August 2025

Kenya: The International Finance Corporation (IFC) says it is still considering investing in ARM Cement after it entered administration in late August 2018. IFC Kenya Country Manager Manuel Moses said that the World Bank institution was waiting for the outcome of the administration process to complete to see if a ‘good proposal’ would emerge, according to the Standard newspaper. Moses made the comments while unveiling the IFC’s investments in Sub-Saharan Africa in 2018.

The Kenya cement producer has been placed into admiration for 12 months to attempt to solve its debt problems. The IFC was previously set to take over loans worth US$120m at ARM Cement in July 2018 and was also interested in an equity stake.

Cameroon: Cimencam has assured Ernest Gbwaboubou, the Minister of Mines, Industry and Technological Development, that the first bag of cement will be despatched from the Nomayos grinding plant in the first quarter of 2019. The comments were made during a visit by Gbwaboubou to the unit, according to Business in Cameroon magazine. The minister also noted that the compensation process for residents affected by a power line to the plant had yet to be completed.

The new plant will have a production capacity of 0.5Mt/yr. The project has an investment of around US$40m. The plant will source pozzolans from a quarry at Foumbot.

Spain: Cementos Portland Valderrivas’ (CPV) Alcalá de Guadaíra plant near Seville has updated its environmental standard. It uses an integrated environmental management system, based on the UNE-EN ISO 14001: 2015 standard and the European regulation on eco-management and eco-auditing (EMAS) CE No. 1221/2009, modified according to regulation (EU) 2017 / 1505. The plant has been certified since 2004 but this was updated to the new version of the standard in mid-2018.

The plant also uses a health and safety management system certified since 2009 according to 18.001: 2007 OHSAS. The unit reported that it had no accidents to the end of August 2018.

US: GCCM Holdings has ordered a ship unloader from Siwertell for a terminal in Corpus Christi, Texas. The Siwertell ST 640-M unit will have a continuous rated cement-handling capacity of 1500t/hr and will be able to unload ships of up to 60,000dwt. The unloader is currently being built and will be delivered fully assembled by heavy-lift ship to the port. Siwertell will supervise its commissioning and the unit is expected to start operation in the third quarter of 2019.

Germany: Christian Knell, the president of the German Cement Works Association (VDZ), has warned that meeting climate change goals was leading to ‘considerable’ costs for the cement industry. He said that ‘suitable boundary conditions would have to be created’ for climate change issues and noted that on-going trends in European emissions trading and the ‘rapidly’ increasing price of CO2 were leading to mounting costs. “To be able to realise our efforts in terms of climate protection and at the same time not lose competitiveness, we need research policy-related support for our investment in breakthrough technologies and the corresponding demonstration projects,” said Knell.

Knell made the comments during the opening ceremony of the 8th International VDZ Congress 2018 in Duesseldorf. He identified climate protection and digitalisation as key issues for the future of the industry.

Philippines: The Department of Trade and Industry has notified the World Trade Organisation (WTO) that it is starting a preliminary investigation to examine whether increased imports of cement is causing or threatening to cause serious injury to the local industry. The cement covered by the investigation is classified under AHTN Codes 2523.2990 and 2523.9000, according to the Manila Bulletin newspaper. The investigation will look at 2013 - 2017. The ministry has cited the Safeguards Measures Act as part of its probe.

Japan: Taiheiyo Cement has been selected to be part of the Dow Jones Sustainability Asia Pacific Index for the fifth consecutive year. The company was first chosen in 2014. The index is the Asia Pacific version of the Dow
Jones Sustainability Indices and it serves as a benchmarks for socially responsible investment.

Central America: Denmark’s FLSmidth says it is moving ahead with two contracts for cement plants worth over Euro250m following the receipt of the agreed downpayment. One contract is for a new cement plant and the other is for an extension to an existing plant.

The cement plant engineering company has not released many details on the projects. However, both plans will be located in Central America and will supply cement mainly to their local markets. The expected commissioning is within 24 to 36 months and once operational, the cement plants will have a capacity of 2000t/day and 3500t/day respectively.

Dominican Republic: Mexico’s Cemex has launched its Cemex Go platform in the Dominican Republic. The product allows customers to place orders, make payments, manage invoices and track deliveries in one place online. Cemex hopes to have made the digital platform available in all of its territories by the end of 2019.

More positive news emerged from the UK cement industry this week with the news that Cemex is planning to restart the second kiln at its South Ferriby plant later in 2018. This marks the full recovery of the plant after a disastrous flood in late 2013 and it is an all round good news story. Around the same time the local government in Scotland approved the planning application for an upgrade to Tarmac’s Dunbar cement plant. That project involves installing a new cement grinding mill, a new cement storage silo and a rail loading facility.

Graph 1: Domestic cement, imported cement and other cementitious sales in the UK, 2001 - 2017. Source: Mineral Products Association.

The timing is interesting given the general uncertainty in the UK economy ahead of the UK exit from the European Union (EU). However, data from the Mineral Products Association (MPA) shows that total cementitious material sales (cement plus products made from fly ash and ground granulated blast furnace slag (GGBS)) reached 15.3Mt in 2017 from a low of 10.3Mt in 2009 following the financial crash. This isn’t as high as the 15.8Mt figures recorded in 2007 but it does mark a recovery. This masks to an extent the change in the market since 2007. Cement sales in 2017 at 10.2Mt were still below a high of 11.9Mt in 2008. The recovery has been driven by higher imports, 1.9Mt in 2017, and higher use of fly ash and GGBS products, which reached 3.2Mt in 2017.

Cemex and Tarmac are not alone in announcing projects. HeidelbergCement’s local subsidiary Hanson is upgrading its Padeswood plant with a new Euro22m mill. Irish slag cement grinding company Ecocem opened its import terminal at Sheerness in mid-2017 and French grinding firm, Cem'In'Eu, has also expressed interest in building a plant, in this case in London.

As discussed earlier in the year, new upgrade projects in the UK appear to carry an element of risk given the unknown status of its departure from the EU. Supply chains may be affected, companies are delaying investment and the value of Pound Sterling is falling. The collapse of construction services company Carillion also had a knock-on effect in the industry and, with major work on the Crossrail infrastructure project finishing, the industry has no major infrastructure projects in support. A quarterly graph of UK construction industry output volume by Arcadis shows almost uniform growth since mid-2012 although this started to flatten in 2017. A badly-handled Brexit (UK exit from the EU) could undo this growth.

All of this presents a picture of risk-adverse capital projects in the UK. The MPA figures help to explain the focus on grinding at Padeswood and Dunbar. The market has changed since 2007, with a growing focus on imports and secondary cementitious materials. Hence spending money on equipment to process these inputs makes sense. The decision to increase production at South Ferriby meanwhile depends on reviving existing equipment. Regional cement sales figures to 2016 from the MPA appear to indicate static demand in counties close to the plant (Yorkshire and Humberside) but sales have increased in the East Midlands and the East of England.

Just compare the current UK approach to the situation in Egypt. This week the head of the cement division of the Chamber of Building Materials described the decision to build the Beni Suef cement plant to local media as “not based on precise information” and that it had harmed local production. In case you had forgotten, that plant is one of the biggest in the world with six lines. The commentator may well have been representing smaller local producers but opening a 12Mt/yr plant in Egypt in these turbulent economic times marks a different approach to risk than the modest plant upgrades in the UK. Let’s wait and see who has the best approach.