Global Cement News
Search Cement News
India/China: Sinoma International Engineering (Hong Kong) Co Ltd, part of the National Materials Group (Sinoma), has entered the Indian cement equipment production industry with the acquisition of a major stake in LNV Technology Pvt Ltd, based in Chennai, India for US$23.9m.
According to the agreement, Sinoma International Engineering now has a 68% share in LNV Technology, which has become a member of the Sinoma Group. The earlier joint venture partners V C Rao, managing director of the company and LV Technology Public Co Ltd, retain around 16% equity each. Liu Zhijiang, group chairman of Sinoma said that the Chinese firm would bring in its expertise in research and development, design, manufacturing, installation and after sales service to the Indian joint venture. With the venture, LNV Technology expects to be the leading supplier of cement equipment in India in the next five years.
Rao said that LNV Technology would look at setting up engineering, procurement and construction (EPC) capabilities, which are not prevalent in the Indian cement equipment industry. "Sinoma is the only company in the world to do this kind of EPC in the segment. That model is not available in India now, which will be brought in through LNV Technology," he said. Globally 80% of the cement equipment market is cornered by just four companies: Sinoma International, FLSmidth, Polysius AG and KHD.
The battle for Brazil: Camargo Corrêa versus Votarantim
Written by Global Cement staff
10 April 2013
Camargo Corrêa came out fighting this week when it announced plans to invest US$1.5bn into the Brazilian market. The move represents the serious readjustment to the Brazilian cement industry that's been shadowed ever since the government approved the Cimpor takeover in 2012.
To show how high the stakes are, in October 2012 Votarantim, the Brazilian cement market leader, released early plans to invest US$160m for a 0.75Mt/yr plant in the Treinta y Tres region of Uruguay to meet demand for the 2016 Rio de Janeiro Olympic Games. At these prices the Camargo Corrêa spend could represent projects creating up to 7Mt of cement production capacity in Brazil. This is close to the current capacity gap between Camargo Corrêa (15Mt/yr) and market-leader Votarantim (23Mt/yr)! It's no killer blow for Camargo Corrêa but it does put the two producers in the same 'weight' category.
Although SNIC, the Brazilian cement industry association, recently downgraded estimates for growth in the market to 5.5% in 2013, this still represents very strong demand growth. A previous estimate by Research & Markets put the figure at 9%/yr until 2016. Either way that puts Brazilian capacity at between 87Mt/yr and 100Mt/yr in 2016 with Camargo Corrêa poised to snare a hefty chunk all for itself.
Yet before onlookers count Votorantim out, the company filed for an Initial Public Offering on 9 April 2013. No amounts were revealed but Dow Jones reported a figure of US$2.95bn in mid-January 2013 for expansion both inside and outside of Brazil. Also, the sale of shares must be approved by the Brazilian Securities and Exchange Commission. The industry heavyweight isn't going down without a fight! International companies have also shown interest with Lafarge's announcement in January 2013 that it would invest US$500m in the country, just one of many such moves on the way. Whatever happens, the Brazilian cement market is shaping up for one hell of a scrap.
For more information see our article on the Brazilian cement industry in the February 2013 issue of Global Cement Magazine. In early 2014 Global Cement will hold the first Global Cement CemBrazil Conference and Exhibition. Dates are to be confirmed.
Adriano Greco joins Gebr. Pfeiffer Inc
Written by Global Cement staff
10 April 2013
South America: Gebr. Pfeiffer, Inc., the US-based subsidiary of Germany's vertical roller mill manufacturer Gebr. Pfeiffer SE, is pleased to announce the recent appointment of Adriano Greco as Sales Director of the South American market.
Greco has gained extensive, world-wide industry experience through his numerous years in various management positions at GRECO Burners Company in Brazil, Austria, China and Spain. More recently, he served as General Director of ATEC GRECO in Brazil and GRECO Combustion Systems Europe GmbH in Austria.
In 2005, he was instrumental in creating the Brazilian Cement and Lime Conference. He is fluent in Portuguese, Spanish, English, Italian and French.
South Korea: The South Korean Fair Trade Commission has started an investigation into major cement companies including Ssangyong Cement Industrial and Hanil Cement for suspected price fixing. The companies had notified ready-mixed concrete operators that they would raise their cement prices by 9-10% in 2012.
On 9 April 2013 the commission sent investigators on a two day probe to seven cement producers: Ssangyong Cement Industrial, Hanil Cement, Tongyang Cement, Sungshin Cement, Lafarge Halla, Asia Cement and Hyundai Cement.
An industry source said, "Lately cement producers and ready-mixed concrete operators are at loggerheads over cement prices. It appears that the Fair Trade Commission is looking closely into the matter. In 2003, the commission had imposed penalties of US$22.5m for restricting the supply of cement to ready-mixed concrete makers in order to prevent them to use slag powder in place of cement."
Slovenia: Lafarge Cement plans to try again to obtain an environmental permit for a highly disputed waste-burning furnace at its Trbovlje plant, local media has reported. The move follows the second time Lafarge's request was rejected by Slovenia's Environment Agency in March 2013.