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Nigerian cement prices rise by 25% 05 January 2012
Nigeria: The price of cement in Nigeria has risen by 25% since November 2011. This coincides with the peak of the nation's dry season, traditionally a period of increased construction. This has been exacerbated by the removal of Nigeria's fuel subsidy on 1 January 2012.
In Lagos and neighbouring towns in Ogun State the construction industry has witnessed unprecedented growth in recent years. Hajia Rukiyat Ajibola, a retailer in Mowe, Ogun State, stated that there was a high probability of the price of cement increasing even further if nothing was done.
Nigeria imported 124,000t of cement in December 2011. This figure represented a drop of 31% from November 2011 when 179,000t was imported into the country. Previously prices skyrocketed in May 2011 prompting President Goodluck Jonathan to issue a presidential directive to manufacturers to slash prices. At the time market leader Dangote and other manufacturers and importers announced price reductions.
China's cement growth down, but still high 04 January 2012
China: China's cement output growth dropped in November 2011, but was still 6.1% up on November 2010 at 11.2%. State statistics show that China's cement output reached 1.89Bnt in the first 11 months of 2011, an increase 17.2% over the first 11 months of 2010.
Total profits from China's entire building materials industry surged by 53.1% year-on-year to US$38.68b in the first 11 months of 2011.
African Industry Realities
Written by Global Cement staff
04 January 2012
The East Africa Portland Cement Company's (EAPCC) decision to change clinker supplier highlights two of the realities of the industry in Africa.
Firstly in the wake of the on-going East African production boom opportunity abounds. As reported in Global Cement Weekly #27, Kenya and Tanzania are leading an investment boom in East African capacity with surges in consumption of 12% and 18% respectively. Although it's not all good news as the on-going debacle with AfriSam's debts show.
Secondly, it exposes the hangover from state-ownership that much of the key players are still suffering. Certainly as our Vietnam story shows this week there is less room for uncompetitive legislation with producers outside the region lying in wait to secure sales. Indeed such is the growing optimism for cement in the continent as a whole that the Nigerian president described the cement industry as 'critical' to making his nation's economy more diverse.
Elsewhere this week we present some optimism with new contracts for FLSmidth in Brazil, expansion in Saudi Arabia and encouraging research on US infrastructure spending. Despite recent tough times the US retains its position as the third largest cement consumer globally. If Kenya, Tanzania or Nigeria ever overtake the US on consumption then we'll know that the world has changed.
Onne van der Weijde joins Holcim senior management
Written by Global Cement staff
04 January 2012
Onne van der Weijde, currently CEO of Ambuja Cements Ltd in India, has been appointed as an area manager and a member of the senior management of Switzerland's Holcim Ltd. He took on his new role on 1 January 2012. Mr van der Weijde remains CEO of Ambuja Cements Ltd and reports directly to Holcim's executive committee member Paul Hugentobler, who is responsible for Holcim operations in South Asia, excluding the Philippines.
A Dutch citizen, Mr van der Weijde holds a Bachelor's Degree in Economics and Accounting from the University of Rotterdam in the Netherlands and an MBA from the University of Bradford in the UK.
Mr van der Weijde was CFO at Holcim Indonesia from 2001 to 2005. In 2005 he was appointed General Manager of Holcim India Ltd and in 2006 he also assumed the CFO function at ACC Ltd until October 2008. Since November 2009 he has been CEO of Ambuja Cements Ltd.
Saudi cement industry projects 03 January 2012
Saudi Arabia: On 2 January 2012 Saudi cement producer and trader Al Jouf Cement announced that it is set to invest US$236m on the construction and commissioning of a second production line in addition to a dedicated power plant. The new production line will have a capacity of 5000t/day. The project, to be financed with a combination of own funds and debt, will take 25 months to complete.
Meanwhile, Hail Cement Company has obtained a large single order for its cement, having signed a US$31.2m joint-venture housing contract with Teberak Trading and Contracting Company and Mo B. Co. for Civil Construction. The 80,000m2, four-phase project will be built around 220km north of the northern city of Hail and will be completed within 18 months.