12 June 2023

Nigeria: BUA Cement plans to use loans worth US$500m towards the construction of two new 3Mt/yr cement plants in Sokoto State. When operational, the new plants will increase the producer's installed capacity by 55% to 17Mt/yr. Local press has reported that BUA Cement plans to run both cement plants using solar power, and to produce cement using alternative fuel (AF). Additionally, the producer will use a portion of the funding to replace part of its diesel-fuelled cement truck fleet with new natural gas-fuelled models.

Of a total US$500m in financing secured by BUA Cement on 5 June 2023, the International Finance Corporation (IFC) lent US$161m (32%) and African Development Bank, Africa Finance Corporation and the German Investment Corporation jointly lent US$245m (49%), with the remainder advanced by institutional investors.

North Korea: State-owned Cheonnaeri Cement has completed a successful upgrade to its 1Mt/yr Cheonae cement plant in South Hamgyong Province. Korean News has reported that the upgrade involved the replacement of the plant's clinker cooler, burners and clinker and raw materials handling systems. A new bucket conveyor has more than doubled raw materials handling capacity.

Cheonnaeri Cement reportedly plans to further expand the capacity of the plant.

India: JSW Cement has signed a US$50m sustainability-linked loan agreement with BNP Paribas Singapore. The Hindu BusinessLine newspaper has reported that the producer plans to use the funds for capital expenditure projects aimed to more than double its production capacity to 50Mt/yr from 17Mt/yr. Current plans include US$388m in investments in the construction of a 2.5Mt/yr integrated cement plant in Madhya Pradesh and a 2.5Mt/yr grinding plant in Uttar Pradesh.

The latest loan from BNP Paribas is the second of its kind taken by the group, following a US$48.5m sustainability-linked loan from Japan-based MUFG Bank in October 2022.

India: Dalmia Bharat has announced a capacity target of 120Mt/yr by the end of 2031. The Business Standard newspaper has reported that the producer will make total investments of US$2.31bn in its on-going growth drive. The sum includes US$723m invested in the acquisition of Jaypee Group's 9.4Mt/yr cement business in December 2022. Dalmia Bharat's eventual investments in erecting new capacity are estimated at US$1.09bn, US$485m (44%) of it in its North Indian cement business.

CEO Puneet Dalmia said “We are executing the largest capital expenditure in our history.” Regarding the Jaypee Group deal, Dalmia said "The acquisition will give us access to Central India’s and North India’s markets and we would look for more acquisition opportunities in the mid segment. We expect the industry to consolidate further in the coming years. India will invest US$1Tn in infrastructure in the next decade, and that will create a sizeable demand growth for cement.”

Sweden: Nordkalk has produced lime at its Koping lime plant using 30% biofuel as alternative fuel (AF). The producer now aims to increase the substitution rate to 50%. Nordkalk subsidiary Kalkproduktion Storugns recently began trialling 100% liquid biofuel substitution in continuous operations at its Larbro lime plant. ENP Newswire has reported that both projects are part of a CO₂ emissions reduction initiative in partnership with the Swedish Energy Agency and Umea University.