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The single most notable observation regarding the last seven days is that the cement industry news has been overwhelmingly positive. After many years of consolidations, buy-outs and financial losses, it seems the global cement industry is finally turning itself around, with reports citing numerous expansion projects and growing cement demand in most regions.
The Indian government is taking control of its coal shortage problem with the appointment of a new Inter-Ministerial Task Force (IMTF) to rationalise existing coal resources. India's Ultratech Cement reported a 12% increase in cement sales in the April - June 2014 period, while both Shree Cement and Maha Cement are investing heavily to increase production capacity for the Indian and nearby Sri Lankan markets. In Myanmar, Thailand's Siam Cement Group (SCG) plans to construct a new 1.8Mt/yr capacity cement plant, while China's Guangdong Province has cut another 3.23Mt/yr of cement production capacity to meet overcapacity issues and reduce harmful emissions.
Signs also point to an anticipated upswing in cement demand in Europe. The UK's Hope Construction Materials has invested in 36 new Mercedes-Benz trucks for cement dispatch, while in Croatia, Holcim has predicted a 15% revenue increase in 2015, having finally completed consolidation of its unprofitable operations. Eurocement plans to construct a new 2.4Mt/yr capacity cement plant at the site of its Akhangarancement plant in Uzbekistan, although the existing plant is currently under scrutiny by the State Competition Committee and the subject of a nationalisation attempt by the Uzbek authorities.
In the US, Eagle Materials has reported a 4% increase in cement sales volumes in the April – June 2014 period, while Holcim has broken ground on its Hagerstown, Maryland cement plant modernisation project. Similarly, cement demand in Latin and South America continues to grow. Cemex Latam Holdings reported a 6% year-on-year increase in cement sales for the first half of 2014, while Mexico's Cemex reported that net sales grew by 4% year-on-year during the second quarter of 2014. Cemento Andino is building a new line that will triple the cement production capacity of its Trujillo plant in Venezuela to 600,000t/yr.
In Africa, Tanga Cement Company Limited (TCCL) plans to increase its cement production capacity, having signed an agreement to double its power supply to 40MW. Tunisia's Carthage Cement has reported a 419% increase in turnover for the first six months of 2014, while in Egypt, Suez Cement reported a 1% increase in cement demand. Lafarge's Nigerian subsidiary, Ashaka Cement, is fast-tracking the expansion of its Gombe State plant to meet demand, while the Standards Organisation of Nigeria (SON) is forging ahead to improve cement standards and consumer confidence. ARM Cement's revenues grew by 16% for the first half of 2014, including a 10% increase in Kenya and a 33% increase in Tanzania.
Finally, Lafarge and Holcim are moving forward with their mega-merger, officially notifying various competition authorities around the world. While the global cement industry will undergo some major changes as a result, the upheaval could prove positive for those players willing to seize the day.
Thierry Legrand appointed as Lafarge’s senior vice president of transformation and acceleration
Written by Global Cement staff
23 July 2014
France: Thierry Legrand has been appointed as senior vice president of transformation and acceleration at Lafarge's head office in Paris. Legrand has been the chief executive of Lafarge South Africa for five years. Kenneth MacLean, who is currently Lafarge group's senior vice president for performance aggregate, will replace him from 1 August 2014.
During his time in South Africa, Legrand integrated the company's local cement, aggregates, ready-mix concrete, gypsum and fly ash business lines into a country organisation and drove its ambition of contributing to building better cities. MacLean said that he was excited to be in South Africa and looked forward to the challenge.
Vecoplan names Uwe Eschenhorst as vice president of cement business
Written by Global Cement staff
23 July 2014
US: Vecoplan, a provider of processing technologies and comprehensive systems for the production of alternative fuel from waste and biomass and fuels feeding systems, has appointed Uwe Eschenhorst as vice president of its cement business. Eschenhorst joined Vecoplan in 2012 as vice president of its alternative fuels and energy competency centre. Prior to that he was the environmental services manager at Polysius Corp USA, working with the cement and minerals industries. Eschenhorst brings more than 14 years of practical experience to his new position at Vecoplan.
"Uwe's impressive credentials and vast experience in this sector make him the perfect choice to head-up our Cement Business Unit here at Vecoplan," said Len Beusse, COO of Vecoplan. In his new position, Eschenhorst will be responsible for sales in the North American cement industry. He will also supervise all strategic aspects of large projects in this sector.
SCG invests US$400m in Myanmar cement plant 23 July 2014
Myanmar: Thailand's Siam Cement Group (SCG) plans to invest US$400m in the construction of a 1.8Mt/yr capacity cement plant in Myanmar. The plant is expected to be complete in 2016.
"The priority we are focusing is to manufacture cement and later cement related products such as ready-mix concrete and precast concrete blocks," said Kan Trakulhoon, SCG's president and CEO. "Myanmar seems to be developing progressively and infrastructures are needed, so the cement market will be good. The investments made in the industry and housing construction sectors are increasing, especially in major cities like Yangon, Mandalay and Nay Pyi Taw." He added that the cement plant would use waste-derived fuel.
Latin America: Cemex Latam Holdings, Cemex's Latin American subsidiary, has reported net consolidated sales of US$864m during the first half of 2014, representing a year-on-year rise of 6%. Company earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell year-on-year by 8% during the first six months of 2014, reaching US$283m, due to scheduled maintenance works. EBITDA levels are expected to improve during the second half of 2014. Cemex Latam Holdings recorded net profits of US$121.2m in January - June 2014, 14% down on the same period in 2013.