Global Cement News
Search Cement News
Belgium: Cembureau has taken exception with a report published by Sandbag on the emissions trading scheme and European cement sector entitled ’ Cement - The Final Carbon Fatcat - How Europe’s cement sector benefits and the climate suffers from emissions trading flaws.’ The European Cement Association alleged that the report contains factual and numerical errors. It also criticised the conclusion that the European Union (EU) emissions trading scheme (ETS) has incentivised overproduction.
“The allegations that the ETS has incentivised overproduction are based on thin air and do not acknowledge the strides the cement sector has made through investments in the reduction of its CO2 emissions. The ever-recurring mantra on over-allocation ignores that the cement industry has always called for an allocation closer to production and will continue to do so,” said Cembureau in a statement. It pointed out efforts by the cement industry to reduce the clinker content of cement and the presence of cement at the start of the building supply chain.
Cembureau also disagreed with the concept of a tiered approach as suggested by Sandbag. It has lobbied for a revision of the auctioning/free allowance of shares so as to allow the best performers to receive full free allocation, in line with the European Council Conclusions of 23 October 2014. It pointed out risks of a tiered approach to include unclear and unverifiable criteria to distinguish between sectors that could be discriminatory and open to legal challenge.
Despite its complaints Cemburea did partly agree with Sandbag’s views on the need for innovation funding to stimulate breakthrough technologies, a closer alignment between allocation and production in the form of a dynamic allocation and a stronger recognition of the role of alternative fuel and raw material use in emission reductions, with the inclusion of a landfill ban on recoverable and recyclable raw materials.
In its report Sandbag suggested that the EU ETS may have caused emissions in the cement sector to have risen beyond ‘business as usual.’ It estimated that emissions may have risen by more than 15Mt due to the scheme. It also flagged up five ‘Carbon Fatcat Companies’ from the cement sector who have collectively received nearly Euro1bn worth of spare EU allowances for free between 2008 and 2014. The cement producers cited by Sandbag were LafargeHolcim, HeidelbergCement and Italcementi, CRH, Cemex and Buzzi Unicem.
Tokyo Cement resumes clinker imports from Japan 18 March 2016
Sri Lanka: Tokyo Cement has resumed importing clinker from Japan. The clinker will be used to make the producer’s NIPPON-PRO branded cement.
"We at Tokyo Cement having identified the demand for a high performance cement tied up with a leading Japanese manufacturer to import clinker with high specifications," said Dashantha Udawatte, Group Marketing Manager at Tokyo Cement.
Tokyo Cement operates a 2.4Mt/yr cement grinding plant in Trincomalee.
LafargeHolcim confirms divestments in South Korea and Saudi Arabia and enlargement in Morocco 18 March 2016
South Korea/Saudi Arabia/Morocco: LafargeHolcim has confirmed plans to divest its assets in South Korea and Saudi Arabia and to enlarge its presence its Morocco. The announcement was made as part of the release of its annual results 2015. The sales form part of the group’s Euro3.2bn divestment program
In Morocco, the group signed an agreement with SNI, its partner in the country, at the same time as the Lafarge-Holcim merger to enlarge its joint-venture by merging Lafarge Ciments Maroc and Holcim Maroc to create LafargeHolcim Maroc. LafargeHolcim and SNI would own a 64.7% stake in the new company once the merger is complete. The group expects to gain a synergy savings of Euro41m over two years from the merger.
LafargeHolcim and SNI also agreed to create a common platform in French-speaking Sub-Saharan Africa. The merger is expected to close in the third quarter of 2016 subject to regulatory authorities’ approval, customary closing conditions and the approval of the shareholders of Lafarge Ciments Maroc and Holcim Maroc.
In South Korea, the group has confirmed that it has signed an agreement with a consortium of private equity funds - Glenwood and Baring Asia - for the divestment of Lafarge Halla Cement in South Korea for Euro427m. The sale is expected to complete in the second quarter of 2016. Lafarge Halla Cement runs one 8.3Mt/yr integrated cement plant, a distribution network across the country and has around 500 employees.
In Saudi Arabia the group has signed an agreement for the sale of the Group’s 25% stake in Al Safwa Cement Company to El-Khayyat Group for total proceeds of Euro120m. This transaction is expected to close in the course of the third quarter of 2016.
South Africa: The South African Bureau of Standards (SABS) has confirmed to Pretoria News that Longkou Fanlin Cement had been approved for sale in the country. However, the mandate is only part of the process the Chinese cement producer needs to secure to allow it to import cement into the country.
Thato Chabeli, the interim group manager of marketing, public relations and communications at SAB, confirmed to local press that ‘two schemes’ for Longkou Fanlin Cement had been approved by the SABS. He added that the trade body had not received any other applications from Chinese cement producers. The SABS certifies cement as being compliant with the South African compulsory specification before it can be sold in the domestic market. However, Chabeli, added that the Chinese cement producer also needed to secure a letter of approval from the National Regulator for Compulsory Specifications (NRCS) before the company would be permitted to export its cement to South Africa. The NRCS has not responded to queries by local press on the matter.
Industry commentators have compared potential cement imports from China to those of Pakistan. Local cement producers filed a dumping complaint with the International Trade Administration Commission (ITAC) about cement imported into South Africa from Pakistan. ITAC made a final determination in December 2015 on the anti-dumping duties and imposed duties ranging between 14.29 - 77.15% on cement imported from Pakistan. Subsequently, cement imports to South African from Pakistan fell by 30% year-on-year. The Pakistan government has since approach the World Trade Organisation (WTO) for arbitration on the dispute.
Ghana acts against cement imports 17 March 2016
Ghana: Ekwow Spio-Garbrah, the Minister of Trade and Industry, has proposed legislation to parliament to cap imports of cement into the country. Spio-Garbrah also announced that all cement importers must register with the ministry by 31 March 2016 to apply for a permit, according to the Daily Trust.
"The Ministry of Trade and Industry proposes through legislative instrument to impose a ceiling on the annual importation of cement into Ghana. Companies that wish to import bagged cement shall be issued a permit to avoid the chaos that has lately saddled the sector," the ministry said in a statement. Companies legitimately licensed under the ECOWAS Trade Liberalization Scheme will be exempt from applying for permits.
Ghana has a cement production capacity of 9Mt/yr but it only consumes 6Mt/yr giving it an excess of 3Mt/yr. However the country imports over 1Mt/yr of cement. Complaints about cement imports from Nigeria and China have been made in local press since the start of 2016.