Global Cement News

Egypt: Misr Cement Qena has announced that production has restarted at its plant after a period of disruption that was brought about by a shortage of mazot (a type of heavy fuel oil) at the plant.

The price of mazot has been increased by a factor of nearly 2.5 by the government since the start of 2013. Cement companies like Misr Cement Qena are increasingly looking to use other types of fuel, including alternative fuels.

Turkey: Turkey's Competition Authority said on 11 June 2013 that it had launched a probe into the local cement producers Çimsa Çimento and Oyak Adana Çimento on allegations of price setting.

The authority said that data gathered during a preliminary inquiry was sufficient to open an investigation into whether or not the two companies had violated competition regulations by setting prices for white cement.

Iraq/Iran: Following a similar move by Turkmenistan, Iraq will stop importing Iranian cements from 1 July 2013, according to Sadeq Sava'edi, the deputy head of Khuzestan's Cement Exporters Union in Iran. Iran currently exports 20,000-30,000t/day of cement to Iraq.

Sava'edi said that the move aims to boost Iraq's domestic cement production, according to the ISNA News Agency quoted. He further said that political and security issues were also influential in the decision.

The news from Iraq, which is Iran's largest destination for cement exports, came as Mohammad Fatemian, an official with the Iranian Industry, Mine, and Trade Ministry said that Iran plans to export 18.5Mt of cement in the current Iranian calendar year, which ends on 20 March 2014. Iran's cement and clinker exports stood at 16.5Mt for the year to 20 March 2013, exporting 11.85Mt of cement and 1.79Mt of clinker.

Iran produced over 70Mt of cement in the past Iranian calendar year, according to cement industry officials. Capacity is expected to reach 110Mt/yr by 2015.

Iran exported cement to 24 countries including Iraq, Azerbaijan, Turkmenistan, Afghanistan, Russia, Kazakhstan, Kuwait, Pakistan, Qatar, Turkey, the United Arab Emirates, Georgia, Oman, India and China in the past Iranian year.

China: Top global cement producer Lafarge said on 5 June 2013 that it will continue to invest in China, despite overcapacity issues that have plagued the cement industry for years. Bruno Lafont, chairman and chief executive officer of Lafarge, said the company will invest in China using a 'value-growth' model.

Lafont said that Lafarge is likely to invest more in research, production and creating new partnerships in China. He said that the company will prioritise its existing position in Southwest China, although it may expand to other parts of the country. Lafarge expects to earn income of US$32.6m in China by 2015, according to Chen Mei, vice president of Lafarge Shui On Cement.

Lafarge has mainly operated in less developed regions in southwest China since it entered the Chinese market in 1994. Lafont said that China's overcapacity issues have appeared in other growing markets before, adding that inefficient and unsustainable players will eventually be phased out.

Just 69.4% of China's cement industry's capacity was used in 2012, according to a survey conducted by the China Enterprise Confederation.

Saudi Arabia: A second clinker line and a new power plant are being planned by Tabuk Cement in Saudi Arabia. The new 5000t/day cement production line will be designed, built and installed by Chinese company CDI, after winning the contract in a deal worth US$141m. Caterpillar is to provide a 30MW power plant, while Veolia won a US$9.5m contract to provide a new water treatment plant capable of processing 1500m3/day.

A combination of bank loans and the company's own resources will be the base for finance of this project, which is anticipated to be commissioned in the third quarter of 2015. If this is achieved, the total duration of the project would be just 26 months. Full commercial production is anticipated to start in the fourth quarter of 2015.

A cement shortage has been faced by Saudi Arabia in recent months. In April 2013 King Abdullah bin Abdulaziz issued an order to import 10Mt of cement into the country. At the same time, a Royal Directive called for new cement plants to be built in the Kingdom in order to make up the shortfall. Meanwhile, Eastern Province Cement Co. and Najran Cement have announced expansion plans and City Cement Company is currently trialling its new third production line.