGAS) has cut the amount of gas it supplies to cement plants due to natural decreases in well productivity. Egyptian gas production dropped to 133Mm3/day from 166Mm3/day in May 2014, according to Mohammed Hassan, Assistant Deputy Chairman of EGAS. Subsequently EGAS has cut the volume of has it supplies to cement plants from 11.6Mm3/day by 7.08Mm3/day, a drop of 61%.
Holcim implicated in Cuban cement plant investment 04 June 2014
US/Cuba: A lawsuit in Spain has revealed documents indicating that Holcim may have invested in a cement plant in Cuba despite warnings the deal might violate US law because the plant sits on land seized from US citizens. The deal took place in 2000, when Holcim was known as Holderbank, but allegedly the ownership went through a string of companies in Spain, the Netherlands and Panama, according to documents filed in a lawsuit reported upon by the Miami Herald.
"Holderbank's investment in the Cienfuegos property clearly would constitute 'trafficking' in confiscated property under Title IV of Helms-Burton," wrote US lawyers hired to advise Holcim. Holcim denies that it owns a business or a stake in a business in Cuba.
The court documents are part of a lawsuit involving three Spanish firms. Firebrick SA and Acedos Trading allege that Inversiones Ibersuizas owes them more than US$2m from an investment in Cuba in 2000. The documents suggest that Ibersuizas created a Spanish firm, Las Pailas de Cemento, in 2000 that paid US$70m to Cuba for 50% of the joint venture, Cementos Cienfuegos plant. Holcim allegedly controlled the project through a Panama company, Windward Overseas. The deal subsequently began to break down in 2004.
Since 2004, the US Treasury Department's Office of Foreign Assets Control, which enforces the US embargo on Cuba, has fined foreign companies more than US$1.25bn for violating US laws and regulations.