Global Cement News

China: Shijiazhuang, Hebei province has started the demolition of its first batch of 18 cement plants on 17 December 2013 to fight air pollution. 74 cement plants in the suburbs of Shijiazhuang are targeted for deconstruction by March 2014 according to China Daily. The planned demolition is planned to include all the western areas of the city by 2017.

"The cement companies have been a major source of dust pollution, making them a priority for demolition," said Niu Yongzhi, the official from the Bureau of Industry and Information in Shijiazhuang who is in charge of the project.

Demolition of the first 18 cement plants will be completed in January 2014. Removal of these cement units is expected to significantly reduce dust and nitrogen oxides emissions. More than 3500 cement plant employees will lose their jobs in the demolition.

The government will pay compensation to the companies whose plants are being shut down. Seven plants in Pingshan county will receive an average of US$1.5m each and tax breaks will be given to the companies when they start other businesses. The other 11 cement plants in Luquan will receive similar compensation.

The 18 cement plants, scattered throughout the northwestern area of Shijiazhuang produce 9.4Mt/yr or about 21% of the city's annual output. By 2014 cement production capacity in Hebei will drop to 61Mt/yr, half of the province's cement production in 2012.

Indonesia: Loesche has opened an overseas subsidiary PT Loesche Indonesia (LND) in Jakarta. The new subsidiary will be managed by Detlef Blümke, who has been head of the company's commissioning department and deputy-director of Loesche's technical field service.

"Blümke's strong technical background and experience in developing new markets for our service activities has made him an excellent choice as managing director of PT Loesche Indonesia," said Dr Joachim Kirchmann, Loesche's joint CEO. Blümke will establish PT Loesche Indonesia in the Asian market and developing the company's presence as a new regional service hub for the Loesche Group.

Blümke took up his new role at the start of October 2013 and PT Loesche Indonesia is scheduled to be fully operational from 1 January 2014.

New Zealand: Holcim New Zealand intends to invest US$80m towards building two cement import terminals at Primeport Timaru, South Island and Waitemata Auckland, North Island after abolishing plans for a new integrated cement plant in New Zealand earlier in 2013.

Each site will store up to 30,000t of cement and will take two to three years to build. The Timaru terminal will include a ship unloader and conveyor system leading to an enclosed storage facility on leased land. There will also be pumping equipment allowing cement to be fed back from storage on to coastal ships.

This story was amended on 19 December 2013

Colombia: Colombia's Superintendent of Industry and Commerce (SIC) has launched an investigation into possible anti-competitive behaviour within the cement industry. According to the regulator, the investigation relates to alleged 'sustained and unjustified increases in the price of cement since January 2010.'

In 2008 the regulator issued fines in excess of US$1m to cement firms for involvement in a market sharing agreement. Cementos Argos has denied involvement in price fixing or market sharing.

Poland: The Court of Competition and Consumer Protection (SOKiK) has upheld a decision by the Office of Competition and Consumer Protection (UOKiK) to fine seven cement companies for forming a cartel. However, the SOKiK lowered the total fine from Euro100m to Euro80m. According the UOKiK the cartel fixed prices and divided the Polish market among themselves for at least eleven years.

According to the UOKiK the cartel activities could have had negative consequences for the construction sector and had affected consumers. The cartel had almost 100% share of production and sale of grey cement in Poland.

During the investigation two cartel members decided to co-operate with the UOKiK in exchange for leniency. Therefore UOKiK decided not to fine Lafarge Cement and lowered the fine for Gorazdze Cement. The remaining five cartel members - Grupa Ozarow, Cemex Polska, Dyckerhoff Polska, Cementownia Warta and Cementownia Odra - were fined to the full legal extent, 10% of annual turnover.