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TPI Polene plans US$341m capacity expansion 27 March 2013
Thailand: TPI Polene, Thailand's third-largest cement maker, plans to spend US$341m from 2013 to 2016 to develop a new production line at its Saraburi cement plant and to expand into renewable energy.
The project has been postponed since the financial crisis in 1997, said chief executive Prachai Leophairatana to the Bangkok Post. The fourth line will be developed at TPI Polene's existing plant in Saraburi province for US$194m. Production capacity will be raised by 33% to 12Mt/yr by 2026, making it the largest cement plant under one roof in the world.
"TPI Polene is the first Thai cement maker to invest in capacity expansion since 1997," said Prachai. "We saw cement demand gradually recover over the past few years. Additional demand will come from from the government's train projects over the next seven years."
TPI Polene has signed a memorandum of understanding to develop the project with Belgium firms P&V Project (Siemens), ALC Tournai, Atlas Copco and Magotteaux.
Thai cement exports from all producers are expected to come to 7Mt in 2013, down by 30% from 10Mt in 2012. TPI Polene aims to trim its exports to 700,000t in 2013 from 1Mt in 2012.
The company is also preparing to develop a 90MW unit fuelled by community waste, pending an environmental review. Around 60 MW from the new plant will be sold to the Electricity Generating Authority of Thailand, with the rest consumed in-house. The company also plans to generate additional revenue from the new power plant via sales of carbon credits under the Clean Development Mechanism concept.
Semen Indonesia to build US$200m plant in Myanmar 27 March 2013
Myanmar: Indonesia's largest cement producer PT Semen Indonesia, formerly Semen Gresik, has announced that it will build a US$200m cement plant in Myanmar early in 2014 as part of its expansion into the Southeast Asian market.
The company may pitch about US$70m for the plant, which it would set up with its Myanmar partners, as it aimed to control about a 40% stake in the planned joint venture, said president director Dwi Soetjipto in a press event reported by the Jakarta Post. The construction of the cement plant, designated with a capacity of 1Mt/yr, is scheduled to start in early 2014, while operations are expected to begin in 2017. Based on the firm's plan, the new plant will serve the Myanmar market and neighbouring countries like Thailand and Bangladesh.
The move by Semen Indonesia follows its acquisition of Vietnam's largest cement producer, Thang Long Cement Joint Stock Company, in late 2012. It now aims to expand its annual capacity to 6.5Mt/yr from 2.3Mt/yr by establishing two new plants. At home in Indonesia, Semen Indonesia is also preparing for capacity upgrades with the construction of cement plants in Rembang, Central Java and Padang, West Sumatra, both with production capacities of over 2.5Mt/yr.
In 2013 the firm has targeted a domestic market share of up to 44%, up from 41% in 2012, supported by increased output to around 27Mt from 22.6Mt in 2012, according to Dwi. The overall domestic cement market is estimated to increase by more than 10% to 6Mt in 2013, according to the Indonesian Cement Association.
Huaxin Cement sees profit almost halve 26 March 2013
China: Huaxin Cement Co Ltd, a Hubei Province-based cement producer, announced on 25 March 2013 that the company's net profit came to US$89.5m in 2012, a year-on-year decrease of 48.3%. Huaxin Cement saw its operating revenue for 2012 slide by 0.93% year-on-year to US$2.0bn.
The company attributed the drop in its profit to falling cement prices caused by overcapacity in the Chinese cement market during 2012.
Eurocement Ukraine back in the black in 2012 26 March 2013
Ukraine: According to preliminary data Eurocement Ukraine finished 2012 with a net profit of Euro3.58m. The company, part of Russia's Eurocement Holding, finished 2011 with losses of Euro4.4m. As of late 2012, the assets of Eurocement Ukraine came to Euro92.1m with current liabilities of Euro23.9m.
Saudi Arabia: Since 20 March 2013 the Northern Region Cement Company (NRCC) has been forced to halt production, due to the closure of a road leading to the plant. This has blocked trucks entering the plant for cement collection and has meant that the plant has now been forced to halt production.
The decision to close the road leading to the plant was taken by a committee drawn up from representatives from the Governorate of Northern Border, the Ministry of Transportation and the Department of the Police in the area, following NRCC's 'failure' to construct an upper bridge road connecting the plant with a nearby international highway.
NRCC was required to construct the bridge road by the authorities in order to safeguard the lives of the people driving in the area. However, an NRCC official said that it cannot be constructed as it would cost US$4.8m, an amount that requires approval through a meeting of the company's general assembly. Additionally, the official called for the formation of a committee to inspect the roads around the plant as he believes that the present road layout poses no danger to road users. He added that the local market would start to feel the effects of the plant shutdown 'very soon.'