16 May 2016
US: A worker has died from a fall at the Midlothian Ash Grove Cement plant in Texas on 10 May 2016. The worker, Roderick U Barnes, was a maintenance mechanic at the plant according to the Waxahachie Daily Light newspaper. Barnes had been working on the top of a concrete mixing tower. The Mine Safety and Health Administration and Ash Grove Cement are conducting investigations into the cause of the accident.
Austria: The Federation of Austrian Cement Industry (VÖZ) has reported that its national cement market volumes grew by 4% year-on-year to 4.6Mt in 2015. Overall sales turnover increased by 4.3% to Euro388m. Alongside this, the use of alternative fuels by the cement industry increased to 76.1% in 2015 from 75.5% in 2015.
Rudolf Zrost, CEO of VÖZ, lauded the growth in cement volumes despite a ‘difficult’ year. Looking ahead to 2016 he expected that a turnaround in housing investment and hopes for infrastructure spending in 2016 would aid the market.
He also warned against emissions trading describing it as ‘bureaucratic’, as stifling innovation and as having no basis in reality.
China: Harbin Xiaoling Cement in Heilongjiang province has taken the environment ministry to court after its approval to operate was rejected following complaints by residents. The cement company’s representatives say the ministry was wrong to overrule a decision by the local authorities in 2011 that granted approval for production at the plant, according to the South China Morning Post.
The ministry took action following complaints by residents about noise and dust pollution. They argued that residents living within 500m of the plant should have been relocated following the recommendation of an environmental review conducted when the plant expanded production in 2009. However, the cement plant has countered that it was built in 1932, whilst the area was under Japanese occupation, before any resident moved to the area.
Zimbabwe: The Cement and Concrete Institute of Zimbabwe has presented a paper to the Ministry of Industry and Commerce suggesting government intervention in the cement industry including banning imported cement. The paper also calls for a protection tariff on imported cement of US$50/t, granting import licences to local producers, cancelling or reviewing all issued permits in circulation in the country and lowering duty on raw materials according to local press.
The country’s cement producers include Lafarge, PPC and Sino Cement. Together they have a cement production capacity of 1.85Mt/yr compared to an estimated demand of 1.17Mt/yr in 2016. Together these cement producers have invested nearly US$185m in cement plants upgrades within the last five years. However, a surplus of cement in the region means that South Africa, Mozambique, Zambia and Botswana export cement to Zimbabwe which is threatening the local producers’ investment.
Lafarge Africa approves acquisition of UNICEM 16 May 2016
Nigeria: The board of directors of Lafarge Africa has approved the acquisition of an additional 50% equity interest in the Untied Cement Company of Nigeria (UNICEM). The purchase was handled on the same terms of its initial acquisition of 35%. Following the acquisition Lafarge Africa will own an indirect interest of 100% in UNICEM.
The 50% share is currently held by Egyptian Cement Holdings, a company jointly owned by LafargeHolcim and Lafarge Africa. LafargeHolcim owns Egyptian Cement Holdings via Holcibel. Lafarge Africa is buying its latest purchase of shares from Holcibel.
Cementos Argos revenue rises by 34% to US$740m 16 May 2016
Colombia: Cementos Argos has reported that its revenue rose by 34% year-on-year to US$740m in the first quarter of 2016 from US$553m in the same period in 2015. Its net income rose by 27% to US$33.4m from US$26.4m. The company attributed the gains to ‘healthy’ sales volumes in all of its markets with a particular emphasis in the US.
By region Cementos Argos saw its cement sales volumes rise by 47.3% to 935,000t in the US led by growth in the Carolinas, Alabama and Georgia. In Colombia its cement volumes fell by 17.1% to 1.48Mt due to lower growth in the central region of the country. Despite this the company increased its revenue in this territory in the quarter. In its Caribbean and Central American region the cement producer reported a rise of 14.4% to 1.11Mt in its cement sales volumes.
Paraguay: Industria Nacional del Cemento (INC) has reported progress on upgrade projects at its cement plants in Vallemi and Villeta. At its plant in Vallemi the company is continuing work on upgrading the fuels that the kiln can use. The project is expected to save up to US$22m/yr. CIE is conducting the work and the launch is scheduled for January 2017.
INC is also building a cement grinding plant at Villeta. The new mill is being built by Sinoma for a cost of US$11.5m and is scheduled for delivery in August 2016. It will have a cement production capacity of 80t/hour or be able to produce around 800,000 bags/month of cement. INC also plans to start operating a pozzolan drying unit at Villeta in September 2016.