Global Cement News

Mexico: Mexico's cement producer Elementia is in talks to buy out its joint venture partner Lafarge, according to local media. Elementia has the right to buy Lafarge's 47% stake under an option described in the original terms of the partnership. Lafarge is said to be keen to avoid competing with itself in Mexico after agreeing to the US$40bn merger with Holcim, which already operates in the country.

The stake has been valued as high as US$500m. However, it is unlikely to attain that high a price because Lafarge has limited bargaining power and Elementia already has majority and management control of the joint venture. Lafarge may be forced to offer its stake at a discount to convince Elementia to buy. Lafarge and Holcim's recent proposed asset divestment list did not include the Mexican joint venture, which has a cement production capacity of 2Mt/yr.

Elementia sells cement in Mexico under the brand Cementos Fortaleza. Buying out Lafarge would bolster Elementia's position in Mexico, where cement demand is predicted to grow on the back of economic overhauls that were approved in 2013.

Belarus: The Council of Ministers has ordered Belarusian Cement Plant and Krychawtsementnashyfer to hand over the government-owned stakes to Belarusian Cement Company. The move comes as part of a merger of all of Belarus' cement plans to create a new holding company, Belasrusian Cement Company.

Belarusian Cement Company is to receive 7,723,192 shares from Belarusian Cement Plant and 196,697,461 shares from Krychawtsementnashyfer. Belarusian Cement Company was initially expected to control Belarusian Cement Plant, Krychawtsementnashyfer and AAT Krasnaselskbudmateryyaly. However, it is still unclear whether Krasnaselskbudmateryyaly will join the holding company.

Belarus' president, Alyaksandr Lukashenka, approved the merger, which was proposed by Pyotr Rudnik, head of the Mahilyow Regional Executive Committee. Uladzimir Kisyalyow was appointed as director general of Belarusian Cement Company. Prior to the appointment, Kisyalyow served as first deputy head of the Mahilyow Regional Executive Committee.

India: OCL India, an associate company of Dalmia Cement Bharat Ltd, has invested US$102m in the Bengal Cement Works plant in Paschim Medinipur Distict, West Bengal State.

Puneet Dalmia, director of OCL India, said that US$83.1m had already been spent on the project. According to Dalmia, construction of the 2Mt/yr capacity plant began in 2012 and had recently been completed. This was OCL's largest project outside Odisha State.

"This plant marks the initiation of the company's investment cycle in West Bengal,'' said Dalmia. OCL already has two cement plants at Cuttack and Rajgangpur in Odisha. The Bengal Cements Works will be the anchor investor at the Godapiasal Industrial Park.

Spain: The European Commission (EC) has objected to Cemex's plan to acquire Holcim's Spanish units, according to Reuters.

Cemex and Holcim unveiled the deal in August 2013, part of which included Holcim taking over Cemex's German businesses. The EC cleared this deal unconditionally earlier in July 2014. However, the Spanish part of the deal triggered an in-depth probe by the EC in April 2014. The preliminary review showed that the takeover would substantially curb competition in the grey cement market in certain parts of Spain.

"The EC has sent a statement of objections to the companies," said an EC spokesperson.

"We cannot comment and the process is following its normal course," said Cemex. "Proper disclosure will be made when we have to make it." Cemex had offered some concessions during the EC's preliminary review, but these were not considered to be sufficient. The EC has set a 5 September 2014 deadline for its decision.

Canada: Pond Biofuels has set up a bioreactor pilot plant at St Marys cement plant in St Marys, Ontario. The raw smokestack gas from the cement plant is recycled to grow algae in a third-generation 25,000L bioreactor at the on-site pilot plant. The resulting algae can be used for bio-oil, food, fertiliser and sewage treatment.

The algae consume CO₂, NO_X and SO_X from the smokestack gas. Every 1kg of algae produced prevents 2kg of CO₂ from being emitted into the atmosphere. The St Marys Cement Plant produces 720,000t/yr of cement and 540,000t/yr of CO₂. Currently, Pond Biofuels only uses a small portion of the total CO₂ output.

"We consider ourselves a carbon recycling technology," said Steve Martin, founder of Pond Biofuels.

The algae thrive in light filled, CO₂-rich conditions, which are provided in the bioreactor. The light comes from custom-designed red LED lights that flash continuously. The rapid flashing fools the algae into thinking the days are very short, so it grows very fast. "The algae evolve quite quickly; we can get four, five, six generations of algae in a day," said Martin.

Proving the production of algae at commercial scale is important, but the other important part is finding a market for the algae. "Between 10 – 20% of it is oil that be used for producing biodiesel," said Martin. It could also be used a coal replacement, a soil amendment or even animal feed and it can be easily dried using waste heat from the cement plant.