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Tanzania: Mbeya Cement, a LafargeHolcim subsidiary, has launched a higher strength cement and stated that its production capacity will triple to 1.1Mt/yr at the end of October 2015. The company, which is 35% locally-owned, said that the cement 'Tembo Supaset 42.5' is used by civil contractors and pre-casters.
Lafarge Tanzania's CEO Catherine Langreney said that the product specifically addresses the needs for block making, concrete mix, mega-structures and high visibility infrastructure projects like bridges, roads and stadiums. "This brand is the result of almost one year of careful research and development by our cement technical experts," said Langreney. "Supaset CEM II is a specially-formulated Portland composite cement that is engineered to meet the fast-setting requirements of block makers."
The introduction of Supaset is likely to assist Mbeya Cement to increase its market share in the block making segment, improve customer satisfaction with Lafarge brands and reinforce its position as a leader in innovation within the Tanzanian construction industry. Langreney said that, before the end of 2015, Mbeya Cement will launch two new innovative products to meet demand of fast growing construction industry and the economy at large.
To cater for future demand, Mbeya Cement plans to start a new vertical grinding production plant, the first in sub-Sahara Africa, at the end of October 2015. "The new 700,000Mt/yr plant will elevates our capacity to 1.1Mt/yr," said Langreney.
Court ruled in favour of Cementos de Chihuahua 15 October 2015
Bolivia/Mexico: A civil court in La Paz, Bolivia has ruled to suspend the damages sentence imposed by the Inter-American Commercial Arbitration Commission (CIAC) that obliged Mexican cement company Grupo Cementos de Chihuahua (GCC) to pay Bolivian investment company Compania de Inversiones Mercantiles (Cimsa) compensation. The decision, announced on 9 October 2015, sets the arbitration court to issue a new resolution and cancels the embargo sentence ruled by a court in Colorado, US. This resolution obliged GCC to provide information about its properties in Colorado and to cancel any assets sales in that area.
INC could be turned into cement importer immediately 15 October 2015
Paraguay: Paraguay's Industry and Trade Minister Gustavo Leite has revealed that the possibility of turning Industria Nacional del Cemento (INC) into a cement importer with immediate effect is being considered by the authorities, which are concerned about on-going cement supply issues and cement prices.
A public-private partnership to increase capacity to 1Mt/yr is being sought, but this will require a new cement plant, which takes between three and four years, so it will not solve the existing problems. A tender process to import cement could be organised before the end of October 2015 and the product could arrive in November 2015.
Secil to build new 2Mt/yr cement plant in Brazil via Supremo 15 October 2015
Brazil: Portugal's Secil plans to upgrade its production capacity in Brazil by 2Mt/yr by the end of 2015. The move results from the addition of a new US$149m plant by its local division, Supremo, in Adrianopolis, Parana. Supremo also runs another plant in Pomerode, Catarina. The new plant will increase Secil's total cement production capacity from 7.65Mt/yr to 9.65Mt/yr, a 26% rise.
Trickle down economics in Ecuador
Written by David Perilli, Global Cement
14 October 2015
Change draws nearer this week in the Ecuadorian cement industry with the announcement of further details on a new integrated cement plant. Union Cementera Nacional (UCEM) plans to build its third cement plant. The part-government owned group will build its new 2200t/day facility in the country's central Chimborazo province. The move will expand the group's domestic production from 1600t/day to 3800t/day, adding to its existing 650t/day of plant in Chimborazo and its 950t/day plant in Azogues. The expansion was supported by a US$230m investment agreement agreed in September 2015 between UCEM and Casaracra.
The timing is interesting here given that cement sales have reportedly fallen year-on-year by 7% for the first seven months of 2015, according to Ecuadorian Institute of Cement and Concrete (INECYC) data. Holcim, in its financial report for the first half of 2015, attributed its lower cement volumes to effects on the local economy by lower oil prices and poor weather. This also followed a declining year for volumes in 2014 after Holcim reported a record year in 2013.
Holcim also reported continuing to export clinker to its Ecuador unit in 2014 despite the drop in volumes. To that end it completed the second phase of its own expansion project at its Guayaquil cement plant back in March 2015. It increased its clinker production capacity to 4500t/day at the site at a cost US$400m.
Also of note, but on a smaller scale, was the announcement by the North American subsidiary of Gebr. Pfeiffer in September 2015 that it was supplying a new MPS swing mill for an existing grinding station at a clinker plant run by Hormicreto. Published details are sketchy on this plant but A TEC Greco refers to supplying a burner to the company for a cement kiln in 2013. The mountainous location and ownership by a concrete producer suggest that this may be a mini-cement plant.
Following the departure of Lafarge from the market at the end of 2014, Ecuador now has three main cement producers: LafargeHolcim (inheriting the Holcim assets), UCEM and Union Andina de Cementos (UNACEM). UCEM's expansion plans will increase its share of the industry by production capacity making it the second largest producer in the country. MCPEC - INECYC estimates projected that cement demand would reach 9Mt/yr in 2018. Meanwhile Manuel Román Moreno, general manager of the Empresa Pública Cementera del Ecuador (EPCE), estimated that the country imported around 1Mt/yr of clinker in 2014.
The question then for UCEM is whether the country will want 9Mt/yr of cement in 2018 with a depressed price of crude oil. As an Organisation of the Petroleum Exporting Countries (OPEC) Ecuador's economy is, no doubt, feeling the pinch from the low price of crude oil after a period of growth. In its expansion announcement UCEM reported the reliance of the new plant on bunker oil. This will be trucked in from the Amazonas (Shushufindi) refinery in Sucumbios province and purchased at a subsidised price. Cheap oil can be used to run the plants but it may be needed more to run the country's infrastructure demand for building materials such as a cement.