Global Cement News

Japan: Taiheiyo Cement says a marine oil spill took place at its Kamiiso Plant in Hokkaido on 11 March 2022. The spill was reported after a ship had finished unloading at the plant’s pier. The cement producer has apologised for the incident and is conducting an investigation.

Russia: Holcim Russia says that it is continuing to work as normal and is “fully fulfilling its obligations” to its customers. In a statement on its website it said that its priorities were to, “...maintain the efficient operation of production sites, meet the needs of construction industry customers, and the well-being of the company's 1800 employees in Russia.”

Parent company Holcim, based in Switzerland, said that it was appalled by the human suffering in Ukraine and Eastern Europe. It added that its operations in Russia were continuing to run in full compliance of all regulations and that it would continue to supply the local market. However, it said that it had decided to suspend further capital investments in Russia and keep the situation under review.

Russia: Austria-based Mondi says it is continuing to operate a paper mill and three paper converting plants in Russia. All the units serve the local market. The company said that its operations in Russia represented around 12% of the group’s revenue by location of production in 2021 and, over the last three years, generated around 20% of the group’s underlying earnings before interest, taxation, depreciation and amortisation (EBITDA). Mondi has operated in Russia for over 22 years.

Mondi operates across more than 30 countries. It reported revenue of Euro7.7bn and underlying EBITDA of Euro1.5 billion in 2021. It produces paper and packaging products including bags for industrial products such as cement.

Saudi Arabia: Eastern Province Cement recorded a 2% year-on-year sales drop in 2021. Its net profit was US$54m, down by 7% year-on-year. Arab News has reported that the company recorded a lower income from investments and higher losses from asset write-offs compared to 2020 levels.

Pakistan: Cement plants in North Pakistan are using 70% Afghan coal in their fuel mix, and may increase the figure to 90%. Afghan coal costs US$170 – 200/t, in line with local Pakistani coal prices. The News International has reported that fossil fuel supply disruptions ensuing from the on-going war in Ukraine have increased global coal prices. Additionally, Indonesian coal is subject to a ban on exports, while bad rains have disturbed Australian coal production. On 14 March 2022, the price of South African coal exported from Richard Bay, Umhlathuze Municipality, was US$460/t, up by 95% month-on-month from US$236/t on 10 February 2022. South Africa has previously been a major source of coal for Northern Pakistani cement production. Cement producers in the region have on average 4 – 5 months’ supply of coal in inventory.