Global Cement News

Germany: HeidelbergCement said that its profits would be hit by about Euro30m in the second quarter of 2013 due to a fine for infringement of cartel rules. HeidelbergCement said that the fine, a total of Euro161.4m for cartel infringements during the years 1990 to 2002, would not affect its earnings outlook.

Philippines: The National Price Coordinating Council (NPCC) in the Philippines announced on 8 April 2013 that it was concerned about rising prices for cement.

"We will be sending letters to cement producers to ask them why their prices have gone up," said Trade Undersecretary Zenaida C Maglaya in a briefing after a meeting of the NPCC. "We have to ask them the reason because it may be that they consumed more coal, which went up (in price), but there might be another reason." She added that the firms have to send in their reports within the week.

The Trade department also reported that it was investigating Eagle Cement for increasing its prices after it had agreed earlier with the government to sell lower-priced cement. The firm was granted tax perks by the government for its Bulacan cement plant in November 2006.

Brazil: The Brazilian construction group Camargo Corrêa has announced plans to invest up to US$1.5bn in the Brazilian cement industry over a four year period. With the acquisition and control of Portuguese cement maker Cimpor in 2012, Camargo Corrêa, through its cement arm InterCement, became the second largest producer of cement in Brazil.

Of the nine countries the company began operating in through its Cimpor deal, the Brazilian market has the greatest growth potential. The market is expected to increase by 5-6%/yr, according to a report by local paper Valor Econômico. To prepare itself, the company intends to invest US$1.25-1.5bn by 2016.

Planned projects include the construction of four cement plants and an expansion at the company's existing plant in Cezarina, located in the mid-western state of Goiás.

Cuba: A Cuban cement plant has launched industrial trials to produce environmentally-friendly cement, according to the National News Agency.

Gustavo Suarez, director of the Siguaney cement plant in central Cuba reported that the kilns began to burn local kaolin minerals to partially replace the CO2-intensive clinker used to make cement on 4 April 2013. Suarez said the production phase was preceded by a year and a half of testing by researchers at Las Villas University and the University of Lausanne, Switzerland, a partner in the project.

The factory is preparing the first 300t of burnt metakaolin needed to make two experimental types of 'green cement,' in which clinker will be replaced by 15% and 45% kaolin respectively. It is estimated that Siguaney will consume only 68% of the energy used in making normal cement, reducing greenhouse gas emissions by 32%. "(Our) current grey cement production requires a temperature of 1200°C, while the new local formula needs only 750°C," said Suarez.

Vietnam: The Vietnamese Prime Minister Nguyen Tan Dung has approved a proposal of the Vietnam Building Material Association to cancel nine cement plant projects in order to keep in line with market demand.

The nine projects, Ha Tien-Kien Giang, Truong Son- Ro Li, Hop Son, Ngoc Ha, Vinafuji Lao Cai, Thanh Truong, Son Duong, Quang Minh and Cao Bang, will be removed from the country's master plan for cement industry. The prime minister also agreed to extend the deadline for the construction of seven other projects - He Duong II, My Duc, Thanh Son, Tan Thang, Do Luong, Tan Phu Xuan and Nam Dong - to after 2015.

The prime minister, however, added Xuan Thanh 2 cement plant in the northern province of Ha Nam to the list of projects slated for operation before 2015. The government leader asked the Ministry of Construction to cooperate with other ministries and agencies to ensure a balance between the cement supply and demand. He also asked the Ministries of Construction, Finance, Industry and trade, Vietnam Cement Association and Vietnam Cement Industry Corporation (Vicem) to facilitate cement exports, which Vietnam is already heavily involved in.

Local cement makers currently face difficulties due to huge inventory and low domestic demand caused by the frozen real estate market. In addition, high production costs, high lending interest rates and rising input costs have also put a heavy burden on local cement producers. The country is predicted to have a cement inventory of 14-15Mt by 2015, when the country's cement output will reach 90Mt/yr.