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Holcim delays USD400m Weston plant

06 October 2011

New Zealand: Holcim has put plans to a build a new factory in Weston on hold until at least 2012.

The USD400m plant near Oamaru was to become the company's sole production facility in the region. Its creation was intended to create about 450 construction jobs and 120 permanent positions in the area. The decision to proceed with the factory had been expected in August 2011.

Holcim New Zealand's capital projects manager, Ken Cowie, stated that the company's Swiss headquarters had put the project on hold due to uncertainty created by the global economic downturn. "We realise that this creates ongoing uncertainty but we will continue to keep people informed," Cowie commented.

As reported by Global Cement on 5 July 2011 Holcim was seeking contractors to register interest in building the plant in July 2011. Plans to build the factory will now not be considered until late 2012.

Published in Global Cement News
Tagged under
  • Holcim
  • New Zealand
  • Weston
  • Omaru

August sales fall by 18% in Pakistan

05 October 2011

Pakistan: Cement sales fell to their lowest level in Pakistan since September 2010 in August 2011 to 2.4Mt, down 18% month-on-month. This is the steepest month-on-month fall in sales since 2009.

The key contributors to the decline were heavy rainfall along with lesser working hours during Ramadan. Domestic demand stood at 1.6Mt, down 19% month-on-month. Exports slipped to 714,000t, down 14% month-on-month, hindered by logistical issues in Afghanistan.

However, the floods in 2010 have helped total sales in the 2011/12 fiscal year (which started on 1 July 2011). According to statistics from the All Pakistan Cement Manufacturers Association, sales by Pakistani firms rose by 7% to 5.23Mt in the first two months of the 2011/12 fiscal year from 4.91Mt in the 2010/11 fiscal year.

Analysts expect this monthly trend to reverse on the back of an improvement in weather conditions. Overall cement sales should reach 32.8Mt in the 2011-12 financial year, up 5% from 2010-11, mainly driven by increased domestic demand.

Published in Global Cement News
Tagged under
  • All Pakistan Cement Manufacturers Association
  • Pakistan
  • Sales

500,000t/yr plant planned for Mozambique

04 October 2011

Mozambique: A new cement plant in the southern province of Maputo is scheduled to start construction in June 2012. Budgeted at USD78m, the project is being developed by the Chinese company Africa Great Wall Cement Manufacturer, according to the country's provincial director of Trade and Industry, Fanieta Manjate.

The factory will be built in Chichuo, near Magude, covering an area of 80 hectares. The plant will have the capacity to produce up to

500,000t/yr when it starts operating at the end of 2012 or early 2013. Initially the construction work had been scheduled to start in June 2011.

Manjate stated that the company is currently mobilising equipment and building houses to accommodate the staff who will be involved in developing the project. The Environmental Impact Study has already been approved and families living in the area are being relocated to make way for the development of the project.

The Magude plant becomes the third cement factory set up by Chinese investors in Mozambique. The first in Salamanga, Maputo province, is currently under construction at a cost of USD72m with an expected production capacity of 800,000t/yr. The second in Boane, GS Cement, has an investment of USD100m and it will have the capacity to produce 550,000t/yr. Along with domestic upgrade projects the country's cement production could jump from the current level of 1.3Mt/yr to reach 4Mt/yr by 2013.

Published in Global Cement News
Tagged under
  • Mozambique
  • Africa Great Wall Cement Manufacturer
  • Plant
  • Chichuo
  • Magude
  • China

ACC to replace 5% of its coal with alternative fuels as shipments rise 9.5%

03 October 2011

India: ACC intends to substitute 5% of its annual coal requirement of about 5Mt over the next three years with waste generated by cities and other industries. The company aims to save USD12m in 2011 by burning waste, primarily plastics, at its plants. In 2010 the company saved USD9.6m on fossil fuels.

"We are currently working on disposal of city wastes. We are segregating the plastic wastes and then use it in our kiln. Plastic has higher calorific value than coal," said ACC Director (Energy and Environment) K N Rao at the 4th Global Initiative for Restructuring Environment and Management.

"We have replaced 2% of our coal requirement by burning all types of wastes. Our target is to replace 5% of our total coal requirement within the next three years," Rao said.

ACC has an installed production capacity of 30Mt/yr in India where it uses about 5Mt/yr of coal. The company is currently implementing two pilot projects on management of waste for use as fuel at Kullu, in Himachal Pradesh, and Katni, in Madhya Pradesh. Besides plastic, the company also burns other materials that it segregates from city and industrial wastes.

Meanwhile the company has also announced that cement shipments reached 1.73Mt in September 2011, a rise by 9.5% compared to the same month in 2010. Production rose to 1.67Mt in September 2011 from 1.52Mt in 2010.

Published in Global Cement News
Tagged under
  • India
  • ACC
  • Coal

Holcim price-fixing probe ends in Brazil

01 October 2011

Brazil: An antitrust investigation into alleged price-fixing by Holcim and others in Brazil has ended today. The company could face a fine of up to USD413m if the probe decides that Holcim's behaviour was uncompetitive.

Several cement makers are among the companies named by the Brazilian government's anti-cartel investigation arm (SDE) in an inquiry that began in 2005. According to the Brazilian government, the companies were given until 1 October 2011 to make their final submissions before the SDE gives its opinion to the Administrative Council of Economic Defense (CADE), which will makes a final ruling. The companies involved face fines of up to 30% of their Brazilian revenue if CADE decides they have been running a cartel.

"There is an investigation into the cement industry including Holcim, which started in 2005," said Holcim spokesman Peter Gysel. "This is an ongoing proceeding and we cannot comment further."

Cartel fines are normally limited to 30% of revenue from Brazil, but a recent case showed that repeat offences can draw penalties of up to 50%. In 2010 Brazil's antitrust regulator fined White Martins Gases Industraies USD1.3bn for forming a cartel with four other industrial gas companies. The amount was later reduced to USD0.95bn. Praxair expects to win two appeals to the case.

Holcim previously has been fined by the anti-cartel authorities in Brazil following an investigation that dates back to its activities in 2002. "In 2002, there was an investigation in the aggregates business where the company received a non-material fine," Holcim spokesman Gysel said.

Ian Osburn, analyst for ING Bank, said that if the investigation found against Holcim, the company could face fines of up to 50% of its 2009 revenue in Brazil, which he estimates was around USD820m. Penalties of half of that amount, or USD410m, would reduce the company's 2012 earnings before interest, tax and amortisation by around 15% Osburn said. "In the worse case scenario, the fine would be about 15% of Holcim's 2012 group operating profit. That's significant," he said.

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