Displaying items by tag: Lafarge
Brazil: Colombia's Cementos Argos has decided not to 'do battle' for cement-sector assets in Brazil that currently belong to the European giants Lafarge and Holcim. The Colombian multinational has informed the Superintendencia Financiera that it does not see such a purchase as being likely to generate the value its investments would expect.
Thus, Argos puts an end to three months of expectation regarding a possible debut in Brazil for the company. The assets in Brazil's Sudeste region are up for grabs so that the merger can meet with anti-monopoly requirements and amount to some US$1bn. Argos had been in consultation with local financial giant Itau concerning a possible bid. The Colombian cement group's foreign eye will most likely focus now on Mexico, another nation mentioned fondly by company president Jorge Mario Velasquez.
UltraTech ‘pulling back’ from LafargeHolcim bids
10 December 2014India/Brazil: UltraTech Cement is re-evaluating its decision to bid for the Brazilian assets of Holcim SA, according to local media. The Aditya Birla group company had submitted non-binding bids for the cement assets in October 2014. Any binding bids are due in January 2015.
The Brazilian assets on sale include three integrated cement plants and two grinding stations that share a total capacity of 3.6Mt/yr. There is also one ready-mix plant. Now, rather than investing in those assets, the UltraTech plans to focus and expand its domestic cement production, according to local media, but an UltraTech spokeswoman said that company does not comment on market speculation.
The decision to re-think the Brazilian investment may stem from weak demand conditions in the market. The Brazilian economy has seen sub 2% growth in the last 11 quarters. For the three months ending 30 September 2014, the Brazilian economy actually contracted by 0.24%.
Ashaka Cement plant attacked again
05 December 2014Nigeria: Nigerian police officers and soldiers repelled an attack on 4 December 2014 by gunmen on Lafarge's Ashaka Cement plant in northeast Nigeria, where security forces are battling an Islamic uprising, according to a police official.
The gunmen tried to shoot their way into the Ashaka Cement compound. The same plant in Gombe State was attacked in November 2014 by gunmen suspected of being Boko Haram extremists. A Lafarge spokeswoman in Paris said that no one was wounded in the latest attack. Boko Haram has been blamed for numerous deadly bombings and has taken control of around 25 towns and villages along the northeast border with Cameroon in recent months.
UNACEM completes Ecuador acquisition
04 December 2014Ecuador/Peru: Peruvian cement producer Union Andina de Cementos (UNACEM) has completed the purchase of Lafarge's cement operations in Ecuador. "We are pleased with the closing of the transaction, which represents an important step in our growth strategy," said Carlos Ugás, managing director of UNACEM. The company closed the acquisition, which was initially announced in May 2014, for approximately US$517m. The deal involves the purchase of a 1.4Mt/yr cement plant located in Otavalo, in the north of Ecuador.
Tanzania cement output set to rise to 6Mt/yr
27 November 2014Tanzania: Tanzania expects to double its cement production to 6Mt/yr in the next few years as new plants are commissioned to meet demand from the construction sector, according to comments made in parliament by Deputy Minister for Industry and Trade, Janet Mbene. Tanzania's cement output rose by 18.9% in 2013 to slightly above 3Mt due to higher demand. Mbene said the rise in output would mean Tanzania would produce a surplus to be exported.
Cement producers currently operating in the country include Tanzania Portland Cement - a subsidiary of Heidelberg Cement, Tanga Cement – a subsidiary of Afrisam Mauritius Investment Holdings and Mbeya Cement – a subsidiary of Lafarge. Lake Cement and Lee Cement Factory are the two newest entrants in Tanzania's cement manufacturing and marketing sector with their core products under brand names of Nyati cement and Kilwa cement respectively. Dangote is also building a 3Mt/yr cement plant in Mtwara Region.
Movers in Myanmar
26 November 2014A couple of news stories this week from Myanmar present an opportunity to look at the country. Lafarge has opened a cement repacking plant in the Thilawa special economic zone (SEZ). Upcountry meanwhile, Anhui Conch has had a joint venture approved by the government for an upgrade to an existing cement plant in Kyaukse.
Towards the end of 2013 the government announced that 13 companies were to establish joint ventures with the local state-owned cement plants. In addition the Myanmar Investment Commission had approved the construction of nine new cement plants with an aim of a target cement production capacity of 10.53Mt/yr. Following this, Siam Cement Group's on-going investment in a 1.8Mt/yr plant is due for completion in 2016. Semen Indonesia have been pushing for a joint venture since mid-2014 although it was still trying to agree terms in September 2014, according to local media. Italcementi's chief executive Carlo Pesenti also expressed his company's interest in setting up a joint venture in early 2014.
Association of Southeast Asian Nations (ASEAN) investment bank CIMB placed cement demand in Myanmar at 4Mt in 2012 and a local cement production capacity of 3Mt/yr. Cement consumption was placed at 76kg/capita for the country's population of 52.8 million. In contrast, Thai cement engineering supplier LV Technology reported demand of 6Mt in 2012. CIMB recorded Myanmar's capacity utilisation rate at 60%. Cement sales were broken down as 95% by bag and 5% by bulk.
This kind of supply-demand gap excites foreign investors. Neighbouring Thailand has a consumption of 515kg/capita, Myanmar imports cement from Thailand, Indonesia and India and the country's GDP growth rate is currently estimated to be around 8%.
Yet what's notable about Myanmar's industry are the high number of small, low production capacity cement plants. Many of them are wet process plants. Only one plant is reported as being capable of producing over 0.5Mt/yr with the Siam Cement plant project due to significantly bust this record when it is commissioned in 2016. Limited limestone deposits in the country may also make plants larger than 1.5Mt/yr unviable. Fuel is also an issue, with LV Technology advocating a wholesale industry conversion from state-subsidised gas to coal due to power shortages and impending competition issues.
In 2015 Myanmar is set to enact free trade tariffs from its ASEAN membership. Without protection or preparation, its cement plants could face serious consequences from cheaper imports from Thailand, Indonesia and Vietnam. The move by the government to encourage joint ventures with foreign partners looks like one way to mitigate this. In a market report in 2013 CIMB described the situation for investors as 'high-growth, high-barrier.' This seems to be an apt description given the experiences of Semen Indonesia.
FLSmidth to supply new production line for Cemex Odessa plant
26 November 2014Denmark/US: FLSmidth has signed an engineering, procurement and construction (EPC) contract with Cemex for the supply of a new cement production line at its Odessa cement plant in Texas, US. Once the installation is finished, the cement production line is expected to have a capacity of approximately 2540t/day.
The expansion will focus on higher fuel efficiency and improved productivity. The equipment scope includes a five-stage ILC preheater with a Low NOx Calciner, three-pier kiln, FLSmidth Cross-Bar cooler, Duoflex burner, Pfister weighing and dosing systems, gas analysers and three Fuller-Kinyon pumps. The line will also use an FLSmidth control system.
Lafarge considers research centre for Nigeria
26 November 2014Nigeria: Lafarge is considering opening its sixth research centre in Nigeria. It will be the sixth development laboratory in the network following those in France, China, India, Algeria and Brazil. Lafarge's prospective research and development director, Gilles Rochard, made the announcement on a press tour in France.
Lafarge launches cement repacking plant in Thilawa
25 November 2014Myanmar: Lafarge has opened a cement repacking and storing plant in Thilawa special economic zone (SEZ) in Myanmar. The plant cost an estimated US$10 - 20m. Lafarge owns 60% of the distribution depot, while two local firms own 20% each.
The depot, which is near Thilawa port, 20km outside Yangon, can store 20,000t of cement and will be able to expand capacity based on customer demand. The depot will mainly be used for repacking and storing cement, while the cement will be imported in bulk from Lafarge plants in the region, mainly from Malaysia and Vietnam. The company will primarily supply its cement to construction projects in the ongoing Japanese-backed Thilawa SEZ project and the rest to the local market.
LafargeHolcim Canada divestments affected by McInnis cement plant
21 November 2014Canada: Efforts by Lafarge and Holcim to sell assets as part of their planned merger may be complicated by the new McInnis cement plant in Canada, which some claim will inject more capacity into an already saturated market and further depress prices.
McInnis Cement's plant in the northeastern Quebec region of Gaspé will have 2.2Mt/yr of installed cement production capacity and may start shipping to clients in two years, according to Jim Braselton, a senior vice president at the company. That represents about 66% of the local cement capacity that Lafarge and Holcim plan to sell. The assets for sale, including construction and aggregates units, have an estimated value of US$884m, excluding the impact of increased supply by the McInnis plant.