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China: Demand for cement in China will increase amid tightening supply in 2013, according to the vice-president of China Resources Cement. Yu Zhongliang, the vice-chairman of China Resources Cement, said that mainland China would not suffer from overcapacity because obsolete production capacity will be eliminated, in an article in the South China Morning Post.
An estimated 150Mt of new production capacity of cement will be added in 2013, but 100Mt of obsolete capacity will be eliminated, leaving a net increase in production capacity of 50Mt. Yu predicts that production will rise by 8% at most, but demand will grow by 8% to 10%.
"Over the past year, lots of metro railway and airport projects were approved in China. This will drive cement demand," said Pan Yonghong, the chief executive of China Resources Cement.
Government-led investment in infrastructure and urbanisation will support growth of 5% to 8% annually until 2015, according to a Macquarie Group report. Macquarie expects cement prices to jump 13% by 2015 due to tighter supply and increased demand, giving the sector a surge of 60% to 80% in earnings.
In January 2013, the central government stipulated that the country's ten largest cement producers should increase their national market share to 35% by 2015 from 30% currently. "We are in the top five by production capacity. We hope to rise in rank by 2015," Yu said. Beijing aims to create three or four mega-sized cement companies each with a production capacity exceeding 100Mt/yr by 2015.
Indocement reports 32% rise in income to US$491m in 2012 13 March 2013
Indonesia: PT Indocement Tunggal Prakarsa has reported that its net income rose by 32% to US$491m in 2012 from US$372m in 2011. The cement producer attributed its success to Indonesia's growing middle class, strong demand in the domestic residential market and an increase in the domestic price of cement of 7%.
The rise follows the highest domestic sales volumes of cement recorded for Indocement of 17.9Mt in 2012, a 16% rise compared to 16Mt in 2011.
Its earnings before interest, taxes, depreciation and amortisation rose by 30% to US$686m in 2012 from US$524m in 2011. Although national sales growth of cement in Indonesia slowed to 14.5% in 2012, Indocement grew its market share to 32%.
In its outlook for 2013 Indocement commented that it believes that domestic demand will continue to grow following new national infrastructure projects. The producer has a 4.4Mt/yr brownfield plant in Citeureup ready for completion in the third quarter of 2015. It has signed a preliminary agreement with Sinoma Group for the construction of a new US$671m plant in Citeureup. It is also considering plans to build two new greenfield 2.5Mt/yr cement plants.
Eurocement completes 3Mt/yr Podgorensky cement plant 13 March 2013
Russia: Eurocement has announced the completion of its 3Mt/yr Podgorensky cement plant in the Voronezh Region. The Russian cement producer invested Euro424m in the project that it expects to make back within 12 years. Construction took three years with completion in December 2012. The plant has generated 1000 jobs for local residents. Equipment for the plant was supplied by FLSmidth.
Commissioning and start-up work has been conducted on the plant's production facilities since the start of 2013. When the Podgorensky cement plant reaches its full operational capacity, the portion of Eurocement Group's total cement output produced by dry production will increase from 13% to 25%.
Dangote Cement starts exporting to Ghana 13 March 2013
Ghana: Dangote Cement has officially commenced the export of cement from its Ibese plant, Ogun State to Ghana. The Nigerian cement producer will start to export 5000t/week of cement using 50 silo trucks. However upon the completion of all logistics it says it intends to export 50 trucks of cement per day or up to 1.8Mt/yr.
Alhaji Aliko Dangote, Dangote's chairman, had previously commented in an interview with Reuters that his company would start cement exports to the Economic Community of West African States (ECOWAS) by the end of 2012. Dangote currently says it has a production overcapacity of 20Mt/yr in Nigeria.
Dangote Cement commissioned its first overseas cement terminal in 2011 in Accra Port, Ghana with a bagging capacity of 1.5Mt/yr. Dangote has also commented that there are good market opportunities in other neighbouring countries such as Liberia, Sierra Leone and Ivory Coast.
Pakistani cement producers talk to Tajikistan 13 March 2013
Pakistan/Tajikistan: The Tajik Ambassador to Pakistan, Sherali Jononov, has met with Kalim Ahmad Mobin, president of the All Pakistan Cement Manufacturers Association (APCMA) and top managers of Pakistan's largest cement producers in Islamabad, according to the Tajik Embassy in Islamabad.
The meeting participants reportedly included Mohammad Iqbal, general manager of Fauji Cement, Raja Ghayur Ashraf, manager of Askari Cement, Hafiz ur-Rahman, manager of Fecto Cement, Tariq Mahmood Raja, manager of Lafarge, Ahmad, manager of Lucky Cement, Arshad khan, general manager of Cherat Cement, as well as senior representatives of Kohat Cement and Maple Leaf Cement.
The sides discussed issues related to manufacturing and supplying cement, investment in construction of cement plants in Tajikistan, intensification of economic and trade ties and development of transit and logistics infrastructure in Tajikistan, the source said.