01 June 2015
Pakistan: The Pakistan government is working on two options to challenge South African anti-dumping duties on Pakistani exports of cement. The first step will be to hold bilateral consultations with the South African government to resolve the anti-dumping duties favourably. Failing that, then the Pakistan government has the option to take the issue to the Geneva-based World Trade Organisation (WTO), according to an official from the Pakistan National Tariff Commission (NTC).
The International Trade Administration Commission of South Africa (ITAC) imposed provisional anti-dumping duties of 14.3 – 77.2% on Portland Cement originating in or imported from Pakistan from 15 May 2015 for six months. The duty was imposed on bagged cement.
According to local media, Lucky Cement, the major supplier to South Africa with a 55% market share, seems to have had sales volumes little affected by the anit-dumping measure due to its low duty. However, Attock Pakistan, the second largest supplier with a 35% market share, has been the worst hit due to its high anti-dumping duty. Pakistani cement exporters are exploring other markets in southern Africa.
Philippines: Eagle Cement plans to build its production capacity with an investment of US$1.2bn. Owner Ramon S Ang revealed to local media that he intends to build two new 2Mt/yr cement plants at Cebu and Davao in 2015. In addition the company is also adding one more line with a 2Mt/yr production capacity to its existing cement facility in San Ildefonso, Bulacan.
"We are now finishing the second line and preparing to put up a third line. With the third Eagle line, it will be even bigger than the asset being sold by Lafarge," said Ang. Upon completion of the third line, the Bulacan plant will have a production capacity of 6Mt/yr. According to Ang, each cement line with a 2Mt/yr capacity costs US$400m.
Eagle Cement produces and distributes cement under the brands Eagle Cement Advance and Eagle Cement Strongcem.
San Miguel Corp, the Manilla based multinational for which Ang serves as president, formally entered the cement business in 2013 when it paid US$78.6m for a 35% stake in Northern Cement. The cement company with a production facility in Pangasinan has a capacity of 2Mt/yr.