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Here are the major stories from the cement industry in 2015 as the year draws to a close. Remember this is just one view of the year's events. If you think we've missed anything important let us know via LinkedIn, Twitter or This email address is being protected from spambots. You need JavaScript enabled to view it..

Will the year of the mega-mergers pay off?
2015 showed a global cement industry that was consolidating. Amongst the multinational producers Lafarge and Holcim finished their merger and HeidelbergCement announced that it was buying Italcementi. Yet alongside this international trend the large Chinese cement producers, who represent over a quarter of the world's production capacity, have continued their own-government-favoured consolidation. The on-going boardroom scuffles at Shanshui have been a lively example of this.

Where this will leave the cement industry as a whole in 2016 is uncertain but mergers and consolidation are no 'magic bullet' for difficult market conditions. After the fanfare subsided from the launch of LafargeHolcim the first quarterly report emerged in late November 2015 reporting falling net sales, net volumes and profit markers.

BRICing it – growth stalls in Brazil, Russia, India and China
The economies of the BRIC nations – Brazil, Russia, India and China – have all suffered in 2015. Brazil and Russia are enduring recessions. Growth in China and India is slowing down. All of this has a knock on in their respective construction sectors.

Over in China, we report today that production capacity utilisation is estimated to be 65% and that cement companies lost US$2.63bn in the first nine months of 2015. The same source says that at least 500Mt/yr of production capacity needs to be eliminated. That represents nearly a third of Chinese total production capacity or about an eighth of global cement production capacity.

Multinationals African plans accelerate
One consequence of all these international mergers is the transformation of the situation in Africa. Suddenly LafargeHolcim has become the biggest cement producer on the continent, followed by HeidelbergCement, Dangote and PPC. Africa becomes the big hope for the multinationals as established markets continues to flounder and growth in Asian and South American markets slackens. Perversely though, should African development growth slow it may cast a poor light on the mega-mergers of 2015 in the coming years.

Dangote Cement is growing fast and it may overtake HeidlebergCement soon as the second largest cement producer in Africa. Yet it may not be plain sailing for the Nigerian company. As we report today, sources in Gambia say that Dangote's plans to open a cement plant are on hold in part to protect its domestic suppliers.

The Gambian government has denied a licence to Dangote to open a cement plant. Dangote has built its empire in recent years by forcing out cement importers from Nigeria. As it expands in other countries in Africa it may now be facing a backlash to playing the nationalist card at home as other countries too desire 'self-sufficiency' in cement production.

Iran shakes off the sanctions
In July 2015 Iran and the P5+1 countries agreed to lift trade sanctions from Iran. The implications for the local cement industry are immense given that the country was the joint-fourth largest producer in 2014, based on United States Geological Survey data. Remove the sanctions and, in theory, the local economy should boom leading to plenty of construction activity. Notably, at the launch of LafargeHolcim the new CEO Eric Olsen was asked for the new group's position on Iran. It didn't have one but this will change.

China expands along the Silk Road
China's cement industry may be suffering at home but it has been steadily expanding in Central Asia. Notably Huaxin Cement has plants in Kazakhstan and Tajikistan and it has new projects in the pipeline. Business may be down at home but steady advancement abroad may offer the Chinese cement industry the lifeline it needs.

Cop out at COP21?
And finally... The 2015 Paris Climate Conference announced a diplomatic coup d'etat in December 2015. However, it apparently forgot to include any binding targets. The Cement Sustainability Initiative (CSI) pre-empted the decision by announced its aim to reduce CO₂ emissions by clinker producers by 20 - 25% by 2030... Provided the entire cement industry follows its lead. Cement plants burning vast swathes of dirty fossil fuels may not have to worry quite yet.

For more a more detailed look at trends in the cement industry check out the Global Cement Top 100 Report in the December 2015 issue of Global Cement Magazine.

Global Cement Weekly will return on 6 January 2016. Enjoy the holidays if you have them.

India: Ambuja Cements, part of LafargeHolcim, has appointed Suresh Joshi as its Chief Financial Officer (CFO) with effect from February 2016. This followed the resignation of Ambuja Cements' former CFO Sanjeev Churiwala in October 2015.

In addition, Christof Haessig was appointed as an Additional Director (Non independent - representing the Promoter Group) on the Board of Directors with effect from 9 December 2015. Haessig, at present, is the Head of Corporate Strategy and Mergers and Acquisitions at LafargeHolcim.

Ambuja Cements reported a 36% decline in its standalone net profit to US$23m for the quarter that ended on 30 September 2015, compared to a net profit of US$35.8m in the same period of 2014. Its total standalone income fell by 4% to US$316m in the July - September 2015 quarter compared to US$330m in the same quarter of 2014.

India: The Government has prepared a revival scheme for the Cement Corporation of India.

The scheme, which was approved by the Government and ordered by the Board for Industrial & Financial Reconstruction (BIFR), envisages the expansion and modernisation of three operating units and the closure and sale of seven non-operating units.

Out of seven non-operating units, six units have been closed with effect from October 2008. The Adilabad unit could not be closed due to an interim order of the High Court of Andhra Pradesh for maintaining the status-quo. Action for the expansion and modernisation of the operating units was taken. However, the results of the entire scheme for revival of the CCI could not reach the desired level because of the non-sale of the assets of non-operating units of the company, which has caused a shortage of funds for the revival.

Germany: Joule, a producer of liquid fuels from recycled CO₂, and HeidelbergCement have announced a partnership to explore the application of Joule's technology to mitigate carbon emissions in cement manufacturing. A successful partnership between Joule and HeidelbergCement could result in the co-location of Joule's Helioculture Technology at one or more HeidelbergCement sites around the world.

Since 1990, HeidelbergCement has worked to decrease its carbon emissions, initiating various programmes across the organisation that have reduced emissions by 23%. HeidelbergCement said that its partnership with Joule represents another example of its sustained dedication to leveraging innovative technologies and programmes for climate protection. As part of the agreement, emissions from various HeidelbergCement plants could provide Joule with the waste CO₂ required to feed its advanced Helioculture platform that effectively recycles CO₂ back into fuel.

"We've been focused on lowering carbon emissions for more than two decades and we are excited to take further steps to lower our CO₂ emissions by working with a dedicated organisation with state-of-the-art technology that is committed to protecting the climate," said Jan Theulen, Director of Alternative Resources at HeidelbergCement. "Joule's process, which effectively recycles waste CO₂ into liquid fuels, is a perfect match for HeidelbergCement and our core values and we look forward to starting the journey towards a long-term, mutually beneficial relationship."

Joule's Helioculture process directly and continuously converts sunlight and waste CO₂ into infrastructure-ready fuels, including ethanol and alkanes that serve as highly blendable feedstock for diesel and jet fuel products. Only requiring abundantly available inputs, including sunlight, brackish or sea water and waste CO₂, the process is well suited for global deployment. For organisations like HeidelbergCement, Joule turns a carbon challenge into a carbon solution by capturing and recycling waste CO₂.

"Carbon emissions are a challenge faced by many industries that are of critical importance to everyday life, such as cement," said Brian Baynes, CEO of Joule. "We are pleased to have the opportunity to partner with HeidelbergCement in an attempt to develop a modern, ultra-low carbon cement manufacturing process."

Oman: Raysut Cement Company has signed an agreement with Arabian Industries for the installation of a gas pressure reduction station (GPRS) at its Raysut plant. Oman Gas Company has been appointed as the Project Management Consultant. Upon completion of the GPRS, cement production will be boosted by 120,000-130,000t/yr. Total investment in the project is estimated at US$5.45m.

China: China's cement industry has been trapped in sharp profit decline and its actual capacity utilisation has declined to 65%, according to an Economic Information Daily report.

Industry insiders believe that previous high speed development has overdrawn the demand for cement and that closing obsolete cement capacity and promoting mergers and restructures will be the new orientation for the industry. At least 500Mt/yr of low-grade cement capacity will be eliminated.

The number of loss-making cement companies has reached 1339 and accounted for 40% of the total, according to Kong Xiangzhong, Executive Vice President and Secretary General of the China Cement Association. Cement companies lost US$2.63bn in the first three quarters of 2015 and among the profit-making producers, many were suffering invisible losses.

World: A multi-client market report by OneStone Consulting S.L., of Barcelona, Spain was released on 15 December 2015.

According to the report, the global white cement market has seen a recovery after some years of slow growth. "The global annual growth rates are projected to increase from 2.5% in 2010 - 2015 to an average annual growth of 3.8% by 2020, with lowest growth in China," said research analyst Joe Harder. In 2015, global trade was improving. However, capacity utilisation rates of many producers remained low. New projects are in the pipeline, overcapacity issues will continue, prices continue to be under pressure and the global trade share is forecaste to decline.

The White Cement Outlook 2020 report analyses the global white cement industry. The data includes global and regional markets, market trends, the installed production base of all producers, regional market shares of the major producers, net trade and total trade, regional imports and exports, consumption by countries, market drivers, price trends, economies of scale and various benchmarks of the top producers, including Aalborg, Birla White, Çimsa, Federal White, JK White, RAK White and Sotacib. In the new report the latest data is available with data sets for 2015. The market report provides a five-year projection with an outlook of the market by 2020, including regional production and consumption, per capita consumption cement trade, cement capacities and a number of identified white cement projects.

Turkey: A new kiln line is being developed at the Batisöke Söke Çimento Sanayii TAS cement plant in Turkey.

Based on previous positive experience with Loesche, Batisöke Söke Çimento has ordered a type LM 56.4 Loesche mill with a capacity of 500t/hr at a fineness of 12% R at 90µm for grinding cement raw material. The gearbox of this mill has a power of 3400kW. Magnetic separators, metal detectors, refined parts for the mill fan and the engineering of the cyclone are also included in the scope of supply. The lead time for this vertical roller mill is 10 months. The new kiln line will be fitted with a type LM 28.3 D Loesche coal mill with a capacity of 40t/hr at a fineness of 5% R at 90µm for grinding solid fuels. The gearbox has a power of 700kW. For this mill, the further scope of supply includes magnetic separators, metal detectors, process filters, refined parts for the mill fan and explosion flaps. For grinding clinker, a type LM 53.3+3 CS Loesche mill with a capacity of 200t/hr CEM I with a fineness of 3500 Blaine will be used. The gearbox has a power of 4700kW.

The commissioning of the new mills is planned in the second quarter of 2017.

China: The Vice minister of Industry and Information Technology, Xin Guobin, recently led a delegation to investigate excessive cement capacity in north-east China. Xin urged local governments, industry associations and key enterprises to work together, further reduce excessive capacity and try to reverse losses in the cement industry in the region.

Companies including Yatai Cement, Liaoning Daying Cement Group, Inner Mongolia Mengxi Cement Co., Ltd, Sunnsy Cement and China Tianrui Group Cement Company Ltd have all set up cement clinker production lines in north-east China.

India: The Joint Action Committee of the Meghalaya People's United Front (MPUF) and Jaintia National Union (JNU) have demanded that cement plants in East Jaintia Hills, Meghalaya should ensure that 60% of their work force comprise locals.

"We have demanded that the cement plants should ensure that 60% of jobs be guaranteed to local people. This is based on the agreement signed by them with all concerned," said MPUF's President D Wanmi Laloo. He alleged that the agreements have not been adhered to because not even 20% of those employed are locals, despite the increase in unemployment in the state. Laloo said that the non-governmental organisations (NGO) have already served a one-month deadline for eight cement companies to meet the demand.

Laloo also said that the NGOs would soon conduct an inspection of all the cement plants and seek proper information as to how many local people are employed in different job roles. Demanding proper advertisements to be issued by the companies regarding job vacancies, Laloo said that preference should be given to locals to fill posts, which include technical, electrical, mechanical and labour positions. Laloo has also demanded that companies source their raw materials from local sources and that the cement companies lower the price of their finished products by 30% in the state. "As of now, the price of cement that is being sold here and supplied to other states like Assam and West Bengal, is the same," said Laloo. "This is not acceptable considering the fact that they are depending on the state for raw materials."

Laloo opined that the cement companies are responsible for degradation of the environment and used the pollution of the Lukha River as an example. He said that the NGOs would be compelled to demand the state government shut down the cement plants if they prove to be of no benefit to the locals. "The frequent change of colour of the Lukha River has led us to strongly suspect that this is due to the pollutants released from the cement plants," said Laloo. "Though reports have pointed out coal mining as the reason, the question that arises is why this change in colour has occurred again despite the ban on coal mining for the past year."