Displaying items by tag: GCW179

Pakistan: Cement producers in Pakistan are considering sourcing their coal from Indonesia instead of South Africa. The move is in response to an on-going investigation initiated by the International Trade Administration Commission (ITAC) on alleged dumping of Portland Cement from Pakistan.

The ITAC intends to finish its investigation by the end of January 2015 with the introduction of a preliminary antidumping duty on import of Pakistan cement in South Africa, according to Pakistan local media. Pakistan's Ministry of Commerce has also raised the matter with its South African counterpart in the meeting of Joint Trade Commission (JTC) of the two countries in South Africa in November 2014 but so far no consensus has been reached between the two countries.

Industry sources have said that five to six Pakistan-based exporters of cement constitute the biggest buyers of South African coal. Pakistan is the third largest buyer of coal from South Africa after China and India. Local cement makers collectively import 3Mt/yr of coal worth US$240m from South Africa and export around 1.3Mt/yr of cement worth US$120m.

Malawi: One worker has died and three others have been injured at the Shayona Cement Factory in Kasungu. Hot clinker caused the injuries due to an open door at the plant according to local media. Three of the injured workers, including the deceased worker, were from Malawi. The fourth worker was from India.

"When they switched on the furnace, the cement stone busted from the clinker and produced hot ashes which covered them. One died in the process of receiving treatment, while the other three are in critical condition," said local police.

Kazakhstan: Kazakhstan intends to meet its domestic demand for cement, according to Albert Rau, Vice Minister for Investments and Development and local media.

"Given that at the start of 2015 a cement facility capable of producing 500, 000t/yr will be launched in Rudny, production capabilities of 2Mt/yr will be launched at Kokshe-Cement Enterprise, BI Cement facility is to be started in Akmolinsk Oblast and a number of cement making facilities based in Shymkent are to be modernised, we are ready to meet the domestic demand for cement," said Rau.

Rau added that Kazakhstan had imported over 1Mt of cement in 2013. "Most of the issues geographical. All the production facilities are concentrated in the east, in Karaganda and in the south. The west of Kazakhstan relies on imported cement." He explained that President Nazarbayev had set a target for the country to meet 80% for all types of construction materials by 2014. In 2014 this figure was 74 – 75%.

India: Dalmia Bharat has acquired the final 26% stake that it did not already own in Bokaro Jaypee Cement from the Steel Authority of India (SAIL), for US$150m. Bokaro Jaypee Cement has become a wholly-owned subsidiary of Dalmia. In March 2014 Dalmia acquired Jaypee's 74% holding in the company.

Bokaro Jaypee Cement was formed as a 74:26 joint venture project between Jaiprakash Associates and SAIL, for the operation of a 2.1Mt/yr capacity grinding plant at Bokaro, Jharkhand. The cement produced in the unit was sold through Jaiprakash's distribution network under the brand name 'Jaypee Cement'. However, Jaypee exited the venture and used the proceeds to address its debt.

Russia: Buzzi Unicem has completed the acquisition of 100% of Uralcement from for Euro104m in cash. The acquisition of Uralcement's plant in Korkino raises Buzzi Unicem's annual production capacity in Russia to 4.5Mt/yr.

In September 2014 Buzzi Unicem, via its German wholly-owned subsidiary Dyckerhoff, agreed to acquire Uralcement, subject to regulatory approvals expected by the end of 2014. Having obtained the authorisations, Buzzi Unicem has finalised the agreement for the acquisition of Uralcement's plant in Korkino, south of Chelyabinsk, with a cement production capacity of 1.1Mt/yr.

Buzzi Unicem seeks to boost its position in the Urals region and benefit from the combined production network with Dyckerhoff's plant at Sukhoy Log. Dyckerhoff entered the Russian cement market in 1994 with the acquisition of a stake in Sukholozhskcement.

China: China has ordered several cement plants located in the northern provinces to shut for four months, starting on 1 December 2014, to reduce over-capacity and curb air pollution during the winter months, according to state news agency Xinhua.

The move, which will affect 103 production lines in the three Provinces of Heilongjiang, Liaoning and Jilin, is set to hit coal consumption and limit a rebound in domestic prices.

The China Cement Association and the three provincial governments jointly issued the order. Persistent over-capacity has dogged the sector for years, with northern China using only about half of its total production capacity.

The northern provinces, including Hebei, are a major source of industrial pollutants blamed for a toxic smog that often spreads to neighbouring regions like Beijing. Kong Xiangzhong, vice president of the China Cement Association, was quoted as saying the winter stoppage would greatly curb air pollution, as fuel consumption increases markedly when temperatures drop. Total cement output in northern China, including Inner Mongolia, hovers around 120Mt in the winter months and requires about 20Mt of coal. Fuel consumption falls to just 16Mt in summer, according to Xiangzhong.

The suspension in Xinjiang is expected to reduce coal consumption by about 1Mt and help increase plant utilisation rates to 75%, from the current 60%, according to local media reports. It takes about 200kg of coal to produce 1t of cement, according to the World Coal Association.

Despite efforts to cut output, China's cement production rose 9.6% to 2.41Bnt in 2013 from a year earlier, while total capacity has surged to more than 3.2Bnt/yr, according to data from the cement association.

Venezuela: Holcim has received the last compensation instalment of US$97.5m in connection with the nationalization of Holcim Venezuela in 2008. The Corporacion Socialista Del Cemento, which is operating the former Holcim plant, has transferred the remaining amount, which was due on 10 September 2014. The agreed total compensation amount for nationalisation of Holcim Venezuela was US$650m.

Oman: The Ministry of Oil and Gas (MOG) plans to increase the price of natural gas for Raysut Cement Oman Cement from 1 January 2015. Raysut Cement said that the decision would impact its production by 3% in 2015. The company plans to mitigate the financial impact by implementing cost-reduction enhancement initiatives and restructuring prices. Oman Cement said that it plans to minimise the impact by improved productivity cost-controls and restructured pricing.

Egypt: Titan Cement has ordered a vertical roller mill of the type MPS 2800 BK from Gebr. Pfeiffer SE, to be set up in production line no. 1 at its Beni Suef plant. The mill is designed for a finished product rate of 40t/hr and will grind coal with a Hardgrove grindability index of 45 to a product fineness of 12% residue 90µm, while simultaneously drying it from a maximum 12% feed moisture to a maximum 1% residual moisture by using hot gases from the cement process.

Yemen: Eastern Cement had its fuel and raw materials supply for clinker production interrupted due to escalating security and political turmoil. The supply problems have been solved and clinker production processes have returned to normal, the Saudi Arabian cement producer confirmed.

The sale of cement by Arabian Yemen Cement Company, in which Eastern Cement controls a stake of 32%, has continued without disruption as the company has sufficient reserves of clinker. Arabian Yemen Cement Company, based in Hadhramaut province, was founded in 2004. The company's cement factory with production capacity of 1.5Mt/yr is the largest Saudi investment in Yemen.