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Europe: A conflict between Lafarge and Holcim has deepened as both groups have acknowledged that the terms of their proposed 'merger of equals' may have to be revised to reflect diverging valuations, according to Reuters.
The merger 'Can no longer be pursued in its present form,' said Holcim said in a statement on 16 March 2015. It has proposed a renegotiation of the share exchange ratio and 'governance issues.' Lafarge is willing to consider revising the share-exchange ratio in the merger, but not other aspects of the deal, it said in a separate statement.
The deal announced in April 2014 was intended to combine Lafarge and Holcim on an equal basis, but diverging results, share prices and fluctuations in the Euro and Swiss Franc have led Holcim to seek a revision of the terms. Holcim has proposed changing a proposed 1-1 share exchange ratio to 0.875 Holcim shares for each Lafarge share, according to news reports. Lafarge is said to be planning a counter proposal that would trim its weighting to 0.93 to complete the deal.
India: Jaypee Group is reportedly in talks with HeidelbergCement and JSW Cement to form a joint venture that will control the majority of its cement plants. The plan envisages a separate joint venture entity that will house around 20 – 22Mt/yr of Jaypee's operational plants in Uttar Pradesh, Himachal, Uttarakhand, Andhra Pradesh and Chattisgarh. The venture may exclude Jaypee's first cement plant in Rewa, Madhya Pradesh, which has approximately 3Mt/yr of cement production capacity.
Attock Cement to set up Iraq unit 16 March 2015
Iraq/Pakistan: The Economic Coordination Committee (ECC) has approved Attock Cement Pakistan Limited's (ACPL) request to establish a cement production unit in Iraq.
The ECC meeting, chaired by finance minister Ishaq Dar, approved the proposal to allow Attock Cement Pakistan Limited (ACPL) to remit US$24m for the establishment of a grinding plant in Basra, starting from March 2015 onwards. The proposed investment venture is expected to bring foreign exchange through dividends repatriation and growth in clinker exports. As ACPL intends to hire 50% of its labour force from outside Iraq, the venture is expected to create employment opportunities for Pakistanis.
Semey cement plant expands production capacity 16 March 2015
Kazakhstan: The Semey cement plant has been expanded to 1Mt/yr of cement production capacity. In the frame of the Nurly Zhol programme, the most of the cement will be utilised for road construction. The contracts for cement delivery have been already signed.
MI Cement to add new unit soon 16 March 2015
Bangladesh: MI Cement Factory Ltd plans to install new production unit soon to cater the growing demand for cement in the country.
"We have decided to set up another packing unit and a 1500t capacity cement silo to enhance the delivery capacity of our cement (Crown Cement)," said Mohammed Jahangir Alam, chairman of MI Cement. "This will also help maintain the quality of our cement and thus keep the pace of increasing revenue."
Bangladesh is preparing for development in public infrastructure, communication and housing facilities, said Alam. "The cement industry in Bangladesh is headed for a revolution," he said. High population densities in cities, unplanned urbanisation and rapid economic development are likely to expand cities vertically rather than horizontally to achieve maximum utilisation of available space and ensure future food security by not urbanising fertile land, he added.
Quoting a recent study, Alam said that the per capita cement consumption in Bangladesh was still low at 107kg, compared to 210kg in India, 265kg in Pakistan, 310kg in Sri Lanka and 570kg in Korea, indicating future growth of Bangladeshi cement consumption.
At present, MI Cement's total production capacity is 1.74Mt/yr. Alam said that in the fiscal year 2013 - 2014, the political unrest hampered MI Cement's day-to-day business activities and reduced its cement delivery to lower than expected. However, the company increased its revenue by 17% year-on-year to US$102m despite the political unrest. MI Cement sold US$86m of goods in the 2014 fiscal year, up from US$73.2m in 2013 in the previous fiscal year.