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Ash Wednesday: cement in the Philippines

Written by Global Cement staff
05 September 2012

Coal ash seems to be in short supply in the Philippines. Lafarge Republic has signed a deal with a local energy producer to buy coal ash from a new 600MW coal plant.

Although the cost of the deal was not announced, the agreement will run from when the plant starts operation until 2019. This move follows a similar arrangement by Cemex Philippines in June 2012. In that instance Cemex agreed to purchase coal ash from the 200MW Kepco SPC Power Corp plant in Naga, Cebu for US$0.95/t.

Distinctively both arrangements were set up in conjunction with local government. For the Lafarge deal part of the agreement involved donating at least 10,000 bags of cement per month for use in various infrastructure projects of the province. Bataan governor Enrique Garcia put the value of the deal at US$1.19m/yr. For the Cemex deal the Cebu Provincial Government signed the agreement. In November 2009 Cebu Province and Kepco entered into an Ash Disposal Agreement, where Cebu Province was granted exclusive rights to the ash produced by the power plant.

Adding to the suspicion that the Philippines lacks sufficient coal ash, back in the autumn of 2011, the Cement Manufacturers' Association of the Philippines (CeMAP) asked the Department of Trade and Industry (DTI) to impose mandatory quality standards on raw materials, such as coal ash. This followed accusations by CeMAP that poor quality coal ash might be behind complaints from contractors working on infrastructure projects. In 2009 a DTI profile on the cement industry placed the demand for Portland cement at 73% and the demand for pozzolan cement at 27% of the total.

Cement sales in the Philippines have been steadily growing over the last decade. Lafarge Republic announced in August 2012 that it was increasing its capacity to just below 9Mt/yr in 2013. Around the same time CeMAP released data showing that sales were up 20% year-on-year for the first half of 2012. The local industry reported combined sales of 15.6Mt in 2011. Previous to this, Holcim Philippines announced the US$9.46m upgrade to a previously closed mill in Batangas.

Published in Analysis
Tagged under
  • Philippines
  • Fly Ash
  • Lafarge
  • Cemex
  • GCW65

Holcim US announces new deputy chief executive officer

Written by Global Cement staff
05 September 2012

US: Holcim US has announced that Filiberto Ruiz will serve as its deputy chief executive officer of Holcim and Aggregate Industries US as part of its 'Leadership Journey.' Prior to his promotion, Ruiz was senior vice president, sales & marketing for Holcim US.

Ruiz began his career with the Holcim Group in 1986 as electrical supervisor with Holcim Apasco, Mexico, later becoming plant manager. In 1999, Filiberto became regional vice president, manufacturing for Holcim US. He returned to Holcim Apasco as cement operations, vice president, and moved back to Holcim US in 2006 as senior vice president, manufacturing. He has been in his current role, senior vice president, sales & marketing, since 2010.

Published in People
Tagged under
  • US
  • Holcim
  • GCW65

Reliance starts production at Nagpur

05 September 2012

India: Reliance Cement Company, a subsidiary of Reliance Infrastructure, has started production at its first plant in Butibori, Nagpur. It is Reliance Group's entry into the cement market. The plant will service the Vidarbha region in eastern Maharashtra.

"The commissioning of the Butibori unit is a landmark event in the cement industry, marking the entry of one of the largest business groups of India into the sector. Reliance's foray in the cement industry is a natural extension of its interests in power and infrastructure businesses. Reliance Cement aspires to be amongst the top five cement companies in India in the next five years," said the vice chairman of Reliance Cement, Sumit Banerjee.

The company is currently commissioning two other plants with a total capacity of 10Mt/yr in Madhya Pradesh and Maharashtra, costing US$1.08bn.

Published in Global Cement News
Tagged under
  • India
  • Plant
  • Reliance
  • GCW65

Sinoma chairman Tan Zhongming dies

05 September 2012

China: China National Materials (Sinoma) chairman Tan Zhongming has died. Tan, who was in his late 50s, reportedly died of a heart attack while in France for a company roadshow on 2 September 2012. Vice-chairman Yu Shiliang will succeed him.

The state-owned company is one of China's five biggest cement producers. Tan was also a director of Sinoma's Shanghai-listed subsidiary, Sinoma International Engineering, the world's biggest producer of cement equipment, with businesses in more than 30 countries.

Tan was chairman of Sinoma when it listed in Hong Kong in December 2007. He was also general manager of Sinoma's state-owned parent, China National Materials Group. From 1995 to October 2000, Tan held various positions in the State Bureau of Building Materials Industry. He had more than 35 years of experience in China's non-metals materials industry.

Tan graduated with a doctorate in management from Xian Jiaotong University in 1999 and was a professional senior engineer.

Published in Global Cement News
Tagged under
  • China
  • GCW65
  • Sinoma

East African producers issue warning about imports

05 September 2012

Kenya: The East Africa Cement Producers Association (EACPA) has warned that cement imports are not being subjected to the same technical standards and regulations as local cement. At a meeting in Nairobi, local cement producers stated that they want imports halted as the region has surplus production.

"Cement is a very sensitive commodity yet the quality issues on imports are not being addressed at such a time when the number of collapsing buildings is rising," said Kephar Tande, the managing director of the East African Portland Cement Company and chairman of EACPA.

Kenyan manufacturers are discussing the issue with the Kenya Bureau of Standards to tighten the requirements for standards and packaging. These requirements would include expiry date markings on cement bags, and information on storage and handling. The EACPA also alleged that foreign cement manufacturers are using local agents who are 'unqualified' and should now be regulated.

The East African region has a demand for cement of 5Mt/yr and it is currently producing 7Mt/yr. Plants are currently running at 78% of capacity. The EACPA added that the local industry's net profit margin is expected to dip to below 10% in 2012 compared to 15% in 2011.

Published in Global Cement News
Tagged under
  • Kenya
  • EAPCC
  • Import
  • EACPA
  • GCW65
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