Global Cement News

India: The Krishak Mukti Sangram Samiti (KMSS), a local residents association in Assam, laid claim to land that belongs to a cement manufacturing company in Assam, India, on 24 January 2014.

KMSS chief, Akhil Gogoi, claimed that Topcem India Ltd had breached an agreed land occupancy by possessing the 55,100m² of farmland. A panel will prepare a list of farmers, to whom the land will be distributed, by the end of January 2014.

The KMSS has also threatened to occupy land belonging to another cement company. The Federation of Industry and Commerce of the North East Region has condemned the move.

Update 29 January 2014

US: US construction materials giant Martin Marietta has agreed to purchase Texas Industries (TXI), which has 6Mt/yr of cement capacity and a raft of ready mix concrete facilities in Texas and California, for US$2.7bn.

Martin Marietta's chief executive, C Howard Nye, said, "We like the Texas market a lot. This augments the position we have in Dallas - Fort Worth. The Texas market, for the long term, is one of the most dynamic in the country."

Original story

US: Construction materials maker Martin Marietta Materials is in advanced talks to acquire Texas Industries. Texas Industries currently has a market capitalisation of US$2.15bn. A deal is expected as early as February 2014.

Reports in mid-December 2013 revealed that the owners of Texas Industries were exploring a sale of the company and were working with Citigroup to find a buyer. Texas Industries' largest shareholders, Southeastern Asset Management and NNS Holding, have been seeking to sell their stakes in the company for some time. Combined, the two investors own more than 51% of the company.

Texas Industries has a 6Mt/yr cement production capacity that is expected to grow to almost 8Mt/yr in the next few years. The company reported a second quarter net loss of US$17.6m in January 2014, despite a growth in net sales from US$168m in the second quarter of 2013 to US$209 for the same period of 2014. The net loss was blamed on higher interest expenses.

Belgium: CBR, part of HeidelbergCement Group, has announced that it plans to close its Harmignies white cement plant in Belgium.

Reasons for the potential closure include structural difficulties, high logistics and production costs, an unfavourable geographical location and a decline in the market for white cement. Although a number of restructuring measures were implemented in 2007 and 2013, in addition to investments aimed at lowering production costs, these were not enough to offset the challenges facing the plant.

If the closure goes ahead, 97 jobs could be affected. CBR management and staff representatives will enter into a period of consultation regarding the procedure.

India: Legal metrology officials have conducted surprise checks on cement warehouses at Nacharam and Orient Cement facilities in the state of Andhra Pradesh. The officials registered six cases pertaining to various violations on 23 January 2013 and also suspended a district inspector from Adilabad for dereliction of duty.

Legal metrology representatives raided warehouses owned by Birla A1 Premium Orient Cement Ltd, Maha Shakti Cement and NCL Industries Ltd in Nacharam, Andhra Pradesh and found 50kg cement bags that were light by 20-1000g. Following the raids, the officials seized 8210 cement bags from three warehouses.

Also on 23 January 2013, metrology officials conducted searches on Orient Cement Industries in Adilabad, Andhra Pradesh. The officials registered cases for using packing machines without getting them verified by the department.

S Rajeshwar, district inspector of Adilabad, Andhra Pradesh state, was suspended for earlier visiting Orient Cement Industries and deliberately coming back without finding any violations.

US: Colombia's Cementos Argos announced an agreement with US-based Vulcan Materials for the acquisition of cement, concrete, blocks and port assets in Florida, USA worth a total of US$720m. The acquisition will consolidate its participation in the growing market in the south east of the US.

The assets that are part of this transaction increase the Cementos Argos' installed cement capacity by 3.5Mt/yr, thanks to the integrated cement plant Newberry, Florida (1.6Mt/yr) and grinding mills in Tampa and Port Manatee (1.9Mt/yr combined). The deal also features 69 ready mix concrete plants with 372 mixers and an annual production capacity of 3.3 million m³ and 13 concrete block production plants.

"This new transaction fits perfectly with the company's growth strategy, not only for the size and quality of the assets but also because of its privileged location, the growth potential and its complementary operation with our current assets," said Jorge Mario Velasquez, CEO of Cementos Argos. "We are doubling our cement production capacity in the United States, in a market like Florida, where the growth forecast for the coming years is expected to double the already encouraging growth estimates. Florida is one of the fourth largest state economies, with the highest cement consumption and population of the US."

Through this acquisition, Cementos Argos becomes the second-biggest producer of cement in Florida and in the south-east of the US. With this, the company will achieve a total installed capacity, in all of the locations in which it has a presence, of 20Mt/yr.