Displaying items by tag: lobbying

Sri Lanka: The National Construction Association of Sri Lanka (NCASL) claims that no quality control checks are being conducted on imports of cement. The association says that there are labels printed on cement bags confirming that they were quality checked by the Sri Lanka Standard Institute (SLSI) but that it has no evidence of such checks actually being carried out, according to the Sri Lankan Daily Mirror newspaper. It has asked for the authorities to show evidence that the quality control checks are actually taking place.

Sri Lanka faced a shortage of cement in the autumn of 2021 due to input cost rises, supply chain disruption and negative exchange rates effects. The NCASL reports that most cement imports come from India or Pakistan.

UK: British Precast, whose members include manufacturers of concrete masonry, paving slabs, structural sections and drainage systems, has merged with the Mineral Products Association (MPA) which represents all the UK’s cement makers, over 90% of aggregates producers and more than 70% of ready-mixed concrete suppliers. The merger is intended to give the British concrete industry a single voice, with the sector’s advocacy body, UK Concrete, lobbying on behalf of the sector on sustainability issues. It should also unite the industry behind the ‘Roadmap to Beyond Net Zero’ plan by 2050.

Alan Smith, who retires as President of British Precast, said, “British Precast has been affiliated with the MPA for the past decade and the successful relationship we have built has given our members the confidence to fully support this merger. Coming together enables the industry to operate more strategically, rejuvenating our determination to rise to the challenges of climate change and emphasise the importance of our industry in climate adaptation.”

Two new MPA product groups have been formed as a result of the merger: MPA Precast and MPA Masonry. They join existing MPA product groups including The Concrete Centre and the British Ready-mixed Concrete Association (BRMCA).

Europe: Cembureau, the European cement association, has calculated that if the European Union (UN) emissions trading scheme (ETS) CO₂ cost reaches Euro90/t then this could represent 12 - 15% of the production costs of cement producers. The association made its calculation for an average cement plant in the region using data from Ecorys, WIFO, the National Institute of Economic and Social Research for the EU Commission and Agora Energiewende.

Cembureau has called for the EU government to delay its proposed ETS free allocation phase-out and to bring forward the implementation of its proposed carbon border adjustment mechanism (CBAM) from 2026. It has called on policy makers to ‘use all the tools available to stabilise market prices, support energy intensive industries through state aid and examine the functioning of the European gas and electricity markets, as well as the EU ETS.’

Europe: Cembureau has announced the launch of its Map of Innovation Projects interactive map. The feature maps past and current sustainability-enhancing projects at European cement plants. It currently displays a total of 53 different projects. It is available here.

Kenya: Cement companies are in the process of expanding their total clinker production capacity by 70% to 10.7Mt/yr by 2023 from 6.3Mt/yr. The Business Daily newspaper has reported that six producers – Bamburi Cement, East African Portland Cement Company (EAPCC), Karsan Ramji & Sons, National Cement, Rai Cement and Savannah Cement – will add a total of 4.4Mt/yr to their clinker capacities.

Global Cement News previously reported that Kenya faced a 3.3Mt/yr national clinker shortage on 13 October 2021. Domestic producers are in the process of lobbying the government to raise the duty on imports of clinker to 25% from 10%.

Finland: Wärtsilä’s sales fell by 6% year-on-year to Euro3.18bn in the first nine months of 2021 from Euro3.39bn in the corresponding period of 2020. It increased its order intake by 11% to Euro3.58bn from Euro3.24bn. The company’s cash flow from operating activities fell by 12% to Euro360m from Euro407m. It expects that demand for its offering will increase ‘considerably’ year-on-year in the fourth quarter of 2021.

The supplier announced that it will aim to achieve carbon neutral operations and to provide a product portfolio which will be ready for zero carbon fuels by 2030. It published a report entitled Front Loading Net Zero on how production economies can make savings while managing the renewable energy transition. The report concludes that full decarbonisation before 2050 will be financially viable if properly supported by governments and energy companies.

President and CEO Håkan Agnevall said “These new targets demonstrate our commitment to a sustainable future. Our aim is to support our customers on their decarbonisation. Our products, solutions, and services will meet the stringent environmental requirements, and the fuel flexibility and fuel efficiency of the engines powering these sectors are key to enabling the transformation.” Agnevall added “Naturally, we also need to do our part as an organisation and minimise our own environmental footprint.”

Ghana: Daniel Asenso-Gyembibi, the director of the Building and Road Research Institute of the Council for Scientific and Industrial Research (CSIR-BRRI), has told parliamentarians that the institute’s Pozzolana cement plant needs US$4m to reopen. The unit at Gomoa Mprumem in the Central Region was forced to close due to a lack of private investment, according to the Ghanaian Times newspaper. Asenso-Gyembibi said that CSIR-BRRI had spent around US$250,000m on the project.

Commercial production started at the plant in 2011 with a capacity of around 5000bags/day. However, the unit stopped operation later in the same year due to poor sales and a lack of investment.

Iraq: The Cement Producers Association in Iraq (CPAI) has complained about a government decision to reduce subsidises on fuel for the industry. It has warned that the cut could risk plants closing and cement prices rising, according to the Agence France Presse. The Ministry of Oil raised the price of fuel sold to cement manufactures to US$0.17/l in September 2021 from US$0.10/l litre previously. This followed a rise earlier in 2021. CPAI has warned of ‘enormous losses’ in the sector and has lobbied the government to reverse the decision. It added that producers would have to decide whether to stop production and lay off workers or raises cement prices by at least US$10/t. The subsidised fuel price for cement manufacturers was originally approved in exchange for an agreement to cap the price of cement.

Cameroon: A delegation of LafargeHolcim Maroc Afrique representatives has met Minister of Commerce Luc-Magloire Mbarga Atangana to ask him to raise the legally enacted price of cement. The company says that its subsidiary Cimencam’s costs have risen by US$3.58 – 5.37m due to increased clinker prices. This has reportedly resulted in increased costs per bag of US$2.15.

Mbarga Atanga told the World Trade Organisation that clinker prices doubled and gypsum prices rose by 60%year-on-year in the first half of 2021. The Ministry of Commerce previously raised cement prices in 2011.

Germany: The German Cement Works Association (VDZ) has lobbied national and European Union governments for ‘appropriate and reliable’ framework conditions for the industry’s to realise its sustainability objectives. Its Environmental Data of the German Cement Industry 2020 report set out the sector’s agenda under three overlapping headings: climate neutrality by 2050, preservation of primary raw materials and air pollution control. The VDZ said that government support for the necessary ‘unprecedented’ reduction in CO₂ emissions will be especially vital in the area of renewable power and the creation of a functioning CO₂ infrastructure.

VDZ president Christian Knell said “The often bureaucratic and complex processes involved in approval procedures and applications for funds to finance necessary investments are a cause for concern.”