20 June 2016
Myanmar: The state-run No. 33 cement plant in Kyaukse, Mandalay will be upgraded to produce up to 5000t/day of cement in a partnership with Myanmar Conch Cement. The plant was established in 1983 and has been running under the Ministry of Industry with a capacity of 300t/day. The upgrade is expected to be finished in three months, according to Myanmar Business Today.
The agreement with Myanmar Conch Cement will give the government profit from 2.71% of production in the first year and from 5% in the following 19 years. “In profit sharing, the government owns its net profit without investment for production and staff payment. The partnership company will pay for it,” said U Saw Aung, General Manager of Technology at the Development Department of the Ministry of Industry.
Domestic demand for cement in Myanmar is around 8Mt/yr with half of this figure imported from abroad.
India: All options are being considered by the state government for the Mawmluh Cherra Cement plant in Meghalaya including handing the plant over to private investors. Chief minister Mukul Sangma refused to rule out the option when asked about the state owned cement plant, according to the Indian Telegraph.
"In the process of trying to turn any public sector undertaking of the government into a profit-making body, the authorities concerned have been asked to consider all options. Let them come up with the options and then the best one will be considered," said Sangma.
The cement plant stopped production in 2014. It has since been dogged by high staff costs. In early June 2016 the Meghalaya government approved a voluntary retirement scheme for 145 of the plant’s 445 employees.
China: Shanshui Cement has regained control over Liaocheng Shanshui, a subsidiary that was illegally occupied by ‘unidentified people’. The local government and police helped the company take back the cement plant and its offices. Normal production has resumed.
During the occupation the offices were ransacked and the official seal and business license of Liaocheng Shanshui were stolen. Shandong Shanshui and Liaocheng Shanshui have announced that, the stolen seal of Liaocheng Shanshui has been invalidated since 16 June 2016.
In a statement the company has confirmed that a corporate dispute is on-going between Shanshui Zhonggong, Shandong Shanshui and Liaocheng Shanshui. It believes that the occupation was related to this. Shanshui Cement has faced financial troubles since a shareholder battle for control of the company took place in late 2015.
US Federal Trade Commission provides clearance for acquisition of Italcementi by HeidelbergCement 20 June 2016
US: HeidelbergCement and Italcementi have reached an agreement with the US Federal Trade Commission (FTC) to allow the company’s merger to proceed on schedule. The FTC accepted the proposed divestment of operations in the US, primarily consisting of Italcementi’s Martinsburg cement plant in West Virginia and up to eleven terminals on 17 June 2016. All competition approvals necessary for closing the Italcementi acquisition have now been obtained.
“We are very pleased with the positive decision of the Federal Trade Commission,” said Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “We are now on track to close the acquisition of the 45% stake in Italcementi which we are planning together with Italmobiliare for the beginning of July 2016.” The divestment process for the assets in US has already started and significant interest has already been recorded. Citi is mandated as sell side advisor for the disposal.
The planned full acquisition of Italcementi will proceed in two steps following approval by the necessary competition bodies. HeidelbergCement will initially acquire a controlling stake of 45% from Italmobiliare. HeidelbergCement will then propose a public mandatory offer to the remaining shareholders for the acquisition of their shares in return for a cash payment. The exact timing of the mandatory offer will be released at a later date. HeidelbergCement expects the entire transaction to be completed in the second half of 2016.