Global Cement News

China: The merger between China National Building Material (CNBM) and China National Materials (Sinoma) is looking likely to be completed in early May 2018. The companies have issued a scheduled timeline for key events of the withdrawal of Sinoma shares and the implementation of a share exchange. This process is expected to be completed on or around 3 May 2018 with CNBM updating its business registration at the Beijing Municipal Administration of Industry and Commerce as soon as possible thereafter. The merger marks the conglomeration of the leading Chinese cement producer and equipment manufacturer.

Vietnam: Phuc Son Cement is under investigation for exploiting minerals. An inspection report by the State Audit Office has accused the cement producer of using mineral volumes higher than the amount it was licenced for in 1996, according to the Viet Nam News newspaper and Dantri. The report has been passed to the prime minister and the chairwoman of the National Assembly. The company has also been accused of causing pollution from its mining activities and not cooperating with the authorities over the investigation.

The State Audit Office estimates that Phuc Son Cement could face a US$11.7m fine for illegally exploiting natural resources and causing environmental damage. Phuc Son Cement, a joint venture between Taiwan’s Lucky Cement and a local partner, operates one of the largest plants in the country.

India: The National Company Law Appellate Tribunal (NCLAT) has allowed the companies fighting to buy Binani Cement to ‘amicably’ settle the dispute. The tribunal was hearing a petition filed by Binani Industries, which holds over 90% of Binani Cement, according to the Press Trust of India. It followed a suggestion by the National Company Law Tribunal of Kolkata that also asked Binani Cement to consider taking an out-of-court offer between the cement producer and its lenders.

A consortium led by Dalmia Bharat won an auction for Binani Cement with a bid of US$974m in early March 2018. However, UltraTech Cement then made a direct bid to Binani Cement a few weeks later.

India/Indonesia: India Cements has purchased an 100% share of Raasi Minerals through its subsidiary Coromandel Minerals. The Singapore-based company owns a controlling stake in several coal mines in Indonesia. No value for the transaction has been disclosed.

India: The state government of Tamil Nadu has scaled down its support for the Amma Cement Supply Scheme. Sales data shows that the scheme failed to meet its targets in 2015 – 2016 and 2016 – 2017, according to the Hindu newspaper. Its highest level of sales was 52% of procurement in August 2016. The subsidised cement scheme was launched by former Chief Minister Jayalalithaa in 2014 to help lower and middle income groups purchase cement at subsidised prices.