Global Cement News

Egypt: The Egyptian government has reportedly proposed that cement companies cap production by at least 14%. Multiple sources quoted by Reuters reveal that a formula was discussed in April 2021 proposing that cement plants cut production by a base amount of 10.5%. An additional cut of 3.7% would then be made for each production line a plant has and another 0.65% for each year they have been in operation. However, it is unclear how the age of a plant or production line would be determined. The Ministry of Trade and Industry has not commented on the story.

The measures have been suggested in order to help the sector cope with falling consumption and production overcapacity. Cement sales fell by 5% year-on-year to 41.7Mt in 2020 from 43.8Mt in 2019. However, two of the cement executives quoted said that the proposed cuts seemed unfair on multinational companies like their own that had older plants.

Kenya: The Competition Authority of Kenya has granted China-based Zou Fengqi and Oman-based Raysut Cement exemption from regulatory approval on a recent application in line with competition guidelines. The Business Daily newspaper has reported that the application stated that Zou Fengqi plans to acquire a 60% stake in Raysut Cement’s business in East Africa.

Raysut Cement operates grinding plants in Mogadishu, Somalia and Somaliland.

China: Sinoma International Engineering has signed a deal worth US$300m to build a new integrated cement plant for Guangxi Jinxiang Cement. The contract includes two 6000t/day clinker production lines, from raw material crushing to packaging, and a 6Mt/yr aggregate line. The project is located in Dashan Village near Shilong Town, Xiangzhou County in Guangxi region. It is expected to be completed by mid-2022.

Pakistan: Lucky Cement and China-based China Sinoma Energy Conservation have signed a deal to upgrade the waste heat recovery (WHR) units on both production lines at the integrated Pezu cement plant. When the project is completed it will increase the output to 14MW from 10MW at present. No value for the order has been disclosed. Sinoma supplied the plant’s original WHR units in 2017.

Ghana: Dzata Cement, a 1.2Mt/yr bagging plant based in Tema, plans to start commercial production by June 2021. The unit cost US$100m and includes a two line bagging and packaging equipment supplied by Germany-based Haver & Boecker, according to the Ghana News Agency. It will use imported cement. Proposed later phases at the site will see an upgrade in bagging operations to 2.4Mt/yr and the eventual installation of two 3Mt/yr vertical roller mills. As a safeguard against surges of cement imports the government has also introduced new export and import legislation requiring licenses for imports from outside the Economic Community of West African States (ECOWAS) region.

The plant’s founder Ibrahim Mahama is the brother of former Ghanian president John Dramani Mahama. In November 2020 the Ghana News Agency reported that Kofi Amoabeng, the former chief executive officer of UT Bank, said that loans made to companies including Dzata Cement had contributed to the bank being declared insolvent in 2017.