Displaying items by tag: Government

Oman: The Consumer Protection Authority (CPA) has intervened to suspend operations at a cement producing facility in Al Dhahirah Governorate. The Times of Oman has reported that the suspension results from repeated complaints to the CPA’s consumer protection department about product quality. The operation is also suspended from selling its goods.

Nigeria: BUA Cement and Dangote have signed an agreement with the government to supply cement at a discounted rate for the construction of 300,000 homes under the government’s Mass Housing Programme, according to The Sun newspaper.

Vice President Yemi Osinbajo said that the producers have agreed to provide cement for this project at a ‘considerable’ discount, which he described as ‘very helpful.’ He added, “Also important is the job creation aspect of it. You have young men and women who are builders, architects and civil engineers working on this project. We are hoping that a lot of the other building materials will be made locally.”

Bangladesh: The Bangladesh Cement Manufacturers Association (BCMA) has called on the state-owned Bangladesh Bank (BB) to extend an ongoing moratorium period on the payment of loan instalments by another six months to mid-2021 in response to the negative economic effects of the coronavirus pandemic. The original loan window was schedule to end on 31 December 2020, according to the Dhaka Tribune newspaper. The association has also called for a fixed lending rate for non-government lenders due to rising costs. Local cement sales fell by 13% year-on-year in the five months from January to May 2020 due to a coronavirus-related lockdown that ended in late May 2020.

Pakistan: The government has extended its construction industry fixed tax regime by a further year until 31 December 2021. In a live address to the country, Prime Minister Imran Khan said that the move was in response to ‘big’ demand from the sector, according to the Dawn newspaper. Other incentives unveiled during the broadcast included an exemption for builders from disclosing sources of income to tax authorities until 30 June 2021. The measures follow the government’s introduction of the foreclosure law, under which banks are aiming to allocate US$2.36bn towards house building until 31 December 2021. Khan called 2021 a ‘year of growth.’

Pakistan: The Association of Builders and Developers (ABAD) has issued a statement warning of the dangers of recent cement price rises. The Balochistan Times newspaper has reported that the association called the rises disproportionate given the local availability of raw materials. It said that the increase would be reflected in the prices of housing units under the Naya Pakistan Housing Programme.

Prime Minister Imran Khan launched the scheme, alongside a financial support package, to revitalise the construction industry in the wake of the coronavirus outbreak.

Philippines: The Tariff Commission (TC) has said that it was unaware of a Department of Trade and Industry (DTI) order imposing higher-than-scheduled duties on imports of cement. The Manila Bulletin newspaper has reported that TC commissioner Ernesto Albano said that it was legally ‘impossible’ for rates to rise above the previously scheduled US$0.19/bag. The DTI order in December 2020 set a duty of US$0.20/bag in the second year of the three-year tariff scheme. Albano said, "The DTI cannot do that. The schedule has been set.” He added, “The industry should improve so the duty should go down."

The Bureau of Customs (BOC) has implemented the new rate imposed by the DTI.

Spain: The Spanish cement association Oficemen has targeted a 43% emissions drop by 2030 across its entire value chain compared to 1990 levels. The objective has been published as part of the association’s sustainability roadmap to 2050. It is a tightening of the previous target of 27% by 2030. Oficemen intends to meet the tougher reduction by using the so-called 5C approach - clinker, cement, concrete, construction and built environment, and (re)carbonation – as detailed by Cembureau, the European Cement Association. Oficemen also revealed that it is working with the Spanish Technological Platform for CO₂ (PTECO₂) on identifying potential locations for storing captured CO₂. Hugo Morán, Secretary of State for the Environment, participated remotely with the launch event.

Oficemen also reports that Spanish cement consumption fell by 12% year-on-year to 12.2Mt in the first 11 months of 2020. Exports declined by 5%.

China: The Ministry of Industry and Information Technology (MIIT) has released tougher draft rules regulating how cement producers should decommission old production capacity before they build new capacity. Under the new guidelines cement companies must retire at least two tonnes of outdated capacity for each tonne of proposed new capacity in areas classified as environmentally sensitive, according to Caixin Global. Previously, the ratio was 1.5:1. In non-environmentally sensitive areas, at least 1.5 tonnes of obsolete capacity should be retired for every tonne of new capacity, an increase from the current ratio of 1.25:1.

The proposed rules are currently open for public comment. However, cement companies are reportedly hurrying to obtain approval for new capacity projects approved under the current, easier regulations. The Chinese Cement Association has commented that some of the newly proposed projects ‘challenge’ the effectiveness of the government’s intent with the new measures and it has recommended a ban on production swaps across regions. The new rules also include a clause intended to restrict the use of so-called ‘zombie’ capacity in the swapping process by limiting eligibility to productions lines that have been operated for two or more consecutive years since 2013. Such redundant capacity is reportedly mainly concentrated in northeast China, Inner Mongolia and Xinjiang. No date for the ratification of the new rules has been disclosed.

Switzerland: The Federal Council has noted a report stating that, without extensions to raw material extraction licences, domestic cement production is set to decline by 36% from 2024. The Agence Télégraphique Suisse has reported that local producers are already restricted by limited legally available limestone and marl reserves. At present the local cement sector provides 86% of Switzerland’s 5Mt/yr domestic cement demand. The report by the Swiss Geological Survey states that acceptance of all proposed mining expansion projects in 2023 would delay the projected decline until the end of 2030.

Argentina: Loma Negra has resumed operations at its Olavarría cement plant in Buenos Aires Province. Noticias Financieras News has reported that the company informed the Ministry of Labour that it had reached an agreement with the AOMA mining union. The union represents employees of limestone supplier Minerar, who demanded to be classed as cement workers for purposes of union representation and pay. Loma Negra accepted the strikers’ claims, and paid a total of US$24,000 in retroactive salary installations for the period October to December 2020.