Global Cement News

Russia: LafargeHolcim's plant in Kolomna, Moscow has begun production of a new cement base for mortars under the Kelma brand. It is characterised by high strength, fine adhesion to surfaces and a long retention of mobility that provides for the mortar's plasticity necessary for construction works without adding extra water. The product is being sold in 50kg bags.

South Africa: PPC has reported a 3% fall in cement revenue to US$526m in the first nine months of 2015, although group revenue grew by 2% year-on-year to US$645m. The decline in the cement business was blamed on increased competition.

"The Mpumalanga area was the hardest hit, with double-digit volume declines. The north-west region, although also under pressure, showed some resilience," said PPC in a statement.

Company CEO Darryll Castle said that improved performance from the company's operations in Zimbabwe and Botswana had offset the declines experienced in the core South African cement business. He said that projects in Africa would ensure that shareholders had a 'diversified portfolio of businesses in different geographies.'

UK: Breedon Aggregates plans to acquire Hope Construction Materials for Euro480m. In a statement, Breedon said that the transaction would create 'the UK's leading independent producer of cement, concrete and aggregates.'

Hope has 160 operational sites, including a cement works in Derbyshire, five quarries and 152 concrete plants. In the first six months of 2015, Hope sold 1.6Mt of cement, 4.7Mt of aggregate and 2.3Mm3 of concrete, generating revenue of Euro407m and underlying earnings before interest depreciation and amortisation of Euro52.8m.

The acquisition is conditional upon UK competition authority approval and is expected to be completed in the second quarter of 2016. "This acquisition is well-timed, with UK construction output forecast to expand by around 15% over the next four years and volumes of all our major products expected to grow strongly," said Peter Tom, Breedon Executive Chairman. "We are confident that we will be able to continue delivering significant value for our shareholders in the coming years, with an even stronger platform for growth."

The Chief Executive of Aggregate Industries, part of LafargeHolcim, Pat Ward, will take over as Breedon Chief Executive early in 2016.

India: Sagar Cements cement production in October 2015 rose by 3% year-on-year to 96,247t and its cement sales rose by 7% to 99,918t.

China: China's Ministry of Industry and Information Technology (MIIT) has unveiled a document to ask cement companies in north China to carry out peak-shifting production on a trial basis in the winter. The peak-shifting production will not only ease the 'haze weather,' but also enhance the cement market and reduce producers' costs, according to industry insiders.

Due to fierce market competition, cement enterprises in north China produce cement at full capacity in the winter to seize the opportunity when the energy supplies end and building operations start. However, in the summer, many enterprises are forced to produce at half of their installed capacity due to the glut of cement on the market. As the cement industry is a high energy-consumption industry, the overlap of cement production and energy supply in winter increases coal consumption and leads to haze weather in north China. If peak production were carried out in winter for four months, about 4.36Mt of coal and 177bnm3 of flue gas emissions would be cut in the whole northern area, which could help improve the local environment. The peak-shifting production could also help ease overcapacity.

After the peak-shifting, cement enterprises in north and northeast China will suspend production for four to five months in winter and the overcapacity rate in the domestic cement industry will fall to 16 – 21% from the current 51%, which would help enhance the industrial climate.