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Nine companies bid for Lafarge India assets 13 April 2016
India: LafargeHolcim has received nine non-binding offers for its subsidiary Lafarge India. The bidders include multinational cement producers CRH, HeidelbergCement and China Resources. Local companies which have made bids include JSW Infrastructure, Piramal Enterprises and Ramky Infrastructure, which have deals with private equity firms CVC Capital, Goldman Sachs Private Equity and Carlyle respectively. Blackstone, Baring Asia and CPPIB have also submitted a bid as part of a consortium. Bain Capital and Advent International have also submitted their bids individually, according to Business Standard.
Following a shortlisting and due diligence process a final bid will be selected. A final bidder is expected to be announced by the end of June 2016.
China: Courts have ordered Shandong Shanshui Cement Group to pay back its creditors US$372m, the company said in a statement reported by Reuters. Shandong Shanshui Cement said it was unlikely to be able to make the required payments due to financial troubles. The courts will now start to auction off the company’s assets.
Bond defaults by a subsidiary of Shanshui Cement Group had led creditors to seek legal redress. Shandong Shanshui Cement's statement to the Shanghai Clearing House described almost 100 lawsuits against the company. The total amount sought is around US$764m.
All Pakistan Cement Manufacturers Association say production capacity plans to grow by 10Mt by 2018 13 April 2016
Pakistan: The Pakistan cement industry plans to invest up to US$1bn towards production capacity growth of 10Mt/yr by 2018. The growth will be targeted at the growing real estate market and expected China Pakistan Economic Corridor (CPEC) projects said Mohammad Ali Tabba, chairman of the All Pakistan Cement Manufacturers Association (APCMA) in comments to the Business Recorder.
"Four companies have already announced their plans in this regard. Cherat Cement is going to do it from next year, and then Attock Cement, DG Khan Cement and Lucky Cement will materialise their plans," said Tabba.
He added that at present the country has a production capacity of 46Mt/yr, a demand of 38Mt/yr and a capacity utilisation rate of 80 – 85%. His argument for cement industry growth rests on the industry hitting this capacity utilisation rate. The last time a significant increase in industry capacity was made was in 2005 -2006 when it was increased from 17.9Mt/yr to 42.3Mt/yr in 2008 – 2009.
Saudi Arabia reported to have lifted cement export ban 13 April 2016
Saudi Arabia: Saudi Arabia has lifted a ban on exporting cement, the chief executive of Yanbu Cement has said to local press. Ahmed bin Abduh Zugail, who is also the deputy head of the Saudi national committee of cement companies, added that cement companies have welcomed the relaxation of the ban. However, full details of the new regulations are yet to be released by the Ministry of Commerce.
Local press reported in late November 2015 that government bodies were considering cutting the ban on cement exports. The ban was originally introduced in Saudi Arabia to keep prices down and production flowing for large infrastructure projects built using oil revenue.
Cambodia: Chip Mong Group has ordered three vertical roller mills from Gebr. Pfeiffer for a new cement production line in Touk Meas. The order comprises a MPS 3350 BK for coal, a MVR 5000 R-4 for raw material and a MVR 6000 C-6 for cement grinding. The cement mill will come equipped with a MultiDrive consisting of four drive modules. This drive system has an installed power of 7200kW to allow redundant operation.
The MVR 6000 C-6 cement mill will be the largest vertical roller mill in the Association of Southeast Asian Nations (ASEAN) region. It will be set up in cooperation with CITIC Heavy Industries. Delivery of the mills is scheduled to take place in the first quarter of 2017.