Global Cement News

India: High crude oil prices are forcing packaging costs to rise for cement producers. Data sourced from Capitaline shows that Ambuja Cements’ packaging material cost rose by 19% year-on-year in the 2018 financial year, according to the Mint business newspaper. Similarly, Shree Cement’s packaging costs rose by 9%. Both companies use high-density polyethylene bags, which are affected by the cost of oil. Crude oil prices have risen by around 24% to far in 2018 to above US$80/barrel.

Azerbaijan: LafargeHolcim has increased its stake in Holcim Azerbaijan to 76% from 66%. The move followed the decision by the European Bank for Reconstruction and Development (EBRD) to sell its 10% equity stake in the cement producer, according to ABZ News. Remaining shares in company are held by individual shareholders.

Australia: Boral Cement’s proposed 1.3Mt/yr grinding plant at Geelong in Melbourne is expected to be operational by 2020. Construction work on the US$94m unit is planed to start soon, according to the Geelong Advertiser newspaper. The plant will be connected to Lascelles Wharf at the Port of Geelong via a conveyor system.

The cement producer and the port have signed a 25-year agreement supporting the facility. Boral has operated at the port for the last seven years. The new grinding plant is intended to allow Boral to reduce the cost and time of transporting its products from its Waurn Ponds plant. It will also support an anticipated growth in infrastructure demand in Victoria.

Yemen: Saudi Arabia’s Al Jouf Cement says it has completed its first export to Yemen. It transported 9000t of cement. The financial impact of the shipment will be recorded in its financial report for the third quarter of 2018.

Tanzania: Energy minister Medard Kalemani has inaugurated a new natural gas connection project to Dangote Cement’s plant at Mtwara. The project is being implemented to two phases with a new power plant planned that will generate up to 45MW, according to the Tanzanian Guardian newspaper. The upgrade will cost around US$875,000. Phase two of the project will see the construction of a 2.7km pipeline to the cement plant as well as supporting infrastructure. This is expected to be completed by the end of October 2018. Using natural gas is expected to significantly reduce the running costs of making the cement, which has been using diesel generators.