Global Cement News

Turkey: The International Finance Corporation (IFC) is providing Çimko a financing package that includes a US$40m loan for its own account and a US$25m syndicated loan from BNP Paribas Fotris mobilised by the IFC. The long-term financing will support Çimko's investment in energy-efficiency and in the ready mix concrete market, the IFC said in a statement.

The Turkish cement producer's investments will strengthen its overall competitiveness, increase employment in southeastern Turkey, enable the company to reduce greenhouse gas emissions, continue to supply more cement to the domestic market and export more cement to Middle East and North Africa (MENA) region. Çimko is a joint venture between local Sanko Group and Italy's Cementerie Aldo Barbetti.

Peru: Sources close to the Peruvian cement sector have reported that the shareholders of Cementos Portland (Cempor), a joint venture between Peru's Portland Investment World Cement Group, Brazil's Votorantim Cimentos and Chile's Cementos Bío Bío that was due to construct a cement plant close to the Peruvian capital Lima, did not reach an agreement on its agenda items. They are now to resolve their differences in an international commercial arbitration, which will probably take place in France. Issues came to a head at a meeting on 27 January 2014 due to a disagreement over financing.

Sri Lanka: Holcim Lanka has launched its fourth 'Holcim Village' in Akmeemana, Galle, in the south of the island nation. Holcim said that by laying the foundation for this new Holcim Village, it demonstrates its commitment towards its 'triple bottom line' of economic return, social responsibility and environmental protection. The village at Akmeemana follows three previous projects carried out in Medirigiriya, Eluwankulama and Puttalam.

The Holcim Village in Galle specifically addresses the needs of the community surrounding Ruhunu cement works. The US$900,000 project will house 13 homeless families in fully fledged housing units with electricity, water and access roads, upon completion.

Zimbabwe: Zimbabwe Zhongxin intends to build a cement plant in Masvingo at an estimated cost of US$50m. The company initially wanted to construct the plant in Chimanimani but had to relocate to Masvingo where 'substantial' limestone deposits were found.

Zhongxin Coking is the controlling shareholder in Zimbabwe Zhongxin with a 70% stake, while a local consortium, Qualisave Minerals Investments, owns a 30% stake. The project may commence during the first half of 2014 once the company has obtained all of the regulatory permits. The project has potential to create 400 jobs.

In terms of complying with the indigenisation and empowerment laws, an unnamed source stated that "the Chinese investors are bringing in capital close to US$49.5m and the contribution from the locals is quite insignificant for them to have a controlling interest. As such, negotiations are ongoing with the relevant authorities. The proposal is that the Chinese investors will gradually release some of the shares to the local partners in the coming years."

Zimbabwe's cement market is looking bright, with demand expected to increase thanks to various infrastructural projects on the cards, some of which are already underway. With an infrastructure backlog of US$14bn, the cement demand is expected to grow significantly in the medium to long term.

Tanzania: Loesche GmbH has received an order from Tanga Cement Company Ltd in Tanzania for the supply of two vertical roller mills.

The order covers engineering and supply of two Loesche vertical roller mills, one LM 41.4, which will grind 200t/hr of cement raw material with a fineeness of 15% R 90μm, one LM 19.2 D coal mill with a grinding capacity of 20t/hr. and a fineness of 12% R 90μm. Included in the scope of supply is a rotary star feeder for the raw meal mill and a coal screw feeder for the coal mill. The delivery of the mill key parts is planned for July 2014.

This is Tanga Cement's first order from Loesche. Tanga Cement's plant, which was commissioned in 1978, has a production capacity of 3000t/day.