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Last week we promised reasons to be cheerful for the cement industry. We only have one to offer this week but it's a good one. At present three Indian cement companies are on sale: Lafarge India, Reliance Cements and Jaiprakash Associates. If these sales complete then it represents an opportunity for the Indian cement industry to reorganise itself and stride forward when growth recovers.

Lafarge India upped its sales proposal to the Competition Commission of India (CCI) on 6 January 2016 to sell its entire 11Mt/yr portfolio. Originally as part of the LafargeHolcim merger agreements the CCI asked Lafarge to sell 5.2Mt/yr of production capacity in Chhattisgarh and Jharkhand in eastern India. However the deal was reliant on the original buyer, Birla Corporation, securing limestone mining rights. Birla failed to do so. Now Lafarge India has decided to sell everything instead. Naturally, following its Euro8bn spending spree in 2015 CRH has been linked to the sale by Indian media.

Then following press speculation Reliance Infrastructure confirmed to the Bombay Stock Exchange on 11 January 2016 that it was at an 'advanced stage of discussions with potential buyers for divesting the cement business of the company.' Reliance's cement arm, Reliance Cement, holds three cement plants in Maihar in Madhya Pradesh, Kundanganj in Uttar Pradesh and Butibori in Maharashtra with a total production capacity of 5.8Mt/yr. In addition to this, the company is also developing a 5Mt/yr cement plant at Wani in Maharashtra. The Reliance sale has been reported upon since early 2015. The difference this time is that Reliance responded to local press reports that it was about to sell to Birla Corporation or a couple of other private equity firms.

Finally, the third sale concerns Jaiprakash Associates' on-going attempts to sell its remaining cement assets to service its debts. Jaiprakash Associates cement subsidiary, Jaypee Cement, holds eight plants in India with a cement production capacity of 11Mt/yr. In addition it holds six cement grinding plants with a capacity of 10.7Mt/yr. Despite reported attempts to sell the entire division in one Jaypee has actually ended up selling its cement assets in a piecemeal fashion one or two at a time. The most recent sale being announced this week is to sell its Bhilai Jaypee Cement to Shree Cement. This follows other sales to HeidelbergCement and UltraTech in 2015.

None of these sales are new exactly but the combined production capacity of these plants comes to just under 28Mt/yr. This represents 9% of India's total national cement production capacity of 310Mt/yr. Any player somehow able to weasel their way into striking a deal for all of these plants would immediately become one of the country's biggest producers.

It would definitely be a case of buyer beware though. Credit agency ICRA recently reported that it expects that cement demand growth will be a 'modest' 4% in the 2015 - 2016 financial year before picking up in the following year. This follows poor growth in cement demand in the first half of 2015 and even declines in March and April 2015. ICRA also expected the country capacity utilisation to drop to 70% in the 2016 financial year, down from 77% in the 2012 financial year. That 7% drop in the utilisation is awfully close to the 9% of Indian national production capacity that the cement assets currently on sale from Lafarge India, Reliance Cement and Jaypee Cement. Unsurprisingly, the buyers of Indian cement assets have been picking and choosing their plants one-by-one so far.

Ukraine: Dnipropetrovsk-based HeidelbergCement Ukraine has appointed Silvio Thiede as the Board Chairperson, effective from 11 January 2016.

India: Kakatiya Cement Sugar & Industries' Chairman and Managing Director, Shri. P Venkateswarlu, passed away on 11 January 2016.

Caribbean: Caribbean Cement's parent company Trinidad Cement Limited (TCL) has appointed Luis Ali has as Group Finance Manager, effective from 4 January 2016.

US: Irish cement maker Ecocem's US subsidiary, Orcem Americas, has been accused of attempting to influence the planning process in Vallejo, California, where it wants to build a US$50m grinding mill. The mill would be the group's first venture in the US. However, the town's residents are objecting to the proposal on environmental grounds.

The company recently found itself at the centre of a row over its involvement with an unofficial economic committee of Vallejo's city council that some local politicians and campaigners say could potentially breach California law.

Orcem is represented on the Mare Island Straits Economic Development Committee, which is made up of local council members, state officials and private sector interests. Its involvement in the committee, alongside the city's Deputy Mayor, Jess Malgapo, at a time when it was seeking permission to build its facility at a sensitive site in Vallejo, sparked anger among the project's opponents. Some of them have claimed that its activities have potentially breached the Brown Act, a California law that guarantees the public's right to attend and take part in meetings of local councils and legislative bodies. However, the councillors involved, including Malgapo, deny the act was breached, saying that the committee was established to aid the city's economic development and not to pass legislation.

Iran: Iran's Research Institute of Petroleum Industry (RIPI) has announced that it has broken a US monopoly in the production of deepwell cement plugs.

Previously, only American companies manufactured the plugs used for solving numerous deepwell problems like lost-circulation, sidetracking or directional drilling, according to RIPI. "The technology is of great significance in oil and gas drilling projects," said Talat Khalkhali, Director of a project to develop the technology at RIPI. She said that the plugs are used to inject wellbore fluids and slurries during cementing operations in order to prevent them from mixing together. "Sidetracking incurs serious costs on cementing operations and the new plugs help reduce the cost to a considerable proportion," said Khalkhali, while adding that properly placing the designed cement plug helps reduce non-productive rig time, minimises wasted material and mitigates the need for additional cementing services.

National Iranian South Oil Company tasked RIPI with carrying out studies for developing and formulating the plugs by employing domestic experts in 2010. RIPI reverse-engineered cement plugs produced by top producers in the US and could manufacture them after six years of consecutive work. The high pressure, high temperature (HPHT) plugs can be used for wells up to 4500m deep. According to Khalkhali, their American rivals can only be used for up to 2500m deep wells.

The Iranian plugs have been tested several times at numerous wells across the country at various depths and have proven successful.

Kenya: The contractor for the US$117m, 1.2Mt/yr Pokot Cement Factory has finally begun to ship in material for the project. West Pokot Governor Simon Kachapin said that the project would start in a few months. The project was commissioned by then-Prime Minister Raila Odinga in 2010.

Contractors from Cemtech Sanghi Group visited the project site recently and met Kachapin. He said that the investors had bought land and have started to build housing for staff. "The project has not stalled. The investor is now assembling his requirements before proceeding with work at the site. It's not a small project and requires proper planning," said Kachapin.

India/Ireland: CRH has decided to bid on the 11Mt/yr of cement assets up for sale by Lafarge India, according to local media. This follows CRH's acquisition of US$7bn of assets from Lafarge and Holcim in 2015 that were available as a result of their merger.

CRH is already present in India via its 50% stake in My Home Industries (MHI), which has 4.8Mt/yr of cement production capacity. In 2013, MHI acquired Sree Jayajothi Cements, which has 3.2Mt/yr of production capacity in the south of India.

Indonesia: ABB, a power and automation technology group, has won an order from Tianjin Cement Industry Design & Research Institute Co. Ltd, a subsidiary of Sinoma Group, for a variable-speed drive solution for a dual pinion ball mill at the PT Semen Bosowa Maros cement plant in Indonesia.

The equipment will be delivered in March 2016 and commissioned in the third quarter of 2016. ABB was selected for that project because the end customer is satisfied with earlier deliveries for the first cement grinding line at the plant, including a gearless mill drive (GMD) and a vertical mill with ABB slip ring motors.

"ABB's solution was favoured for several reasons, not least because of the high level of efficiency offered by the permanent magnet motors used and the absence of a gearbox in the system, which maximises availability and reliability," said Rachid Hamdani, Project Director of PT Semen Bosowa Maros.

This will be the first drive system for a grinding application with permanent magnet motors in this power range. The solution has the highest efficiency among all variable-speed drive systems and will raise productivity at the plant, while minimising electricity consumption.

Kenya/India: UltraTech Cement Ltd may buy a controlling stake in Kenya's ARM Cement Ltd. ARM announced on 23 December 2015 that it was in talks with an unidentified institutional investor about a US$125m investment.