Displaying items by tag: UK
Lafarge India sale moves to final stage
07 July 2016India/Switzerland/UK: The five bidders that gave their final bids for Lafarge India’s 11Mt/yr cement business have been called to London, UK for the final leg of discussions, which started on 7 July 2016. Multinational bidders, including Mexico’s Cemex and China’s Anhui Conch, are believed to have bid aggressively. Domestic bidders Ajay Piramal Group, Nirma and Sajjan Jindal-led JSW Cement also submitted bids earlier in the week.
The bids are in the range of Euro1.19-1.33bn, which implies an enterprise value of US$108-121/t, comparable to UltraTech’s recent acquisition of JP Group’s cement assets for US$116/t.
“This discussion in London could take three to four days to finalise,” said a banker familiar with the development. “The winner will be decided not just on the price quoted for assets but also other conditions for the bid,” he said. Once the winning bid is decided, an exclusivity agreement will be signed with the bidder and it will take around three months to complete the deal.
UK: Flexicon has launched a new bulk bag-lifting frame with telescoping arms that accommodates bulk bags produced in a range of sizes. The lifting frame can be added to all BFC models of Flexicon's Bulk-Out discharger line or it can be used for up to 2t capacities to replace discharger lifting frames that use a hoist to position and suspend bulk bags.
The telescoping arms can be adjusted using clevis pins and safety clips to a range of settings to accommodate bulk bags from 81 - 119cm square at the upper sew seam. This adjustability also allows the lifting frame to work with rectangular bags. The frame is available in carbon steel with industrial coatings or stainless steel to industrial or sanitary standards.
Eurocement targeting exports to Denmark and UK
16 June 2016Russia: Eurocement Group has said that it is targeting exports of cement at Denmark and the UK. Company chief executive officer Mikhail Skorokhod said that ‘contracts in Denmark and Britain are forthcoming’ in an interview with PricewaterhouseCoopers that was recorded ahead of the St Petersburg International Economic Forum.
Exports by Eurocement to Finland and the Baltic states have been taking place since the end of 2015 with a gradual increase in sales volumes. In Finland the cement producer has a market share of 5%. Skorokhod added that the devaluation of the Russian Ruble has opened up export opportunities for the company. However, the company has not disclosed the volume of its exports, according to Interfax.
The overall volume of cement exports from Russia in January to April 2016 reached 230,000t with production of 13.6Mt, according to data from the Union of Cement Producers.
UK: Mechanical power transmission companies David Brown and Santasalo merged on 1 June 2016 to create David Brown Santasalo. Clyde Blowers Capital, an industrial investment firm based in Scotland, owns the business.
The merged company intends to serve markets in commodities, marine, defence, power, industrial and consumer end sectors. Its core business lies in gear engineering and power transmission products. The new company contains more than 1000 employees, seven major manufacturing plants and 23 service centres across six continents.
“David Brown Santasalo covers varied end markets including naval ships, minerals processing and the manufacture of a wide range of pulp and paper products. Across all these markets, our core differentiator is our fundamental capability to design and engineer gear systems for the world’s most demanding applications,” said Thomas Burley, Chief Executive Officer of David Brown Santasalo. He added that the company intends to focus on expanding its sales and service network, enhance its product offering and invest in its manufacturing base around the world.
UK: Kingfisher Industrial has started manufacturing its own K-CLAD 800 series wear resistant overlay range. As the range of K-CLAD 800 overlay plate is being manufactured in-house within the UK, the process of material quality (plate and powders), deposition process, overall flatness and thickness can be controlled by means of the company’s ISO 9001 quality control certification along with its factory production control (FPC) procedures underpinning its ISO 1090 execution class three certification.
The manufacturing process uses a bulk deposit method and fluxes are mechanically deposited onto a mild steel base plate via a submerged arc fusion bonded process. Kingfisher uses a new overlay system which incorporates electronic technology to enable production of an overlay with total carbide saturation (TCS) affording increased wear resistance.
The K-CLAD 800 range can be used by industries that handle materials including ores, cement, clinker, aggregates, coal and glass. It can be supplied in sheet form or in pre-designed tailored shapes to suit its application. Typical application for the series includes the protection of transfer chutes, vibratory feeders and screens, dump trucks, hoppers and fan blades.
The UK-based wear protection specialist will be promoting the new product at the Hillhead quarrying, construction and recycling exhibition taking place in late June 2016 in the UK.
UK: Lucideon has benefited from a newly published standard by the British Standards Institution (BSI) for alkali-activated cementitious material and concrete. The materials technology company has been developing and applying its proprietary MIDAR technology based on alkali-activated cements for several years. A recognised building standard gives it a stronger route to market in Europe.
“With the help of our materials experts, manufacturers can develop products using alkali-activated cement technology. This could potentially improve the performance and reduce the raw material costs and carbon footprints of products,” said Rebecca Law, a development scientist at Lucideon.
Lucideon develops materials technologies for a range of industries including construction, healthcare and nuclear sectors. MIDAR is a technology that binds alkalis and aluminosilicate materials, such as those from waste streams including fly ash and blast furnace slags, to form a rigid inorganic material. This technology can be used to make solid or aerated building products.
UK financier to take 40% stake in ARM
04 May 2016Kenya: The UK-based development financier CDC is set to acquire a 40% stake in ARM Cement, after the firm injected US$140m into the family-owned Kenyan cement manufacturer.
The CDC funds will allow ARM to retire expensive short-term loans that have been weighing down the company’s earnings. The CDC is owned by the UK’s Department for International Development.
“We are proud to back a founder-led frontrunner in East African manufacturing,” said Mark Pay, CDC’s managing director for equity investments. “This investment will strengthen a company (that is) making a difference to the local economy, bringing jobs and lower-cost raw materials to a region traditionally dependent on imports.”
Competition and Markets Authority refers Breedon Aggregates purchase of Hope Construction Materials for further investigation
12 April 2016UK: The Competition and Markets Authority (CMA) has referred the proposed acquisition of Hope Construction Materials by Breedon Aggregates for further investigation unless Breedon can take action to address competition concerns. An initial study by the CMA found that competition issues might arise in 27 ready-mixed concrete sites, causing potential price rises for end consumers. The study ruled out any competition issues with regards to the companies’ aggregates and cement markets.
“The vast majority of the merger raises no concerns but there are a number of areas where the companies compete strongly with each other for customers and the concern is that the loss of such rivalry could lead to price rises for customers. The businesses may now resolve these concerns or face a detailed investigation,” said Sheldon Mills, CMA Senior Director of Mergers. Unless Breedon takes action an in-depth phase two investigation will be conducted by the CMA.
Breedon responded that the CMA’s response was expected. Subject to agreement with the CMA on appropriate remedies, Breedon expects to complete the acquisition later in 2016. Breedon announced in November 2015 that is was planning to buy Hope Construction Materials for Euro480m.
Grinding down on demand for slag
06 April 2016Tata Steel put up its UK business for sale last week. The Indian multinational declared that enough was enough having reported losses of over Euro2.5bn in the territory over five years. Non-UK readers may well wonder what the fuss is about. UK crude steel production comprised 10.9Mt in 2015 or about 0.7% of global production according to World Steel Association data according to World Steel Association data. By contrast the country produced 9.3Mt of cement in 2014 or about 0.2% of world production according to CEMBUREAU data according to CEMBUREAU data.
The UK’s flailing steel industry is worth discussing here for two reasons. Firstly, any decline in the local iron and steel industry will have implications for the supplementary cementitious materials (SCM) market as slag levels vary. Secondly, the cement industry in Europe may have lessons for a fellow heavy industry facing capacity rationalisation.
UK ground granulated blastfurnace slag (GGBS) production levels are low compared to total world supply. However, the UK Competition Commission certainly took note of the GGBS market in 2014. It was worried by LafargeTarmac’s and Hanson’s prominence in both the local GGBS supply chain and local cement production. At that time it ordered the HeidelbergCement subsidiary Hanson to sell one of its slag grinding plants to increase competition in the supply chain for GGBS. A GGBS plant in Scunthorpe was eventually sold to Francis Flowers in July 2015.
The general point here is that a Tata sale of its UK operations could have ramifications for the UK GGBS sector as existing deals are renegotiated following the shakeup. It would be even worse for the local slag market if any of the plants closed. No doubt the Competition Commission would also want to have its say to maintain some sort of competition in an already concentrated market. The UK cement market has been the bright spot in the multinational cement producers’ European regions in 2015. However, construction growth is starting to slow again with hints that the looming European Referendum in June 2016 may be having a negative effect. Uncertainty over GGBS supplies is not helpful in this atmosphere.
A wider lesson for other national cement industries looking in is that if Chinese steel continues flood the world market it will also hit the cement industry. Tata’s woes have been squarely blamed on China dumping its steel on the world market. Various jurisdictions promote the use of SCM cements and concrete for their low-carbon and sustainability properties. If local or existing GGBS supplies are hit then the cement industries may be penalised while the lawmakers and competition bodies play catch-up.
The wider point about heavy industry reducing its production capacity is one that the European cement industry will be well used to. Spain, for example, has seen its cement production drop from 55Mt in 2007 to 15Mt in 2014 according to Oficemen data. Alongside this, demand for cement has dropped to levels not seen since the 1960s. The European response has been to shut plants, sell assets and to merge companies.
The big question following the 2008 recession is whether ‘this’ is the new normal for mature construction markets. Eight years later global interest rates are still lagging and China’s economy is slowing down. All of the European infrastructure was built long ago meaning that steel and cement will only be required to maintain it. Luckily it looks likely that demand for SCMs should stay buoyant as industries are encouraged to decarbonise. The problem though is where the slag comes from. Oversupply in the short term in areas like Europe might be great for cement producers but as the iron and steel industries readjust to market reality there might be a hangover in store.
New technical development manager joins Hanson Cement
30 March 2016UK: Hanson Cement has appointed Robert Keough as technical development manager at its cement plant in Ketton, Lincolnshire. His role will involve promoting the sustainability credentials of concrete specifications and emphasising the use of ground granulated blast furnace slag (GGBS) as a sustainable cement replacement product.
Keough has two years’ experience working for Hanson UK’s parent company, HeidelbergCement Group, as an engineer in training, giving him a firm foundation in the organisation’s values. During this time he worked in the continuous improvement team where he focused on reducing costs and increasing operational performance across the aggregates business.
Keough, aged 26 years, holds a bachelors degree in chemistry with management from the University of Bath and a master’s degree in minerals engineering from the University of Exeter. He holds experience with the financial services company Hargreaves Lansdown.