14 April 2015
Iran produced 60Mt of cement in 2015 financial year 14 April 2015
Iran: Iran produced roughly 60Mt of cement in the last Iranian calendar year, which started on 21 March 2014. Of the total, 18Mt was exported, of which 80% went to Iraq, according to Shahriar Geravandi, a member of Iran's Cement Industries Association Board of Directors. He added that Iran is seeking new export markets. According to Geravandi, there are 68 cement plants in Iran.
National Cement plans US$198m plant in Uganda 14 April 2015
Uganda: National Cement is set to invest US$198m in a new plant in Uganda, its first plant outside of Kenya. Construction of the 1Mt/yr capacity plant, located in Mbale, will start in May 2015 and is expected to be completed by the end of 2016.
The project is the first in National Cement's regional expansion plan. The company also intends to venture into South Sudan in the next three years. "The first phase of the project is expected to commence in May 2015, after which we will continue expanding the plant over a three-year period," said Narendra Raval, the chairman of Devki Group, the parent company of National Cement. "Once the main plant is operational, we will expand it to include a clinker plant, which will ensure that we are self-sufficient." The Uganda project is being funded by loans from the International Finance Corporation (IFC) and two local banks.
The plant signals increased competition in the regional cement market, which is grappling with price wars brought about by the entry of new players and expansion of established firms. Indian conglomerate Cemtech and ARM Cement, for instance, plan to set up new plants in Pokot and Kitui respectively. Nigeria's Dangote Cement has also announced plans to build a 3Mt/yr plant in Kitui.
The increased investment is set to worsen the glut and force further price cuts, placing more emphasis on volume growth and efficiency as the major profit drivers for individual companies. The increase in output is set to offset the projected 12% increase in consumption in the region over the next three years.
Spain: Spanish competition regulator CNMC has included Lafarge and Holcim in the proceedings for alleged cartel agreements brought up against a number of sector players at the end of 2014. Additionally, the CNMC has extended the proceedings to Materiales y Hormigones and Hormibusa. The move was based on information gathered during several inspections carried out in September 2014 for alleged exchange of information, price fixing and market division practices in the cement and concrete sector. The CNMC will complete the investigation and produce a resolution within 18 months.
CSN proposes merger with CSN Cimentos 14 April 2015
Brazil: Brazilian steelmaker CSN is considering a merger with its cement producing subsidiary CSN Cimentos. CSN said that it would present the proposal to shareholders for approval.
The merger would help CSN achieve synergies and economies of scale. It would result in 'process optimisation and maximised results,' with all business and administrative activities carried out via a 'single organisational structure,' according to CSN. The merger would cost US$544,758 and be effective from 1 May 2015.
CSN entered the cement market in 2009 and claims to have 2.4Mt/yr of production capacity. Its 2014 capex was US$705m, with 23% directed toward cement operations, which generated 3% of the company's revenue in the year. Its cement sales increased by 7% to 2.18Mt in 2014.