01 October 2014
Semen Indonesia seeks loan for Papua plant construction 01 October 2014
Indonesia: Semen Indonesia is seeking US$50 - 70m in bank loans to help finance the construction of a new cement plant in Jayapura, Papua. The company has recently announced its intention to construct the first cement plant in the country's most eastern Province, in order to meet the region's demand potential and to reduce distribution and logistics costs.
"For the Papua plant, we will seek external funds like from loans on top of equity injection," said Semen Indonesia's finance director, Ahyanizzaman.
He said that Semen Indonesia is still looking for suitable land and bank loans are expected to be secured in 2015. Semen Indonesia is completing the feasibility study for the project, which is slated to have a capacity of 0.6 - 1Mt/yr. Construction is anticipated to start in 2015.
Chinese companies to build cement plant in Indonesia 01 October 2014
Indonesia: Two Chinese companies signed an agreement on 25 September 2014 to invest in an Indonesian cement plant as part of investment cooperation measures that were agreed by China and Indonesia in 2013.
State Development and Investment Corp (SDIC) and Anhui Conch Cement Company will fund the project for the plant located in West Papua Province. After the construction is completed, the plant will have 3Mt/yr of production capacity, serving Indonesia and neighbouring countries, including Papua New Guinea. SDIC and Anhui Conch will have stakes of 51% and 49% respectively.
India: Teja Cement is planning a 3Mt/yr limestone mining project in Kadapa, Andhra Pradesh. The limestone will be used for its integrated cement plant, which will be built in the same location. Environmental clearance has been received. The mining project is expected to commence after completion of the civil works of the cement and clinker projects.
Cemex to lower financing costs by up to US$165m with new plan 01 October 2014
Mexico: Cemex has announced that it will lower its annual financing costs by up to US$165m following the adoption of a new refinancing plan. The plan will also allow the firm to raise its annual investment limit to US$1bn from US$800m, according to Chief Finance Officer Jose Antonio Gonzalez.
Gonzalez also said that Cemex will continue looking to refinance debt that expires in 2015 and it expects that conversion of 2016 bonds to shares will further lower its debt. The company also announced that it had signed a new credit agreement with nine banks worth US$1.35bn, the proceeds of which will be used to refinance debt.
Sagar to acquire BMM Cements 01 October 2014
India: Sagar Cements is planning to acquire BMM Cements, which has a 1Mt/yr cement factory and a 25MW captive power plant in Andhra Pradesh. Sagar intends to use the US$70.5m it has raised by selling a 47% stake in France's Vicat for the acquisition.
Wonder Cement plans expansion 01 October 2014
India: Wonder Cement Limited is planning to expand the capacity of its cement plant at Tehsil Nimbahera in Chittorgarh district of Rajasthan. The company has placed an order with Gebr. Pfeiffer for raw meals and coal mills.
Cementos Argos assesses US$1bn of LafargeHolcim assets 01 October 2014
Colombia/Brazil: Colombia's Cementos Argos, part of Grupo Argos, is reportedly assessing assets worth US$1bn that Lafarge and Holcim will be forced to sell in Brazil as part of their planned merger.
Argos, which is working closely with Banco Itau BBA in terms of potential Lafarge-Holcim acquisition deals in Brazil, aims to grow organically and via acquisitions across the Americas. The firm wants to have a presence in markets where there is potential for cement consumption per capita to grow. Cementos Argos already operates nine cement plants in Colombia, three in the United States and one in Honduras.