23 March 2015
Vietnam: Ha Tien 1 Cement Company is negotiating with Indonesian partners to import coal from Indonesia, according to the Saigon Securities Incorporated (SSI). Under the current laws, businesses must seek permission for the import of energy products.
Coal accounts for 40% of clinker and 32% of cement production costs. Ha Tien 1 is considering importing coal because the market price has fallen sharply with the drop in crude oil prices. Ha Tien 1 currently buys coal from Vinacomin at US$100/t. The coal price in Indonesia is US$52/t free on board (FOB).
If Ha Tien 1's proposal to import coal gets approval from the government, the cement manufacturer would cut production costs and be able to reduce sale prices and boost its sales. If Ha Tien 1 could import 25% of the total coal it needs for production, it would be able to reduce its production cost by 8%.
SCG to open Myanmar showroom 23 March 2015
Myanmar: Siam Cement Group (SCG) will open its first showroom in Yangon, Myanmar in May 2015, according to country director Chana Poomee. It will showcase products to customers and partners. "SCG is committed to enhance the expertise of the dealer network and empower them for long-term competitiveness," said Poomee. SCG is currently expanding into Myanmar with the construction of a cement plant in Mawlamyine, Mon, which is expected to open in 2016.
Dangote to build world’s biggest oil refinery 23 March 2015
Nigeria: Aliko Dangote, president of Nigeria's largest cement producer Dangote Group, has announced that he is increasing his refinery's capacity to 650,000b/day. The move, according to petroleum industry analysts, will see Nigeria listed as having the largest petroleum refinery in the world.
Dangote said that the initial plan was to have 450,000b/day refining capacity, but that he has since opted for a bigger plant because he believes that Nigeria, as a leading producer of crude oil, should also be credited with local refining capacity. Currently, Nigeria produces crude oil, but has to buy refined products from abroad. Dangote Group executive director Devakumar Edwin said that the Dangote refinery was ready to reverse the trend. The refiner is expected to be fully operational by 2017.
Eurocement-Ukraine reports Euro10m loss in 2014 23 March 2015
Ukraine: Balakleya-based Eurocement-Ukraine has reported a loss of Euro10.4m for 2014, following a Euro848,334 loss in 2013.
Hetauda Cement's accumulated loss soars to US$6.42m 23 March 2015
Nepal: State-owned Hetauda Cement Industries Ltd (HCIL) has reported an accumulated loss of US$6.42m at the end of its 2014 financial year.
"We faced a loss of US$692,829 in 2011 - 2012 and US$95,251 in 2012 - 2013. Our annual loss increased to US$6.42m in 2013 - 2014," said Ramesh Shiwakoti, chief accountant of HCIL. "HCIL is facing a loss as we are focused on providing quality products, unlike privately-owned cement producers whose major thrust is on making profit."
HCIL pays its workers around US$251/month, while privately-owned cement plants reportedly pay around US$150/month. Although a HCIL spokesperson said that the company's loss can be partly attributed to its high wages, the workers said that the plants is making a loss due to lack of transparency and increasing political interference.