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According to government advisors cement producers pay more in the UK than other nations for their electricity and it's getting worse.

A Department for Business, Innovation and Skills (BIS) report published on Friday 13 July 2012 has shown that firms in the UK will be forced to pay an extra Euro36 in green taxes on top of the market price they pay for every megawatt hour of electricity by 2020 due to climate policies. This compares with Euro22 in Germany, Euro20 in Denmark, Euro19.3 in France and Euro12.7 in China.

As the Mineral Products Association (MPA) put it, "...cement is an internationally traded commodity and, if it costs more to make it here than to import it, then we are threatening a strategic indigenous manufacturing industry for no environmental gain." Or to put it more bluntly, if the cost of importing cement from France to the UK is less than the energy saving then say 'goodbye' to the UK cement industry. The issue raises one of the core problem of any carbon tax in a global economy. If your neighbours don't have the same tax as you then they can undercut you. Similar arguments rage in Australia and the US.

The UK will be the first country with legally binding targets for greenhouse gas emissions beyond 2020, with a pledge to introduce a carbon floor price of Euro19.98/t in 2013. As Edwin Trout explained in his recent article in Global Cement Magazine on the British Cement Industry in 2011 and 2012 the government took steps to address this in November 2011 with a Euro318m package for energy-intensive industries. Unfortunately as the MPA has now pointed out, the cement industry is ineligible for the first Euro140m of this package because the EU has ruled against such support for the sector in relation to the EU Emissions Trading Scheme.

Unsurprisingly alternative fuels trials are thriving in the UK, such as that at Lafarge UK's Aberthaw plant, which celebrates 100 years of operation this weekend.

US: Texas Industries (TXI) has announced the addition of Sean Foley (54), Bernard Lanigan (64) and Tom Ryan (47) to its board of directors. The appointments of the directors is effective as of 11 July 2012. All three are from outside of the cement industry.

"We are delighted to have found directors of the quality and experience of Sean, Bernie and Tom to join TXI," said Bob Rogers, chairman of TXI's board. "Given the improvement in construction activity, the near completion of additional cement capacity, the high quality of the company's assets and the markets we participate in, this should be an exciting time for them to be a part of TXI."

UK: The Mineral Products Association (MPA) has demanded that the UK government protect the domestic cement industry from rising electricity costs. The comments came in the MPA's response to a Department for Business, Innovation and Skills (BIS) report has stated that electricity bills for UK manufacturers were higher than other key nations because of environmental regulation.

Commenting on the BIS report the MPA said that the new data confirmed what it had been telling the government since 2011. The MPS added the report clearly shows that the UK cement industry must receive some help if it is to survive and supply the UK's low carbon economy.

"The Government now has the evidence to corroborate the industry evidence," said Nigel Jackson, chief executive of the MPA. "It is time for them to respond and take the action we have been urging them to take for so long and to come forward with their long awaited Energy Intensive Industries Strategy."

The BIS report stated that electricity bills for UK manufacturers were higher than other key nations because of climate change levels. It added that by 2020, green taxes will be double those in other EU nations and many times higher than those in the US. According to the report firms in the UK will be forced to pay an extra Euro36 in green taxes on top of the market price they pay for every MWH of electricity by 2020 due to climate policies. This compares with Euro20 in Denmark, renowned for its renewable energy drive, Euro19.3 in France, Euro22 in Germany, Euro12.7 in China and a fall in the US and Russia.

In its response to the BIS report, the MPA stated that the UK cement industry had reduced its CO2 emissions by 57% since 1990 confirmed its commitment to tackling climate change. It approved of the government's 2011 autumn statement to compensate some energy intensive industries against electricity costs by Euro318m. Yet it also pointed out that the UK cement industry will not qualify for a share of the first Euro140m of this because the EU has ruled against such support for the sector, in relation to indirect costs associated with the EU Emissions Trading Scheme.

India: Coal India Ltd (CIL) has threatened to cut coal supplies and break long-term linkages with four of UltraTech Cement's captive power plants in the states of Rajasthan, Madhya Pradesh and Chhattisgarh due to non-completion of the units.

Maharatna CIL has threatened to break long-term linkages and cut coal supplies for 16 captive power plants, including four of UltraTech Cement's captive power plants. When the Indian state-owned CIL signs long-term linkages with a proposed plant, deadlines for the different stages of completion of a plant and the date of commissioning are agreed. All of these plants were incomplete when the Standing Linkage Committee reviewed their implementation status.

"If the captive plants are found to be commissioned with all the milestones achieved, the Fuel Supply Agreement (FSA) may be concluded with them within three months from the date of issuance this notice. Otherwise, linkages may be cancelled," said CIL.

Saudi Arabia: Southern Province Cement has reported a 9.6% rise in quarterly profits, citing the start-up a second production line at its Tahama plant and increased demand from local markets.

Saudi Arabia's biggest cement producer by market value posted a second-quarter net profit of US$69.9m for the quarter ending on 30 June 2012, compared with US$63.7m for the same period in 2011. However profit was down by 7.75% from the first quarter of 2012, when it was US$75.7m. The company attributed this to instruction by the ministry of commerce and industry decreasing the price that t it is able to sell cement at.

Meanwhile, Saudi Cement Co posted a net profit of US$77.4m for the second quarter, a rise of 36% year-on-year. It cited growing domestic demand for cement and clinker. The Saudi construction sector has been boosted over the past year by ramped-up government spending, including a pledge to build a quarter of a million new houses as well as schools and hospitals.

Saudi Cement Co's profit fell by 10.9% compared to the first quarter of 2012, when it was US$86.8m. The company blamed the decrease on a decline in sales.

Iran: Iran exported 3.34Mt of cement and clinker in the first three months of the current Persian calendar year that began on 20 March 2012. 2.89Mt of cement and 449,400t of clinker were exported during this period.

Iran's cement production capacity will be increased by 6.8Mt to reach 82Mt by the end of the current Persian calendar year. "The country's cement production capacity stood at 76.4Mt in the past calendar year which ended on 19 March 2012," said Mohammad Fatemian, an official with the Industry, Mine and Trade Ministry. Over 10.4Mt of cement was exported in the 2011-2012 year, he said, adding that the figure is projected to rise to 15Mt in 2012-2013.

Iran produced over 66.4Mt of cement in 2011-2012, showing an 8% rise compared to 2010-2011. Minister of Industry, Mine and Trade Mehdi Ghazanfari has announced that the country's current cement production capacity stands at 74Mt. Ghazanfari added that the figure will reach 110Mt by 2015.

Vietnam: Vietnam's Ministry of Construction has proposed the creation of an association for cement and clinker exporters to curb 'unhealthy' competition among them. The proposal has been sent to the prime minister for approval.

In its proposal the ministry said that Vietnam's cement and clinker exports have been 'badly affected' because some companies cut export prices to 'unfairly' compete with the rest. At present Vietnam has eight cement and clinker exporters. Six, Vicem, Ha Long, Thang Long, Cam Pha, The Vissai and Cong Thanh, are domestic. The remaining two, Chinfon and Phuc Son, are joint venture companies.

The ministry has called on local cement companies to cooperate rather than undercut each other in order to liquidate their large inventories through exports. The inventories are the biggest challenge facing the industry, it said. Exporting is considered a temporary measure to deal with the rising inventories which were caused by frozen real estate market and unplanned construction of cement factories nationwide.

Vietnam held around 2.8Mt of cement in inventories at the end of June 2012. The figure is expected to rise to 6Mt by the end of 2012, an increase of 23% on year-on-year.

UK: Lafarge Cement UK is inviting members of the public to an open day at Aberthaw Works in Wales on 21 July 2012 to celebrate 100 years of operation at the site. Visitors will be able to talk to employees and go on a guided tour of the works and quarry.

Works manager James Kirkpatrick said, "We are very keen to share our centenary celebrations with as many local people as possible. Aberthaw Works has played a very important part in the local economy and communities of the Vale of Glamorgan for a long time. It is important to us that we mark this milestone by opening up our doors for people to come on site and find out more about our operation in the 21st Century.

Kirkpatrick added that the open day would include tours of the cement plant and adjacent quarry, an exhibition giving an overview of the 100-year history of the site and displays from other local companies and organisations.

St Helena/Namibia: Namibian cement company Ohorongo cement has secured a three-year contract with construction firm Basil Read for the supply of cement for the building of a new airport on the British overseas territory of St Helena in the South Atlantic Ocean, over 1900km from the Namibian coast.

In November 2011 Basil Read secured a US$300m contract from the British Government to build an airport on the island. The island, one of the most remote locations on the planet, is currently supplied by boat.

Ohorongo said that it was 'very excited' about supplying cement to the project. The company will export the cement in 1.5t bulk-bags packed into 20ft containers by means of a 3000t vessel. It will operate between St Helena and Walvis Bay, Namibia on a three week cycle.

Spain: Spanish cement production fell by a further 60% year-on-year in the first half of 2012 according to Oficemen, the sector's national association. Oficemen noted that demand for cement in Spain has now dropped to a 48-year low, with levels as low as this not seen since 1964. The association previously announced that the country produced 6Mt of cement in the five months to 31 May 2012, but did not provide a total amount for the first half of 2012.

Consumption also fell, by 34.7%, year-on-year to 7.2Mt in the first six months of 2012. Oficemen expects demand to plunge by 25% to 15Mt for the full year. Accordingly, it is expected that exports from Spain will increase by 40% year-on-year to 6Mt in 2012.

These figures compare unfavourably with 2011's own poor figures and come as the Spanish economy continues to struggle with its Eurozone debt, protests at austerity measures and unemployment of 25%.