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Uganda: Excise duty on cement is set to be doubled in the 2016 – 2017 budget as part of a set of measures designed to increase government expenditure. The excise duty charged on a 50kg bag of cement is to be raised to US$0.29 from US$0.15. Industry commentators in local press have warned that this could raise market prices, depress consumer demand and discourage new investments. Other commodities affected by the increased duties include petrol and vehicle lubricants.
“Cement is a very price sensitive product among retail buyers and the proposed tax increase could suffocate demand patterns. This situation has partly resulted in relatively small margins of about $0.05 earned per bag among local dealers. I feel the excise duty rate on cement should have been kept stable to allow producers and agents to remain afloat under difficult economic conditions,” said Joseph Kitone, a hardware dealer quoted by the East African newspaper.
Irish Cement defers plan to burn tyres at Limerick plant 21 March 2016
Ireland: Irish Cement has deferred its plan to co-process tyres at its Limerick cement plant. Planning was lodged in late February 2016, according to the Irish Examiner. However a spokesman for Irish Cement said that the company had noted a few days previously that the planning application had not been made available for public inspection, due to a ‘procedural’ matter. They added that the company was working with the Limerick City and Country Council to resolve the issue.
Local Green Party candidate James Gaffney raised concerns about the plant upgrade in local press in mid-March 2016. He alleged that no public consultation was being carried out on the plant’s plans and that the application was being fast-tracked. Irish Cement denied these claims.
Irish Cement announced its plan to burn alternative fuels at its Limerick plant in December 2015.
Ecocem to open Runcorn terminal for slag cement 21 March 2016
UK/Ireland: Ecocem is to open a new terminal at Runcorn to increase its exports of slag cement to the UK. A second terminal in the south east of the UK will be opened later in 2016, according to the Irish Times. It has invested Euro5m towards building both terminals. The ground granulated blastfurnace slag (GGBS) producer is targeting the UK market due to demand for cement coupled with changes in the coal and steel industries.
The company says it has received orders for 200,000t of slag cement in its first year and that it is not taking any further orders. Opening its second terminal in the UK is anticipated to give it access to 80% of the UK market. Ecocem produces slag cement at three grinding plants in Dublin in Ireland, Moerdijk in the Netherlands and at Fos in France.
Asia Cement revenue falls by 22% to US$986m in 2015 21 March 2016
China: Asia Cement’s revenue has fallen by 22% year-on-year to US$986m in 2015 from US$1.26bn in 2014. Its gross profit fell by 50% to US$148m from US$295m. It blamed the result on falling demand and ‘intense’ market competition leading to a 10-year market low price of cement in August 2015.
The Chinese cement producer reported sales volumes of 28Mt of cement in 2015, a similar figure to 2014. Clinker sales volumes rose slightly to 1.76Mt. By region sale volumes of cement fell in the group’s Southeastern, Central and Eastern regions but rose in the Southwestern region. The biggest fall was noted in the Eastern region, where sales volumes fell by 11% to 2.34Mt.
Measures the cement producer has taken to cope with the market include cutting costs, pushing efficiency drives and focusing on overseas markets. In May 2015, the Group's silo in Taizhou commenced operation and started exporting products. A total of 230,000t of different cement products were exported to Singapore, the US and other overseas markets during 2015.
Asia Cement noted in its outlook that China has entered an ‘adjustment’ phase in 2016 as market demand continues to decline and production capacity continues to rise. It expects the industry to ‘first fall and then rise’ in 2016 with demand picking up on the back of new infrastructure projects including the Yangtze River Economic Belt development strategy. In the medium term the group has pinned its hopes on continued government-implemented structural reform in the cement industry to eliminate overcapacity.
Martin Engineering launches Arcoplate worldwide 18 March 2016
US: Martin Engineering has launched its bimetallic wear plate product Arcoplate around the world. Originally the wear plate was sold only in Brazil by the bulk handling products firm.
Martin Arcoplate uses a chromium carbide-rich metal alloy face plate with a steel back plate to resist gouging, erosion, temperature extremes and material build-up. It is marketed for excessive wear and material accumulation issues with bulk material handling. It is available in three grades. Alloy 1600 is designed for high abrasion and high impact applications. Alloy 1040 is engineered for moderate impact and cyclic temperatures up to 500°C. Alloy 8668 is suitable for extreme temperature applications, with cycles up to 700°C. Each derives its abrasion resistance from the M7C3 carbides (1500 - 1800Hv), with an average of 60% carbide dispersed through a softer, tougher matrix.
Arcoplate is manufactured by Alloy Steel International in Malaga, Australia.