Global Cement News

Romania: The Competition Council has launched an investigation into an alleged anti-competitive agreement between Holcim, CRH and HeidelbergCement in early November 2018. It is concerned that there has been possible coordination of prices between the companies since 2010. As part of the probe, it conducted raids at the headquarters of the three companies and seized documentation. It has warned that fines of up to 10% of company turnover are applicable should it find any evidence of collusion. However, it also mentioned that companies that cooperated with the competition authority could expect leniency in the form of immunity to or reduced fines.

Pakistan: The Supreme Court has ordered DG Khan Cement to pay nearly US$0.6m into a dam fund in relation to falling water levels at the Katas Raj Temples in Chakwal, Punjab. The cement producer must make a deposit of US$0.5m as payment for water it used and US$0.1m as a penalty for ‘misleading’ the court, according to the Nation newspaper. The court has accused the company of pumping water from boreholes leading to water loss at a pond at the temples.

Ireland: CRH’s sales rose by 3% year-on-year to Euro19.9bn in the first nine months of 2018. Its earnings before interest, taxation, deprecation and amortisation (EBITDA) increased by 2% on a like-for-like basis to Euro2.5bn. The building materials producer said that its earnings had been supported by growth in the Americas despite poor weather. It added that ‘momentum’ remained positive in Europe and demand had improved in Asia. However, its EBITDA dropped by 44% in Asia.

By region the group reported falling cement sales volumes in the UK and Ukraine. Sales volumes rose in most other European territories, with particular growth in Hungary, Germany, Poland, Serbia and Switzerland. In the US it said that its newly acquired Ash Grove Cement assets and ones in Florida had performed in line with expectations. However, sales in Canada fell due to poor weather. Sales in the Philippines rose by 3% due to rising cement sales volumes and prices following growing demand. However, here earnings were hit by higher fuel and power costs.

India: The Supreme Court has upheld a decision by the National Company Law Appellate Tribunal (NCLAT) to approve a revised US$1.11bn bid for Binani Cement. The court rejected a challenge by Rajputana Properties, a subsidiary of rival bidder Dalmia Bharat group, according to the Hindu newspaper. UltraTech Cement made a direct bid for the bankrupt Binani Cement following an auction in March 2018 that was originally won by Dalmia Bharat. Dalmia Bharat disputed UltraTech Cement’s offer and the two companies have conducted legal campaigns to reinforce their respective claims.

Uzbekistan: Construction has started on a 2.4Mt/yr cement plant in the Kattakurgan district of Samarkand. The project has an investment of US$420m, according to the Uzbekistan National News Agency. The first stage of construction will spend US$200m towards building a 1.2Mt/yr plant by 2020. This is expected to create 300 jobs. Then the plant will expand its production capacity from 2020 to 2023. The plant will produce both grey and white Ordinary Portland Cement. China’s Gansu Hengya Cement is investing in the project.