Cuba: Corporación Cementos Cubanos’ has resumed production once more at its Siguaney integrated cement plant in Sancti Spíritus Province. The plant was closed for the last seven months of 2022 due to technical issues. Escambray News has reported that plant manager Gonzalo Reina Aguilar said that imported refractory bricks proved crucial to the successful repair operation. Reina Aguilar also noted a ‘better energy situation’ in the country, ensuring the plant of its ‘necessary allocations’ in future.
Corporación Cementos Cubanos hopes that the return of the Siguaney plant to regular operations will help to ease a shortage of cement in Sancti Spíritus and neighbouring Ciego de Ávila.
Lehigh Hanson rebrands as Heidelberg Materials North America
Canada/US: Lehigh Hanson has rebranded as Heidelberg Materials North America, with immediate effect. The cement producer said that the new brand reflects its broad, innovation-driven approach to becoming the North American industry leader in sustainability and digital solutions.
President and chief executive officer Chris Ward said “This is a major step change for our company, both globally and here in North America. We are thrilled to begin this transformation in North America today, and continue our global journey to grow our business beyond cement and aggregates and become the most sustainable company in the sector.”
Pakistan: Lucky Cement commenced clinker production from a new 3.15Mt/yr kiln line at its Pezu integrated cement in Khyber Pakhtunkhwa in late December 2022. This latest expansion increases the producer’s domestic production capacity by 26% to 15.3Mt/yr, from below 12.2Mt/yr earlier in 2022. The company also operates cement plants in Democratic Republic of Congo and Iraq with an additional capacity of 4.4Mt/yr.
The International News newspaper has reported that Lucky Cement anticipates domestic cement demand to grow due to the rebuilding of homes destroyed by flooding in 2022.
India: Three cement producers plan to establish new plants in Shankragarh, south of the River Yamuna in Uttar Pradesh’s Prayagraj District. The Uttar Pradesh State Industrial Development Authority said that JK Cement has signed a memorandum of understanding for the construction of a 2.5Mt/yr grinding plant, according to the Hindustan Times newspaper. Eco Cement plans to build a 4Mt/yr grinding plant, and KJS Cement a 2Mt/yr cement plant. All three companies have applied for no-objection certificates from the Uttar Pradesh Pollution Control Board.
Vietnamese coal consumption forecast to grow
Vietnam: Vietnam National Coal and Mineral Industries Group (Vinacomin) has forecast 6.1% three-year growth in national coal demand to 115Mt in 2025 from 108Mt in 2022. Four main industries – cement, fertilisers, metal and power generation – are expected to retain over 90% of the combined share of domestic consumption. Vinacomin expects national coal production to increase by 1.3Mt/yr over the period, retaining a 40 – 45% stake in the domestic market. Five-year consumption of imported lignite is forecast to rise to 70 – 75Mt throughout the period up to 2026.
Melón reports fire at Puerto Ventanas port
Chile: A fire at Sites 1, 2, 3 and 5 of Puerto Ventanas port in Valparaíso Region has disrupted clinker transportation to Melón’s Puerto Ventanas cement plant. The La Tercera newspaper has reported that the fire destroyed a clinker conveying system connecting the port to the cement plant. The producer expects the damage to ‘significantly impact’ its cement production capacity for a period which it is ‘not yet possible to specify.’
Melón said, “We have deployed contingency and operational continuity plans in order to ensure our supply to our customers." It added that it could not yet quantify the ultimate impacts on its assets, liabilities or results.
Lucky Cement mourns death of chair Muhammed Yunus Tabba
Written by Global Cement staffPakistan: Lucky Cement announced the death of Muhammed Yunus Tabba ‘with deep sorrow and grief’ on 3 January 2023. At the time, Tabba was serving as chair of the company’s board and as a non-executive director of the company.
Lucky Cement instructed investors that it will fill Tabba’s former roles ‘in due course, as per the requirement of law.’
Lafarge Zimbabwe divestment stalled by US sanctions
Zimbabwe: A deal by Fossil Mines to buy a 76% stake in Lafarge Zimbabwe has been stalled by the introduction of economic sanctions by the US Office of Foreign Asset Control (OFAC). In mid-December 2022 OFAC added Fossil Agro, Fossil Contracting and the group’s chief executive officer, Obey Chimuka, to its Specially Designated Nationals (SDN) list due to alleged links to a previously sanctioned individual, Kudakwashe Tagwirei, and his company, Sakunda Holdings.
OFAC said that Tagwirei had “materially assisted, sponsored, or provided financial, material, logistical, or technical support for, or goods or services in support of, the Government of Zimbabwe.” It accused him of using his relationships with government officials to gain state contracts, to receive access to currencies including the US Dollar and of supplying luxury items such as cars to ministers. It added that Chimuka was a “longtime business partner” of Tagwirei. Fossil Agro was also linked to a mismanaged agricultural subsidy scheme.
In a statement Lafarge Zimbabwe said that it was “considering various courses of action with a view to protecting the business and the interests of all stakeholders.” The deal to sell a majority stake in the subsidiary of Switzerland-based Holcim was originally finalised in early December 2022.
Ethiopian government intervenes on cement prices
Ethiopia: The Ministry of Trade and Regional Integration (MOTRI) says it will regulate cement factory gate prices in its latest attempt to lower the price for end users. It has set the price from 22 December 2022 for six months, according to the Capital Ethiopia newspaper. This latest attempt to stabilise the market follows measures such as setting fixed consumer prices, limiting sales volumes for individuals and asking producers to cut distributors out of the supply chain. However, Teshale Belhu, the state minister for the MOTRI, admitted that recent control measures had made the situation worse and increased the number of illegal traders instead. The government now intends to reduce its interaction in the cement market.
The country has suffered from a cement shortage since 2020 due to low domestic production levels. This has been exacerbated by security issues, a lack of raw materials and a shortage of foreign currency.
Russia: Eurocement has revealed how it reorganised its business in 2022 in response to foreign equipment suppliers leaving the country and disruptions to domestic supplies of raw materials. The cement producer was forced to take this action in response to the effects of European and US economic sanctions imposed upon Russia following its invasion of Ukraine in February 2022. The cement producer started logging all purchases as prices escalated, special procedures were developed for critical materials and services, a compliance department was created, its network of suppliers in Russia and from countries not part of the sanctions was expanded and the company set up its own repair units at its plants.