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United Cement wins cement exploitation licence 21 November 2011
Saudi Arabia: United Cement Company has won the first of three new licenses to set up new cement plants in Saudi Arabia. United Cement's director general, Fahd bin Abdullah Al-Harbi, signed the deal on behalf of his company.The total annual production capacity of the completed plant is not expected to be more than 2Mt/yr.
Sultan bin Jamal Shawly, undersecretary at the ministry for mineral resources, said, "This license is issued as part of the first phase during which two more licenses will be issued to exploit limestone used for Portland and white cement." Shawly added that the license relatedo Hurrat Hadhen in Taif. "We will announce the winners of the second and third licenses on 26 November 2011 at the beginning of the new Hijrah year 1433H," he added. A number of local producers are in the running to secure the two other new licences.
Shawly said that the licenses are being issued with certain conditions that should be strictly followed by the winning company. "One condition is that the (plant operators) should employ and train Saudi workers and the percentage of Saudi workers should be not less than 40% by the end of the first year after starting production," he said. "We have also insisted that the number of Saudi workers in the company should reach 80% after the completion of four years of production."
Siam Cement boss talks up Thai recovery 18 November 2011
Thailand: The Siam Cement Group (SGC) has said that Thailand's economy is expected to recover rapidly from the current flooding thanks to anticipated massive spending on infrastructure development. It believes that this development will boost the country's competitiveness in the coming Asean Economic Community (AEC).
Speaking at the Asean Business and Investment Summit in Bali, Indonesia, Kan Trakulhoon, chief executive and president of SGC, said that as soon as the floodwater recedes, much of the country's logistical infrastructure will be repaired. He said that new infrastructure would also be developed, particularly water-management systems. The proposed infrastructure development is meant to prevent flooding but could also spur growth.
"A decade ago we developed very few infrastructure projects such as electric trains and an airport. Now it is time to turn crisis into opportunity and kick off more projects. The infrastructure will enhance the country's competitiveness in the long run," said Kan. He added that Thailand still had much potential for direct foreign investment because of its skilled workforce, research and development spending and its location within the Asean region.
"Signs of recovery are emerging such as sales of building materials and cement in November 2011 returning to normal, following a 40% contraction in October 2011," he said. Kan said that SCG remained committed to its USD5bn five-year investment plan for 2012-16 in all of its business sectors despite the flooding.
The recent floods have affected more than 2 million people in central Thailand and disrupted supply chains for many business and manufacturing sectors.
Ultratech announces USD2.2bn capacity drive 17 November 2011
India: Ultratech Cement plans to invest USD2.2bn to expand its production capacity the company has told its shareholders. The expansion will add 10Mt/yr to the company's capacity with a completion date of March 2014. Ultratech currently produces 52Mt/yr. Ultratech said it would fund its capital expenditure through a 'judicious mix of internal accruals and borrowings.'
In the first six months of this fiscal year, which began 1 April 2011, the company spent USD220m on its expansion projects. Ultratech said India's cement demand is expected to grow by 8%/yr over the coming years.
Anhui Conch embraces 'go-global' policy 16 November 2011
China: Anhui Conch Cement Co Ltd, China's biggest cement producer, plans to add 10Mt/yr of cement production capacity to its annual total by 2015 via overseas expansions. This will include both setting up its own new facilities and acquiring international rivals that are currently weakened by the European debt crisis, according to Wang Jianchao, manager of Anhui Conch's foreign economic cooperation department. Anhui Conch wants to expand its production to other countries because China has restrictions on new cement projects, which aim to combat the industry's overcapacity. The Shanghai-listed company produced 110Mt of cement in China in 2010 according to its annual report.
Jianchao said that the company, which currently has no overseas production, is engaged in a 'go-global' strategy. "Many cement plant owners in the Eurozone want a quick bailout because they need cash to save their businesses, which were hit hard by the European debt crisis," said Wang, adding that the company is moving at the best time to build its overseas operation. He declined to disclose the budget for strategy, but said the company is financially strong enough to expand.
Anhui Conch Cement began its overseas expansion in late June 2011 when it signed a memorandum of understanding to invest USD2.35bn in several Indonesian cement plants. Wang offered no details on the status of the proposed Indonesian projects, but he hinted that the Anhui Conch's first foreign factory may open elsewhere because opportunities in other countries are also being explored.
"Apart from Indonesia, we are in discussions with potential business partners in Mongolia, Central Asia and South America. It's hard to say whether our foreign production will operate in Indonesia first, because other foreign projects may proceed more smoothly," said Wang.
To help its overseas expansion plan go smoothly, Anhui Conch teamed up with the Swedish industrial leader Atlas Copco Group AB to gain access to its cutting-edge mining machinery and training systems. The two companies have a history of cooperation dating to 1993 and the drilling equipment used by Anhui Conch is supplied by Atlas Copco.The Swedish company has a strong customer base in Indonesia.
Dangote to fire up 6Mt/yr plant, expects exports to follow in 2012 15 November 2011
Nigeria: Cement imports in Nigeria may begin to wind down soon, as the management of Dangote cement has concluded arrangements to finally launch its new 6Mt/yr cement plant in Ibese, Ogun State. Dangote Group additionally revealed that production at Gboko plant would soon be boosted because the company has almost concluded its expansion process in the plant to hit 4Mt/yr. The Gboko plant's current output is 3.5Mt/yr.
Dangote said that with 4Mt/yr in Gboko, about 10Mt/yr in Obajana and 6Mt/yr in Ibese, Dangote's cement production capacity will hit 20Mt/yr by the end of 2011. Nigerian demand is reportedly around 17Mt/yr. "What the Dangote Group alone will be producing will be far more than the country's demand, giving room for the group to commence cement exports to other African countries," said Dangote Group in a statement.
The group stated that by having cement plant in 14 different African countries, Dangote Cement has emerged as Africa's largest and most widespread cement producer, present in Zambia, Tanzania, South Africa, Congo, Ethiopia, Cameroon, Sierra Leone, Ivory Coast, Liberia, Ghana and Senegal. Dangote's plan, according to the company, was to ensure that Africa remains self-sufficient in cement production and in making the products easily available and affordable to end users.
The group was also keen to stress the benefits of increased production to its shareholders, with the Special Advisor to Aliko Dangote, Joseph Makoju, saying, "Very soon, the new lines in Obajana and Ibese will commence full production. By then the local capacity and output will be far more than the local demand of cement and that will set the scene for exporting our products. This will lead to increased product (sales), more revenue for the company and better returns for the shareholders."