Global Cement News

Canada: Politicians and community leaders were on hand yesterday to celebrate the fact that St Marys Cement's Bowmanville Plant has received North America's first International Organisation for Standardisation's (ISO) ISO 50001 certification.

Erik Madsen, CEO of St Marys Cement Inc. accepted the certificate at a ceremony at the plant. The award presentation was made by Michael Delisle, CEO of International Certification Services Inc. (ICS). Although the ceremony was official recognition of the plant had achieved certification the company was officially registered as the first North American recipient of ISO 50001 on 15 November 2011.

Upon receiving the Certificate, Madsen observed, "St Marys identified the benefits and embraced the certification process early. The ISO 50001 programme and cement plants are a logical fit. Our Bowmanville plant has a rated capacity of over 1.8Mt/yr of product, operates 24/7 and consumes significant amounts of energy. Managing these energy costs is a no brainer. it is good for the environment and our bottom line."

Fabio Garcia, Operations Manager at the Bowmanville Plant, told ceremony attendees, "Receiving this prestigious certification was not something that happened overnight. The origins of this certification can be traced back to 2005 when we were given the green light by senior management to move forward with an integrated strategy to reduce the plant's energy consumption.  This quickly became an initiative supported and made possible by all of our employees."

CEO Madsen concluded, "The  commitment to energy conservation, and the continual desire to improve processes by the entire staff at our Bowmanville plant,  is the reason that this is the first North American site to receive ISO 50001 certification. The energy conservation elements of ISO 50001 certification means we are on track for over US$1m in savings in 2012 alone.  I want to thank each and every one of our employees, who helped to make this possible."

Ethiopia: In what would be its maiden overseas venture, India's Birla Corp has announced plans to set up a cement plant in Ethiopia. The MP Birla group company has recently formed a wholly-owned subsidiary, Birla CorpCement Manufacturing plc, in Ethiopia to establish a plant.

"We plan to go there for exploration of limestone to set up a cement plant," said a Birla Corp official. "We would also explore opportunities to set up power plants there."

While Ethiopia is economically poor it is endowed with significant limestone deposits. Cement companies have started eyeing projects in the country after the government started facilitating the import of coal. The country currently imports cement because local demand far outstrips supply and acute power shortages keep new investments away.

This is not the first time that Birla Corp has tried to enter the Ethiopian cement market. In 2010 it made a contract bid for the construction of a cement plant at Habesha but lost out to Chinese competitors. Chinese mining companies have taken up extensive limestone mining contracts in Ethiopia in recent years, firming up long-term off-take contracts.

Spend, spend, spend has been the advice for CRH this week. The suggestion by an industry analyst this week that Irish building material conglomerate CRH should go on a shopping spree seems almost perverse! Or at least like stockbrokers trying to drum up excitement.

Just as all of the big multinational cement producers are selling assets and tightening management structures to cope with the ongoing financial turmoil, CRH is the only player that hasn't ruled out acquisitions in 2012. The analyst from Dublin stockbroking firm Davy predicted that CRH could spend up to Euro3.5bn on acquisitions while remaining within its banking agreements; a more level-headed figure was given as Euro1.5bn.

CRH broke down its revenue in 2011 to 55% to the European divisions and 45% to the American ones, with European Distribution, Americas Materials and European Materials being its top three sections. European Materials, the worldwide division containing cement assets generated Euro2.99bn, 16.5% of total group revenue.

With 85% of CRH's European Materials division concentrated on Switzerland, Finland, Benelux, Eastern Europe, Turkey and Asia its exposure to the Eurozone economic slowdown has been reduced compared to the competition. Yet what to buy next is fraught with risk. If Greece exits the Euro for example, then there may be some bargains going, but how long it would take these assets to become profitable is a big unknown.

Similarly, the over-indebted Mediterranean countries present opportunities and challenges. CRH's decision to transfer its 49% holding in Portuguese cement joint venture Secil to Semapa in May 2012 may indicate CRH's intention to stay well away from the Eurozone until the dust settles. Given the amount of cash that CRH could potentially throw around however, it seems odd that the company didn't try to disrupt the ongoing Cimpor takeover by two Brazilian firms. If anything happened to the bid by Camargo Corrêa and Votorantim then CRH would be in a prime position to benefit should it wish.

Whatever CRH decides to do with its money, it's a good problem to have! Lafarge, Cemex, HeidelbergCement and Holcim must all wish they had the same dilemma.

Qatar: The Qatari Investors Group has appointed Faisal Abdulla al-Mana as the managing director of its subsidiary, Al Khalij Cement Company. Al-Mana was elected as member of the board of directors of the group in 2011. He has also been the vice chairman of Redco Construction Company since 2004.

It is hoped that his appointment will bring about further progress and prosperity, enhancing confidence and further development within the cement company. He brings a wealth of experience in the sector, which plays an important role Qatar's economic development, according to an Al Khalij spokesman.

Qatari Investors Group chairman Abdulla bin Nasser al-Misnad expressed optimism and confidence in al-Mana's abilities and visions, as his performance as one of the members of the board of directors of the Qatari Investors Group had been 'outstanding'.

UK: To celebrate the Queen's Diamond Jubilee, Cemex UK has decorated a cement tanker, aggregate tipper, concrete mixer and curtain sider with the Union Jack. The company's fleet of over 1000 vehicles travel thousands of miles every week to deliver essential building materials for construction projects, helping the company to build a 'Greater Britain.'

The Union Jack vehicles will be travelling around the country visiting Cemex sites and delivering loads to key customers.

Image courtesy of Cemex UK