Global Cement News

In July 2012 L&T filed for arbitration proceedings against the cement maker to claim US$33.8m in unpaid bills and payment delays. L&T alleged that Zuari failed to pay US$5.66m it owed to the engineering company for the construction of a 5500t/day cement plant at Yeraguntala in Andhra Pradesh. L&T claimed the rest of the amount as a penalty for payment delay and for cashing a performance guarantee.

US: Texas Industries (TXI) has requested that the US Department of Commerce and the Interagency Trade Enforcement Center investigate and counteract 'unfairly' priced portland cement imports from Greece and the Republic of Korea.

In a letter to the organisations, TXI, the largest producer of cement in Texas and a major cement producer in California, stated that it believes that imports from Greece and Korea are being sold at less than a 'fair' value and are benefiting from government subsidies. In addition it alleged that these imports have materially injured Texas cement producers and their employees.

Imports from Greece and Korea to Texas increased by almost 40% from 2009 to 2011, and increased another 14% from the first half of 2011 to the first half of 2012. Allegedly these imports have taken substantial sales volumes from Texan producers resulting in underutilisation of local production capacity and reduced profits.

UK: Lafarge Cement UK's Cauldon Works in Staffordshire has received recognition for its industry-leading sustainability achievements, which have seen it reach an alternative fuel substitution rate of 50%. The achievement is the latest milestone for the plant, which has been researching, developing and using alternative fuels, mainly processed sewage pellets (PSP) and tyre chips, for a decade.

Its parent company, Lafarge Group, has honoured the works as part of its annual awards. These champion the efforts of employees worldwide who are transforming the way in which products are manufactured. As part of the latest achievement, Lafarge has announced that the Cauldon team was able to run the calciner for a trial 10hr period using just PSP and tyre chips. Cauldon is only the third of Lafarge's 166 production sites across the world to achieve 100% alternative fuel substitution on the calciner for a limited period.

Cauldon Works' optimisation manager, Andy Woodcock, said, "We are aware that environmental legislation across the construction sector will increase in the near future and we want to be sure that we have measures in place to stay at the forefront for environmental performance and delivering sustainably-produced products to our customers. We're pleased to announce this development, which will help us continue to reduce our carbon footprint and reinforce our position as Lafarge UK's flagship works for the use of waste-derived fuels."

UAE: A series of results has been released by cement producers in the United Arab Emirates. Sharjah Cement has announced a US$3.5m net profit for the first half of 2012, an improvement from a US$0.6m loss in the first six months of 2011. Its revenue was up by 14.5% to US$87.5m from US$76.4m.

Meanwhile, Union Cement posted a profit of US$5.6m, which, like Sharjah, was an improvement from a loss. It lost US$4.1m in the first half of 2011. Union's sales revenue was down marginally year-on-year to US$88.3m, a drop of 0.2%.

Gulf Cement also made an improvement year-on-year, increasing its revenue by 14.9% from US$35.4m to US$40.7m. However, the company went from a profit of US$3.64m to a US$0.78m loss.

China: On the back of similar reports from numerous Chinese cement producers, two more companies have announced large drops in their profits in the first half of 2012.

Tangshan Jidong Cement Co Ltd, a Hebei Province-based cement producer, posted US$17m in net profit for the first half of 2012, a year-on-year drop of 85%. The company's operating revenue slid by 10.7% year-on-year to US$1.0bn.

Meanwhile, Jiangxi Wannianqing Cement Co Ltd, a Jiangxi Province-based cement maker has posted a net profit of US$9.1m for the first half of 2012, a year-on-year decrease of 80%. Its operating revenue slid by 22.1% to US$316m.