01 August 2014
Canada: McInnis Cement has announced that the financial structure of its cement plant under construction in the Gaspé Region of Quebec has been completed. The National Bank of Canada, as the sole book-runner of the bank syndicate, has confirmed the availability of a US$329m loan for the project. This is in addition to the US$458m in equity from private and public investors, including the joint venture formed by Groupe Beaudier and La Caisse de dépôt et placement du Québec, as well as the participation of Investissement Québec (IQ). IQ has also provided a US$229m commercial loan, which brings the loan total to US$1.00bn.
"We are pleased that the project can be realised without any subsidy; we are also very proud to be able to complete, more than 30 years after it was imagined by local entrepreneurs, this visionary, ambitious and modern cement plant at the cutting edge of technology." said Christian Gagnon, CEO of McInnis Cement. "Construction has begun and the project is well under way. Moreover, the ecological footprint of this flagship project for the cement industry in Canada and across the world will be one of the lowest in the industry."
The plant will use up to 40% less fuel per tonne of cement than traditional cement plants due the use of hydroelectric power, reducing emissions of greenhouse gas. It will comply with the US standards set out in the National Emission Standards for Hazardous Air Pollutants (NESHAP 2015), which are more stringent than those presently applied in Quebec. For example, the NESHAP 2015 standard for particulate matter is 15 times lower than the current Quebec limit. The Port-Daniel cement plant will be the only one in Canada to comply with the NESHAP 2015 standards.
The plant will be equipped with state-of-the-art technology for improved environmental performance, including the latest generation of bag filters for improved efficiency. It will also utilise maritime transportation for fuel, further reducing greenhouse gas emissions. Initially, the plant will use petroleum coke as fuel, although this is set to change in due course.
"Over the coming years, we intend to further reduce greenhouse gas emissions by partly replacing the petroleum coke with biomass, which is available in the Gaspé region," said Gagnon. "This partial conversion to biomass is at the very heart of the concept of the cement plant."
Russia: Russia's Federal Antimonopoly Service (FAS) has made a decision to extend the consideration period for Holcim's application for the right to direct the following businesses: OAO Lafarge Cement (Moscow), FIANT LLC (Moscow), Lafarge Aggregates & Concrete LLC (Republic of Karelia), Drilling and Blasting Company LLC (Republic of Karelia), Bolshoy Massiv Quarry LLC (Republic of Karelia) and Tekhnobud Klesovsky Quarry of Non-Metallic Minerals LLC (Ukraine). The right to direct the businesses would stem from Holcim's acquisition of 66% of the shares in Lafarge.
Lafarge is licensed for the production, storage and application of industrial explosive materials, being engaged in the activities provided for by Article 6 of the Federal Law on Procedures for Foreign Investments in Business Entities of Strategic Importance for the National Defense and State Security. Therefore, Lafarge qualifies as a business entity of strategic importance for the national defence and state security. Therefore, the deal applied for requires prior approval as provided for by Russia's investment law.
Buzzi Unicem and Wietersdorfer deal completed 01 August 2014
Italy/Slovenia: Buzzi Unicem has completed a strategic agreement with Austria's Wietersdorfer & Peggauer, which was initially announced in February 2014. Under the terms of the deal, W&P Cementi, Wietersdorfer & Peggauer's Italian subsidiary, has acquired Buzzi Unicem's 0.3Mt/yr cement plant in Cadola, Belluno Province, Italy. W&P Cementi has also won the right to purchase Buzzi Unicem's 0.4Mt/yr cement plant in Travesio, Pordenone Province, Italy within the next five years for Euro22m. At the same time, Buzzi Unicem has paid Euro22m for a 25% stake in W&P Cementi and a 25% stake in Salonit Anhovo, Wietersdorfer & Peggauer's Slovenian subsidiary.
Lafarge plans to increase cement production capacity 01 August 2014
Zambia: Lafarge Cement Zambia plans to double its cement production capacity from its two local plants to meet the growing demand, according to CEO Emmanuel Rigaux. In 2013, the domestic market for cement grew by 17%, largely driven by the continued increase in government infrastructure projects, mining expansion activities and to a smaller extent by individual home building projects.
"Lafarge Zambia is planning to double its capacity in Ndola and Chilanga through debottlenecking and construction of a new line," said Rigaux. "This will enable us to remain the market leader and preferred supplier of construction solutions in Zambia." Rigaux said that in 2013 production volumes improved by 105,000t to 1.18Mt from 1.07Mt in 2012, representing 9% growth. Volumes are expected to continue to improve on the back of strong growth in the construction industry in both domestic and export markets. Rigaux said that domestic sales volumes grew by 18% in 2013, while export sales volumes declined by 25% due to increased focus on the domestic market.
"The second half of 2013 saw a sharp improvement in operational and industrial results both at both our Ndola and Chilanga plants," said Rigaux. "Lafarge Zambia also implemented targeted cost reductions and logistical optimisations, which enabled us to improve our operating margins." Rigaux said that Lafarge Cement Zambia's financial position and cash flow remained solid with strong cash position and no external debt.