Displaying items by tag: Government
Bangladesh Chemical Industries Corporation and Al Rajhi Group to upgrade Chhatak Cement plant
21 October 2016Bangladesh: The government owned Bangladesh Chemical Industries Corporation (BCIC) has signed a memorandum of understanding with Saudi Arabia’s Al Rajhi Group to build a new production line and a captive power plant at the Chhatak Cement plant. The project is a joint venture between the companies and it will be run as a public-private partnership, according to the Financial Express newspaper. The new cement line and power plant will have a production capacity of 1.5Mt/yr and 330MW respectively. Industries minister Amir Hossain Amu, BCIC secretary Hasnath Ahmed Chowdhury and managing director of Al Rajhi Company for Industry & Trade Yousif Al Rajhi signed the agreement in Bangladesh on 20 October 2016.
Jaypee Cement to return coal blocks to ministry
20 October 2016India: Jaypee Cement is seeking approval from the Ministry of Coal to return two captive coal blocks, which it previously won by auction in 2015. The company has told the ministry that it does not require the coal blocks as it has sold off the attached cement plants, a ministry official told the Economic Times newspaper. The official added that Jaypee Cement could be barred from bidding for other coal blocks for one year and that bank guarantees equivalent to a year’s revenue from the mines could be seized. The two blocks are Majra in Maharashtra and Mandla South in Madhya Pradesh.
Orient Cement agreed to purchase three cement plants from Jaiprakash Associates for US$292m in early October 2016.
India: The East Singhbhum district administration has asked for guidelines from the government of Jharkhand regarding the purchase of the Jojobera cement plant by Nirma from Lafarge India. There are no provisions for transfers of leased land to any third party without the prior approval of the state government with relation to agreements struck by Tata Steel, the plants previous owner, said East Singhbhum deputy commissioner Amit Kumar to the Hindustan Times.
"We are seeking state government's guideline on action to be taken over the reported transfer of management and bank accounts of Jojobera Plant here by Lafarge Holcim to Nirma Limited even though they are yet to respond to our notices from July 2016," said Kumar.
Lafarge India has said that the transfer of management and accounts for the Jojobera plant was completed on 6 -7 October 2016 following approval by the Competition Commission of India for the sale. It agreed to sell five cement plants to Nirma for US$1.4bn in July 2016.
Indonesian cement sales fall in September 2016
12 October 2016Indonesia: The Indonesian Cement Association (ASI) has reported that cement sales in September 2016 fell by 3.3% to 5.64Mt compared to August 2016. It blamed the decline on lower demand from the local housing industry. Cement sales fell sharply in Java, Sumatra and Kalimantan, while eastern parts of Indonesia, including Sulawesi, Maluku and Papua, saw an increase in sales, according to the Jakarta Globe.
"Weakening sales may be due to the lower demand from houses and apartments. Demand from infrastructure projects has been picking up since the second quarter of 2016, but still can't make up for the lack of demand from the property sector," said ASI chairman Widodo Santoso.
National cement sales rose by 2.95% year-on-year to 44.7Mt in the first nine months of 2016 and the ASI expects sales growth of 3 – 4% for 2016. However, cement producers fear that this growth rate will be insufficient to sustain investments in new cement plants. The ASI says that cement production in Indonesia has exceeded demand by more than 30%.
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.
Indonesian government to tackle cement industry expansion
10 October 2016Indonesia: Industry Minister Airlangga Hartarto has said that the government is preparing regulations to restrict new cement plant permits being issued in a bid to maintain stable cement prices. The ministry’s director general for chemicals, textile and miscellaneous industry, Achmad Sigit Dwiwahjono, has also confirmed the proposed regulation, according to the Jakarta Post. Airlangga added that his ministry has also been considering other measures to tackle cement oversupply.
The Indonesian Cement Association (ASI) has lobbied the government to take action on oversupply. Cement production capacity has nearly doubled from 59.3Mt/yr in 2012 to 92.7Mt/yr in 2016. However, demand is projected to only reach 65Mt in 2016, leaving a production oversupply of 27.7Mt.
Builders Association of India calls for cement regulatory body
10 October 2016India: The Builders Association of India has asked the government to create a Cement Regulatory Authority to control the price of cement and prevent cartel activity in the sector. Avinash M Patil, national president of the BAI, told the Hindu newspaper that ‘most’ contracts in the construction industry have no price escalation clauses. Subsequently, unexpected jumps in the price of cement slow down project times. A delegation of the BAI is set to meet the prime minister to discuss the issue.
Ugandan government to build cement plant in Karamoja
07 October 2016Uganda: The government intends to build a cement plant in Karamoja in partnership with Moroto Ateker Cement. The company is a formation of Uganda Development Corporation and Savannah Mines, a local firm based in Karamoja, with a shareholding of 51% and 49% respectively, according to the Monitor newspaper. Moroto Aterer has contracted India’s Saboo Technologies to build the cement plant in the Moroto Industrial Park. Saboo has completed a feasibility study and say that the plant will be completed in two phases.
India: Bharatiya Janata Party (BJP) leader and Rajya Sabha MP Subramanian Swamy has urged Prime Minister Narendra Modi to ban imports of cement from Pakistan in the interest of domestic industry and national security. He said that imports of cement without levy of customs duty were introduced in 2007 to augment supply in view of high demand, according to the Press Trust of India. However, he added that the situation has since changed, with the local industry now facing capacity utilisation of below 70%.
"I request you to ban import of cement into the country not only in the interest of growth and sustenance of domestic cement industry but also in keeping with the imperatives of national security. Ban of import from Pakistan will be in the interest of the country's security in the present juncture," Swamy said in a letter to Modi. He added that imports from Pakistan also carried the risk of smuggling of contraband materials like drugs and weapons.
Italy: Industry minister Carlo Calenda has said he is a ‘little’ worried about the intentions of HeidelbergCement to reduce its business in Italy after it buys Italcementi. The government is negotiating with HeidelbergCement about the purchase and it has confirmed its readiness to support investments, according to the Il Sole 24 Ore newspaper. The government has also asked the German construction materials producer to make a wish list and has launched a series of meetings.