03 December 2014
Dalmia Bharat buys out SAIL in Bokaro Jaypee Cement 03 December 2014
India: Dalmia Bharat has acquired the final 26% stake that it did not already own in Bokaro Jaypee Cement from the Steel Authority of India (SAIL), for US$150m. Bokaro Jaypee Cement has become a wholly-owned subsidiary of Dalmia. In March 2014 Dalmia acquired Jaypee's 74% holding in the company.
Bokaro Jaypee Cement was formed as a 74:26 joint venture project between Jaiprakash Associates and SAIL, for the operation of a 2.1Mt/yr capacity grinding plant at Bokaro, Jharkhand. The cement produced in the unit was sold through Jaiprakash's distribution network under the brand name 'Jaypee Cement'. However, Jaypee exited the venture and used the proceeds to address its debt.
Kazakhstan to meet domestic demand for cement 03 December 2014
Kazakhstan: Kazakhstan intends to meet its domestic demand for cement, according to Albert Rau, Vice Minister for Investments and Development and local media.
"Given that at the start of 2015 a cement facility capable of producing 500, 000t/yr will be launched in Rudny, production capabilities of 2Mt/yr will be launched at Kokshe-Cement Enterprise, BI Cement facility is to be started in Akmolinsk Oblast and a number of cement making facilities based in Shymkent are to be modernised, we are ready to meet the domestic demand for cement," said Rau.
Rau added that Kazakhstan had imported over 1Mt of cement in 2013. "Most of the issues geographical. All the production facilities are concentrated in the east, in Karaganda and in the south. The west of Kazakhstan relies on imported cement." He explained that President Nazarbayev had set a target for the country to meet 80% for all types of construction materials by 2014. In 2014 this figure was 74 – 75%.
Worker dies at Shayona Cement plant in Malawi 03 December 2014
Malawi: One worker has died and three others have been injured at the Shayona Cement Factory in Kasungu. Hot clinker caused the injuries due to an open door at the plant according to local media. Three of the injured workers, including the deceased worker, were from Malawi. The fourth worker was from India.
"When they switched on the furnace, the cement stone busted from the clinker and produced hot ashes which covered them. One died in the process of receiving treatment, while the other three are in critical condition," said local police.
Pakistan: Cement producers in Pakistan are considering sourcing their coal from Indonesia instead of South Africa. The move is in response to an on-going investigation initiated by the International Trade Administration Commission (ITAC) on alleged dumping of Portland Cement from Pakistan.
The ITAC intends to finish its investigation by the end of January 2015 with the introduction of a preliminary antidumping duty on import of Pakistan cement in South Africa, according to Pakistan local media. Pakistan's Ministry of Commerce has also raised the matter with its South African counterpart in the meeting of Joint Trade Commission (JTC) of the two countries in South Africa in November 2014 but so far no consensus has been reached between the two countries.
Industry sources have said that five to six Pakistan-based exporters of cement constitute the biggest buyers of South African coal. Pakistan is the third largest buyer of coal from South Africa after China and India. Local cement makers collectively import 3Mt/yr of coal worth US$240m from South Africa and export around 1.3Mt/yr of cement worth US$120m.
Russian Federal Antimonopoly Service allows Topkinsky Cement to acquire 25% stake in Iskitimtsement 03 December 2014
Russia: Topkinsky Cement, a part of Siberian Cement, has received the Federal Antimonopoly Service's (FAS) permission to purchase a 24.92% voting stake in Iskitimtsement. Siberian Cement's stake will therefore grow to 49.899%. In February 2013 the FAS blocked Sibirsky Cement from acquiring a 90% stake of Iskitimtsement's voting shares.
Iskitimtsement posted a revenue of Euro85m and a net profit of Euro11m in 2013 compared to a revenue of Euro77m and a net profit of Euro16m in 2012. The cement plant holds 17% of the Siberian Federal District's cement market.
Cemex to resume Tepeaca cement plant expansion 03 December 2014
Mexico: Cemex has announced that it is restarting its expansion of the Tepeaca cement plant in Puebla State. By 2017 its total production capacity will reach 7.6Mt/yr. Total investment is estimated to be approximately US$650m. The additional investment, in order to add 4.4Mt/yr to the current capacity, will be approximately US$200m, since the company had already invested close to US$450m by 2008.
"We are encouraged by our industry's positive outlook in Mexico. With this investment, Cemex reaffirms its confidence in the country's future" said Rogelio Zambrano, chairman of the board of Cemex. The expansion is expected to generate approximately 1500 jobs during the construction phase and about 100 direct and 240 indirect jobs once operation begins.
The announcement was made during a ceremony at the plant with the attendance of Ildefonso Guajardo, Secretary of Economy of Mexico, Rafael Moreno, Governor of Puebla, Amelio Flores, Mayor of Cuautinchan, Rogelio Zambrano, Chairman of the Board of Cemex, Fernando A Gonzalez, CEO of Cemex and Juan Romero, President of Cemex Mexico.
PPC to reshuffle board but keep Gordhan out 03 December 2014
South Africa: PPC will reshuffle its board due to shareholder pressure. However, it will not reinstate its former chief executive Ketso Gordhan. In a statement, it said that four of its current directors will step down and be replaced by six new ones, expanding the number of directors to 12, according to Reuters.
Shareholders in PPC were due to vote to remove the board in a resolution put forward by three minority shareholders, who had also backed Gordhan as a director. However, the shareholders have agreed to withdraw that demand in favour of the reshuffling plan. Gordhan was not among the latest set of candidates for new board positions.
PPC shareholders and investors were advised against removing the board to support a return by Gordhan by global shareholder voting research firm Glass Lewis & Company. The US firm told clients in a report that while Gordhan seemed qualified to implement PPC's expansion strategy, he had displayed 'erratic and volatile' behaviour and the company's board had been reasonable in accepting his resignation in September 2014.
N+P signs solid recovered fuels deal with Secil and Cimpor 03 December 2014
Portugal: N+P International has announced the signing of a five year contract for the supply of solid recovered fuels (SRF) into a number of cement plants belonging to the Portuguese cement companies Secil and Cimpor. The contract was signed by Gestão Ambiental e Valorização Energética, a subsidiary company of Secil, Cimpor and SGVR, responsible for sourcing and supply of alternative fuels and raw materials into the Portuguese cement industry.
"In the past years we have invested millions to develop UK market, to provide end users of our SRF sustainable supply concept. We have put a lot of effort in optimising quality levels of SRF in the UK market, as well as investing in the development of sustainable logistic chains. Now N+P has several port sites at strategic locations and the possibility to use a large number of sea containers," said Karel Jennissen, chairman of N+P.
By signing the contract N+P has committed to supply over 700,000t of SRF in the next five years. The majority of the SRF is already sourced and contracted by companies in the UK recycling market. A minor part of the volume will be sourced in Italy and France.