03 November 2014
Cimerwa to increase cement production by 500,000t/yr 03 November 2014
Rwanda: Rwanda's sole cement producer, Cimerwa, plans to increase its production capacity to 600,000t/yr when ongoing expansion works are completed early in 2015, according to Busi Legodi, Cimerwa's CEO. Legodi said that over 94% of the US$170m works have already been completed, with electrical installations and some minimal mechanical works remaining.
"The plant should be ready by the end of the first quarter of 2015," said Legodi. "Once completed, our production capacity will increase from the current 100,000t/yr of cement to 600,000t/yr." Market demand for cement currently stands at about 500,000t/yr and the country depends mostly on imports.
Meanwhile, Cimera has rebranded its corporate identity as it marks 13 years of existence. According to Sam Kasule, the Cimerwa commercial manager, the new corporate identity reflects the direction the firm is headed.
"Our new corporate identity is significant and suits the company's future plans and business focus as we look to expand our production capacity in coming months. We are also looking at growing our external markets in the Democratic Republic of Congo and Burundi," said Kasule.
He noted that the firm would also deepen its corporate social investment programmes, thanks to partnership with its strategic investor PPC, to deliver technical expertise, ensure sustainable production and meet market demand.
HeidelbergCement Sierra Leone cuts output due to Ebola 03 November 2014
Sierra Leone: Sierra Leone Cement Corp (Leocem), a subsidiary of HeidelbergCement, has cut its cement production as the growing number of Ebola cases halts construction work across the West African country.
"Ebola has brought the economy down on its knees," said head of marketing, Modupe Taylor-Pearce. "We have seen a reduction in our overall volumes from what it was in the first half of 2014." The rate of new Ebola cases hasn't slowed in Sierra Leone, according to Bruce Aylward, the World Health Organisation's (WHO) assistant director general in charge of the response to the deadly virus. He confirmed that cases had reached 3562 and that 1037 people had died by 26 October 2014. The other two most affected countries are Liberia and Guinea.
Monthly cement production in the West African country fell to 20,890t in August 2014 from 35,280t in May 2014, according to data from the Bank of Sierra Leone. Leocem is the only cement-producer based in the country, although Dangote Cement plans to set up a production plant there.
"Demand in the second half of 2014 has been lower than the first half," said Taylor-Pearce. "Road construction seems to have stopped. Many of the roads that were in the process of being done seem to have come to a halt." Raw materials, including limestone clinker, are in short supply in Sierra Leone as importers have reduced shipments. Transportation costs have increased as five of the 14 political districts in Sierra Leone are quarantined.
Cemex and Holcim agree on series of transactions in Europe 03 November 2014
Europe: Cemex has signed binding agreements with Holcim regarding the series of transactions that was originally announced on 28 August 2013.
The main scope of the transactions in Germany and the Czech Republic remain unchanged: Cemex will acquire all of Holcim's assets in the Czech Republic and will divest its assets in western Germany to Holcim. In Spain, Cemex will acquire Holcim's 0.85Mt/yr capacity Gador cement plant and its 0.9Mt/yr capacity Yeles cement grinding plant. Holcim will keep all of its other operations in Spain.
As part of these transactions, Cemex will pay Euro45m in cash to Holcim. Once the transactions are closed, Cemex expects a recurring improvement in its earnings before interest, taxes, depreciation and amortisation (EBITDA), including synergies, of about US$20m to US$30m. These transactions are expected to close during the first quarter of 2015.