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Setting the cement standard in Nigeria
Written by Global Cement staff
12 March 2014
Dangote Cement let everybody know this week that it is now producing 52.5MPa grade cement in Nigeria. The move was a response to building pressure from professional and civil groups in the country which have reacted in recent months to the high incidence of building collapses in the country. With the 42.5MPa grade looking likely to become the new legal standard, Dangote's adoption of an even higher standard looks like canny marketing.
The background to this tussle lies in the spate of building collapses that have plagued Nigeria in recent years. A widely cited paper in the Global Journal of Researches in Engineering from 2010 reported at least 26 incidents in Nigeria between 1975 to 1995 with 226 fatalities. Later figures from 2004 to 2006 reported at least 10 incidents with 243 fatalities, a significantly higher prevalence than in the earlier period. The paper recommended adopting standards for building materials such as cement among other measures. Since the publication of this paper news reports have been hard to collate. Commentators placed the toll at 15 collapses with 30 fatalities for the first eight months of 2013 alone.
The Standards Organisation of Nigeria (SON) reacted to the latest outcry over building collapses by saying that they were caused by poor application, such as a using the wrong quality of cement for a particular task, not poor standards. According to the SON, 32.5MPa grade cement is recommended for activities such as plastering, flooring, block moulding, culvert making and building simple domestic houses. 42.5MPa grade is designed for the construction of tall buildings, bridges and load bearing columns.
Adopting a national standard of 42.5MPa grade is intended to stop misuse of lower grade cement being used for the wrong applications. One example commentators have mentioned is how to help illiterate builders select the right kind of cement for a given task. Choosing an overall higher standard is one solution to this problem. Education is another.
One fact that has emerged from the debate is that, according to Dangote Chief Executive Officer DVG Edwin, the SON imposed 42.5MPa grade as the minimum for imports before most imports were stopped in late 2012. Edwin used this as an argument for the SON enforcing the same standard for domestic cement production. Anything that can cut the number of building collapses can only be a good thing.
FLSmidth appoints new Group Financial Officer
Written by Global Cement staff
12 March 2014
Denmark: FLSmidth has appointed Lars Vestergaard as its new Chief Financial Officer and member of Group Executive Management. Vestergaard succeeds Ben Guren who has decided to leave the company due to personal reasons. Vestergaard will take up the position as CFO on 1 April 2014. Brian Iversen, Vice President Corporate Finance, FLSmidth will be acting CFO until Vestergaard starts.
Vestergaard, aged 39 and a Danish citizen, holds a Master of Science in Business Management and brings with him international experience in the role as CFO as well as international experience in change management, IT management and treasury from his various management positions in Carlsberg (2004 - 2014) and the global facility service provider ISS (2000 - 2004).
Guy Sidos appointed chairman of Vicat Group
Written by Global Cement staff
12 March 2014
France: The Vicat board of directors has appointed Guy Sidos as the new chairman, in addition to his current position as chief executive officer. The board also appointed Jacques Merceron-Vicat as honourary chairman.
Sidos, aged 51, is the son-in-law of outgoing chairman and former CEO Jacques Merceron-Vicat. His appointment is intended to continue Vicat's independent outlook. Sidos is a graduate engineer of France's Navy School. After joining the Vicat Group in 1999 he held a number of operational positions, particularly in the US, before being appointed COO in 2004, then CEO in 2008. He will henceforth hold this position alongside that of chairman after the annual general meeting on 6 May 2014.
Indonesian Cement Association warns on imports 12 March 2014
Indonesia: The Indonesian Cement Association (ASI) has warned that imported cement from Thailand and Vietnam is damaging the fortunes of local cement producers. ASI chairman Widodo Santoso predicted that demand for Indonesian-made cement in eastern Indonesia fell by 29.5% year-on-year to 93,000t in the first quarter of 2014. He blamed the 'drastic' fall of demand from Nusa Tenggara and Papua on imported cement.
National demand for cement in Indonesia grew by 1.6% year-on-year in February 2014 with cement sales at 4.47Mt. Cement demand in Java, the country's largest provincial consumer, rose by 3.4% year-on-year in February 2014.
In December 2013 the Indonesian Trade Ministry issued the Trade Minister Regulation No.40/2013 on the Import of Cement Clinker and Cement, which required cement importers to have a registered license prior to receiving imports approval. According to Widodo, imports would be prioritised for cement producers who build new cement plants. Other reasons for the country's lower increase in cement demand have been attributed to excessive rain, the eruption of Mount Kelud and preparations for elections.
The ASI estimates that cement sales in 2014 will reach 62Mt/yr, an increase of 5 - 6% over 2013. Exports are predicted to reach 1.5 - 2.0Mt/yr.
Egypt: Minister of Trade and Industry Mounir Abdel Nour has announced that cement companies can start using coal from September 2014. He added that using coal will save 12.7Mm3/day of natural gas.
In a separate announcement, an official source at the Petroleum Ministry said that the amount of natural gas supplied to cement factories during January and February 2014 dropped by 35% from contracted levels. Total natural gas and mazut (heavy duty fuel oil) levels fell by 23% during the same period. During the second half of 2013 the amount of natural gas supplied fell by 17% from contracted levels with compensation from the use of mazut.