Displaying items by tag: GCW96

Oman: The Oman Cement Company has reported that a dispute with a contractor has been settled. The company has received a settlement of US$7.81m from an unnamed contractor who was implementing a new clinker production line.

The compensation included US$110,000 towards another contract for an alternate belt conveyor. The clinker plant has been commissioned and commenced commercial production in 2011. The company had raised a compensation claim on the contractor for certain project-related issues. Similarly, the contractor had also raised claim for additional payment for some of the project activities. Oman Cement stated that further details will be disclosed in its next financial statement.

Saudi Arabia: King Abdullah bin Abdulaziz Al Saud has issued an urgent command ordering 10Mt of cement to cope with a local shortage. Additional measures included plans to build three to four new cement plants with a production capacity of 12Mt/yr. US$800m has been approved to support the program for three years.

The Saudi Press Agency announced the urgent directive to address a growing demand for cement in light of rapid urban growth and government infrastructure projects.

China: Output of cement in China reached 417Mt in the first quarter of 2013, a rise of 8.2% year-on-year according to data issued by the National Bureau of Statistics of China. Cement output in March 2013 grew by 6.9% year-on-year to 187Mt.

In a separate formal announcement China's Ministry of Industry and Information Technology informed the provinces that 73.5Mt of obsolete cement production capacity will be eliminated in 2013.

Vietnam: Cement producers in Vietnam lost at least US$80m in 2012 in a bid to undercut each other, according to Tran Van Huynh, Chairman of Vietnam Building Material Association. Huynh made the comment as he warned that producers face 'huge' losses from attempts to clear surplus inventory by exporting cement and clinker. In 2012 local firms incurred losses of between US$8 - 10/t of exports.

Huynh asked local cement producers to cooperate instead of undercutting each other to keep export prices above domestic ones. He also recommended that the Vietnam Cement Association set reasonable export prices as well as help firms penetrate large markets.

Due to cement output exceeding demand, the Ministry of Construction has requested local cement firms to seek further export markets. However, local producers face difficulties in exporting cement due to poor infrastructure, high transport costs and a lack of competitiveness. In addition Vietnam lacks ports capable of docking ships over 50,000t that are necessary to carry goods to distant overseas markets.

Vietnam is predicted to face a huge cement inventory of 14 – 15Mt by 2015. By that time the country's cement output will reach 90Mt whilst demand is estimated to be 75 – 76Mt.

India/China: Sinoma International Engineering (Hong Kong) Co Ltd, part of the National Materials Group (Sinoma), has entered the Indian cement equipment production industry with the acquisition of a major stake in LNV Technology Pvt Ltd, based in Chennai, India for US$23.9m.

According to the agreement, Sinoma International Engineering now has a 68% share in LNV Technology, which has become a member of the Sinoma Group. The earlier joint venture partners V C Rao, managing director of the company and LV Technology Public Co Ltd, retain around 16% equity each. 

Liu Zhijiang, group chairman of Sinoma said that the Chinese firm would bring in its expertise in research and development, design, manufacturing, installation and after sales service to the Indian joint venture. With the venture, LNV Technology expects to be the leading supplier of cement equipment in India in the next five years.

Rao said that LNV Technology would look at setting up engineering, procurement and construction (EPC) capabilities, which are not prevalent in the Indian cement equipment industry. "Sinoma is the only company in the world to do this kind of EPC in the segment. That model is not available in India now, which will be brought in through LNV Technology," he said.

Globally 80% of the cement equipment market is cornered by just four companies: Sinoma International, FLSmidth, Polysius AG and KHD.