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Spanish regulator issues Euro29.2m fine to cement companies 13 September 2016
Spain: The National Commission for Markets and Competition (CNMC) has issued total fines of Euro29.2m to 23 cement companies for involvement in a cartel between 1999 and 2014. Among the companies are Cementos Portland Valderrivas, with a Euro10.2m fine, Cemex Spain with a Euro5.8m fine and Holcim Spain, with a Euro4.4m fine, according to the Cinco Días newspaper.
The CNMC’s investigations have shown that the companies coordinated the exchange of commercial information, market sharing and price fixing between 1999 and 2014 in three distinct geographical areas in the north, centre and south of the country. Notably, the southern region examined the companies used email and WhatsApp mobile phone application to share sensitive information.
US: An on-going mechanical failure is to shut down the Lehigh Cement Redding plant in California for an estimated 14 weeks. The problem with a gearbox has reportedly been occurring since January 2016 and has persisted despite equipment replacements. The cement producer is currently waiting for further replacement parts, according to the Redding Record Searchlight newspaper.
39 workers will also be laid off at the plant. Lehigh previously laid off 40 employees workers at the plant in 2009 due to a fall in construction activity in the market.
Lafarge Canada completes upgrade at Exshaw cement plant 13 September 2016
Canada: Lafarge Canada has announced the completion of modernisation and environmental upgrades at its Exshaw cement plant in Alberta. The plant has increased its cement production capacity to 2.2Mt/yr from 1.3Mt/yr. Environmental improvements have led to a 60% reduction in sulphur dioxide emissions, a 40% reduction in nitrogen oxide emissions and a reduction in fugitive dust and noise coming from the plant's equipment. The plant has also achieved zero water discharge from its operations.
"It is an incredible achievement to comple a project of this scale. Completing it safely takes focus and energy and I applaud the team for its dedication to this goal," said René Thibault, President and CEO, Lafarge, Western Canada. "By all accounts we consider the project to be a success, cementing our long term commitment to Exshaw, Alberta and western Canada."
The upgrade consisted of shutting down the plant’s kiln four in November 2015. It modernised kiln five to meet new emissions targets by retiring less efficient gravel-bed filter technology. It then built a new production line, kiln six, with a baghouse to collect particulates, as well as a vertical raw mill, a EcoDome storage facility, a pre-heater tower and a vertical cement mill.
Construction at the plant began in 2013, with more than 600 contracted employees on site at the peak of construction activity in addition to 160 permanent employees. The team achieved nearly three million hours without a lost time incident.
Cemex sells Fairborn cement plant to Eagle Materials 13 September 2016
US: Cemex has signed a definitive agreement for the sale of its 1Mt/yr Fairborn, Ohio cement plant, a cement terminal in Columbus, Ohio and a cement bagging operation to Eagle Materials for US$400m. Cemex will use the proceeds of the sale to reduce its debts and for general corporate purposes. The closing of the deal is subject to regulatory approval. The divestiture is expected to be completed during the fourth quarter of 2016.
"Our strategy has been to grow the cement side of our business. The Fairborn plant extends our US cement system and connects but does not overlap with the market reach of our existing plants. This high-quality cement plant is a compelling fit with our strategic objectives and our criteria for new investment. These assets will allow us to participate more fully in the US construction industry and further positions the company in target US heartland growth markets," said Dave Powers, Eagle Materials President and Chief Executive Officer.
Colombia/Thailand: Cementos Argos has held its position in the Dow Jones Sustainability Index (DJSI) for the fourth consecutive year. Cementos Argos was featured as the most sustainable cement company in the world after obtaining the best score in the construction materials sector. The Colombia-based materials producer was listed along with Thailand’s Siam Cement.
"The permanence in this index confirms our business model, in which we start with sustainability and innovation as pillars of the strategy to create value for our customers, shareholders, communities, employees, and other stakeholders,” said Juan Esteban Calle, CEO of Cementos Argos.
Argos obtained the best score among the following variables: Biodiversity, Operational Eco efficiency, Water related risks, Social Reporting, Labour Practice Indicators and Human Rights, Tax Strategy, Corporate Citizenship and Philanthropy, Human Talent Development and Talent Attraction and retention. In addition to being included in the Global Index, Cementos Argos was recognised in Emerging Markets for the fourth consecutive year.
Each year about 2500 global companies, listed on the stock exchange, belonging to about 59 economic sectors, are invited to participate in the DJSI.