08 February 2016
Sberbank sells 6.12% LafargeHolcim stake 08 February 2016
Russia: Sberbank has sold a 6.12% block of shares in LafargeHolcim Limited it received under a repo deal with Eurocement. The shares have been sold to a group of investors from the UK, Switzerland, the US and other countries. Sberbank's stake, amounting to 37,172,910 votes, was worth roughly Euro1.5bn based on LafargeHolcim share quotations on the Zurich exchange. Sberbank CIB said in a press release previously that the deal was organised to provide financing for Eurocement Holding.
LafargeHolcim workers at Saint-Constant cement plant go on strike 08 February 2016
Canada: LafargeHolcim cement plant workers at Saint-Constant went on strike on 6 February 2016, according to CJAD radio. A collective agreement for 68 workers at the plant, members of the United Steelworkers union, expired in September 2015. No new contract has been agreed after nine negotiation meetings. The principal disagreement concerns a change to the workers' pension plan.
Saudi Arabia: The Saudi Cement Company has decided to temporarily stop producing clinker on one of its production lines and postpone replacing three cement mills due to poor market conditions and a cement export ban. The company will stop its 3500t/day clinker kiln 6 until market conditions improve. The stoppage is not expected to affect the cement producer's financial results as its inventory currently stands at 4Mt. A plan to replace three 360t/hr cement mills with two 440t/hr mills has also been delayed due to market conditions. The upgrade was expected to add 0.6Mt/yr cement grinding capacity to the plant.
Dangote to build two new Nigerian plants 08 February 2016
Nigeria: Dangote Cement has announced that it will build new cement plants in Nigeria, in Okpella in the northern part of Edo State and Itori in Ogun State. Dangote said that the new plants are expected to add 9Mt/yr to the company’s current output of 29.25Mt/yr, raising it to a total 38.25Mt/yr.
The Group’s Managing Director Edwin Devakumar, made the announcement in Lagos. He explained that the Okpella plant will have one 3Mt/yr cement line and that the Itori plant will deliver 6Mt/yr from two production lines. Both plants are expected to come on stream within the next three years.
Devakumar said the company’s expansion drive was targeted at expanding its nationwide presence and reducing the transportation cost component of its operations. He added that the new investments will also lower the cost of production, bring about a future reduction in the price of cement and generate employment opportunities in the host communities.
Group Managing Director for Cement Onne van der Weijde said the demand for cement was still high considering the population growth in Nigeria. He observed that Nigeria’s consumption of cement, at 100kg/capita was relatively low by international standards, indicating growth potential.
Van der Weijde added that Dangote Cement can supply the entire western and central Africa region. Dangote Cement currently exports cement to Niger, Ghana and Togo, with plans to also move into the Ivory Coast.