30 May 2012
Portugal: Portugal's securities regulator CMVM has said that a takeover bid by Brazil's construction group Camargo Corrêa for Portuguese cement maker Cimpor will involve an asset swap to buy out another Brazilian shareholder that will get part of Cimpor's overseas business. CMVM approved the previously announced Euro5.50/share bid under these terms and said that the remaining shareholders in Cimpor would have until 19 June 2012 to decide whether to sell their stakes.
Camargo Corrêa, which is already the largest single shareholder in Cimpor with a 33% stake, launched a Euro2.5bn bid for the rest of Cimpor in March 2012, in a move defended by the Portuguese government. CMVM said that Camargo and the other Brazilian shareholder Votorantim had agreed that the deal would involve an asset swap, as expected by analysts.
Camargo will exchange its cement and concrete business in South America and Angola for Cimpor's overseas assets, including in China and India but excluding Brazil, also taking hold of 21% of Cimpor's net consolidated debt. Camargo will then swap the assets it received for Votorantim's stake in Cimpor.
The decision by CMVM may address some concerns by Brazil's antitrust regulator Cade, which has been analysing Votorantim and Camargo Corrêa's purchases of stakes in Cimpor since 2010, when the two frustrated an acquisition attempt by Brazilian steelmaker CSN. Camargo Correa's buyout of Cimpor could help competition in Brazil by reducing Votorantim's market share.
Indian cement prices down in May 2012 30 May 2012
India: Indian cement companies have slashed their prices in May 2012 due to poor demand, event before the monsoon season has started.
Prices declined in all regions, except the south and central regions of the country, where prices have been stable. Demand has slowed, compared with April 2012 levels. Most dealers in India expect prices to decline after mid-June 2012, said Jaspreet Singh Arora an analyst at Anand Rathi.
Vinita Singhania, managing director JK Lakshmi Cement, said that demand in April 2012 has gone 'absolutely haywire' due to a slowdown in construction activities and certain infrastructure projects not being implemented. A senior official of the Indian Cement Manufacturers' Association said that in 2012 cement prices have declined even before the arrival of monsoon due to oversupply. "The price correction has come a little earlier than expected because demand didn't pick up in line with our expectations," the official said.
Vietnam production down 7.2% so far in 2012 30 May 2012
Vietnam: Cement producers in Vietnam are estimated to have made 22.5Mt of cement in the first five months of 2012, down 7.2% from the same period of 2011.
In May 2012, the Southeast Asian nation is likely to have produced 5.5Mt of cement, up by 5.5% year-on-year, according to a report from the the government's General Statistics Office. The office also revised down the country's cement output in January to April 2012 to 17.1Mt from earlier estimated figures of 17.8Mt.
In 2011, Vietnam produced and sold 49.3Mt of cement. The country also imported 1.15Mt of clinker and exported 5.5Mt of cement and clinker during the period/
Vietnam's cement consumption is forecast to reach 55 – 56.5Mt in 2012, rising by 11 - 12% compared to 2011. However the country's cement output is expected to rise to 73Mt in 2012 due to the additional operation of eight new cement plants with a combined production capacity of 6.9Mt. Local cement makers are predicted to face huge difficulties due to big surplus of cement.
Dangote 6Mt Calabar plant ready by July 2012 30 May 2012
Nigeria: Dangote Cement's new 6Mt/yr Calabar plant, in the Cross-River State, will be ready by the end of July 2012. Chairman Aliko Dangote made the announcement at the company's annual general meeting in Lagos.
According to Dangote the Calabar plant is almost completed, with a strategic location intended to supply both local consumers and those in Central African states like Cameroon and Gabon. Together with the planned expansion of the Ibese plant by 3Mt/yr, the June 2011 commissioning of the Obajana Plant and other operations in 14 other African countries, Dangote Cement aims to reach a capacity of 60Mt/yr by 2015. Of this total, 55% is intended to local consumption and 45% is intended for export to other sub-Saharan African countries.
ASEC Cement completes Zahana upgrade 30 May 2012
Algeria: ASEC Cement has completed an upgrade at its Zahana plant, in western Algeria.
"Zahana Cement Company, our key Algerian subsidiary, has just concluded the largest overhaul in the plant's long history," said ASEC Cement CEO Giorgio Bodo. The upgrade is expected to bring a 20% year-on-year increase in production of both clinker and cement. In addition the deployment of new bag filters has decreased the plant's dust emissions. Following the upgrade Zahana's clinker capacity is 0.90Mt/yr.
ASEC Cement has now begun work on a US$30m project to construct a new raw mill at Zahana that will be fully operational by 2014, raising Zahana's clinker capacity to 1.2Mt/yr. In addition the plant has started work on a new kiln line, for completion by 2015, which will increase clinker capacity to 2.7Mt/yr and cement capacity to 3.0Mt/yr.
Zahana, located 40km from Wahran, had a cement capacity of just 0.65Mt/yr in 2008 when ASEC Cement took over management of the company. ASEC Cement has a 35% equity stake at Zahana in partnership with the Government of Algeria.
Minya plant aims for full production in 2013 30 May 2012
Egypt: ASEC Cement expects full production from the Arab National Cement Company (ANCC) in Minya to begin by the first quarter of 2013, creating 400 direct jobs and 1500 indirect jobs.
ASEC Cement has confirmed that it is on track to start commissioning at the US$335m ANCC plant , its 1.9Mt/yr clinker greenfield plant in the Upper Egyptian governorate of Minya, in the final months of 2012. ASEC Cement is the largest shareholder in ANCC with a 45% stake in the project.
Civil engineering work on site was completed by the end of 2011 but construction delays occurred due to the national political situation. ANCC and ARESCO, the contractor responsible for the steel fabrication and mechanical erection of the plant, and an ASEC Holding portfolio company are now implementing a recovery plan to complete mechanical and steel installation by the third quarter of 2012.
ANCC is one of Egypt's biggest project finance deals. In September 2010 ANCC signed an US$182m loan to finance the construction of its plant in Minya. The syndicated loan agreement involves a consortium of seven leading Egyptian and regional banks, which will cover 52% of the US$335m investment with the balance financed by the equity of ANCC. Other shareholders in ANCC include Misr Qena Cement (13.9%), Safari Investments (30.7%), IFU/FLS (9.2%) and other shareholders (1.1%).
Cemex sole cement supplier for Panama City metro 30 May 2012
Panama: Mexican cement manufacturer Cemex is the sole cement supplier for Panama City's metro line 1.
Cemex will provide nearly 0.1Mt of cement for the construction of the line, which will run 13.6km from the San Miguelito neighbourhood in the north of the city to the Albrook bus terminal in the south, with 11 stations in total. Construction is being carried out by Spanish firm FCC and Brazil's Odebrecht at an estimated total cost of US$1.45bn.
Line 1 will be both above and below ground will and include tunnels, trenches and viaducts. It is expected to have an initial capacity to transport 15,000 people per hour in 2014, rising to 40,000 by 2035. The line will make Panama the first Central American country to have a metro system.
Timken supplies bearings for CITIC mill 30 May 2012
China: Timken Company has supplied bearings for one of China's largest vertical slag mills, featuring a 5.7m grinding table. The mill, one of several now utilising Timken bearings, was developed by CITIC Heavy Industries Co Ltd, one of China's top manufacturers of cement-producing equipment. According to CITIC, the new vertical slag mill produced by CITIC is expected to produce up to 1.2Mt/yr of ground slag for inclusion in cement and concrete products.
"Many sizable construction projects underway across China require large amounts of quality concrete," said Leong Fang, president of Timken China. "We work closely with CITIC and other customers in this important industry to make sure they can meet the growing demands of their customers for concrete and other construction materials. Our recent success is a testimony to teamwork and innovation for the two companies."