13 July 2021

Philippines: China-based Sinoma Construction will renovate Holcim Philippines’ La Union cement plant in Bacnotan, North Luzon. Seetao News has reported that the company signed a contract with the subsidiary of Switzerland-based Holcim in July 2021. The work involves a capacity expansion, renovation and de-bottlenecking. The aims of the projects are to promote the modular grinding station market and expand Holcim’s Philippines business and deepen its localisation.

India: Dubai-based Synergy Metals has made an offer and sought the permission of the Competition Commission of India to acquire a minority stake in JSW Group subsidiary JSW Cement. The New Indian Express has reported that JSW Group is seeking to reduce its stake ahead of an initial public offer (IPO) for the producer. The company is valued at over US$2.0bn and is seeking to sell US$200m-worth of stakes.

Vietnam: State-owned Vicem’s cement and clinker sales grew by 8% year-on-year to 12.7Mt in the first half of 2021. The Viet Nam News newspaper has reported that the company recorded cement and clinker production volumes of 14.8Mt, up by 7%. Its 2021 full-year production targets are 30Mt of cement and clinker sales, up by 5%, and production of 26Mt of cement, up by 8%, and 22Mt of clinker, up by 1%. The producer recorded sales of US$709m in the first half of 2021, up by 5%. Its profit before tax rose by 23% to US$54.4m.

Spain: Tudela Veguín says that an upgrade to a conveyor belt connecting its Aboño cement plant in Asturias to a terminal at the Port of El Musel will allow it to dispatch 5% more cement. The increase represents more than 100,000t/yr-worth of additional cement shipments, according to the La Nueva España newspaper. Ship loading time has also been reduced by nearly half. The Euro532,000 conveyor was completed in 2020. The El Musel terminal has shipped cement for export to several new countries, including most recently the US.

Hungary: The government has imposed a 90% tax on the excess profits of some building materials producers to prevent rising prices. It applies to companies that produce cement, lime, gypsum, chalk, gravel, sand and clay that had an annual revenue over Euro8.4m in 2019, according to the MTI news agency. Producers will be liable for a 90% ‘mining allowance’ on the difference between revenue generated using their own prices and threshold prices set in the decree. The threshold price for cement has been set at Euro56/t.

The government has also ordered that companies report the export of ‘strategic’ construction materials including cement, gypsum wallboard, gravel and steel products. The related decree also gives the state pre-emption rights for the materials that have been reported at a price "in line with their current market value." Failure to comply with the reporting obligation may result in seizure of the construction materials and fines up to Euro14,000.

UK: John King Chains has agreed to acquire Precision Chains for an undisclosed price. The group said that Precision Chains’ heavy series chains production capabilities made it an attractive acquisition. It said that there is ‘untapped potential’ for heavy series chains production for the cement industry in the companies’ collaboration.

Managing director David Wadsworth said “The acquisition of Precision Chains represents a tremendous opportunity for John King Chains to further enhance its reputation as a leading manufacturer of conveyor chains and sprockets worldwide. We are committed to UK manufacturing and consider the potential for Precision Chains to flourish under the John King Chains umbrella is substantial.” He added that the company will retain the Precision Chains brand name for the ‘foreseeable’ future.