Displaying items by tag: lobbying
Cembureau welcomes EU CBAM agreement
19 December 2022Europe: Cembureau has welcomed a satisfactory conclusion to talks over the new Carbon Border Adjustment Mechanism (CBAM) under the European Union (EU) Emissions Trading Scheme (ETS). Negotiators from different EU institutions agreed to a gradual CBAM implementation, which will officially commence in October 2023. Free allocations of ETS credits to the EU cement sector and other industries will phase out between 2026 and 2034. During this transition period, CBAM duties will apply to imported products in proportion to EU production not covered by free allocation.
Cembureau's chief executive Koen Coppenholle said “The agreements on CBAM and ETS are essential to create a global level playing field on CO2 and support our sector in its transition to carbon neutrality. It is positive that the EU institutions strengthened some key aspects of CBAM. We however regret that the adopted texts do not provide a structural solution for exports. Some EU countries export up to 50% of their domestic cement production and these will be at risk should no concrete export solution be found before 2026.”
Coppenholle added “Looking ahead, we need to focus on CBAM implementation and its water-tightness, to ensure the mechanism fully equalises CO2 costs between EU and non-EU suppliers. It is also essential that policymakers support EU industries like cement, which are confronted with unsustainably high energy costs at a time some of our trading partners are launching massive subsidy programmes. CBAM, ETS and a strong innovation fund are essential parts of the puzzle, but we look forward to European Commission proposals for a truly ambitious industrial policy, as requested by the European Council in its meeting of 15 December 2022.”
Vietnam National Cement Association lobbies against power price rise
15 December 2022Vietnam: The Vietnam National Cement Association (VNCA) has spoken about the difficulties that would arise from a proposed power price rise by state-owned Electricity Vietnam (EVN). VNCA chair Nguyen Quang Cung said that cement producers foresee 'business havoc' ensuing from any further cost increase to their operations. The industry says that reduced demand has prevented them from raising cement prices amid already high costs. Coal price growth is a significant contributor, and now accounts for 60% of the industry's operating expenses.
Cung said "Many companies are suffering losses and have suspended the operations of many production lines." He continued "We understand that EVN is claiming force majeure because they face the same challenge relating to the input cost burden."
Bangladesh Cement Manufactures Association demands withdrawal of increase to limestone import duty
14 December 2022Bangladesh: The Bangladesh Cement Manufactures Association (BCMA) has demanded that an additional 30% increase to import duties on limestone be removed. A supplementary duty was introduced in November 2022 when the National Board of Revenue (NBR) changed the way limestone was coded in response to a significant increase in imports since 2020, according to the New Nation newspaper. Previously limestone importers were paying a duty US$7.80/t. Now they are reportedly paying US$14.60/t.
The BCM wrote to the NBR about the issue in mid-November 2022. BCMA president Alamgir Kabir renewed his association’s lobbying to remove the additional duty at a press conference held in mid-December 2022.
Peru: Cemento Gloria subsidiary Cemento Yura's Yura cement plant has allegedly been the source of intermittent dust emissions, water contamination and destructive vibrations during its 50 years of operation. In May 2022, local authorities declared four houses uninhabitable due to cracks in walls and roof collapses. Local people have attributed the damage to the vibrations from the Yura cement plant's activities. In November 2022, local water supply is unavailable for over 40 minutes every day, allegedly also due to the plant's operations.
The La República newspaper has reported that Yura residents have launched a protest against the alleged environmental mismanagement outside of the company's plant.
South Korean cement production may shut down from 5 December amid truck driver strike
28 November 2022South Korea: Cement producers say that an on-going truck drivers' strike will force them to suspend production from 5 December 2022 if it continues for another week. Yonhap English News has reported that Industry Minister Lee Chang-Yang spoke to industry representatives on a visit to Asia Cement's Jecheon cement plant in Chunbuk. The cost of missed deliveries after four full days of the strike on 28 November 2022 was US$34.6m.
Mineral Products Association makes five new appointments
23 November 2022UK: The Mineral Products Association (MPA) has appointed Jon Flitney, Michael Conroy, Liam Forde, Steve Callow and Mike Haynes to new roles at the organisation. This follows the appointment of Jon Prichard as the MPA’s chief executive officer in October 2022, succeeding Nigel Jackson.
Jon Flitney has joined MPA Cement as Energy and Climate Change Manager. He will be working with the MPA Cement Climate Change and CO2 Reduction group providing support to sector decarbonisation and associated policies. Flitney joins from the British Ceramic Confederation (BCC) where he has worked across energy, environment, climate change and decarbonisation policy areas for over six years. He also previously worked on air quality and environmental protection for local authorities and the Environment Agency, covering a variety of manufacturing industries.
Michael Conroy joins as Manager - Environment, Safety & Regulatory Affairs for MPA Cement. He has over 20 years’ experience in the mineral products industry and ,since 2016, this has been focussed on environmental management, compliance, permitting and regulation across various sectors within the industry. His role at MPA involves working with members in the cement sector and liaising with the environmental regulators and relevant government departments on behalf of the members to ensure the sector is recognised in a positive and beneficial way. He is secretariat for the Cement Regulatory Interface Group (RIG), which meets regularly to discuss environmental regulatory matters that affect and impact the UK cement sector.
Liam Forde has joined BRMCA/MPA Ready-mixed Concrete as Construction Manager. His main responsibilities will be working with MPA members, the Concrete Centre and UK Concrete to promote safety, best practice, and ready-mixed concrete as the best solution for sustainable and resilient construction. Forde is a chartered civil engineer and joins from BAM Nuttall having had a background in both design and site environments.
Steve Callow has joined as Manager, Masonry and Concrete Products. He joins from Marshalls where he was Specification Manager. He also has sector experience gained from roles in FP McCann, CPM, Milbury Systems and Carillion.
Mike Haynes has joined MPA as British Lime Association Director. He joins MPA after 18 years in the lime industry working in the sales and customer services teams responsible for Construction and Civil Engineering markets and progressing to managing the customer services team. Prior to this, Haynes worked for contractors and consultants in those markets, as an engineer and project manager.
Pakistan Association of Builders and Developers alleges cement industry cartelisation
22 November 2022Pakistan: The Association of Builders and Developers (ABAD) has accused cement producers of cartelisation and called on the government to take 'stern action' following a rise in cement prices. The Business Recorder newspaper has reported that builders believe that the rise does not reflect trends in local raw materials and imported coal prices. Additionally, it comes in spite of a drop in cement demand.
Udayapur Cement seeks US$3.82m government loan
24 October 2022Nepal: Udayapur Cement has urged the Nepalese government's Ministry of Finance to process its application for a loan of US$3.82m. The Kathmandu Post newspaper has reported that the producer plans to invest in an upgrade to its 800t/day-capacity Gaighat cement plant in Province No.1. The plant is reportedly unable to meet its capacity due to frequent issues with its 33-year-old equipment. The producer hopes that an upgrade will increase the plant's production capacity by 41% to 2.5m bags/yr. It also expects its expenditure on coal to fall by 25% as a result.
Director general Gopi Neupane noted the Gaighat cement plant's access to high quality limestone not available elsewhere in the country. He said "We will turn the factory into a profit-making enterprise if the additional investment is provided. We have huge scope for exporting cement to Uttar Pradesh and Bihar (in India)."
Update on the Philippines, October 2022
12 October 2022Cement imports are back on the agenda this week in the Philippines with the news that the Tariff Commission has backed repealing the duties currently being implemented. If it’s anything like what happened last time, back in 2019, the commission’s opinion will once again be passed back to the Department of Trade and Industry (DTI) for the final decision. The safeguard measure the commission wants to cut covers Ordinary Portland Cement (OPC) and Blended Cement. It summarised the situation as follows, “There is no existence of an imminent threat of serious injury and significant overall impairment to the position of the domestic cement industry in the near future.”
The commission reviewed the sector between 2019 and 2021 and concluded that the domestic cement industry maintained its market position, increased its mill capacities, stabilised its manufacturing costs and improved its profitability. It found that local producers recovered their profits in 2021, following the coronavirus pandemic. It also noted that imports continued to rise whilst the safeguard measure was in force. Volumes of imported OPC and blended cements increased at levels above 10% year-on-year in both the 2019 – 2020 and 2020 – 2021 periods. They also rose by 7% year-on-year to 3.51Mt in the first half of 2022 compared to the half-year average from 2019 - 2021. In the commission’s view, relaxing the duties on imported cement would slow price rises for both locally produced and imported cement leading to an overall national economic benefit.
Local cement producers in the Philippines are likely to be unhappy with the Tariff Commission’s recommendation. The Cement Manufacturers Association of the Philippines (CEMAP) spent the summer of 2022 lobbying for the safeguard measure to be extended past October 2022. It too pointed out that imports of cement had continued to grow even whilst the increased duties had been levied from 2019. A few days before the commission’s decision was published, APO Cement said that it had temporarily suspended operations at its Davao terminal. The subsidiary of Cemex Philippines blamed imports of cement, particularly from Vietnam, for the decision.
Yet, the local sector has been active over the last year with a number of capacity upgrades being launched or underway. In January 2022 the government gave tax breaks to San Miguel Equity Investments for the construction of a 2Mt/yr cement plant in Mindanao. In February 2022 San Miguel subsidiary Southern Concrete Industries said it was doubling the capacity of an upgrade to its grinding plant at Davao del Sur, with initial commissioning planned in mid-2022. Meanwhile, Solid Cement’s upgrade of a new production line at its integrated plant in Antipolo, Rizal, has been ongoing since it officially started in 2019. The current commissioning date for the subsidiary of Cemex is now expected in early 2024. In August 2022 Taiheiyo Cement Philippines held a groundbreaking ceremony for the start of construction of a new production line at its integrated San Fernando plant in Cebu. The US$85m project is due to be commissioned in mid-2024. Finally, importer Philcement revealed in late September 2022 that it had taken out a US$1.73m loan for an expansion and upgrades to its Mariveles cement terminal in Bataan.
Holcim Philippines’ president and chief executive officer Horia Adrain told local press in July 2022 that the cement sector was continuing to recover in 2022, following the coronavirus pandemic in 2020, but that the pace would be slower. And so it proved, with reduced revenue, earnings and profits reported by Holcim for the first half of 2022. Costs rose due to higher fuel and energy prices like elsewhere in the world but a construction ban in connection with the presidential election in May 2022 didn’t help either. Both CRH and Cemex Philippines reported a similar situation in their financial results. However, Eagle Cement did manage to raise its revenue in the same period.
The Tariff Commission has been explicit with its opinion about the impact of imports upon the local cement sector. Investment by the local producers has been forthcoming with a number of new plants and upgrades on the way. Finally, despite the market recovering since 2020, there has been less growth in the first half of 2022 due to global energy prices and the country’s elections. This last point has handed a gift to the cement producers as any further reductions in growth can be blamed on imports, whether it is connected or not. One thing is certain, if or when the safeguard measures are lifted, then the regular calls to restrict imports will resume just like they did prior to 2019.
Pakistan: Pakistani cement companies sold 9.61Mt of cement during the first quarter of the 2022 financial year, down by 25% year-on-year from 12.8Mt in the first quarter of the 2021 financial year. Exports declined by 34% to 1.01Mt of cement, from 1.55Mt. The All Pakistan Cement Manufacturers Association (APCMA) said that current economic conditions impacted both domestic and export sales.
Separately, the APCMA has expressed its concern over State Bank of Pakistan limits on the use of letters of credit by companies for the purchase of spare parts and other machinery. The association says that present restrictive conditions will create operational difficulties for the industry.