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Cemex's decision to head deeper into eastern Europe as part of the Cemex-Holcim asset swap announced this week suggests some nerve. Cement production levels started to fall in the region from 2012, according to Cembureau figures, with continued problems reported so far by the multinational cement producers in 2013. Cemex seems likely to lose money from the start with its new assets in the Czech Republic.

In more detail, Cemex will acquire all of Holcim's assets in the Czech Republic, which include a 1.1Mt/yr cement plant, four aggregates quarries and 17 ready-mix plants. In return Holcim will give Cemex Euro70m and Cemex will give Holcim its assets in western Germany including one cement plant and two grinding mills that encompass a total capacity of 2.5Mt/yr, one slag granulator, 22 aggregates quarries and 79 ready-mix plants.

Cemex must believe that it can wait out the recovery of the construction sector in eastern Europe or make savings from having a more easterly spread of assets. Certainly Cemex said in its press release on the asset swap that its earnings before interest, tax, depreciation and amortisation (EBITDA) would start to rise from US$20m to US$30m from 2014.

The question for the buyers at Cemex who considered this deal is whether the construction market has bottomed out in the Czech Republic yet. According to World Bank figures, following the 2008 financial crisis Czech Gross Domestic Product (GDP) fell to a low of US$197bn in 2009, rose again until 2011 but then fell to US$196bn in 2012. Currently the Czech National Bank is anticipating a further fall in growth in 2013. Meanwhile, data from a third quarter 2013 Czech construction sector analysis by CEEC Research reported that a drop of at least 4.7% was expected in 2013 with a follow-on decline of 2.7% in 2014.

Possibly one deal-maker for Cemex was the prospect of combined operations with Holcim in Spain across cement, aggregates and ready-mix. Similar to the Lafarge-Tarmac joint-venture in the UK, the move offers reduced risk in a declining western European market. How the Spanish competition authorities will respond remains to be seen. Elsewhere on the continent this week the decision by the Belgian Competition Council to fine the Belgian cement sector shows an example of behaviour the Spanish authorities will want to avoid.

UK: Bill Brett has been appointed as the chairman of the Mineral Products Association (MPA) for the next two years to 2015. He will succeed Dyfrig James. Brett, the chairman of Brett Group, has a wide range of commercial interests and industry involvement.

"Members have appreciated Dyfrig's inclusive approach and the efforts he has made to engage with all parts of the MPA, particularly in the regions and of course his beloved Wales," said Nigel Jackson, chief executive of the MPA. "The MPA would like to thank Dyfrig for all his efforts and wish Bill Brett every success for his two year tenure."

India: ACC will set up a 1.5Mt/yr cement grinding plant in Kharagpur in West Midnapore district, its Chief Executive (East) Vivek Chawla has announced. Building of the US$88.4m project is planned to start by January 2014.

"The company will invest US$88.4m for setting up the 1.5Mt/yr factory at Kharagpur," said Chawla.

Tanzania: Pascal Lesoinne, the chairman of the East African Cement Producers' Association (EACPA), has denied that a cartel exists in the Tanzanian cement market. His comments arose at a press conference in Dar es Salaam following action by the Tanzanian government to investigate cement imports from Pakistan.

"Repeated accusations of there being a cartel are nonsense as competition is fierce in the market and there are many players. Cement is a hot cake of which everybody wants to have a share," said Lesoinne in a presentation on the benefits of the cement industry to Tanzania's economy. Leading cement producers in Tanzania include HeidelbergCement, Afrisam and Lafarge. Lesoinne cited taxation and jobs as two principal benefits of Tanzania's local cement industry.

Confederation of Tanzania Industry (CTI) figures indicate that in 2012 over 200,000t of cement were imported from Pakistan to Tanzania. Industry players say it is difficult for local manufacturers to compete with imports, largely due to high costs of production in the country, with electricity costs in Tanzania being four times higher than in China and Egypt, according to EACPA figures. Lesoinne called for the government to create a 'level playing field' between locally produced and imported cement.

In late July 2013 the Tanzania government formed a seven person team to investigate alleged subsidies, tax evasion and the quality of cement imported from Pakistan.

Portugal: Poor cement sales in Portugal and Angola have reduced Semapa's net profit by 52.3% year-on-year to Euro39.3m for the first six months of 2013 from Euro82.3m in the same period in 2012.

Sales in Portugal fell by 15.2% to Euro82.2m for the period and sales in Angola fell by 20% to Euro11.6m. In Portugal Semapa blamed the on-going decline in the construction sector. In Angola it blamed imports from China. Despite political instability and regional variation in Tunisia, sales rose slightly by 0.5% to Euro36m for the period. Sales in Lebanon rose by 5.4% to Euro44.7m.

Overall the Portuguese conglomerate, which holds businesses in cement, pulp and paper and environmental services, saw its sales rise by 4.5% year-on-year to Euro990m for the first half of 2013. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 11.6% to Euro202m.

Belgium: The Belgian Competition Council has fined three cement producers and two related organisations Euro14.7m for restricting competition in the Belgian cement market. In a statement, the Belgian Competition Council accused HeidelbergCement subsidiary CBR, Italcementi subsidiary CCB, Holcim Belgium, FEBELCEM and the national centre for technical and scientific research for the cement industry (CRIC/OCCN) of concerted behaviour.

According to the council, the accused parties acted in a coordinated manner between May 2000 and October 2003 to delay the adoption of a licence and of standards allowing ground granulated blast furnace slag (GGBS) to be used as a component for ready-mix concrete. The cement producers and FEBELCEM sought to protect their own interests in selling cement for ready-mix concrete and CRIC/OCCN aided them in doing this.

The council noted that Irish GGBS producer Orcem had its import of GGBS to Belgium delayed due to the anticompetitive practices.

Myanmar: Siam Cement Group (SCG) has announced that it will build a 1.8Mt/yr greenfield cement plant costing US$386m in Mawlamyine, Myanmar. The plant will include a 40MW captive power plant, a 9MW waste heat recovery system, supporting port facilities and other infrastructures for future expansion.

"The Myanmar cement market is estimated at approximately 4Mt in the 2012 financial year and is forecasted to grow at 10%/yr over the next five years," said president and CEO of SCG, Kan Trakulhoon.

Built under Myanmar's Foreign Investment Law, the cement plant is expected to start in mid-2016.

South Africa: Cement imports from Pakistan to South Africa will continue and are expected to increase, says Qamar Zaman, commercial secretary at the High Commission of Pakistan in South Africa.

In 2012, issues were raised about the quality of Pakistani cement but Zaman said that lower prices gave his country's imports a competitive edge. South Africa consumes about 12Mt/yr of cement, with imports sitting at 5%, according to Stanlib analyst Anashrin Pillay.

Multinational cement producer Lafarge complained publicly about Pakistani imports of cement into South Africa in mid-2012, mentioning poor quality and incorrectly packaged quantities. Zaman defended Pakistani cement, saying over the past decade it had been refined and the production processes were now 'of a high standard.'

Finland: MacGregor has secured a new order for autonomous loading and unloading systems for an 8700DWT cement carrier to be built for Japanese ship-owner Taiheiyo Kisen Kaisha. The cement handling systems are designed to carry three grades of cement at a rated capacity of 1000t/hr.

"The totally enclosed cement handling arrangements will ensure flexible, efficient and clean cargo operations," says Anders Berencsy, Sales Manager, Selfunloaders at MacGregor.

Cargotec subsidiary MacGregor provides engineering solutions and services for handling marine cargoes and offshore loads.

Cambodia: Siam City Cement (SCCC) has cancelled a US$150m cement plant project in Cambodia due to political uncertainty, according to the Bangkok Post. The Thai cement producer is considering building a cement plant in Myanmar instead.

Philippe Arto, managing director of SCCC, said that the board has decided to 'put on the shelf' the plan to build a 1Mt/yr cement plant in Cambodia after finishing a feasibility study. SCCC, which is 27.5% owned by Holcim, signed a memorandum of agreement with Cambodia's Chip Mong Group for the study in late 2010. Under the previous plan, construction of the Cambodian cement plant was due to start around the end of 2013 and take two years to complete.

SCCC is looking at the possibility of pushing forward a cement project in Myanmar, where the market is sizeable and the economy is growing substantially. SCCC has placed no timeline for its Myanmar project.