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Council of Europe bans cement imports from Russia

12 April 2022

Europe: The Council of Europe has banned imports of cement from Russia as part of a fifth set of economic and individual sanctions. The import ban, in response to the war in Ukraine, also includes wood, fertilisers, seafood and alcoholic spirits. It has been valued at Euro5.5bn/yr. Other measures within the European Union (EU) include blocking coal and other solid fossil fuel imports from August 2022, stopping access of Russian flagged ships at ports, banning Russian or Belorussian road transport within the region and additional restrictions on the export on materials such as jet fuel, computer parts and certain types of machinery. Imports of coal into the EU are currently valued at Euro8bn/yr.

Josep Borrell, High Representative for Foreign Affairs and Security Policy at the European Council said, “These latest sanctions were adopted following the atrocities committed by Russian armed forces in Bucha and other places under Russian occupation. The aim of our sanctions is to stop the reckless, inhuman and aggressive behaviour of the Russian troops and make clear to the decision makers in the Kremlin that their illegal aggression comes at a heavy cost.”

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HeidelbergCement, Felleskjøpet AGRI and Egil Ulvan Rederi to build the world's first zero-emission bulk carrier

06 April 2022

Norway: HeidelbergCement, agricultural cooperative Felleskjøpet AGRI and shipping company Egil Ulvan Rederi plan to build what they say will be the world's first zero-emission bulk carrier. The project has also received support of around Euro12m from the Norwegian government-owned sustainability company Enova. The vessel is scheduled for completion and commissioning in 2024. Once operational the ship will be used to transport aggregates products for HeidelbergCement and grain for Felleskjøpet between west Norway and east Norway using hydrogen powered transport.

Egil Ulvan Rederi was selected following a tendering process in 2021. The ship is intended to be highly energy efficient, using rotor sails and has a streamlined design to reduce energy consumption. It will be powered by hydrogen from Norwegian energy supplier Statkraft but will also have small auxiliary batteries and a fuel cell on board to maximize flexibility.

Giv Brantenberg, general manager HeidelbergCement Northern Europe, said “The project addresses emissions from the transport part of our value chain. It is unique, ambitious and future-orientated. It is fully in line with HeidelbergCement Group's target to be the leading actor in our industry on the path to carbon neutrality." HeidelbergCement estimates that the carbon footprint of the aggregates products can be reduced by 50 - 60% by using the zero emission vessel, as transport accounts for a significant part of the total carbon footprint of these products.

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Dangote Cement to ship cement and raw materials via Port of Mtwara

21 March 2022

Tanzania: Dangote Cement has signed an agreement with the Tanzanian Ports Authority whereby it will ship cement from its Mtwara cement plant and raw materials for its Tanzanian operations via the Port of Mtwara. Ecofin Agency News has reported that the company previously used the road network for both materials. This had a negative impact on local roads and prevented it from exporting the Mtwara cement plant’s cement overseas.

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Pakistan’s February cement exports drop amid rocketing production costs

04 March 2022

Pakistan: All Pakistan Cement Manufacturers Association (APCMA) members exported 405,000t of cement in February 2022, down by 34% year-on-year from 616,000t in February 2021. Domestic deliveries also dropped, by under 1% to 3.95Mt from 3.96Mt. Amid the declines, Pakistani cement producers have reported a steep rise in their costs due to increases in international freight rates and coal prices and the country’s on-going ban on trade with neighbouring India. Cheaper Iranian cement has undercut Pakistani cement sales to Bangladesh, while the Afghan market has yet to recover following the withdrawal of peacekeeping forces.

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Cement exports resume from the Port of Malaga

25 January 2022

Spain: Bulk cement exports have resumed from the Port of Malaga for the first time since September 2021. The Panamanian-flagged Grit Cement II docked at the port in mid-January 2022 to collect a consignment of 8000t, according to Málaga Hoy. Trade in cement from the port stopped in the autumn of 2021 when HeildebergCement sold the Southern Spain business of its FYM subsidiary to Brazil-based Votorantim Cimentos. Prior to the reopening, ships from the port exported cement to the Port of Banjul in Gambia.

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Cannabis smugglers attempt to hide drugs in cement shipment

20 January 2022

Guyana: The Customs Anti-Narcotics Unit (CANU) has confiscated a US$68,300 illegal cannabis shipment from a Panamanian cement carrier ship that was scheduled to depart Port Georgetown on 21 January 2022. CANU says that the value of the substance would have been significantly higher at its destination. It has detained the ship’s captain, engineer and senior officers.

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Flender begins Voerde logistics centre expansion

17 December 2021

Germany: Flender has launched the construction of a new 8000m2 storehouse at its Voerde, North Rhine-Westphalia, logistics centre. Along with the lease of an additional building from project developer Panattoni, the project will expand Flender’s total storage footprint by 19,000m2. The supplier says that the new facilities will reduce the Voerde centre’s CO2 by optimising its transport routes.

Flender CEO Andreas Evertz said "I am very happy that the expansion of our site in Voerde will allow us to centralise our logistics activities, bringing us another step closer to our goal of operating in a completely carbon neutral fashion by 2030. With the new warehouse space, we are making our logistics processes sustainable and thus reducing a significant part of the previous transport routes and the associated CO2 emissions.”

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Indian cement sales rise in first half of 2022 financial year

16 December 2021

India: Finance company ICRA reported all-India cement sales in the first half of the 2022 financial year of 124Mt, up by 22% year-on-year. Mint News has reported that the total value of cement sales rose by 5% in the period compared to the first half of the 2021 financial year. Producers’ raw materials costs rose by 16%, while power, coal and petcoke costs rose by 26% and freight costs rose by 7%. Granulated blast furnace slag (GBFS) and gypsum prices also rose.

ICRA corporate ratings assistant vice president and sector head Anupama Reddy said "Despite some easing in the cost-side pressures, the input costs are likely to remain elevated in the near term, and are expected to exert pressure on operating margins, which are likely to decline by 200 to 230 basis points (BPS) in the 2022 financial year as a whole. While the capacity additions are expected to increase year-on-year in the 2022 financial year, the reliance on debt is likely to be lower owing to the healthy cash generation and strong liquidity of the cement companies. The debt coverage metrics are expected to remain strong in the 2022 financial year."

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Insee Cement says it has eased the cement shortage in Sri Lanka

08 December 2021

Sri Lanka: Insee Cement says it has eased a local cement shortage by operating at maximum production capacity and optimising its distribution channels. It reported a record output of 0.7Mt for the third quarter of 2021, according to the Colombo Post newspaper. The company also introduced two new import ships to help the situation.

Gustavo Navarro, the chief executive officer of Insee Cement Sri Lanka said, “We continued to fully support government regulations and industrial policies to first stabilise the market, and were able to deploy our island-wide distribution and dealership network to ensure an uninterrupted supply across the island. The loyalty and patience of our customers gave us that extra encouragement we needed to overcome the challenge.”

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Prime Cement imports 50,000t of clinker via Port of Tanga

23 November 2021

Tanzania: Prime Cement has received a 50,000t shipment of Saudi clinker via the Port of Tanga. The Daily News newspaper has reported that the clinker will continue its journey by road to Rwanda.

Prime Cement’s business operations manager Mvayo Fabrice said "I call upon Tanzania Ports Authority to continue marketing the Port of Tanga so that we can receive more cargo and boost the regional economy and people's welfare."

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