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Kyrgyzstan had a couple of prominent stories in the press towards the end of December 2023 with news of a new plant and continuing data showing that cement production has grown.

The Chüy project was first announced by the government in mid-2022 when it signed an investment agreement with a consortium comprising representatives from Terek-Tash and ZENIT. More information on the unit emerged this week when the Russian-Kyrgyz Development Fund revealed that it made a loan of US$45m towards the scheme based in the northern Chüy region of the country. The plan is to build a 1.7Mt/yr plant with a budget of US$160m. Equipment to build the plant is reportedly being sourced from companies in China and Russia. Special features of the project include a waste heat recovery unit and the use of ash from the Bishkek Thermal Power Plant in the production process. The plant is expected to be launched in 2024.

Graph 1: Cement production in Kyrgyzstan, 2018 - 2023. Source: National Statistical Committee of the Kyrgyz Republic.

One reason why the government might be keen to build a new plant is because cement production has mostly grown in each of the past five years, with the exception of 2020, when the Covid-19 pandemic began. In 2022 it increased by 7% year-on-year to 2.7Mt and the latest data from the National Statistical Committee indicates that it rose by 11% year-on-year to 2.6Mt in the 11 months to the end of November 2023. If this rate held in December 2023 then it looks likely that the country will have produced just under 3Mt in 2023. At the same time the country’s exports of cement have also been falling. In November 2023 the government of Kazakhstan’s Jambyl Region said that it had found investors to support construction of a railway line between the locale and Kyrgyzstan due to a ‘building boom’ in the latter country.

Earlier in 2023 the Eurasian Development Bank (EDB) said it had earmarked US$48m for the modernisation of equipment at the Kant Cement plant, operated by Kazakhstan-based United Cement Group (UCG), also in Chüy region. The plant is the biggest in Kyrgyzstan, running five wet process production lines, according to the Global Cement Directory 2023. The EDB linked its investment to a hydroelectric project in the country that it is also funding, pointing out that such structures require lots of cement and concrete. This follows a previous upgrade project by owner Kazakhstan-based United Cement Group (UCG) at the plant from 2021 to March 2023. This involved efficiency and environmental gains such as installing bag filters and converting a cement grinding mill to a closed circuit. China-based and CNBM subsidiary China Triumph International Engineering was the lead project partner. In early December 2023 UCG announced that it had signed another contract with China Triumph International Engineering over the summer to build a new dry production line at the site with a clinker capacity of 0.8Mt/yr. At the time of the announcement it said that preparation of the construction site had started and that work had begun on installing a pile foundation.

Finally, one more Kyrgyz news story of note in recent months was the announcement in October 2023 that the government had effectively nationalised the Kurmentinsky Cement plant in Issyk-Kul Region. The reason why it had done so was unusual because it said that a 93% share in the company running the plant had been transferred to the State Property Management Agency following the death of its former owner. The former owner was one Kamchybek Kolbaev, an organised crime boss who had been listed on the US Department of State Transnational Organized Crime Rewards Program and was reportedly killed by state security services in early October 2023. The remaining shares in the plant have been passed to its workers and the government further said that it intends to upgrade the site.

The cement sector in Kyrgyzstan is modest and in need of modernisation. It appears to be having a resurgence at the moment though with production mounting and at least two major plant projects underway. The country is in a compelling position economically and geopolitically given its membership of the Russia-backed Commonwealth of Independent States (CIS) and its proximity to China. Various projects backed by the latter’s Belt and Road Initiative, both underway and forthcoming, would certainly appear to benefit from more efficient local cement production and higher volumes.

Thailand: Siam City Cement has appointed Ranjan Sachdeva as its Acting Group Chief Executive Officer (CEO) from the start of January 2024. He succeeds the former Group CEO Aidan Lynam in the position. Lynam had been in post since 2019.

Sachdeva has worked for Siam City Cement since 2017, first as the Group Head Internal Audit and Compliance and then as the Group Chief Financial Officer, from April 2023. Prior to this he worked in procurement and audit roles for Holcim in India. He has also worked for Vedanta and Nestle during his career. He holds a bachelor of engineering from the Thapar Institute of Engineering & Technology and a master of business administration (MBA) degree from the University of Leicester, among other qualifications.

Saudi Arabia: Arabian Cement has appointed Mutaz Kusai Hassan Al Azzawi as its chair. It has also designated Saud Abdulaziz Abdullah Al Sulaiman as its vice chair. Both roles start in January 2024 and run until the end of 2027.

South Africa: China-based Huaxin Cement completed its acquisition of Brazil-based InterCement’s South African business on 27 December 2023. MarketScreener News has reported that financial services firm JPMorgan Chase acted as advisor to InterCement. The deal concludes the Brazilian company’s exit from Africa, after it sold its Egyptian and Mozambique businesses earlier in 2023.

Spain: Cementos La Cruz plans to build a new unit to produce reduced-CO₂ cement at its 1.5Mt/yr Abanilla grinding plant in Murcia. In a video posted on YouTube, the producer said that the new unit will produce cement using supplementary cementitious materials (SCMs) derived from industrial waste streams. Additionally, it will source 100% of its electricity consumption from biofuel-fired generators. Cementos La Cruz has secured Euro4.5m in European Union funding for the project.

General director Juan Luis Porrúa said that cement from the upcoming unit will have a specific carbon footprint below 200kg/t, and will eliminate over 400,000t of CO₂ emissions from Spanish construction in its first 10 years of operation.

Portugal: The competition authority has opened a 10-day window for public comment after receiving notification of Taiwan Cement Corporation’s proposed outright acquisition of Cimpor. The procedure is open to companies and members of the public interested in registering criticism or favourable opinions on the effects of the deal on competition.

Taiwan Cement Corporation agreed to buy current majority shareholder OYAK Çimento’s 60% stake in Cimpor for Euro480m in November 2023.

Czech Republic: Cemex Czech Republic resubmitted a revised environmental impact assessment (EIA) for its Prachovice quarry on 29 December 2023. Under the revised EIA, the quarry’s area will remain unchanged, but operations will expand to 1.7Mt/yr from 1.2Mt/yr. Authorities twice rejected previous EIAs for the mine.

Newton Media News has reported that the company says that its tests ‘clearly verified that the increased level of total organic carbon in air emissions was caused by one of the additives used in processing, and not by the content of organic substances in the mined raw material.’

Pakistan/UK: Power Cement successfully despatched its first shipment of cement to the UK in late December 2023. The company said that the move demonstrates its commitment to global expansion and positions it as a ‘formidable force’ in the international arena.

Export marketing director of Saifuddin Khan said “Entering the European market and exporting our cement to the UK is a testament to the high standards and excellence that Power Cement upholds. Power Cement can customise the packaging as per the requirements of the buyer, and we are excited about the opportunities this presents.” He added “We look forward to becoming a trusted partner in the UK’s construction sector and contributing to Pakistan’s economic progress through foreign exchange earnings.”

Armenia: The government has extended a temporary ban on imports of cement until the end of June 2024. The government says that the measure will help to re-establish competition between local cement producers and importers. NEWS.am has reported that Armenia produced 965,000t of cement during the first 10 months of 2023, up by 20% year-on-year. Meanwhile, in the first nine months of the year, cement imports grew by a factor of five, to 173,000t. Imports of clinker also rose, by 33% to 97,700t. The government attributed the growth of imports to rising cement demand and prices in Armenia during 2023.

UK: The World Cement Association (WCA) marked the achievement of an ‘historic’ global consensus for decarbonisation at the COP28 climate change conference in the UAE in December 2023 with a new call to global cement producers and suppliers. The association called on all participants in the industry to help promote developments in reduced-CO₂ cement production through enhanced connectivity and communication. It said that technologies like alternative raw materials and alternative fuels (AF), efficiency-enhancing process changes and carbon capture and utilisation (CCU) are widely applied, but unequally, applied in the global cement industry.

Regarding the disparity between different markets, the WCA said “This imbalance underscores the critical need for more research and development funding in emerging markets, where there is real demand for this kind of support as a crucial enabler of progress.” It added “We will join hands with our members and stakeholders to advance the low-carbon and sustainable development of the industry and contribute to building a clean, safe and beautiful world.”