Displaying items by tag: Government

India: Birla Corporation’s revenue rose by 42% year-on-year to US$237m in the quarter of 30 June 2021 from US$167m in the same period in 2020. Sales volumes of cement increased by 38% to 3.35Mt from 2.42Mt. However, it noted that its sales volumes were 8% lower than the same period in 2019. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 40% to US$47.6m from US$34.0m. The cement producer said, “Better management of the lockdown this year, both by the company and the [government] administration, helped mitigate the effects of restrictions imposed in the areas of operations of the company relative to last year.” It added that construction work had continued to be delayed on its new 3.9Mt/yr integrated cement plant in Mukutban, Maharashtra due to the second wave of coronavirus.

India: KT Rama Rao, the Industries and IT Minister, has lobbied the central government to help reopen the Cement Corporation of India (CCI) plant at Adilabad in Telangana. In a letter sent to Mahendra Nath Pandey, the Minister of Heavy Industries, Rao noted that several previous attempts had been made to reopen the unit, according to the Hindu newspaper. He added that the plant continues to hold a mining lease for 48Mt of limestone locally, has a dedicated electricity supply and has water resources. The 4Mt/yr integrated plant was originally built in 1984. Operations stopped in 1996 due to a lack of funds and the site was formerly closed in 2008.

Cameroon: A subsidiary of Ivory Coast-based Atlantic Group has signed an agreement with the Cameroon Investment Promotion Agency giving it tax incentives towards building a new cement plant. It plans to build a 1Mt/yr cement plant in the Port of Kribi, according to Business in Cameroon. Construction work on the plant is scheduled to start in 2021 with completion by 2024 at the latest. The project has an investment of around US$70m. Atlantic Group inaugurated the 1.5Mt/yr Société Ciment Côte d'Ivoire (SCCI) near Abidjan, Ivory Coast in January 2021.

Iran: Alireza Razm Hosseini, the Minister of Industry, Mine and Trade, says that the government will prioritise electricity supplies to the cement and steel sectors. He admitted that recent power rationing to industrial users had reduced production levels but that demand had not changed, according to the Islamic Republic News Agency (IRNA). The ministry is currently working with the Ministry of Energy to resolve the problem. Cement and steel producers were previously ordered in early July 2021 to stop production for up to three weeks due to insufficient electricity supplies.

Egypt: France-based Vicat raised a case against the Egyptian government with the International Centre for Settlement of Investment Disputes (ICSID) in late June 2021. It concerns its cement production business. Reporting by the Qatar-based New Arab newspaper alleges that the cement producer was forced to reduce its shares in its subsidiary Sinai Cement due to a law stopping foreign ownership of companies operating in the Sinai Peninsula on the basis of security grounds. It reports that Vicat has reduced its shares in its subsidiary to 42% from 56% previously.

Vicat confirmed in its financial report for 2020 that it was in the process of taking legal action locally on the matter of foreign ownership in the Sinai region. It added that an investment of around Euro35m in Sinai Cement had been delayed due to administrative approval time. In July 2021, Tamer Magdy, the country manager for Sinai Cement, told local press that Vicat was keen to continue investing in the market.

Algeria: Ahmed Zeghdar, the Minister of Industry, says that he will help reduce the difficulties that Groupe des Ciments d'Algérie (GICA) faces with its exports. During a meeting with the management of GICA the minister said that the government would assist with logistical problems linked to sea and land transport, according to the Expression newspaper. He also urged the company to increase its exports due to high domestic cement production capacity. GICA produced over 11Mt of cement in 2020 and this is expected to rise to nearly 17Mt in 2021. Its exports reached a value of nearly US$600m in 2020 and are forecast to reach US$1bn in 2021.

Kazakhstan: The Ministry of Industry and Infrastructural Development has lifted a ban on imports of Portland cement, alumina cement, hydraulic cement and clinker into the country. A three-month ban on such imports began in late April 2021, according to the Trend News Agency. Imported cement must conform to new quality standards introduced by the ministry’s Technical Regulation and Metrology Committee in July 2021.

India: The government of Uttar Pradesh plans to build over 10,000km of new roads in rural areas. The state is presently engaged in the construction of 6500km of road, consisting of 800 separate roads and five bridges. The Times of India newspaper has reported that the latest proposals await the approval of the national government. Some of the roads will be rebuilt using full depth reclamation with cement and other additives.

Mozambique: Adil Cement, África Cement Factory, Maputo Cement, National Cement, Limak Cement Factory, Royal Cement and Suneira Cement Fonte have written a letter to the Ministry of Industry and Commerce complaining about ‘unfair’ pricing by Dugongo Cement. They allege that the pricing of their Chinese-backed rival breaks local competition law and has caused harm to their businesses, according to Moçambique Media Online. The price of cement has reportedly dropped by as much as 70% since Dugongo Cement’s new plant opened in May 2021.

Zimbabwe: PPC Zimbabwe has received US$11.2m from the Reserve Bank of Zimbabwe as part of a legacy debts repayment scheme. The debt accrued due toregulations blocking the repatriation of revenue outside the country due to foreign exchange shortages, according to the New Zimbabwe newspaper. The debts were assumed by the central bank between 2016 and early 2019. At the time PPC Zimbabwe was left with a legacy debt of US$21m to its parent company PPC in South Africa. PPC expects the remainder of the debt to be repaid by the end of 2022.