Displaying items by tag: GCW332

Mozambique: Ambrian, the UK-based owner of the Cimentos da Beria grinding plant, forecasts that its sales will rise by 25% year-on-year in 2017 from 2016. The prediction follows a poor third quarter where sales volumes fell by 16% and the company described the economic conditions in the country over the past year as ‘challenging.’ The group added that it has seen cement prices improve year-on-year and that the plant in Beira is now generating positive earnings before interest, taxation, depreciation and amortisation (EBITDA).

However, Ambrian also reported that it is facing ‘urgent’ short-term liquidity issues owing to difficulties in moving cash resources held within the group to the company. It is currently trying to secure short term financing and a longer-term strategic partnership and investment for the group as a whole to allow it to reduce its debt and develop its business in Mozambique.

India: UltraTech Cement plans to build a US$287m plant at Pali in Rajasthan. The 3.5Mt/yr unit is expected to commence operation by June 2020. The cement producer said that the plant is being set up in one of the fastest growing markets in the country and highest cement consuming states in the North Zone of the country. It added that the plant will serve markets in western Rajasthan where the company does not have a ‘significant’ presence.

Indonesia: Semen Indonesia’s cement sales volumes rose by 8.1% year-on-year to 25.8Mt in the first 10 months of 2017. However, despite this the company’s profit declined due to falling prices, according to the Antara news agency. In addition production costs have risen due to higher electricity and coal prices.

Liberia: The government is reviewing an Investment Incentive Agreement between the Government of Liberia and Dangote Cement Liberia worth over US$41m. The review by the House of Representatives follows a letter from President Ellen Johnson Sirleaf urging the legislature to ratify the agreement, according to the Daily Observer newspaper. The agreement covers a 15 year period whereby the Nigerian company will build and operate a 1000t/day cement grinding plant at Monrovia. The deal also includes the option to double the production capacity if the unit.

Senegal: Aissatou Sophie Gladima, the Minister of Mines and Geology, says that the government will only issue new operating permits to cement producers if there is evidence that existing plants are unable to meet local demand. Gladima made the comments on a visit to the Dangote Cement plant at Pout in Thies, according to the Senegalese Press Agency. The minister added that the country’s Plan Senegal Emergent (PSE) requires lots of minerals.

Algeria: Trade Minister Mohamed Benmeradi says that Algeria will commence cement exports. An export of Ordinary Portland Cement will be made to Gambia via the port of Arzew, according to the El Moudjahid newspaper. In a separate statement LafargeHolcim Algeria said that it was exporting 16,000t of cement to West Africa from its plant at Oggaz.

France: Eric Olsen, the former chief executive officer (CEO) of LafargeHolcim, has been placed under formal investigation as part of an inquiry into the company’s conduct in Syria, according to a source quoted by Reuters. He has also been placed under judicial supervision. Olsen had previously been questioned along with Bruno Lafont, the former CEO of Lafarge, and Christian Herraul, the former deputy managing director for operations.

Olsen was the head of human relations during the period the probe is covering. LafargeHolcim’s predecessor company Lafarge Syria allegedly paid terrorist groups in Syria to allow a cement plant to continue operating during the Syrian civil war. Olsen later became the CEO of LafargeHolcim when Lafarge merged with Holcim in 2015. However, he resigned in April 2017 following an internal review of the situation. At this time he said that his decision was motivated by his desire to draw a line under the affair. He added that he was ‘absolutely’ not involved in the case and had been unaware of any wrongdoing.

Nepal: Huaxin Cement is in discussions with the Investment Board Nepal (IBN) to build a cement plant. The Chinese cement producer is considering investing US$140m towards a project investment agreement (PIA), according to the Kathmandu Post newspaper. Obtaining a PIA will allow the company to work with the Nepalese government on the project.

The announcement follows a US$359m PIA with Hongshi-Shivam Cement that was signed in September 2017 for a cement plant at Sardi in Nawalparasi. The 6000t/day plant is scheduled to start commercial production in May 2018.

South Africa: PPC says that Ireland’s CRH has formally decided not to continue in a bid for it. The Irish building materials company made a non-binding expression of interest in mid-November 2017. It then had time to conduct due diligence before submitting an updated bid. PPC is still dealing with offers from Fairfax Africa Investments and LafargeHolcim.

Canada: The Cement Association of Canada has supported emission reduction schemes in Alberta and Ontario. The Albertan provincial government has released its overarching policy framework for the Output-based Allocation System and the Ontario government has run its fourth and final cap and trade auction before formally linking with California and Quebec in 2018.

The introduction of an Output-based Allocations (OBA) System in January 2018 will transition Alberta’s regulated facilities from the current Specified Gas Emitters Regulation (SGER). The OBA will set an industry specific performance benchmark for emissions-intensive, trade-exposed industries (EITEs), which includes the province’s two cement plants, Lafarge in Exshaw and Lehigh in Edmonton. The benchmark combined with output-based allocations is intended to drive best-in-class performance while maintaining the competitiveness of industries in Alberta.

Ontario raised US$330m bringing total proceeds from the system to date to around US$1.5bn. The proceeds are to be reinvested into initiatives that will further reduce greenhouse gas emissions.

“From the cement industry’s perspective, the framework demonstrates that the Alberta government understands the pressures EITE industries face to remain competitive in the global market. Climate change is the single most important issue facing our society today and Alberta’s Climate Leadership Plan lays the foundation for industries to play a major role in assisting government in meeting its 2030 targets and transitioning to a low carbon economy,” said Michael McSweeney, President and chief executive officer (CEO) of the Cement Association of Canada.

With respect to Ontario he added that the Canadian cement industry believes that cap and trade systems are the most effective means of delivering environmental results while putting a price on carbon. “Linkage with California and Quebec is also an important feature of the Ontario system: the broader the market, the more likely it will be that price will reflect the true incremental cost of reducing emission,” said McSweeney.