09 June 2015
US: According to local media MiBiz, the planned merger of Lafarge and Holcim will result in a new owner for a Holcim-owned cement plant in Grandville and could lead to more competitive cement pricing in the West Michigan market.
In response to an antitrust complaint filed by the Federal Trade Commission (FTC) that the LafargeHolcim merger 'would likely substantially lessen competition,' in 12 US markets, including in Grand Rapids, the parties have agreed to divest 24 facilities in North America. Among the sites is a Holcim (US) -owned cement plant in Grandville, which the company plans to sell to Buzzi Unicem USA. The acquisition of the Grandville plant should be completed in July 2015, according to Patrick Lydon, vice president and general counsel at Buzzi Unicem. Lydon said that the Grandville plant would be the company's first venture into the Michigan market. He does not expect any significant changes to operations.
The FTC weighed in on the proposed merger to create LafargeHolcim, the world's largest cement company with a projected US$35bn in annual revenues, because it said that the acquisition would further concentrate the industry in 12 'already highly-concentrated' markets. In the affected markets, Holcim and Lafarge are either the only two suppliers of Portland cement or slag cement or are 'at most' two of just four suppliers.
"If the merger between Holcim and Lafarge went through as originally planned, it would have likely had a short-term impact, but even more of an impact on long-term competitive pricing," said Greg Kerkstra, president and CEO of Grandville-based Kerkstra Precast Inc. "Now that the FTC has determined a divestiture of some of these assets in particular markets, that could actually encourage even more competition than before the merger, in our eyes."
Other affected markets in Michigan include Detroit and northern Michigan. Holcim is selling a cement terminal in Elmira, Michigan to Buzzi Unicem and it is seeking buyers for terminals in Detroit and Dundee.
India: Sagar Cements has reported that in May 2015 it produced 1.59Mt of cement, up by 14.1% year-on-year. In the same month it dispatched 1.51Mt of cement, up by 13.2% year-on-year.
Afghanistan: According to the BBC, following a meeting with the first vice president of the Islamic Republic of Afghanistan Gen Abdorrashid Dostum, several Canadian businessmen said that they would invest US$8bn dollars in Afghanistan and later increase that amount.
The funds will be invested in the construction of a hydropower dam in Fariab Province and the extraction of gas and petroleum in Sheberghan City. Work to build a cement plant in Samangan Province, the extraction of coal in Takhar Province and gemstones in Badakhshan Province and an iron plant will also be part of their programmes. All the activities will be under control of the Afghan government, the World Bank and other Afghan government institutions.
Polish cement production up by 2.9% in May 2015 09 June 2015
Poland: Cement production increased by 2.9% year-on-year to 1.62Mt in May 2015, according to Poland's Cement Producer Association. In the 12 months that ended on 31 May 2015, cement production grew by 1.5% year-on-year to 5.64Mt.
Dangote to expand Ethiopian cement plant 09 June 2015
Ethiopia: Accoring to Nigeria News, Dangote Group president Alhaji Aliko Dangote has said that 'plans are afoot' to double the capacity of the newly-opened US$500m, 2.5Mt/yr capacity cement plant in Mugher, Oromia, Ethiopia. Dangote said that the expansion work would begin before the end of 2015.
The decision to set up and then expand the plant was informed by the 'enabling' environment created by the Ethiopian government with massive investment in several large-scale infrastructure projects, including the construction of the continent's largest hydropower dam. The Ethiopian plant will create direct employment for 2000 people in the main plant operations and logistics, with a fleet of 600 trucks. 5000 indirect jobs will also be created.
Dangote said that achieving real economic integration in African would require political stability and a breakdown of the barriers and borders between countries, which hinders free flow of goods, services and people. "We need to make deliberate efforts to encourage Africans, not just foreigners, to invest in Africa. Dangote Cement is currently in 16 African countries with plans to invest in many more over the next years. There are a number of other successful pan-African brands today such as MTN, Shoprite and Ecobank," said Dangote. "We need to encourage this trend to see more investments in Africa by Africans. Above all, there is need to encourage the private sector to collaborate with governments across Africa to address the issue of infrastructure deficit, which has plagued the continent for decades."
Ethiopia's prime minister Hailemariam Desalegn said that as one of the fastest growing economies in the world, the country's investment potential had barely been scratched. He said that the government was spending millions of dollars on critical infrastructure to address investment and align with policies that were already in place to aid investors. "Ethiopia represents a lucrative market that has barely been tapped with its 95 million people and growing economy," said Desalegn.
Ethiopia's Minister of Industry, Ahmed Abitew, said that, with the new plant, the country's cement sector would make significant growth in meeting local demand, which has grown due to infrastructural development. According to him, production has risen from 11.2Mt/yr to 17.5Mt/yr. "The government is giving due attention to the industrial sector with its average growth of 20%/yr," said Abitew.
Japan/Singapore: Taiheiyo Cement, which operates a cement terminal in Singapore through Singapore Cement Manufacturing (SCMC), a joint venture with Singapore-based Hong Leong Asia Ltd, has completed a new 24,000t cement silo at SCMC's cement terminal in Singapore.
Infrastructure investment, including subway and highway construction, is driving the robust cement market in Singapore and fuelling demand for low-heat-type cement as a way to prevent thermal cracking in concrete structures with large cross-sections (so-called mass concrete).
Coinciding with the construction of SCMC's new silo, Taiheiyo Cement has developed a new type of cement specifically formulated to satisfy Singapore's local needs. The new export-oriented product, which is manufactured using Portland cement and admixture ingredients such as fly ash from coal-fired power plants, qualifies as type CEM II as defined by Singapore's cement quality standard (SS EN 197-1). The new cement has greater resistance to thermal cracking due to its low-heat and low-shrinkage characteristics, higher long-term strength, improved workability and lower alkali-silica reactivity. It is also certified under the Singapore Green Labelling Scheme (SGLS) and therefore carries a Green Label in recognition of its environmental friendliness, which was demonstrated during a series of tests carried out with the cooperation of local users and experts. SCMC also used the new cement in the construction of its new silo and in the process verified its performance.
Taiheiyo plans to manufacture the product using fly ash that has been selected, formulated and managed with the cooperation of domestic Japanese power companies. It is expected to contribute to the effective use of fly ash from newly-built coal-fired power plants in Japan. Going forward, SCMC plans to use the new silo for CEM II, complementing its Ordinary Portland Cement and expanding its business through the supply of new cement that meets local needs.