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19 June 2019

Rwandan government puts stake in Cimerwa on sale

Rwanda: The Rwandan government has started to sell its stake in Cimerwa. It holds a 16.5% stake in the cement producer via the Agaciro Development Fund, Rwanda's Sovereign Wealth Fund, according to the New Times newspaper. Other shareholders, including SORAS Group, Rwanda Social Security Board (RSSB), and Rwanda Investment Group (RIG), have also expressed interest in selling their shares, making a total of 49% of shares available. The government originally intended to start the sale in March 2019. Potential buyers have until 5 July 2019 to register their interest.

Cimerwa produced 0.36Mt of cement in 2018, a figure well below its production capacity of 0.6Mt/yr. However, the country imported 0.32Mt of cement in 2018 to meet local demand. The company has also made a loss in recent years. The integrated plant is run by South Africa’s PPC, which has a majority stake in the firm.

Published in Global Cement News
Tagged under
  • Rwanda
  • Government
  • Cimerwa Cement
  • Sale
  • Stake
  • PPC
  • Agaciro Development Fund
  • SORAS Group
  • Rwanda Social Security Board
  • Plant
  • Rwanda Investment Group
  • GCW410
19 June 2019

Electricity rationing restricting cement production in Ethiopia

Ethiopia: Electricity rationing has been restricting the production of cement companies since it started in April 2019. Under a program implemented by Ethiopian Electric and the Ministry of Water and Energy, cement producers are only allowed to operate for 15 days per month, according to the Reporter newspaper. They say this has increased their production costs because cement production is a continuous process that requires start up and stoppage time. The Ministry of Trade has asked that cement producers do raise the price of cement despite the increase in production cost. Input and transport costs have also risen.

“There is a huge waste of resources when we start up and stop running our plant. Continuous production has cost benefits. We spend 24 hours warming up the plant. There is wastage of coal and electric power,” said Mesfine Abi, the chief executive officer (CEO) of Habesha Cement. He added that the company is facing growing maintenance costs as its machines fail to cope with repeated power cuts.

The national electricity power restrictions have been caused by water shortages at hydroelectric dams. Rainwater has started flowing back in the dam reservoirs but power rationing is not expected to be rescinded until early July 2019.

Published in Global Cement News
Tagged under
  • Ethiopia
  • Electricity
  • GCW410
  • Ethiopian Electric
  • Ministry of Water and Energy
  • Ministry of Trade
  • Plant
  • Dangote Cement Ethiopia
  • Habesha
  • hydroelectric
  • Government
19 June 2019

Sinai Cement starts production efficiency plans

Egypt: Sinai Cement has started implementing its plans to improve its production efficiency. Vicat Egypt, one of the owners of the company, plans to invest Euro30m into its subsidiary. It has already granted Sinai Cement a loan of Euro10.6m and the cement company received a first tranche of Euro2.6m in April 2019.

Published in Global Cement News
Tagged under
  • Egypt
  • Sinai Cement
  • Investment
  • VICAT
  • Loan
  • GCW410
18 June 2019

Tourah Cement stops production due to oversupply

Egypt: Tourah Cement says it has stopped production due to a financial crisis caused by oversupply in the local market. Jose Maria Magrina, the managing director of Tourah Cement, told employees in mid-June 2019 that production would be stopped temporarily as it couldn’t cover its costs, according to Mist News. Estimated national cement consumption is 50Mt/yr but total production capcaity is 85Mt/yr.

In a statement the subsidiary of Germany’s HeidelbergCement said that new plants had forced producers to lower prices below the cost of production. It has also blamed higher fuel prices due to a cut in government subsidies.

Published in Global Cement News
Tagged under
  • Egypt
  • Tourah Cement
  • HeidelbergCement
  • Plant
  • Closure
  • Overcapacity
  • Government
  • Fuel
  • GCW410
18 June 2019

Dangote Cement to open terminals in Lagos and Port Harcourt

Nigeria: Dangote Cement plans to open terminals at Lagos and Port Harcourt to export clinker to its grinding plants in West Africa. Chairman Aliko Dangote made the announcement at the company’s annual general meeting, according to the Punch newspaper. At present it exports 1Mt/yr, although it could export up to 8Mt/yr to generate up to US$700m in revenue. Group chief executive officer (CEO) Joseph Makoju it is a ‘major priority’ for Dangote Cement to replace non-African imports in Cameroon, increase foreign revenue and raise the capacity utilisation of its Nigerian plants.

Published in Global Cement News
Tagged under
  • Nigeria
  • Dangote Cement
  • Terminal
  • Cameroon
  • Export
  • Clinker
  • GCW410
18 June 2019

Vietnamese cement producers report coal shortages

Vietnam: Cement producers including Vissai Cement and the Vietnam Cement Industry Corporation (VICEM) have reported difficulties in buying coal domestically. Hoang Manh Truong, the chairman of Vissai Cement, said that the company mostly used imported coal in 2018 and this experience has been mirrored by VICEM, according to the Viet Nam News newspaper. The situation has been blamed on a sharp rise in local demand due to new cement plants and no new coal mines.

Published in Global Cement News
Tagged under
  • Vietnam
  • Coal
  • Vissai
  • VICEM
  • Vietnam Cement Industry Corporation
  • GCW410
18 June 2019

Cartes Group fined for cutting trees at site of planned cement plant

Paraguay: Cartes Group has been fined US$79,500 for cutting down trees near San Lazaro, Concepción where it is planning to build a new cement plant. It will also have to pay US$1.8m towards gaining environmental certificates for the project, according to the ABC Color newspaper. Cartes Group purchased Calera Risso, the company planning to build the new unit, in late 2018.

Environmental studies at the site have also noted caves that should be protected including the Risso Cavern, where a fossil of a giant sloth was found in 2012. The Paraguayan Federation of Speleology has asked the the Ministry of Environmetnal and Sustainablity (MADES) to safeguard the site that also holds microfossils dating back 550m years.

The Cementos Concepción plant project was announced in early 2019. It intends to build a 1Mt/yr cement plant by 2021 with an investment of US$180m.

Published in Global Cement News
Tagged under
  • Paraguay
  • Cartes Group
  • Plant
  • Cementos Concepción
  • Environment
  • Fine
  • GCW410
17 June 2019

Cement and Concrete Association of Malaysia defends price rises

Malaysia: The Cement and Concrete Association of Malaysia has defended a reported 40% rise in the price of cement due to unsustainable mounting input costs. It said that over the last few years the cement industry had suffered from an increase in cost of electricity, packing materials, imported fuels, raw materials and equipment, according to the Star newspaper. It added that jobs in the sector would be at risk if it did not pass on its costs adequately.

Business representatives have complained about the sudden hike in cement prices. Penang Master Builders and Building Materials Dealers Association adviser Datuk Lim Kai Seng described the sudden increase as ‘unfair.’ Finance Minister Lim Guan Eng also described the situation as unprecedented. He said he would refer the matter to the Domestic Trade, Consumerism and Cooperatives Affairs Minister Datuk Seri Saifuddin Nation Ismail.

Published in Global Cement News
Tagged under
  • Malaysia
  • Cement and Concrete Association of Malaysia
  • Price
  • Government
  • GCW410
17 June 2019

Bolivian government to further prioritise use of locally produced cement

Bolivia: The Bolivian parliament has approved draft legislation prioritising the use of locally produced cement by local government and state-owned companies for infrastructure projects and road construction. The law will support the opening of two new cement plants at Potosí and Oruro in late 2019, according to El Potosi. The new rules further extend a decree announced in March 2019.

Published in Global Cement News
Tagged under
  • Bolivia
  • Government
  • Plant
  • ECEBOL
  • Empresa Publica Productiva Cementos de Bolivia
  • Roads
  • Infrastructure
  • GCW410
17 June 2019

Cosco Group signs logistics deal with Anhui Conch

China: Cosco Shipping Bulk, part of Cosco Group, has signed a strategic deal with Conch Logistics, the logistics subsidiary of Anhui Conch. The agreement will see the two companies jointly develop in the cement logistics sector, according to Asia Shipping Media. In December 2018 Anhui Conch ordered four 12,500DWT bulk carriers from the Jiangdong Shipyard with delivery scheduled in 2020. Cosco Shipping Bulk operates the largest bulker fleet in the world with total capacity of over 33MDWT.

Published in Global Cement News
Tagged under
  • China
  • Cosco Group
  • Anhui Conch
  • Shipping
  • Conch Logistics
  • logistics
  • agreement
  • GCW410
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