30 December 2015
Ghana: Ghana has lost over US$13m due to imports of around 500,000t of bagged cement the Cement Manufacturers Association of Ghana (CMAG) has said to the Daily Guide newspaper. The association is fighting imports of bagged cement into the country, principally from China, because local production of cement exceeds demand. Local cement production capacity is 7.4Mt/yr, current consumption is 5Mt/yr and this leaves a surplus of 2.4Mt/yr.
"It's mind-boggling to see the ascendancy of imports of bagged cement from China despite persistent petitions that the manufacturers have installed capacities to meet local demand," said CMAG chairman George Dawson-Ahmoah in a recent statement. The association has been lobbying government bodies in Ghana since April 2015 on the issue if imported bagged cement from China. Local producers affected by the imports include GHACEM Limited, Diamond Cement Ghana, Savanna Diamond Cement and Western Diamond Cement.
Cementir Italia offers Euro125m to buy Sacci cement assets 30 December 2015
Italy: Italian cement producer Sacci has accepted a Euro125m offer from Cementir Italia for the acquisition of a branch of Sacci, including assets in the cement, concrete and transport sector, replacing a previous offer presented by Buzzi Unicem. Cementir Italia will pay part of the price at the closing of the operation and the remaining part 24 months later.
InterCement sells quarries in Brazil 30 December 2015
Brazil: InterCement has sold two quarries, Guarulhos and Barueri, in São Paulo state to Polimix Concreto for US$25m. The sale includes the properties, assets and exploration rights of both quarries.
The quarry sales follows a sale of a 16% stake in Yguazu Cementos (Paraguay) for US$35m that was announced on 21 December 2015. In that sale InterCement retained a 51% stake in Yguazu Cementos to retain control of the subsidiary. The remaining share capital share capital was held by InterCement's Paraguayan partner Concret Mix.
Together both sales form part of a set of initiatives to strengthen InterCement's capital structure and increase its profitability. As part of its announcement the company highlighted the stoppage of underused plants, the divestment of concrete units in Brazil, the sale of non-strategic assets, pricing reviews and reduction of costs and expenses.