Displaying items by tag: GCW246

Vietnam: Prime Minister Nguyen Xuan Phuc has agreed to add the Thaicement Ha Tien plant in Kien Giang to a portfolio of projects to be invested in the 2011-2020 period with a vision to 2030. The cement plant will have a production capacity of 4.5Mt/yr.

Nguyen has assigned the Ministry of Construction and People’s Committee of Kien Giang province to conduct a survey and exploration of limestone and clay deposits and present it to the National Mineral Reserves Councils for approval before granting an investment license. He also requested the relevant agencies to assess the financial capacity of the investor, which must be able to provide at least 20% of the project’s total investment under current regulations.

The Ministry of Construction has forecast that Vietnam's sales of cement and clinker will rise by 4 - 7% year-on-year to up to 77Mt in 2016 despite economic problems.

India: Government plans to increase spending on infrastructure projects will benefit LafargeHolcim according to Moody's Investor Service. The second largest cement producer in India will gain from uneven regional demand, with a much larger scale and more prominent operations in northern India, where it sells almost 42% of its local cement volume.

LafargeHolcim and other European cement manufacturers with a presence in India are likely to benefit if the Indian government's plans to ramp up infrastructure spending happen in the next 12 to 18 months. The 2016 Union Budget contained plans to hike public infrastructure spending, especially on roads, which could revive stagnant cement demand in the country.

According to the government's 12th Five Year Plan (2012 - 17) investment in infrastructure should increase from 7.6% of gross domestic product (GDP) in 2014 to 9% in 2017. However, cement demand for government-funded projects has been weak in the last four years with many construction schemes delayed or put on hold. As a result, while infrastructure investment will be a key growth driver, the timing of such investment remains uncertain.

However, Moody’s also noted that European multinational cement producers based in the south of the country with limited geographical spread would be more exposed to local overcapacity in this region. This included HeidelbergCement, Italcementi and CRH.

Thailand: Thailand will continue to be Italcementi Group's production base in the Association of Southeast Asian Nations (ASEAN) and as its springboard for expanding into Myanmar after HeidelbergCement acquires a 45% stake in the company in July 2016. Carlo Pesenti, the chief executive officer of Italcementi, made the comments about the future direction of the business in an interview with the Nation newspaper.

"HeidelbergCement, which will be the major shareholder of Italcementi when the deal is complete this July, has a policy to maintain the business in Thailand and its business plan to expand into Myanmar, because HeidelbergCement does not have a presence in Thailand,” said Pesenti. “Thailand is our production hub and business arm for expanding in ASEAN."

Italcementi Group holds a 49% stake of Asia Cement in Thailand. Asia Cement and its subsidiary Jalaprathan Cement have cement production capacity of 5Mt/yr. Asia Cement has set aside an investment budget of up to US$14m to maintain its three clinker and cement plants in Thailand. However, the company it waiting for the acquisition of Italcementi by HeidelbergCement before it can decide about expansion plans in Cambodia and other territories.

Afghanistan: The Jabal Saraj cement plant in Parwan has reopened after 20 years. The plant originally closed in 1996 due to the civil war in the country. Local officials have stated that the plant can now produce 100t/day of cement. Provincial governor’s spokesman Wahid Sediqi said the government has invested more than US$1m to help restart operations at the plant, according to the Khaama Press. More investment will be required to increase the plant’s production output.

Nigeria: Dangote Cement has started building a 6Mt/yr cement plant in Okpella, Edo. The Nigerian cement producer has invested US$1bn in the plant, according to All Africa. The company is also building another 6Mt/yr cement plant in Itori, Ogun. Its cement production capacity in Nigeria is expected to grow to 41Mt/yr once construction of both plants is complete. The groundbreaking event was part of the celebrations to mark company owner Aliko Dangote’s 59th birthday.

Syria: Most of a group of 300 cement workers kidnapped from the Al-Badiyeh Cement Company have been released. The Syrian Observatory for Human Rights monitoring group said that all the workers had been released with the exception of 30 guards at the plant. The Islamic State-affiliated Aamaq news agency added that the majority of the workers were released after questioning about their religious and political backgrounds. It said that four workers who belonged to the Druse community were killed and 20 other pro-government gunmen were still being held.

Norway: Norcem, the Norwegian subsidiary of HeidelbergCement, and Acciona Ghella JV have signed an agreement for the cement supplies to the Follo Line Project in Oslo. The supply of 280,000t of cement over a three-year period is Norcem’s largest contract ever.

“This is a milestone for HeidelbergCement in Norway and will put great demands on both production and logistics,” said Bernd Scheifele, chairman of the managing board of HeidelbergCement. “Our subsidiary Norcem made the best offer and it has the necessary production capacities and logistics to supply the required volumes to this outstanding project in Norway.” The cement supplies will start in mid to late April 2016.

The Follo Line Project is currently the largest transport project in Norway and includes the country’s longest double track railway tunnel at 20 km. The new railway track runs between Oslo Central Station and the new station in the municipality of Ski in the Follo district, south of Oslo. It will enable a 50% reduction in journey time between Oslo and Ski.The project is scheduled to be finalised at the end of 2021.

Ivory Coast: Dangote Cement has started to build a 3Mt/yr clinker grinding plant in Yongbon near Abidjan. The plant will be cost US$200m and be completed by late 2017 according to Devakumar Edwin, Dangote Group Executive Director, Strategy, Projects and Portfolio Management.

The grinding plant will consist of two 1.5Mt/yr lines. Once complete the plant is expected to double the country’s cement production capacity. Indian engineering firm Ayoki Fabricon is managing the project subcontracting Thyssenkrupp. Once complete the plant is expected to create over 3000 direct and indirect jobs, according to local media.

Pakistan: The Pakistan cement industry has recorded its highest ever dispatches of 3.58Mt in March 2016, an increase of 19% year-on-year from 3Mt in March 2015. Exports have grown by 21% to 0.53Mt from 0.44Mt in March 2016. The All Pakistan Cement Manufacturers Association (APCMA) described the growth as ‘encouraging’ as it enabled the industry to hit a capacity utilisation rate of 95%. However, despite this high rate the APCMA added that it was still being accused of price fixing, according to local press.

For the nine months from July 2015 to March 2016 overall cement despatches rose by 9.95% year-on-year to 28.3Mt. Local despatches in the north and south of the country have both shown growth respectively. However, exports fell by 19% to 4.41Mt from 5.44Mt. The year so far has been poor for exports, only picking up growth from February 2016 onwards.

Saudi Arabia: Yanbu Cement Company has reported an 11.1% year-on-year fall in its net profit to US$49m in the first quarter of 2016 from US$55m in the same period in 2015. The cement producer has blamed the profit loss on a fall in sales and a rise in fuel prices.