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Poland: Gorazdze Cement has forecast that sales of cement in the country will grow by up to 7% year-on-year in 2014 to 15.5Mt up from 14.5Mt in 2013. Similar sales growth is expected in 2015, provided more projects co-financed by the European Union are started. The Institute for Market Economics (IBnGR) expect sales to reach 15.2Mt in 2014 and then 16.4Mt in 2015. The research institute attributes the sales growth in 2014 to an improving situation in the rail, energy, residential and road construction sectors.

India: UltraTech Cement Ltd is in talks to buy cement assets from Jaiprakash Associates Ltd. The two companies are in discussions about projects, including Jaiprakash's Rewa cement plant in central India, which has a 7Mt/yr cement production capacity.

Selling additional assets would help Jaiprakash to reduce its debt, which jumped more than four-fold in the five years through March 2014 to US$10.3bn. In 2013 UltraTech agreed to buy a Jaiprakash cement unit based in Gujarat State.

Jaiprakash is also looking for buyers for cement assets in Himachal Pradesh State, where it owns two plants with a combined production capacity of 3.5Mt/yr. Jaiprakash sold its 74% stake in Bokaro Jaypee Cement Ltd, a joint venture with the Steel Authority of India Ltd, to Dalmia Bharat Ltd for US$194m in March 2014.

After its recent divestments, Jaiprakash has a cement production capacity of 26.4Mt/yr, according to a company presentation in May 2014. The company plans to sell assets valued at about US$1.35bn by March 2015.

Kenya: East Africa Portland Cement Company (EAPCC) is set to construct a US$9.13m power plant that is expected to reduce its annual power bill by about US$5.70m. The 4MW power plant will run on waste gases generated by the company's Athi River cement plant via waste heat recovery (WHR) system. Construction is scheduled to start in September 2014 and is expected to take one year.

"The new power plant will have a huge impact on our operational costs because its output will translate to about 40% of our current total energy requirements," said EAPCC's managing director Kephar Tande.

Around 20 - 25% of the project costs will be funded from internal savings with the rest of the funds coming from commercial loans. EAPCC also hopes to permanently address the problem of frequent power outages, which have posed major problems at its clinker plant. EAPCC currently consumes about 13MW of power supplied from the national grid to run its main installations, including a 1700t/day capacity kiln.

Tande said that the new power plant would help to stabilise the company's operations as it eyes expansion of its overall cement production capacity to 2Mt/yr by 2017 from the present 1.3Mt/yr. EAPCC plans to begin procurement for a new clinker plant near Bisil, Kajiado Country, Kenya in September 2014 at an estimated cost of US$171m. "We hope to conclude the feasibility study on the new clinker plant in Bisil by end of July 2014 and move to the next stage," said Tande.

Also on the cards is the construction of a second cement plant in the Nooleleshuani area of Kajiado County by 2016. The proposed plant site is next to the limestone-rich Maasai Plains, which are the major source of raw material for the five cement companies based in Athi River.

Kenya's power shortage has held back industrial expansion for decades despite the availability of huge energy reserves such as wind, coal and geothermal. The energy sector, though critical in uplifting the country's development, has registered slow growth due to the high initial capital requirements and inability to mobilise adequate financial resources to undertake large-scale investment.

Nigeria: The management of Lafarge Nigeria has urged stakeholders in the cement sector to cooperate on the need for proper product labelling by manufacturers.

The company's general manager (Industrial Performance), Lanre Opakunle, said that the step was necessary to address the issue of incorrect cement application in the Nigeria. Opakunle said that there is a need to review how cement products are labelled in order to educate end users on the basic steps necessary for the correct application and results.

"We discovered that labelling is not adequate and we made some proposals," said Opakunle. "However, those proposals have not been taken on board. We will keep making efforts to see that they are." Opakunle added that correct labelling would help to ensure that people have the right information at their disposal.

"Lafarge is the only cement manufacturer in the market that puts the uses and specifications of cement on their bags," said Opakunle. "In our technical submission to SON we said that we want to do more than that; we want to put it in a way that the layman can understand." He noted that issues of cement application should not dwell on the cement grades; rather it should be about knowing the right mix.

"The most widely used individual application of cement in the world is 32.5 grade," said Opakunle. "It is important that the user understands how to use whatever grade of cement that is available on the shelf because of certain risks which may maybe associated with these grades, whether it is 32.5 or 42.5 grade. The information should be properly labelled on the bags."

Angola: The Nova Cimangola cement plant will get US$116m from the Angolan government to boost its cement production capacity, as per a presidential decree. The funds will be transferred by the Finance Ministry and will ensure a greater cement supply to the Angolan market and reduce cement prices.

The presidential decree described the importance of cement in the process of repairing and building manufacturing and social infrastructure in Angola, as well as for execution of house building programmes. The shareholders of Nova Cimangola are Ciminvest (49%), the Angolan State (40%) and the state bank Banco Angolano de Investimentos (10%). The remaining 1% is in the hands of individual shareholders.

Kenya: Three employees of East Africa Portland Cement Co (EAPCC) have been suspended while three more have been put under further investigations in the ongoing forensic audit into the theft of cement. The six are said to be mid-level managers in the company's procurement and supplies department.

Another two employees have been cautioned following the audit of EAPCC sales and procurement books. "A number of staff who were found culpable were disciplined according to the gravity of their offences," said EAPCC. "Three people were interdicted, three were asked to explain their actions and why disciplinary action should not be taken against them and another two were cautioned."

The investigations into suspected theft by staff at EAPCC revealed massive manipulations of sales records leading to the fraudulent shipment of large consignments of cement from the factory premises in Athi River. Sources at EAPCC said that the audit revealed rampant manipulation of product quotations and Local Purchases Order (LPO) prices, rendering the company's products more expensive in the market hence depressing sales. This has had a direct impact on the business and raised the cost of production.

"We are not relenting on this one," said an EAPCC spokesperson. "A lot of dirty things have been going on here and we have resolved to kill the illegal deals once and for all."

EAPCC expects its profits to dip by more than 25% over the financial year that ends in June 2014. The company attributed the expected dip in profit to reduced sales and rising costs. EAPCC also attributed the outlook to reduced export sales and loss of market share in Kenya.

India: It has been reported that the Adhunik Cement factory in Jaintia Hills, Meghalaya State has been working without clearance from the Ministry of Forests and Environment ever since its inception in 2008. Not only is the plant working without clearance, there have been serious violations of the environment, according to local media.

In a report sent to the Ministry of Environment and Forests, dated 18 January 2013, the then scientist who was appointed by the ministry to check into the clearance, S C Katiyar, found major violations within the plant and passed the information to the Central Ministry. The project consisted of a 20MW captive power plant and a 1.5Mt/yr cement plant. Even though the report was submitted to the Ministry in 2013, the plant is still in operation.

"We believe that none of the cement plants have valid clearances from the Environment and Forest Department," said Agnes Kharshiing, the president of the Civil Society Women's Organisation (CSWO). "They have been flouting rules and destroying the place without any care for the region. This is a serious violation and shows what we have been hinting at – that the plants are not cleared for operation. The scientist has made a fair report and our Pollution Board is also violating norms when they did not close down these cement plants with major violations."

The CSWO has demanded the immediate closure of all the cement plants of the region and a proper check to be done on the validity of their papers before operations are allowed to continue. Kharshiing also alleged that "The government has been working hand in glove with them and is now even trying to provide them land for reforestation. This is not fair and is making life for the people of the region difficult. We demand that the clearance certificates be checked for all of the companies working in Jaintia Hills, because we believe none of them are working through legal norms."

Update - 11 June 2014: Adhunik Cement have responded to the original source of this news story in the Meghalaya Times and asked Global Cement to publish it.

10 June 2014

Subject: Article in your publication

Dear sir,

This is in context of an article published in the Meghalaya Times datelined Tura, June 7th 2014 titled 'Adhunik Cement Factory Working Without Environmental Clearance'. The article alleges that the factory has "been working without environmental clearance... ever since its inception". And "...there have been serious violations of the environment..."

1. We would like to submit that the Adhunik Cement factory at Jaintia Hills has been in compliance of all clearances. It was granted environmental clearance vide Environment Clearance Letter No. J-110111/109/2007-IA-II (I) dated June 19th 2008.

2. The MoEFF nominee referred to in the article, Dr SC Katiyar had pointed out certain areas of improvement, these have been met. Regular reports on compliance status are being formally submitted, per protocol to the concerned authorities including the MoEF.

We are a mature, responsible corporate citizen, sensitive to the environment. We adhere to best-in-class business practices and high thresholds of environmental and safety standards. We are disappointed that a publication of your stature did no consider checking out perspective. In the interest of factual accuracy to present a correct perspective, we required you to publish this letter.

Yours sincerely,

LN Mishara
Adhunik Cement Limited

Nigeria: Lafarge Cement WAPCO, Ashaka Cement and Unicem have established suits against the Standards Organisation of Nigeria (SON) over its recent decision to employ a new Mandatory Industrial Standard Order for the field of cement manufacturing, distribution and effective usage in Nigeria.

The cement producers are also seeking an order of the court restraining SON, their privies, agents and whosoever is involved in purporting to act through the respondent from implementing the Mandatory Industrial Standard NIS 444-1 2014.

Zimbabwe: PPC Zimbabwe reports that its domestic sales for the first five months of 2014 have fallen by 5% compared to the same period in 2013. Managing director Njombo Lekula blamed the drop on a decrease in housing projects.

"For the past few years there has been significant growth in housing, which boosted cement demand, however, the current economic situation is beginning to have an impact on home building activities," said Lekula in comments reported by The Herald.

PPC Zimbabwe now intends to sell its excess production in neighbouring countries. However, Lekula pointed out that Mozambique has a 'very competitive' market due to imports from the Far East via the port of Beira. In addition the cost of logistics to reach this market is an issue for the cement producer. PPC Zimbabwe are also considering targeting Zambia but logistics and the fluctuating price of the Kwacha have posed challenges.

PPC Zimbabwe intends to start building a US$200m cement plant in the north-east of Zimbabwe in 2014. The company has also started constructing clinker grinding plants near Harare and Tete, Mozambique. Currently, PPC Zimbabwe has a cement production capacity of 0.76Mt/yr. The new projects are expected to increase capacity to 1.2Mt/yr.

Germany: Holcim has received unconditional clearance by the European Commission (EC) for its proposed acquisition of Cemex West in Germany. The decision follows a detailed Phase II review by the EC. Closing of the transactions is expected for the second half of 2014.

The acquisition in Germany is part of Holcim's strategic portfolio optimisation in Europe that includes a series of transactions together with Cemex, which is separate from the intention to merge with Lafarge.

Holcim said that the decision marks a further milestone towards the optimisation of its strategic portfolio in Europe, which was announced in 2013. It will allow Holcim to create value through an optimised footprint in north-western Germany. It will also allow it to further improve the service and support of existing and new customers.

The transaction includes one cement plant and two grinding stations with a total cement production capacity of 2.5Mt/yr, one slag granulator, 22 aggregates locations and 79 ready-mix concrete plants. They would be combined with Holcim's existing Northern German operations.