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US cement production up year-on-year in April 2015 03 July 2015
US: The United States Geological Survey (USGS) has reported that total Portland and blended cement shipments in the USA and Puerto Rico came to 7.7Mt in April 2015, a 4.1% rise compared to April 2014. In the first four months of 2015, shipments rose by 5.1% to 24.1Mt. As previously, the leading cement-producing states were Texas, California, Missouri, Florida and Alabama.
Clinker production in April 2015 was 6.1Mt, a rise of 6.4% year-on-year. Production of clinker in the four months to 30 April 2015 rose by 7.7% from the same period of 2014 at 21.6Mt.
Argos Panama joins reforestation programme 02 July 2015
Panama: According to Esmerk Latin American News, as part of its sustainability and environmental responsibility programme, Colombia's Cementos Argos, via its local subsidiary Argos Panama, has joined the 'Alianza por el Millon' (Alliance for a Million) project that seeks to reforest 10,000km2 of land in Panama over the next 20 years.
The project is promoted by local nature conservation agency, Asociacion Nacional para la Conservacion de la Naturaleza (Ancon) and is also supported by the Panama Canal Authority (ACP), the Ministry of Farming Development (MIDA), the Commerce, Industry and Agriculture Chamber in Panama (CCIAP) and the association of reforesting companies in Panama, Anarap. Argos Panama has pledged to provide around US$100,000 to reforest some 100,000m2 of forest over the next five years. It is estimated that about 200km2/yr of forest is lost in Panama due to de-forestation.
Romania: According to Romania-Insider, Germany's HeidelbergCement will merge its three subsidiaries in Romania, Carpatcement Holding, Carpat Beton and Carpat Agregate, to form a single company called HeidelbergCement Romania.
Carpatcement Holding has three cement plants in Romania, whereas Carpat Beton owns 18 concrete stations and Carpat Agregate operates 14 quarries and aggregates exploitations. The internal reorganisation process will end in December 2015. HeidelbergCement has invested Euro500m in Romania to date.
KKR backs SIMEC on ABG Cement buyout 02 July 2015
India: According to The Economic Times, private equity company KKR will team up with diversified trading and commodities group SIMEC to invest US$142m to take over the cement business of debt-laden ABG Group through a complex, multi-tiered financial transaction. The funding will help ABG's founder promoter Rishi Agarwal to complete the 'last mile' of his much-delayed cement plant project in Gujarat.
The first leg of the 'special situations' transaction, which will be concluded in the coming weeks, will see KKR fund SIMEC to gain a 51% controlling stake in ABG Cements for US$82.6m. This will be followed by an additional US$60.6m of funding collateralised by Agarwal's unencumbered shares in the company. The money will be used to finish the project, fund working capital and pay back overdue creditors.
ABG Cement has been planning a 5.8Mt/yr cement plant in Gujarat since 2010. However, due to significant cost and time overrun, only a 3.3Mt/yr clinker plant at Kutch near the limestone reserves was completed. Agarwal ran out of money to complete the grinding unit at Surat. The plant is ultimately expected to produce slag cements with blast furnace slag coming from Essar Steel. It will be the only slag cement plant in western India.
SIMEC has already made a part payment to show its commitment to the deal. KKR, too, has signed a term sheet with ABG's management. A detailed due diligence process is currently ongoing. In 2014, SIMEC had agreed to buy into ABG's cement business, but the deal was not concluded. Now with KKR's funding, it is expected to close soon.
India: Shree Digvijay Cement has announced that the board of directors has appointed Suresh Meher as the company secretary and key managerial personnel under the Companies Act 2013, with effect from 1 July 2015. S N Malpani, present company secretary and compliance officer, relinquished his current position effective from the same date, though he will superannuate from Shree Digvijay Cement on 6 January 2016. The board also approved the appointment of Suresh Meher as compliance officer with effect from 1 July 2015.