Global Cement News

Tajikistan: The government has supported a new cement plant project to be built in the Surxondaryo Region. The unit will be financed by private investors, according to Uzbekistan Newsline. Several new cement plants are planned locally including a 2.4Mt/yr integrated project from Russia’s Eurocement Group with an investment of US$220m and two Chinese-backed projects. Xin Lei is planning to build a 1Mt/yr plant for US$108m in the Akhangaran region. Akhangaranshifer also wants to build a 1Mt/yr plant for US$100m.

Central America: Denmark’s FLSmidth has been awarded two contracts for cement plants worth over Euro250m. One deal is for a new plant and the other is for an expansion to an existing site. The expected start-up for each project is by mid-2021 and once operational, the cement plants will have a capacity of 2000t/day and 3500t/day respectively.

Both contracts include design and engineering, equipment supply, automation systems, training as well as advisory services for installation and commissioning. Each project is also dependent on FLSmidth receiving an agreed down payment before work can commence.

Paraguay: Industria Nacional del Cemento’s (INC) has officially inaugurated a second cement mill at its Villeta plant. The state-owned cement producer spent US$12m on the upgrade, according to the Agencia de Información Paraguaya. The new mill was built by China’s Sinoma. It has a cement production capacity of 80t/hr or be able to produce around 800,000 bags/month of cement. INC also plans to start operating a pozzolan drying unit at Villeta in September 2018.

US: The Federal Trade Commission (FTC) has approved a final order settling changes for Ireland’s CRH acquisition of Ash Grove Cement following a period for public comment. The FTC issued its consent for the transaction in June 2018 on the condition that CRH sell the Three Forks cement plant in Montana to Mexico’s Grupo Cementos de Chihuahua (GCC).

Also under the settlement, because the CRH cement plant in Montana currently sells a significant amount of cement into Canada through two CRH terminals in Alberta, GCC will have the option to use those terminals for three years. CRH also has agreed to purchase, at GCC’s option, cement produced at the plant for distribution in Canada for up to three years. The FTC also forced CRH to sell other assets in Montana, Nebraska and Kansas.

Canada: The government has made a proposed new carbon tax easier for large-scale industrial emitters such as cement and steel producers. Originally the new legislation proposed imposing a levy on around 30% of a company’s CO₂ emissions from the start of 2018, according to the Globe and Mail newspaper. However, the revision has reduced the tax on so-called vulnerable industries with the cement and steel sectors only having to pay 10%. The levy will start at US$15/t in January 2018, rising to around US$40/t in 2022.

The decision to soften the carbon tax follows lobbying by the affected industries. The tax applies to provinces that do not have existing carbon emission controls, such as cap-and-trade schemes, that meets the central government’s standards. The provincial government of Ontario, which contains six of the country’s 17 integrated cement plants, recently decided to leave its own carbon pricing system. It will be subject to the new rules. Saskatchewan will also be affected.