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Eurocement and RZD complete railway renovation 18 August 2014
Russia: The renovation of the Podgornoe railway in the Podgorensky District of Voronezh Region has now been completed at a total cost of Euro14.8m. Eurocement contributed Euro8.92m to the joint venture project, which was carried out with JSC Russian Railways.
"This is an excellent joint project between big businesses," said the governor of the Voronezh Region, Alexei Gordeev. "Eurocement and JSC Russian Railways were able to reach an agreement on joint investments in the station's renovation, which made it possible to substantially increase its cargo throughput. It was very fortunate for us that one of the largest cement plants was opened in the Podgorensky District of the Voronezh Region. Productivity tripled in the last year alone and all this is thanks to the efforts of the cement plant. Now the railroad is ready to meet the cargo transportation needs of the enterprise." According to the president of Eurocement, Mikhail Skorokhod, the station's renovation will support the shipping of up to 2Mt/yr of cement from Eurocement's plant.
As part of the renovation, existing routes were extended and underwent major repairs, which allows trains of increased length (up to 71 cars) to be used, overhead contact lines were repaired and upgraded and the system underwent a transition to the Ebilock-950 centralised microprocessor, which is designed to control switches and signals at the station. In total, 2.6km of track and 36 turnouts were laid, 13km of overhead contact lines and carrier wires were replaced, 245 new supports were installed and the station area was renovated.
Nigeria set to end cement imports in 2017 18 August 2014
Nigeria: With a national production capacity at over 28Mt/yr, which far outstrips national demand of 20Mt/yr, Nigeria looks set to effectively end cement imports by 2017, according to UniCem's managing director, Olivier Lenoir. This is coming on the back of on-going strong national production capacity expansion by virtually all of the major cement producers operating in the country. By 2016, Dangote Cement will have increased its production to 50Mt/yr, Lafarge 15Mt/yr and UniCem to 5Mt/yr.
Zambia: Lafarge Zambia's CEO, Emmanuel Rigaux, said that its profit went up by 66% during the first six months of 2014, largely driven by favourable volumes, the launch of cost-control measures, improved industrial performance and positive foreign exchange gains.
"Our priority to improve our level of customer service through innovative new products, a re-focused sales and customer service team and state-of-the-art logistical solutions, have started to show results," said Rigaux. "Together with improvements in operational and industrial performance at our Ndola and Chilanga plants, we have managed to attain encouraging first half results despite a challenging environment in Zambia and key export markets."
Cement production grew by 13% to 600,000t, despite domestic and export markets facing challenges with stiffening competition, cost inflation and a number of changes in the regulatory environment. Lafarge Zambia expects continued efforts on the customer and cost-control sides to enable the firm to grow profitably and meet the needs of domestic and export customers, with a strong focus on infrastructure and mining projects in Zambia and the Democratic Republic of Congo.
Rigaux said that Lafarge Zambia's current capacity expansion projects in Ndola and Chilanga would also enable the company to remain the preferred supplier of construction solutions in Zambia and the DRC. He added that cement demand is expected to remain strong for the rest of 2014, saying that innovative products, services and solutions would be introduced as required to satisfy the growing demand in the construction sector.
India: Orient Cement, a CK Birla Group company, is in talks with cement companies to acquire a cement plant as part of a plan to triple its capacity from 5Mt/yr to 15Mt/yr by 2020.
"We are in strategic discussions with three players to acquire a cement plant with a capacity of up to 2Mt/yr," said Deepak Khetrapal, managing director and CEO of Orient Cement. He declined to name the companies, but added that the plant would be ideally located in Madhya Pradesh or Chhattisgarh.
The expansion plan also involves setting up greenfield cement plants and expanding existing facilities. Orient Cement has set up a 3Mt/yr greenfield plant in Gulbarga, Karnataka, which will become operational shortly. The company also plans to open another greenfield plant in the next five years, according to Khetrapal.
Orient Cement has outlined a capital expenditure of around US$444m for the expansion plan, to be funded through internal accruals and debt. Currently the company operates in Telangana and three regions of Maharashtra: Khandesh, Vidarbha, Marathwada. The expansion will give Orient Cement access to markets in Karnataka and central India.
Mexico's Cemex to build new cement plant in Colombia 15 August 2014
Colombia: Cemex has announced that it will begin construction of a US$340m cement plant in Colombia. The first phase of the project includes construction of a new grinding mill that will begin to produce cement in the second quarter of 2015. The rest of the plant will be completed in the second half of 2016.
"We are proud to contribute to the development of Colombia and wish to continue to be a long-term partner on its path to a prosperous, sustainable future," said Cemex's CEO, Fernando Gonzalez. The investment by Cemex Latam Holdings is expected to boost production capacity in Colombia from 4.5Mt/yr to nearly 5.5Mt/yr.
The plant will be built in the north-western Colombian province of Antioquia, a region with high economic-growth levels. It is expected to create 1000 direct jobs in the construction phase and around 300 jobs once operations begin.