Global Cement News
Search Cement News
Rostec and SibCem may sever ties 10 January 2014
Russia: Russian government-owned Rostec is exiting a collaborative arrangement with Siberian Cement Holding Company (SibCem). The plan to build a regional cement superpower in Siberia has 'run its course,' according to local press.
In 2010 SibCem chairman Oleg Sharykin proposed creating a cement mega-producer in Siberia 'to counter the Chinese expansion' and to 'cartelise' the cement market to prevent sharp price fluctuations.
Rostec assisted SibCem to build its cement group, starting with building the cement giant in 2010 using the Russian Cement Company LLC as a platform for consolidation. The Russian Cement Company went on to acquire a 50.52% stake in Angarsk Cement, affording the government and SibCem a greater than 98% stake in Angarsk Cement. The Russian Cement Company established a 100% subsidiary in September 2011, the Russian Nephrite Company, which the Russian Cement Company has since exited.
Market analysis by RBNN Analytical Centre suggests that the three-year partnership between SibCem and Rostec yielded no significant results. In the autumn of 2013 Rostec representatives resigned from the Angarsk Cement board, while the Russian Cement Company divested its stake in the Russian Nephrite Company.
A Rostec source has indicated that the government will retain a stake in the Russian Cement Company by personal request from Sharykin, who, despite antitrust objections from the Federal Antimonopoly Service (FAS), made a deal to buy a controlling stake in Iskitimcement in 2013, which suggests that SibCem is still interested in increasing its influence in the region. SibCem sources added that Rostec is expected to divest its shareholding in the Russian Cement Company completely in 2014 and that the sale is to be channelled through companies controlled by Sharykin and domiciled in offshore jurisdictions.
US: Texas Industries Inc's (TXI) fiscal second-quarter loss widened as the construction materials company reported higher product costs and a jump in interest expenses, masking broad sales growth that boosted the top line. Though TXI reported higher sales for cement, concrete and the company's aggregate operations, the results were weaker than expected.
The company, which sells cement and other building materials in Texas and California, has struggled to compete against more geographically diverse peers. However, TXI has reported stronger sales so far this fiscal year.
For the quarter that ended on 30 November 2013 TXI reported a loss of US$17.6m compared to a loss of US$11.1m in the quarter that ended on 30 November 2012, while net sales grew by 25% to US$209m. Its gross margin narrowed to 6.8% from 7%. Sales by its cement segment, the company's largest top-line contributor, increased by 12% on higher shipments and a slight increase in prices. TXI announced that while pricing has improved, its prices still remain well below levels seen prior to the recession.
Poland's cement output surges 42% in December 2013 09 January 2014
Poland: Poland's cement production totalled 846,500t in December 2013, up by 42% year-on-year, according to statistics from the country's Cement Producer Association.
Cement sales jumped to 725,500t in December 2013, marking a 55.3% year-on-year increase on December 2012. For the 12 months to December 2013, cement output declined by 7.5% to 14.5Mt, while sales dropped by 7.6% to 14.6Mt.
MINTed cement industries
Written by Global Cement staff
08 January 2014
There was a great quote on BBC News from Nigerian cement mogul Aliko Dangote to start 2014 with: "Can you imagine, can you believe, that [Nigeria] has been growing at 7%/yr with no power, with zero power? It's a joke."
In the article Dangote is describing economic growth in Nigeria and the BBC points out that 170 million people in Nigeria use the same amount of power as 1.5 million people do in the UK. The author then goes on to predict that Nigeria could grow at a rate of 10 – 12%, by just solving power infrastructure in the country.
For the start of 2014 the British state broadcaster has been running a radio series on the so-called MINT economies. The term refers to the growing economies of Mexico, Indonesia, Nigeria and Turkey and is being used as a new buzzword in the same fashion as BRIC (Brazil, Russia, India and China) to describe broadly similar growing economies outside the traditional western bloc dominated by the G7.
Comparing the cement industries in the MINT countries raises some discrepancies between the desires of Western economists and the local cement industries. Mexico has a population of 118m, a Gross Domestic Product (GDP) of US$1.85tr and a cement production capacity of 50Mt/yr. Indonesia has a population of 238m, a GDP of US$1.29tr and a cement production capacity of 47Mt/yr. Nigeria has a population of 175m, a GDP of US$479bn and a cement production capacity of 28Mt/yr. Turkey has a population of 74m, a GDP of US$1.17tr and a cement production capacity of 82Mt/yr.
Mexico and Turkey have the lower populations in the MINT group, the highest (and most similar) Gross Domestic Product (GDP) per capita at US$15,000 and are the more developed cement industries in the group with the higher cement production capacities per capita. All of the MINT countries have infrastructural issues that will require large amounts of cement in the coming years.
Highlighting Dangote's concerns we cover a cement industry news story this week from Nepal, where Dangote is considering potential locations for a cement plant. Part of the publicly reported meeting between Dangote and the Nepalese government concerned power requirements for the project. Dangote intends to generate 30MW itself and has asked Nepal to provide 30MW. From the CEO downwards the cement producer clearly understands the problems of underdeveloped infrastructure. This is not surprising given his comments above!
That MINT economies are growing powers will not surprise the cement industry. In this week's Global Cement Weekly, in addition to the Dangote story, we feature two news stories focusing on direct industry capital investment in Indonesia. Looking more widely nearly half the stories are from BRIC or MINT countries.
With this in mind Global Cement has developed its own buzzword for the cement industry in 2014: the VISA group. This group includes Vietnam, Italy, Spain and Australia, countries that have all had problems with their cement industries in 2013 such as a production overcapacity or financial losses. If readers have any nicknames of their own for groups of cement producing nations let us know at This email address is being protected from spambots. You need JavaScript enabled to view it..
Saigol appointed chairman of Maple Leaf
Written by Global Cement staff
08 January 2014
Pakistan: Maple Leaf Cement has appointed Tariq Saeed Saigol as the chairman of the company from 1 January 2014 for a three year term.
Saigol studied Law at University Law College, Lahore. He started his career in 1968 at Kohinoor's Chemical Complex at Kala Shah Kaku and became the chief executive of Kohinoor Textile Mills, Rawalpindi in 1976. Since 1984, he has been chairman of Kohinoor Maple Leaf Group, which has interests in textiles, energy and cement production.
He has also been chairman of the All Pakistan Textile Mills Association in 1992 - 1994, president of the Lahore Chamber of Commerce and Industry for 1995 - 1997 and chairman of the All Pakistan Cement Manufacturers Association from 2003 - 2006.