Global Cement News

India: UltraTech Cement reported a flat net profit for the three month period ending 30 June 2024 of US$203m, compared to US$202m in the same period in 2023. The company's income rose by 2% to US$2.18bn, while domestic sales volumes grew 7% year-on-year to 32Mt, despite a 9% decline from the previous quarter. EBITDA slightly declined to US$383m from US$384m.

Nigeria: The Joint Committee of the House of Representatives is investigating the sharp rise in cement prices in the country. Major industry players, including Dangote Cement and Lafarge Africa, must submit detailed production cost documents to justify the market price of cement. The committee plans to visit the production plants after reviewing these financial records to establish the cost of production and determine a fair price for cement. The inquiry covers production costs from 2020 to July 2024.

One committee member pointed out that Dangote Cement has continued to make significant profits despite sourcing most of its raw materials locally, and questioned why the price of cement keeps rising whilst producers continue to profit. In response, Dangote Cement’s Managing Director, Mr Arvind Pathack, attributed 95% of production costs to imports or foreign exchange impacts, noting significant increases in input costs and logistical challenges exacerbated by the poor state of infrastructure and foreign exchange limitations. The committee called for a review of company policies to potentially lower prices, criticising the Federal Competition and Consumer Protection Commission (FCCC)’s inactivity in addressing the pricing issue.

Chair of the Committee, Jonathan Gaza, said “We are extremely hopeful that this engagement will lead to a reduction in the price of cement. FCCPC has slept on their functions so far; their inactivity and unresponsiveness to price is what has put Nigeria where we are today.”

Uzbekistan: Cement manufacturers in Uzbekistan produced 6.2Mt of cement from January to May 2024, reflecting 35% growth year-on-year, according to data from the local Statistics Agency. In May 2024, production was at 1.7Mt.

Philippines: Taiheiyo Cement Philippines has inaugurated a new US$220m production line at its plant in San Fernando, Cebu, which is expected to support national cement production and reduce reliance on imports. The plant now has a capacity of 3Mt/yr, or 6000t/day of clinker. The new production line replaced the old facility, which was demolished in 2021. The facility incorporates kiln renewal technology that reportedly cuts CO₂ emissions by at least 10% through reduced energy consumption and a lower clinker factor. San Fernando Mayor Mytha Ann Canoy said the new facility is expected to generate 2000 new jobs.

India: Adani Group is planning to acquire cement assets from Jaypee Group, which include over 9Mt/yr of cement capacity, following Jaiprakash Associates' insolvency proceedings initiated in early June 2024. The National Company Law Tribunal in Allahabad admitted Jaiprakash Associates for corporate insolvency on 3 June 2024. Adani would acquire significant assets in the deal, including limestone mines and a power plant, although formal asset sale processes have not yet commenced.