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Farmer wins case against Saurashtra Cement 02 January 2014
India: A consumer court has asked a cement company to compensate a farmer for the cost of house construction as the quality of its cement was not found up to the necessary standards.
Rahimbhai Sherasiya started construction at his farm in Dhuva village with 200 bags of Hathi brand cement that he bought from Saurashtra Cement Ltd in December 2012 for US$871. As construction proceeded he found that the cement was of very poor quality. It could not hold construction material and further construction was not possible.
Sherasiya complained to the company and the authorised dealer but did not get a proper reply. Through company officials he sent samples of the cement to the laboratory of the Gujarat Engineering Research Institute (GERI) to get the cement tested for quality. GERI's report revealed that the cement was not as per the Indian Standard.
When the company refused to pay heed to his complaint, Sherasiya moved the Rajkot Consumer Dispute Redressal Forum and demanded compensation. This included the amount he had invested in paying for transportation and labour and purchasing construction material. The company denied all charges and claimed that GERI is not a government-approved agency and that its report was misleading.
ARM announces new Kenyan plant to counter Dangote's advances 23 December 2013
Kenya: ARM Cement is set to build Kenya's largest cement plant in Kitui County, setting it up for a fight with Nigeria's Dangote Cement, which also has plans to open a U$400m plant in the same region.
ARM says that it will raise up to US$300m to fund new plants including the planned unit in Kitui, which will produce 8000t/day (~2.5Mt/yr) of cement. This will make it the single largest cement factory in the country and places the unit ahead of the planned Dangote plant, which has a planned daily capacity of 5500t/day (~1.8Mt/yr). ARM's fund-raising will be done through a mixture of bank loans, corporate bonds and rights issues.
"We plan to start construction of the Kitui plant late in 2014. It is a major development for us," said Pradeep Paunrana, ARM's chief executive, to the Daily Press.
This announcement will re-open the fight for Kitui mines, which were the subject of a fierce court battle between ARM and Bamburi Cement in 2010. The 100km2 area is rich with high-quality limestone. The East Africa Portland Cement Company (EAPCC) has also directed its management to strike a deal with Kitui County so that it can secure key raw materials and counter moves made by Dangote and local rivals.
Kenya produced 4.7Mt of cement in 2012, up from 2.8Mt in 2008, according to the Kenya National Bureau of Statistics. With double-digit cement market growth expected in the coming years, Kenya has caught the eye of Dangote Cement and new entrants National Cement and Mombasa Cement as well as the established players.
Karnataka cement plant wage disputes develop 20 December 2013
India: The Deputy Labour Commissioner of the Union government has convened a tripartite meeting with representatives from Vasavadatta Cements and UltraTech Cement, the Shramajeevigala Vedike and the Labour Department to find a solution to the on-going wage disputes at Karnataka cement plants.
Mr. Hiremath, trade union leader and president of the Shramajeevigala Vedike, claimed that the cement companies were spreading falsehoods about the implementation of wage board salaries to contract labourers. They continued to pay a negligible US$2.89/day against the cement wage board's recommendation to pay more than US$8.03/day. The companies also provided false information to the Labour Commissioner that the cement wage board's recommendations were being implemented and hid the fact that contract labourers were not receiving any other benefits.
Mr. Hiremath said that if the Labour Department failed to ensure that the cement plants implemented the wage board's recommendations, the employees would not have any alternative but to launch an indefinite protest in New Delhi.
Saint-Gobain sells its fibre cement siding business 20 December 2013
US: Saint-Gobain has signed an agreement for the sale of its US-based fibre cement siding business to Plycem USA, a subsidiary of Elementia of Mexico. The transaction is expected to be finalised in the first quarter of 2014, subject to standard closing conditions.
The business is part of Saint-Gobain's Exterior Products activity of the Construction Products Sector. It manufactures and sells fibre cement siding, trim and accessory products for the US and Canadian residential and commercial construction markets. The business employs close to 250 people and has three US production sites at Roaring River, North Carolina, Terre Haute, Indiana and White City, Oregon.
EAPCC chairman and board directors face probe 19 December 2013
Kenya: The Ministry of Industrialisation and Enterprise Development has recommended that the East African Portland Cement (EAPCC) directors be investigated over a chaotic annual general meeting held on 17 December 2013.
Wilson Songa, principal secretary of the Ministry of Industrialisation and Enterprise Development, said that the conduct of EAPCC chairman and board members, including chief executive Kepha Tande and directors Titus Naikuni and Hamish Keith and company secretary J Maonga should be investigated in relation to the AGM.
Songa argued that the AGM should be declared a sham and the company was directed by the CMA not to affect any of the resolutions passed at the meeting. Songa wants the CMA to order EAPCC to reconvene the AGM and an independent person nominated by the capital markets regulator to oversee the meeting. Songa also wants the CMA to confirm that the nomination and election of Didier Tresarrieu as a director was null and void since it was not carried out in accordance with articles of the company.
The current stand-off re-ignites a long-running battle for the control of the cement maker between the government and France's Lafarge. The Treasury holds a 25% stake in EAPCC while NSSF holds 27% shareholding. This gives the government a 52% stake in the company, which has seen it ranked as a state corporation.