Displaying items by tag: GCW128
Karnataka cement plants accused of not paying minimum wages
26 November 2013India: Chandrasekhar Hiremath, president of the Shramajeevigala Karmika Sangha and a trade nion leader, has alleged that two cement plants in Karnataka are not paying the minimum wage to contract and full-time workers. According to comments reported upon by The Hindu, Hiremath said that the Regional Labour Commissioner in Bellary, Karnataka had failed so far to ensure that workers were being paid properly at the UltraTech Cement plant at Malkhed and Vasavadatta Cements at Sedam.
A national wage settlement signed between the employees' unions and cement producers entitles all contract labourers and full-time workers to receive the wages fixed by the Cement Wage Board. Hiremath further alleged that Vasavadatta Cements had submitted a misleading report to the Regional Labour Commissioner. Daily wages of contract labourers and full-time workers at the plant were US$7 as opposed to the US$9.50 minimum set by the board.
Cemex initiative wins Corporate Citizen of the Americas award
25 November 2013Mexico: Cemex's Assisted Self-Construction Integrated Programme (Programa Integral de Autoconstrucción Asistada – PIAC) won a 2012/2013 Corporate Citizen of the Americas award in the Citizen Security category in November 2013.
The awards recognise innovative programmes that benefit the community and serve as a model for socially responsible practices. The Citizen Security category focuses on initiatives that promote public-private partnerships in order to create more secure communities. The awards programme is run by the Trust for the Americas with support from the Organisation of American States, the Inter-American Development Bank and AES Corporation.
PIAC provides low-income families with access to an integral housing solution that can enhance their quality of life while developing a social ecosystem. The initiative has helped more than 58,000 families as of 30 September 2013. In addition, 110,000 people have become self-employed and 915,000m2 of construction has been achieved to date.
"We are pleased that PIAC has been recognised as a programme that allows families to improve their quality of life and increase their wealth, while strengthening the social tissue," said Juan Romero, President of Cemex Mexico. "In Cemex, we strive to reinforce our social responsibility commitment by contributing to social development."
US cement consumption to reach nearly 80Mt in 2013
22 November 2013US: The Portland Cement Association (PCA) expects 2013 cement consumption to reach nearly 80Mt, a 4.5% increase on 2012. Consumption levels are projected to reach 86Mt in 2014, an 8.1% year-on-year growth.
During 2014 it is possible that all construction sectors will record growth, according to the PCA. While the growth will be broad-based, half of it will come from residential construction activity where there is the largest amount of pent-up demand from the recession. The commercial and institutional sector will contribute another 25%. Typically, when each sector contributes to growth, robust growth rates in cement consumption materialises. Growth in US construction markets could, however, be dampened by congressional drama that erodes consumer confidence and hinders recovery, according to the latest forecast.
"American consumers love drama. Moreover, congress knows how to create it, with more on the way when the debt ceiling talks resume in early in 2014," said Edward Sullivan, PCA group vice president and chief economist. "Each time the political circus on Capitol Hill addresses extensions of the debt limit, budget approvals or the fiscal cliff, it harms the burgeoning economic momentum." Consumer and business confidence is a key ingredient for stronger economic gains, said Sullivan. Congress could easily derail recovery momentum with political drama created by the federal shutdown and debt ceilings.
The PCA predicts real construction spending to grow by 1.3% in 2013 and by 8% in 2014. By 2018 cement consumption is expected to reach nearly 119Mt, 3% below the past cyclical peak in 2005. This implies a 14 year recovery.
Cemex opens new cement plant in Colombia
22 November 2013Colombia: Mexican cement maker Cemex has opened its fifth plant in Clemencia, Colombia. The US$50m plant in northern Colombia has a cement production capacity of 0.45Mt/yr.
Cemex plans to begin building its sixth plant in Colombia at the start of 2014 with a US$125m investment. The construction is expected to last 24 months and have a cement production capacity of 0.50Mt/yr.
Cemex foresees strong growth in the Colombian market, specifically in infrastructure, as President Juan Manuel Santos has been investing heavily in roads, ports, railways and airports, with some US$25bn invested in the past four years.
Holcim India’s rejig gets Ambuja public shareholders' nod
21 November 2013India: Ambuja Cements announced on 21 November 2013 that shareholders had approved a proposal by Swiss parent firm Holcim to rejig its Indian cement units, winning 377m of the 550m votes placed (68.5%). 173m votes were placed against the merger.
The resolution for the scheme of amalgamation between Holcim India and Ambuja Cements was passed through postal ballots with the majority of public shareholders voting in favour.
Holcim had proposed in July 2013 the restructuring of its Indian operations by merging subsidiary Holcim India with Ambuja Cements and transferring Holcim India's 50.01% stake in ACC to Ambuja, making it a holding company of ACC. Holcim now has a 61.4% stake in Ambuja.
Public institutional holders, which hold 614m shares in the company, cast 534m votes. Of them, 67.9% voted in favour and 32.0% against the merger. Other public holders cast 15.4m votes. Of these, 13.6m were in favour and 1.80m were against.
As per the new regulation of the market regulator SEBI, companies require approval from the majority of the minority shareholders for mergers and acquisitions.
Holcim claims that this transaction will further improve its holding structure in India, strengthen the platform for future growth and generate synergy benefits of US$144m/yr. "These benefits, which will be realised in a phased manner over two years, will be shared by both companies equally through supply chain," said Bernard Fontana, CEO of Holcim.
Holcim CFO Thomas Aebischer argues against 1:12 pay proposal
21 November 2013Switzerland: On 24 November 2013 Swiss voters will decide whether to cap the highest wages given in a company at 12 times the lowest pay. Swiss corporations and the government have joined forces to oppose the '1:12 Initiative', which is forecast to be rejected.
"When you read the text of the proposal, it's very simple, very clever, very misleading. You would never go to the US and think: how much can I pay people now? You pay whatever you need to pay in order to attract them," said Thomas Aebischer, CEO of Holcim. "This is a disaster for this country. It's a real risk and a real danger for Switzerland remaining an attractive place to do business."
The pay scale at Holcim underscores the challenge for multinationals if they were to comply with the proposed rule. Bernard Fontana, Holcim CEO, received a base salary of Euro1.42m in 2012, 35 times the lowest-paid employee.
Executive payouts have ballooned in recent years while company profits have slumped and taxpayers bailed out Switzerland's largest bank, UBS. This has led to calls for a more equal distribution of wealth.
South African cement project finalised with Chinese investment
21 November 2013South Africa: The South African Mamba Cement project, jointly funded by China's Jidong Development Group, the China-Africa Development Fund and a South African cement company, inked a deal regarding financing on 20 November 2013.
The project, with an investment of US$220m, is situated in Limpopo Province, South Africa. The capital fund of the project is US$100m, 51% of which is held by Chinese shareholders.
Unlike traditional overseas investment financing, Mamba received US$120m through project financing, which is based on the projected cash flow of the project rather than the balance sheets of its sponsors. This marked China's first successful investment through project financing in Africa. The loans are jointly provided by Nedbank South Africa and Bank of China's Johannesburg office.
Chen Ying, vice-president of China's Jidong Development Group, said that the success of the financing deal meant the South African bank's accreditation to Chinese companies. "Project financing offers Chinese companies a new way to make overseas investments," stated Ying.
The project includes a new cement clinker production line with an output of 1Mt/yr, a waste heat recovery (WHR) system with a generating capacity of 26.8MKW/hr and other supporting facilities. The electricity generation system together with the cement plant makes Mamba the first cement company in possession of WHR technology on the African continent.