Global Cement News

India: According to the Press Trust of India, Wonder Cement, part of RK Marble Group, plans to invest US$500m to increase its cement production capacity to 10Mt/yr in the next five years from the current 3.25Mt/yr.

"We have 3.25Mt/yr of cement manufacturing capacity at our Bhatkotri village plant in Rajasthan and have invested US$250m to double the current capacity to about 7Mt/yr by setting up a second production line. It is likely to be complete by the end of 2015," said Wonder Cement's executive director Jagdish Chandra Toshniwal.

Toshniwal added that Wonder Cement plans to further expand the current capacity to 10Mt/yr by setting up a third production line at a cost of US$250m in the next five years. The project will be funded through an internal accrual of US$47m, promoters' contribution of US$78m and debt of around US$376m.

Currently, the plant is running at full capacity and sells 1.8m bags/day to the northern states, with 50% of its volume sold in Rajasthan. Toshniwal said that Wonder Cement is also expanding its base in north Gujarat and western parts of Uttar Pradesh and Madhya Pradesh.

"The cement industry is evolving rapidly. We prepare for the next phase of the company's growth. We are focusing our efforts on increasing our market share by creating a clearly distinctive positioning in the market place," said Toshniwal. Some of the recent government initiatives such as development of 100 smart cities, housing for all by 2022 and post-monsoon commencement of several infrastructure projects are expected to provide a major boost to the sector, Toshniwal added.

US: According to Imperial Valley News, following a public comment period, the Federal Trade Commission (FTC) has approved a final order settling charges that the merger of Lafarge and Holcim would likely harm competition in 12 markets for Portland cement and two markets for slag cement.

Under the order, first announced in May 2015, the two companies are required to divest cement plants, quarries, terminals and other assets in the 12 states of Illinois, Iowa, Louisiana, Massachusetts, Michigan, Minnesota, Montana, New Jersey, New York, Ohio, Tennessee, Wisconsin, as well as several locations in Canada. The commission vote that approved the final order was 4-1, with commissioner Joshua D Wright voting no.

Spain: Lafarge has invested a total of Euro20m in its Spanish plant of Montcada i Reixac, Catalonia in the last 10 years. Lafarge has most recently invested Euro200,000 to upgrade two of its crusher filters, which capture the dust produced during the processing of raw materials.

India: According to the Irish Examiner, CRH is being linked with a second potential Asian deal in as many weeks, this one with a price tag of around US$1bn. A Mergermarket report has it that CRH is one of 16 likely bidders for assets in eastern India being sold by Lafarge. The disposal makes up part of the conditions related to Lafarge's merger with Holcim.

Local press stated that CRH is an 'obvious bidder' given that it already has a presence in southern India and is in the process of buying US$7.32bn of assets as part of the LafargeHolcim deal. However, Mergermarket claims CRH is vying with HeidelbergCement, among others, for the new assets and has until the end of June 2015 to complete due diligence and until 15 July 2015 to submit a binding bid.

Costa Rica: According to La Nacion, the Costa Rican technical standards institute, Inteco, has opened a public consultation process concerning new technical guidelines for both imported and locally-produced hydraulic cement. The agency seeks to establish a series of standards and guidelines for cement and its components.

Following a request from the Ministry of Finance, Industry and Trade (MEIC), Inteco launched a process to establish the new guidelines in 2014. The consultation process will be open until 27 July 2015 and will give players in the local cement market the opportunity to express their opinions. Cement producers Holcim and Cemex, as well as cement importer Sinocem, previously expressed their opposition to the MEIC's plans to introduce new certification requirements for cement to be approved by an internationally-accredited laboratory.