Global Cement News

Pascal Casanova has become the general director of Lafarge France, a unit of the French cement giant Lafarge. Casanova was born in 1968 and joined Lafarge in 1999 after having been employed by a number of different construction firms. He served as Lafarge's research and development director since 2008.

Holcim announced yesterday a shock profits warning after it included Euro641m in one-off charges in its 2011 accounts. Over half of this amount, a massive Euro343m, came from writedowns at its former South African subsidiary AfriSam, which has been unable to deal with poor trading conditions there. Writedowns in the US and parts of Europe made up the rest of the one-off costs. The move has prompted fears from analysts that other cement manufacturers may follow suit, taking the sector into unknown territory. What other skeletons are hiding in the cupboards of the big multinationals?

Meanwhile, an old cement industry problem that is not unfamiliar to AfriSam, cartelisation, has reared its ugly head again. After five Spanish producers were ordered to pay a combined Euro11.1m over an alleged cartel in northern Spain, authorities in Pakistan searched the offices of its national cement association, the APCMA, on Monday. They were following a tip-off that cement companies have been monitoring each others' dispatches, a practice deemed illegal in previous investigations. A previous cartel case from 2009-2010 is still pending in Pakistan so any action against producers will likely to take years to be brought.

Elsewhere, the situation has gone from bad to worse at the East Africa Portland Cement Company in Kenya, with protests over the re-instatement of previously-fired board members turning violent on Monday. With one worker hospitalised after being shot by an over-zealous security guard, it is hard to see how the current situation can be resolved without the removal of the current management. The government has assured the workers that it is working on the problem.

At the same time in Kenya, National Cement Company's (NCC) plans to build a quarry and clinker plant south of Nairobi have been slammed by local Massai groups, environmental NGOs and even the state-owned Kenya Wildlife Service. NCC plans to 'buy-off' the Massai with a jobs scheme, but this doesn't address the conservation issues. Global Cement urges NCC to re-examine its plans and the location of its proposed plant, and to work closely with the Kenya Wildlife Service.

The Spanish cement producer Cementos Portland Valderrivas has approved the nominations of Juan Bejar and Jose Manuel Burgos as board members. Bejar currently occupies the post of executive chairman at domestic motorway operator Globalvia and Burgos is a vice-chairman at the real estate firm GMP. They will replace Rafael Martinez-Ynzenga Canovas del Castillo and Feliciano Fuster.

Ben Guren will be appointed as the new Group Chief Financial Officer of FLSmidth and a member of the Group Executive Management. Guren is expected to take up his new position no later than 1 July 2012.

Guren, aged 51, is a Norwegian citizen who since 2007 been Group Vice President Finance, IT & Legal of Jotun Group, Norway. From 2006 to 2007 Guren was acting as Chief Financial Officer of Helly Hansen Group, Norway and from 1989 to 2006 he was partner in KPMG, Norway. Guren is a state-authorised public accountant, graduated from the Norwegian School of Economics & Business Administration in Bergen.

Guren replaces Poul Erik Tofte who has been the Group Chief Financial Officer at FLSmidth since 2003.

Holcim seems to be back on track with its beleaguered Weston plant, with the news of a port deal for an undisclosed amount.

Since the plant was proposed in 2007 a string of delays have occurred. In July 2011 it had been asking contractors to register interest in the project. As reported in October 2011 Holcim put its New Zealand project on hold due to the 'global economic downturn'. Then in November 2011 Holcim reported a staggering 32% drop in income in the third quarter and blamed it on the strong Swiss franc: ideal for a little overseas spending. Even in the current global economic gloom there may be some benefits.

Back in Africa we have a third 'reality' from the local industry of a much more familiar nature: corruption.

With the former board of the East African Portland Cement Company (EAPCC) going to court against the Kenyan government over allegations of corruption and counter-allegations of government strong-arm tactics it puts into perspective why EAPCC might have changed its clinker supplier last week. With current price rises of 25% in Nigeria and even two positive stories from South Africa this week, the gains may be high but so are the risks.