Global Cement News

Zambia: Zambezi Portland Cement has reduced its export sales by 50% to cope with increased domestic demand in Zambia. According to sales and marketing manager Isaac Ngoma, the company had been exporting more than 14,000t/month to neighbouring countries. Export sales will now be limited to 7000t/month.

"For us, the Zambian market is our first priority and only the excess product is sold abroad, so with demand reaching an all time high locally, we see little sense in continuing to service foreign markets while starving the local market," said Ngoma.

Zambezi Portland Cement has a cement production capacity of 1400t/day and it is currently producing at over 95% of its installed capacity.

China: The Ministry of Industry and Information Technology (MIIT) and the National Development and Reform Commission (NDRC) had finalised details of an overall plan to reduce overcapacity in the cement industry according to Xin Renzhou, an official with the MIIT interviewed by an affiliate of the Xinhua News Agency.

Xin said that the plan would require higher standards for environmental controls including fuel efficiency measures. Cement plants failing to comply with the new requirements will be ordered to make changes or face losing market access. Jing Xiaobo, another official from the MIIT, added that the through the plan China also intends to reduce overcapacity mby expanding domestic demand, accelerating its decommissioning strategy and optimising organisational structures in cement producers.

In addition to joint efforts between the MITT and the NDRC, the China Banking Regulatory Commission and other related authorities will issue a series of supporting policies on curbing overcapacity, and adopting more commercial measures to strictly control the output capacity of major industries, such as the cement industry.

Tanzania: Tanga Cement Company has launched a US$160m expansion project that includes building a new clinker production line. Tanga board chairman Lau Masha said that the project was scheduled for completion by the first quarter of 2015.

"Apart from increasing our clinker manufacturing capacity to match the current cement grinding capacity, this project will also reduce cement manufacturing costs, improve quality and increase cement availability," said Masha.

He said that the first phase of the plant expansion project, which involved installation of cement mill number two between 2009 and 2010, increased the plant's cement grinding capacity by 73% to 1.3Mt/yr. However clinker production capacity remained at 500,000t/yr with the short-fall being covered by imports.

Russia: Eurocement Group intends that its Podgorensky cement plant will fight imports from Turkey and Iran. The Russian cement producer's plant in the Voronezh Region in the south of the country will help to replace 80% of imports from these countries, said Eurocement president Mikhail Skorokhod in a press conference reported upon by the Moscow Times.

"If you look at the southern ports, you'll see that the amount of incoming cement has fallen sharply," said Skorokhod. "That is because the Podgorensky plant came into being." He added that the customers agreed to switch to the more expensive Eurocement products after the company convinced them of their higher quality.

Imports accounted for almost 8% of the 65.2Mt of cement that the Russian market consumed in 2012, an increase from 5% in 2011. Skorokhod said Iran's state-owned companies were able to offer lower prices because they receive subsidies from a government that is under US-led trade restrictions. Eurocement may also turn to the World Trade Organization for an antidumping investigation.

Turkey: Turkish cement producer Aslan Çimento said its parent company Oyak has proposed to sell its 24.24% stake in Aslan Beton to Aslan for US$4.52m.

After the acquisition, Aslan Beton will become a wholly-owned unit of Aslan Çimento while Aslan Beton, As-san Insaat, Birtas Birlik Insaat and Marmara Madencilik will be merged under the control of Aslan Çimento, Aslan Çimento said in a bourse filing. The managing board of Aslan Çimento will now assess the proposed move.