Displaying items by tag: Uzbekistan

China: Anhui Conch’s operating revenue grew by 8.7% year-on-year to US$12.5bn in the first half of 2021 from US$11.5bn in the same period in 2020. However, its net profit fell by 7% to US$2.32bn from US$2.49bn. The group blamed this on rising raw material prices and ‘fierce’ competition. Anhui Conch reported that its production and sales volumes of cement and clinker increased by 11.5% to 208Mt. By region, sales grew in east, central and south China but fell in the west.

The group said that one clinker production line and two cement grinding units for Hunan Yunfeng Cement had been commissioned during the first half of 2021. Construction work on two grinding projects based in Haimen and Ganzhou also started. Outside of China, work on the group’s Qarshi project in Uzbekistan progressed to the installation of equipment.

Uzbekistan: The government has reduced cement producers’ income tax rate to 15% from 1 October 2021. The Uzbekistan Daily newspaper has reported that producers previously paid 20%.The government also halved the tax on limestone to US$2.11/t from US$4.22/t.

Uzbekistan: The Minister of Investments and Foreign Trade (MIFT) says that an unnamed Singapore-based company is considering building an integrated cement plant in the country. The Uzbekistan National News Agency reports that investors from Singapore attended a meeting with Aziz Voitov, the First Deputy Minister of MIFT, and Adham Ikramov, the chairman of the Chamber of Commerce and Industry.

Uzbekistan: Cement production grew by 23% year-on-year to 5.8Mt in the first half of 2021. Data from the State Statistics Committee of Uzbekistan shows that production increased fastest in the second quarter. It was previously reported that the country imported 1Mt of cement in the first four months of the year. 48% came from Kazakhstan, 27% from the Kyrgyzstan, 23% from Tajikistan and 1% from both Iran and Turkmenistan.

The latest piece of China-based Huaxin Cement’s global ambitions slotted into place this week with the news that it is preparing to buy plants in Zambia and Malawi. Its board of directors has approved plans to spend US$150m towards acquiring a 75% stake in Lafarge Zambia and US$10m on a 100% stake in Lafarge Cement Malawi. The move will gain it two integrated plants with a combined production capacity of 1.5Mt/yr in Zambia, and a 0.25Mt/yr grinding plant in Malawi.

This latest proposed acquisition represents the next step for Huaxin Cement in Africa following its purchase of African Tanzanian Maweni Limestone from ARM Cement in mid-2020. The company has also been busy along the more traditional Belt and Road Initiative land routes in Asia. It started up the kiln at its new 2Mt/yr Jizzakh cement plant in mid-2020. Elsewhere in Central Asia it runs two plants in Tajikistan and one plant in Kyrgyzstan via various indirectly-owned subsidiaries. While in South Asia it runs a plant in Nepal and in South-East Asia it runs one in Cambodia. If the plans in Zambia and Malawi pay off then it will give the Chinese producer a growing presence in East Africa, with plants in three countries.

The China Cement Association ranked Huaxin Cement as the country’s fifth largest clinker producer in 2021 with an integrated capacity base of just under 63Mt/yr. Domestically, the company operates 57 cement plants and most of these are based in the Yangtze River Economic Belt region. In 2020 it reported cement and clinker sales of 76Mt, a small decrease from 2019. Its operating income fell by 6.6% year-on-year to US$4.58bn and profit dropped by 12% to US$1.2bn. This performance was blamed on the emergence of Covid-19 at the start of 2020 and then floods later in the year.

Compared to the other larger Chinese cement producers, Huaxin Cement roughly appears to be holding rank with its overseas expansions. The leaders, CNBM and Anhui Conch, hold subsidiaries with plants in South-East and Central Asia and CNBM’s engineering wing, Sinoma, has a far bigger reach, building plants all over the place. Information has been scarce since mid-2020 on the long heralded 7Mt/yr plant in Tanzania due to be built by Sinoma and local subsidiary Hengya Cement. At that time local residents in Mtimbwani, Mkinga District were reportedly being compensated for their land. Other than this, one of the other big players internationally is Taiwan Cement. In 2018 it invested around US$1.1bn for a 40% stake in Turkey-based Oyak Cement. As well as a presence in Turkey this also gave it a share of plants in Portugal in 2019 when Oyak completed its acquisition of Cimpor.

Elsewhere this week, carrying some of the themes above with expansion in Central Asia, two new integrated cement plant projects were announced in Kyrgyzstan and Turkmenistan respectively. Meanwhile, Italcementi said it will invest Euro5.0m to restart clinker production at its Trentino cement plant in Sarche di Madruzzo, Italy. The unit has been operating as a grinding plant since 2015. This might be viewed as an unexpected decision considering the high local CO2 price but it shows some level of confidence in the local market by Italcementi and its parent company, HeidelbergCement. The next step will be when or if a European producer decides to build a brand new integrated plant in Italy or elsewhere.

Uzbekistan: Cyprus-based Lamanka Enterprises has acquired an 84% stake in Akhangarantsement. The value of the deal was US$52.5m, according to the Ria news agency. In early March 2021 Russia-based Eurocement put its 84% share in the Uzbek cement producer on sale. The company operates the second largest integrated plant in the country.

Tajikistan: Mohir Cement has commenced operations following an official opening ceremony at its new 0.6Mt/yr integrated cement plant in Jalolidinni-Balkhi district. Local press has reported that the plant will produce M400 and M500 grades of Portland cement for export to Afghanistan and Uzbekistan.

Tajikistan: Tajik cement plants produced 4.2Mt of cement in 2020. Tajikistan Newsline has reported that cement exports for the year were 1.3Mt. Uzbekistan imported 764,000t, Afghanistan imported 505,000t and Kyrgyzstan imported 42,000t. The Tajikistan Ministry of Industry and New Technologies has predicted a 46% increase in cement exports to 1.9Mt/yr by 2023.

Uzbekistan: Germany-based IKN has secured a contract for process integration and equipment design for a new kiln line at Qizilqumsement’s Qizilqumsement cement plant. The supplier’s remit includes the pyroprocessing line, preheater, kiln and cooler including ID fan, kiln drive and burners. It plans to use a six-stage preheater, the region’s first. Commissioning is scheduled for 2022.

Uzbekistan: The government has suspended tariffs on cement imports from all countries until 1 October 2021. The UzDaily newspaper has reported that the suspension is part of a raft of measures aimed at ‘providing the population with housing’ by bolstering construction. The measures consist of funding for multi-story housing developments, a separate trading exchange for cement and the roll-out of a new standard design for residential buildings from 1 May 2021.