Ethiopia: China-based China National Building Material (CNBM) and its engineering subsidiary Sinoma International have expressed interest in investing in the local cement sector. The comments were made in a meeting with Tefera Derbew, Ethiopia’s ambassador to China, and Liu Yan, an executive director of CNBM and the chair of Sinoma International, according to Fana. During the gathering Derbew noted Sinoma’s contribution so far towards helping build cement plants in the country. CNBM has accepted an invitation to participate in the Invest Ethiopia forum taking place in Addis Ababa in late April 2023.

Kenya: A court has prevented the takeover of a US$47.8m parcel of land belonging to East African Portland Cement Company (EAPCC) by the government. The court found that the government had not followed proper consultation processes. The East African newspaper has reported that the government had already concluded a deal with China and Oman-based investors for affordable property developments on the land.

EAPCC says that it now plans to use the site to build its own green smart city. The cement producer says that this will help to diversify its income streams.

Russia/Uzbekistan: The US Department of State has imposed sanctions upon USM Holding including its subsidiaries Akkermann Cement and USM Cement in Russia, and Akhangarancement in Uzbekistan. The action is intended to target company owner Alisher Burhanovich Usmanov and his various business interests. Other USM companies in the iron, steel, copper, gold, telecommunications and real estate sectors are also affected.

The US Department of the Treasury’s Office of Foreign Assets Control noted that Usmanov was, “one of Russia’s wealthiest billionaires, with vast holdings across multiple sectors of the Russian Federation economy as well as internationally.” It added that he was linked to multiple senior Russian officials, including Russian President Vladimir Putin as well as Dmitry Medvedev, current Deputy Chairman of the Security Council of Russia and former President and Prime Minister of Russia. Usmanov has also been sanctioned by Australia, Canada, the European Union (EU), Japan, New Zealand, Switzerland and the UK.

These latest US sanctions are in response to the Russian invasion of Ukraine in February 2022. Companies on the sanction list are forbidden to conduct business transactions with any US citizens.

Akkermann Cement operates two cement plants and a network of 12 terminals in Russia. It acquired a majority stake in Uzbekistan-based Akhangarancement in early 2022.

Paraguay: Industria Nacional del Cemento (INC) is investigating the large-scale theft of cement from its plants involving company employees. Company president Ernesto Benítez told local radio that at least 10 workers had been stealing around 600 bags of cement on average five times a week to a value of around US$21,000/week, according to the Ultima Hora newspaper. They had been using the company computer system to hide their activities. However, the theft was discovered when company officials noticed that the number of trucks recorded leaving the plant concerned did not match CCTV footage.

Staff members so far found to be part of the fraudulent activity include those working in cargo dispatch, bagging, security and refuse collection. They have all been removed from duty. However the investigation continues and more perpetrators may be found.

Russia: Cemros has started a US$3m upgrade project on cement mill five at its integrated Katavsky plant near Chelyabinsk. The work will see the introduction of a new closed-loop system with a separator. Following its installation, the mill will have a cement output of 114,000t/yr. The upgrade should also deliver an energy saving of up to 30%. Just under half the funding for the project was supplied in the form of a loan from the government. The upgraded mill is expected to be operational in September 2023.

India: JSW Cement was among 20 companies from various industries in attendance at a roundtable discussion on the subject of leveraging clean energy to journey towards net zero on 13 April 2023. The discussion covered a broad range of ways to end the use of fossil fuels, including energy storage and the use of electric vehicles. Press Trust of India News has reported that advanced batteries developer Log9 Materials hosted the event in partnership with networking platform Blue Circle – not to be confused with the former cement producer of the same name. Executive director and chief risk officer Arvind Bodhankar represented Dalmia Bharat, while chief sustainability and innovation officer Manoj Rustagi represented JSW Cement.

India: JSW One Platforms, JSW Group’s online business-to-business sales platform, has raised US$25m through an investment from Japan-based Mitsui Bussan. The business will use the funds to strengthen its market presence and further enhance technology capabilities. It also plans to expand its operations in Northern India, and to invest in credit, logistics and new technologies to improve customer experience. The platform stocks JSW Group subsidiary JSW Cement’s range of cement products. The Times of India newspaper has reported that Mitsui Bussan valued JSW One Platforms at US$336m.

JSW One Platforms CEO Gaurav Sachdeva said “There is a lot of distrust in the space and it’s highly fragmented. We want to be a one-stop shop for micro, small and medium-sized enterprises, with defined service level agreements and deliverables. We will be the fastest in the space to touch US$1bn in gross merchandise value.” Sachdeva added that he expects the platform’s sales to more than double to US$91.6m in the current, 2024, financial year, from US$36.6m in the 2023 financial year.

Huaxin Cement completed its acquisition of a majority stake in Oman Cement this week. The China-based company estimated that the purchase price was around US$193m. Following the transaction with a subsidiary of the Oman Investment Authority, the country’s sovereign wealth fund, the cement producer now controls just under a 60% share in Oman Cement.

A key part of the deal includes Oman Cement’s integrated plant at Ruwi in the north of the country. The three-line unit has clinker and cement production capacities of 2.6Mt/yr and 3.6Mt/yr respectively. With the partial ownership share of 60% taken into account, this places the capacity purchase price at around US$124/t, a lower figure for capacity compared to other international acquisitions.

Oman Cement has a couple of new projects in the pipeline that have been mentioned on and off previously over the last year or so. These include the construction of a new 10,000t/day fourth production line, an upgrade to line 3 to 4000t/day from 3000t/day at present and plans for a new plant at the Special Economic Zone (SEZ) at Duqm. The company said it was looking for a contractor to carry out the upgrades at the Ruwi plant. However, Rashid bin Sultan al Hashmi, the chair of Oman Cement, said in the company’s annual results for 2022 that the Duqm project, operating under the name Al Sahawa Cement, had run into problems with the supply of gas for the proposed unit. Another recent development was the signing of a deal between Omani Environment Services Holding Company (Be’ah) and Oman Cement for the supply of refuse-derived fuel (RDF). As an aside, that last one may also have received a boost this week with the news that the local Environment Authority has suspended licenses for the export of used tyres from the country.

How these existing projects will fare under the new ownership remains to be seen, but Huaxin Cement has a track record for developing new cement production capacity outside of China. The cement producer describes itself as de-facto controlled by Switzerland-based Holcim although Holcim said in its annual report for 2022 that Huaxin Cement is a joint-venture. It currently operates plants in Cambodia, Kyrgyzstan, Malawi, Nepal, Tajikistan, Tanzania, Uzbekistan and Zambia and says that it has 10 additional projects in Africa, the Middle East and elsewhere in preparation for future business expansion. In 2022 it started operating a 3000t/day production line at Nepal Narayani and commenced the second stage of a project to build a 4000t/day clinker line at Maweni in Tanzania. Plus, as mentioned in our recent roundup of China-based producers, 13% of the group’s operating revenue derived from business outside of China in 2022 compared to 8% in 2021.

Other producers from outside of Oman have also been active locally in 2023. In late January 2023 India-based UltraTech Cement agreed a deal to buy a 70% stake in Duqm Cement Project International from Seven Seas for US$2.25m. The agreement covered a limestone mining lease that UltraTech Cement said was important for “raw material security.”

The other big development in the Oman cement market since we last covered the country in September 2021 was an intervention by the Capital Market Authority (CMA) on Raysut Cement. The chief financial officer resigned in November 2022 before the CMA questioned the company’s financial results for the second quarter of 2022. The CMA then replaced the board of Raysut Cement in December 2022 saying it had detected ‘material misrepresentation’ in the company’s third quarter results.

The last four months or so have marked a turning point for the local cement sector with a change in leadership for the two largest producers. Oman Cement reported strong growth in 2022 although it warned of “low priced cement being supplied by competitors.” Raysut Cement, unsurprisingly, recorded a loss in 2022. The construction market in the country is expected to grow as the economy leaves the coronavirus period behind, mounting energy prices boost national revenue and potentially some of this heads into infrastructure development. This puts the new management at both producers in a good position going forward.

Oman: Oman Cement has appointed Xu Gang, Chen Qian, Ian Riley and Li Yeqing as temporary board members following its acquisition by China-based Huaxin Cement. The new personnel will remain in place until the company’s next ordinary general meeting. Former chair Rashid Sultan Al Hashmi and board members Mohammed Sulaiman Al Salmi, Mohammed Abdullah Al Harthi and Sami Abdullah Al Sinani have also resigned.

Li Yeqing is the chief executive officer (CEO), secretary of the party committee and senior engineer at Huaxin Group. He holds a bachelor degree in engineering, a master’s degree in engineering and a Ph.D in business administration. He joined Huaxin Cement in 1987. He also works as the vice chair of the China Building Materials Federation and China Cement Association, and chair of the Hubei Building Materials Federation. He previously held the post of executive vice chair of the Sixth Council of China Building Materials Federation.

Xu Gang is the vice president of the Huaxin Cement. He has worked in various management roles for cement companies such as safety engineer and technical manager. He has also worked as a director for Lafarge and Huaxin Cement. Xu Gang holds a master’s degree in business administration (MBA) from Tsinghua University, a bachelor’s degree in safety engineering from the China University of Geosciences and a bachelor's degree in financial management from the Huazhong University of Science and Technology.

Ian Riley is the head of the World Cement Association. Prior to this, he held various positions such as an executive director of Tianqiao International (Shanghai) Consulting Company, the president of Asilinko Information Technology (Shanghai), the general manager of SIP (Shanghai), Information Director and the assistant and the vice president to the Xeroc. He also served as the head of Holcim Group's China region. Riley holds a bachelor’s and a master’s degree in engineering from the University of Cambridge.

Chen Qian is the vice president and chief financial officer (CFO) of Huaxin Group. Previously he held positions in various financial positions including senior auditor, senior consultant and CFO for several companies. Chan Qian is a Chinese Certified Public Accountant and a fellow member of the Chartered Global Management Accountant. He holds a bachelor's degree in world economics from Fudan University and a master's degree in business administration from the Anderson School of Business in the US.

Mexico: Cooperativa La Cruz Azul has removed director José Alfredo Álvarez Cuevas from his position and terminated his membership in the cooperative. ESPN News has reported that Mario Sánchez Álvarez, Eduardo Borrell Rodríguez and Ramsés Dolores Anguiano also received exclusions from the cement company.

Cooperativa La Cruz Azul’s ordinary general assembly established that the four former employees had ‘improperly exercised their positions’ and ‘availed themselves to commission of acts of corruption.’