11 October 2016
Ghana: The Cement Manufacturers Association of Ghana (CMAG) has asked the government to investigate all cement imports to the country. The association sent a letter on 6 October 2016 to the Commissioner of the Ghana Revenue Authority (Customs Division) concerning a Chinese vessel carrying 37,000t of cement anchored at Tema, according to the Daily Guide newspaper. The letter, copied to many other government departments, questioned whether licences to import cement to the country could be issued following changes in legislation.
Oman: Oman Cement’s profit has risen by 39% year-on-year to US$26m for the first nine months of 2016 from US$18.1m in the same period of 2015. Its revenue grew by 12.45% to US$114m from US$101m.
ACC cement grinding plant in Jharkhand to start in November 2016 11 October 2016
India: ACC has said that its new cement grinding plant at Sindri, Jharkhand will become operational in November 2016. This follows the start of commercial production of a new clinker production line at its plant at Jamul, Chhattisgarh in July 2016 and the start of that site’s grinding plant on 14 September 2016.
European Commission starts investigation into HeidelbergCement and Schwenk's joint acquisition of Cemex Croatia 11 October 2016
Croatia: The European Commission has opened an investigation to check whether the proposed acquisition of Cemex Croatia by HeidelbergCement and Schwenk is in line with the European Union (EU) Merger Regulation. The commission has concerns that the proposed takeover may reduce competition for grey cement in Croatia. It will make its decision by 23 February 2017.
"The construction sector, like any other sector, needs competition. As cement is an essential part of the sector we need to make sure that consolidation does not lead to higher prices for construction companies and ultimately consumers in Croatia," said commissioner Margrethe Vestager.
The commission has concerns regarding the supply of grey cement in southern Croatia, including Dalmatia in particular, where Cemex Croatia operates three cement plants in Split and faces competition from DDC's imports from Bosnia and Herzegovina, which is not an EU member. The proposed transaction would combine Cemex Croatia, the largest producer in the area, and DDC, the largest importer. The commission's initial investigation indicates that the proposed transaction may remove a significant competitor from an already concentrated regional market.
The remaining actual or potential suppliers may exercise only limited competitive pressure on the merged entity because of the transport costs to reach southern Croatia. Additionally, the domestic cement suppliers Cemex Croatia and LafargeHolcim control all the cement terminals in ports along the Croatian coast. The commission has preliminary concerns that the transaction may strengthen the market power of Cemex Croatia in southern Croatia and result in price increases for grey cement.
HeidelbergCement and Schwenk plan to acquire, via their joint subsidiary DDC, assets in Croatia and Hungary that currently belonging to Cemex. The Hungarian part of the transaction as been referred to the Hungarian competition authority, so the commission's investigation will focuses on the acquisition of Cemex's Croatian assets.