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UltraTech in talks to buy Jaypee’s cement assets in Himachal 21 February 2014
India: UltraTech Cement Ltd is in talks to buy Jaypee's cement assets in Solan, Himachal Pradesh, for US$644m, according to anonymous sources. This comes shortly after UltraTech's purchase of Jaypee's Gujarat cement plant.
For Jaypee, subsidiary of Jaiprakash Associates Ltd, the deal will be another effort towards trimming its US$8.54bn debt (as of 31 March 2013). The company sold 1.21km2 of land in Greater Noida to realty firm Gaursons India Ltd for US$241m in May 2013. Jaypee is also close to finalising the sale of two of its three operating hydroelectric projects to a consortium led by Abu Dhabi National Energy Co PJSC for at least US$1.5bn.
UltraTech's cement manufacturing capacity increased to 59Mt/yr from 54Mt/yr after it bought Jaypee's Gujarat plant. The company aims to increase its capacity to 70Mt/yr by 2015, according to Kailash Birla, senior executive president and chief financial officer of UltraTech. The Solan assets, if acquired, will add another 4Mt/yr of capacity. The grinding and blending unit and the cement plant in consideration have capacities of 2Mt/yr each.
Court clears Uhuru choice to chair EAPCC board 21 February 2014
Kenya: President Uhuru Kenyatta's decision to sack East Africa Portland Cement Company (EAPCC) chairman Mark ole Karbolo was upheld by the High Court on 21 February 2014.
Justice Mumbi Ngugi ruled that an earlier order stopping the Capital Markets Authority (CMA) and the government from interfering with shareholder resolutions made during a controversial annual general meeting (AGM) on 17 December 2013 did not shield Karbolo.
"I dismiss Karbolo's application," she ruled and directed Karbolo to bear the legal cost incurred by the government while defending the sacking since he was not acting in the interest of EAPCC. The ruling paves the way for Bill Lay to become chairman of the cement company.
The earlier orders were given after CMA suspended the AGM resolutions which were contested by the government, which is EAPCC's majority shareholder, on the grounds that voting was done by a show of hands instead of by the strength of shareholding.
On 7 February 2014 president Kenyatta removed Karbolo from chairing the firm's board and replaced him with Lay. Karbolo went to court on 10 February 2014 and obtained orders stopping Lay from occupying the office, arguing that Kenyatta's action was a breach of court orders. On 20 February 2014 Justice Ngugi said that Karbolo was seeking to exploit the controversy surrounding the shareholders' resolutions to remain in office until end of his term in October 2014.
"Karbolo was trying to protect his own personal interest. Even if the court allows all orders sought by the petitioner, the orders have no impact on Lay and Karbolo," said Justice Ngugi.
In March 2014 Justice Ngugi is expected to deliver a separate ruling regarding the suspension of shareholders' resolutions by CMA.
Holcim may delay cement plant construction 21 February 2014
Philippines: Holcim Philippines has announced that it may delay the construction of a proposed US$550m 2.5Mt/yr capacity cement plant in Bulacan province that was due for commissioning in 2016.
The announcement was made due to the impending economic integration of the Association of Southeast Asian Nations in 2015. Southeast Asian countries, including the Philippines, will eliminate tariff rates on goods to facilitate free flow of commodities under the Asean Free Trade Area.
"We have to plan as a region because the region is consolidating," said Eduardo Sahagun, Holcim Philippines chief executive, adding that Vietnam and Indonesia both possess excess capacity. Holcim Philippines made several investments in 2013 to boost supply, including plant upgrades in La Union and Misamis Oriental provinces and the revival of a grinding facility in Mabini, Batangas, which will be operational by the third quarter of 2014.
Sahagun said that the company's outlook on cement demand in the country remained positive. "The growth scenario is the same but where the supply will come from will change," Sahagun said.
CeraTech establishes new standard for sustainable cement 20 February 2014
US: CeraTech has announced the release of an Environmental Product Declaration (EPD) for ekkomaxx™ cement concrete. This is the first EPD completed for a non-Portland bulk cement.
The EPD confirms that CeraTech has produced a cement system with a virtually zero-carbon footprint, a 95% reduction in the use of virgin resources and a 50% reduction in the use of water.
The cement system comprises 95% recycled fly ash and 5% liquid additives. Meeting ASTM International C1157 as a hydraulic cement system, it is accepted by industry standards, codes and rating systems, including the American Concrete Institute (ACI), International Code Council (ICC) and the United States Green Building Council (USGBC).
"The growing interest in sustainable construction has fuelled industry-wide interest in CeraTech. Our recently completed EPD and Life Cycle Assessment (LCA) for ekkomaxx independently validates our having established a new industry standard as the greenest, most sustainable concrete available in the world," said Jon Hyman, CeraTech's president and CEO.
Release of the third-party validated EPD followed the guidelines set forth by the Carbon Leadership Forum's North America Product Category Rules (PCR). Independent verification was conducted by the Athena Sustainable Materials Institute under the National Ready Mixed Concrete Association's (NRMCA) Programme Operator Rules.
According to Narayanan Neithalath, senior sustainability scientist and associate professor of the School of Sustainable Engineering and Built Environment at Arizona State University, "This EPD and LCA quantify the environmental benefits of well-designed cement systems that do not use Portland cement as a binder. CeraTech's next-generation, environmentally-responsible cement is eminently suitable for several high-end, special-performance applications and should be well-received by companies and organisations that are committed to sustainable, green construction."
Holtec wins tender for first cement plant in a Palestinian Territory 20 February 2014
West Bank: India's Holtec has won a tender to carry out a feasibility study for The Palestinian Commercial Services Company (PCSC) regarding the establishment of the first cement plant in a Palestinian Territory.
The new facility, which will be located in the West Bank, is expected to take four years to complete. The US$300m plant will have a capacity of 5000t/day, which would be doubled after three years. The cement produced will help to meet demand in the West Bank and Gaza Strip. At present, PCSC imports over 80% of local cement from Israel's Nesher Cement, with the remainder imported from Egypt or Jordan.
Holtec will prepare the feasibility over the next six months. This will cover factors such as location, geological tests, raw materials, production process technology and technical and logistical requirements.