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Tajikcement production thwarted by gas shortage

24 December 2012

Tajikistan: Tajikcement, the largest cement plant in Tajikistan, has stopped production due to a shortage of natural gas according to a report from the Avesta news agency.

"Natural gas is the main fuel for the factory. Partial interruption in the supply of gas caused a decrease in cement production. The factory produced 190,500t of cement in January to November 2012, which is a 60,000t decrease compared to the same period in 2011," said a source quoted by Avesta. He added that gas supplies to the plant in Dushanbe have been interrupted several times in 2012.

Saydakhmad Sharofutdinov, the head of the Tajiktransgas the nation's gas importing company, said that the thermal power plant in Dushanbe was the largest consumer of natural gas in Tajikistan, receiving 100,000m3/day.

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Gizildash 2Mt/yr plant to start by end of 2013

23 December 2012

Azerbaijan: Norm has announced that the 2Mt/yr Gizildash cement plant will start operation in the last quarter of 2013.

"With a cement production capacity of 2Mt/yr it will not only the largest in the region, but also the only plant producing API standard cement," said Norm's general director Hasan Yalcinkaya. Yalchinkaya added that the plant will hire 400 people, with another 100-150 people to be engaged in mining.

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Votorantim plans US$3bn IPO

22 December 2012

Brazil: Brazil's biggest cement producer, Votorantim Cimentos, is preparing an initial public offer (IPO) to raise US$3bn.

Votorantim is looking to acquire new assets in North America, Africa and South America. The proceeds from the IPO, the biggest for Brazil since Banco Santander Brasil in 2009, would go into funding its expansion plans.

The cement unit of Brazil's Grupo Votorantim, controlled by the Ermirio de Moraes family, completed a swap of its 21.2% stake in Cimpor Cimentos de Portugal in June 2012. Votorantim Cimentos has hired Banco Itau BBAand JPMorgan Chase & Co to manage the deal and will include other banks.

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Holcim sells stakes in Thailand and Guatemala

21 December 2012

Thailand/Guatemala: Holcim Ltd has reduced its shareholding in Siam City Cement Company Ltd (SCCC) from 36.8% to 27.5%. The shares have been purchased by Bangkok Broadcasting and Television, a Ratanarak Group company, which will increase its shareholding in SCCC to 47%.

Elsewhere, Holcim has sold its 20% in Cementos Progreso SA to its majority shareholder, Grupo Cemcal SA Progreso, which owns a cement plant in San Miguel with an annual capacity of 3Mt/yr.

For the sale of these two share packages, which is part of the Holcim Leadership Journey, Holcim has received approximately US$410m.

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Lafarge looking to sell off Indian stake

21 December 2012

India: Reuters is reporting that the French cement giant Lafarge is in talks with private equity and financial firms to sell a 20-15% stake in its Indian unit, Lafarge India Pvt Ltd, which encompasses four cement plants, for about US$300m. It could also sell 100% of its Indian unit if a 'strategic' buyer is found.

With a capacity of 7.75Mt/yr across Lafarge India's plants, a US$1.2bn valuation of the assets gives an approximate asking price of US$154/t of installed capacity.

If Lafarge finds a buyer the move will continue a recent series of cement asset sales, notably in the US and the UK.

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B&W Mechanical Handling to become SAMSON

20 December 2012

UK: B&W Mechanical Handling Ltd, a UK company and part of the German Aumund Group, will become SAMSON Materials Handling Ltd on 1 January 2013.

The company said that the progression is a reflection of the success that its SAMSON equipment has enjoyed worldwide. The SAMSON range has played an important role in the its bulk materials handling projects in industries such as mining and minerals, cement, environmental, ports and terminals, biomass, steel, power and agriculture.

Along with the new SAMSON name, the company said that it will also launch a range of engineered products during 2013.

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Quinn and Lagan propose Irish joint venture

20 December 2012

Ireland: Quinn Building Products and Lagan Cement Group have signed a memorandum of understanding that could lead to a joint venture (JV) between the two groups.

The businesses, which will become part of the proposed JV, are the combined cement and building products businesses based in Ballyconnell, Derrylin, Kinnegad, Belfast, Cork and Benelux. Quinn Therm, Quinn Litepac, Quinn Tarmac and Lagan Sand are not included in this proposal.

Commenting on the proposed JV, the CEO of Quinn Manufacturing Group, Paul O'Brien, and the CEO of Lagan Cement Group, Jude Lagan, said, "By combining two stable Irish businesses the proposed JV will create a sustainable independent cement manufacturer that can continue to support its customers on a competitive basis."

The joint venture discussions are likely to take up to three months to complete and will involve the development of a business plan to combine the Quinn/Lagan cement and building products operations.

"While it is the intention of both parties to conclude a JV Agreement, no certainty can be assumed prior to the completion of these discussions and the relevant Competition Authority approvals," said a joint statement.

In a separate development, Quinn Manufacturing has also announced a Euro15m investment to upgrade its Ballyconnell cement plant, which, when completed, will facilitate the use of alternative fuels. The plant will be adapted to use solid recovered fuel (SRF), a move that will help to bring Quinn Cement's cost of production more into line with its Irish and European competitors.

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