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Polish cement production up by 2.9% in May 2015 09 June 2015
Poland: Cement production increased by 2.9% year-on-year to 1.62Mt in May 2015, according to Poland's Cement Producer Association. In the 12 months that ended on 31 May 2015, cement production grew by 1.5% year-on-year to 5.64Mt.
Dangote to expand Ethiopian cement plant 09 June 2015
Ethiopia: Accoring to Nigeria News, Dangote Group president Alhaji Aliko Dangote has said that 'plans are afoot' to double the capacity of the newly-opened US$500m, 2.5Mt/yr capacity cement plant in Mugher, Oromia, Ethiopia. Dangote said that the expansion work would begin before the end of 2015.
The decision to set up and then expand the plant was informed by the 'enabling' environment created by the Ethiopian government with massive investment in several large-scale infrastructure projects, including the construction of the continent's largest hydropower dam. The Ethiopian plant will create direct employment for 2000 people in the main plant operations and logistics, with a fleet of 600 trucks. 5000 indirect jobs will also be created.
Dangote said that achieving real economic integration in African would require political stability and a breakdown of the barriers and borders between countries, which hinders free flow of goods, services and people. "We need to make deliberate efforts to encourage Africans, not just foreigners, to invest in Africa. Dangote Cement is currently in 16 African countries with plans to invest in many more over the next years. There are a number of other successful pan-African brands today such as MTN, Shoprite and Ecobank," said Dangote. "We need to encourage this trend to see more investments in Africa by Africans. Above all, there is need to encourage the private sector to collaborate with governments across Africa to address the issue of infrastructure deficit, which has plagued the continent for decades."
Ethiopia's prime minister Hailemariam Desalegn said that as one of the fastest growing economies in the world, the country's investment potential had barely been scratched. He said that the government was spending millions of dollars on critical infrastructure to address investment and align with policies that were already in place to aid investors. "Ethiopia represents a lucrative market that has barely been tapped with its 95 million people and growing economy," said Desalegn.
Ethiopia's Minister of Industry, Ahmed Abitew, said that, with the new plant, the country's cement sector would make significant growth in meeting local demand, which has grown due to infrastructural development. According to him, production has risen from 11.2Mt/yr to 17.5Mt/yr. "The government is giving due attention to the industrial sector with its average growth of 20%/yr," said Abitew.
Japan/Singapore: Taiheiyo Cement, which operates a cement terminal in Singapore through Singapore Cement Manufacturing (SCMC), a joint venture with Singapore-based Hong Leong Asia Ltd, has completed a new 24,000t cement silo at SCMC's cement terminal in Singapore.
Infrastructure investment, including subway and highway construction, is driving the robust cement market in Singapore and fuelling demand for low-heat-type cement as a way to prevent thermal cracking in concrete structures with large cross-sections (so-called mass concrete).
Coinciding with the construction of SCMC's new silo, Taiheiyo Cement has developed a new type of cement specifically formulated to satisfy Singapore's local needs. The new export-oriented product, which is manufactured using Portland cement and admixture ingredients such as fly ash from coal-fired power plants, qualifies as type CEM II as defined by Singapore's cement quality standard (SS EN 197-1). The new cement has greater resistance to thermal cracking due to its low-heat and low-shrinkage characteristics, higher long-term strength, improved workability and lower alkali-silica reactivity. It is also certified under the Singapore Green Labelling Scheme (SGLS) and therefore carries a Green Label in recognition of its environmental friendliness, which was demonstrated during a series of tests carried out with the cooperation of local users and experts. SCMC also used the new cement in the construction of its new silo and in the process verified its performance.
Taiheiyo plans to manufacture the product using fly ash that has been selected, formulated and managed with the cooperation of domestic Japanese power companies. It is expected to contribute to the effective use of fly ash from newly-built coal-fired power plants in Japan. Going forward, SCMC plans to use the new silo for CEM II, complementing its Ordinary Portland Cement and expanding its business through the supply of new cement that meets local needs.
Sagar Cements to start railway line in July 2015 08 June 2015
India: Sagar Cements expects to commission its US$18.7m, 7km private railway line in July 2015.
"The company had already received its first train and full commercial operations will begin after safety checks by the end of July 2015," said executive director S Sreekanth Reddy. The railway line is likely to boost the company's market reach and slash its freight costs.
The line will connect Sagar's cement plant near Matampally in Nalgonda, Andhra Pradesh, with the main railway line. It will provide cheaper inward and outward freight. "We expect to save US$1.56 – 1.87m/yr with the inward freight," said Reddy.
Pakistani cement exports fell by 26% in May 2015 08 June 2015
Pakistan: Cement exports fell by 26.1% to 560,000t in May 2015 as cheap Iranian cement is eating Pakistan's market share in Afghanistan, according to the All Pakistan Cement Manufacturers Association (APCMA). Pakistan exported 750,000t of cement in May 2014.
"Iranian cement is fast making inroads into Afghanistan," said an APCMA spokesperson. APCMA data showed that exports dropped by 10.8% to 6.64Mt between July 2014 and May 2015. Cement makers exported 7.44Mt in the same period of the 2013 – 2014 financial year.
The APCMA appealed to the government to support local manufacturers in winning back the Afghan market by withdrawing duties, which would enable them to compete with highly-subsidised Iranian cement. There is a 5% federal excise duty and a 17% general sales tax on the retail price of cement. "The taxes are equal to around US$1.56/bag," said the spokesperson. "The incidence of high taxation encourages evasion and negatively impacts consumption." He added that the government should gradually bring federal excise duty to zero, as announced by the previous government.
Exports from the south increased by 4.5% in the July 2014 to May 2015 period. These exports go via the sea. However, exports from the north decreased by 18.3% due to the Iranian cement factor, as exports from the north usually go to Afghanistan. The spokesperson said that Iran is also dumping its cement in Balochistan, Pakistan and that cement smuggling from Iran to Balochistan is resulting in substantial losses to national exchequer. "Policy makers ignored warnings from the cement industry over the inundation of Iranian cement in Afghanistan," he said. "It has penetrated our local market." He said that full taxes are not paid on Iranian cement imports.
A road trailer entering Pakistan from the Taftan border carries up to 60t of cement. A transporter issues two different weight loads receipts, one for the customs department and another one for freight purposes. The APCMA said that if taxes are fully paid, the price of Iranian cement is equal to that of domestic cement.
Pakistani cement manufacturers dispatched 2.49Mt of cement in May 2015 compared to 2.3Mt in May 2014, up by 8%. Cement sales were 25.5Mt in the 11 months that ended on 31 May 2015, compared to 23.6Mt in the corresponding 2013 – 2014 period, depicting over 8% growth.