Global Cement News

Philippines: Cemex has sold its Philippine cement brands to the Consunji family for US$12.55m. Cemex Holdings Philippines revealed that APO Cement and Solid Cement repurchased the brands from Cemex Innovation Holding in Switzerland. APO Cement, based in Naga, Cebu, acquired the ‘Apo Cement’ brand for US$8.2m, while Solid Cement, located in Antipolo, bought the ‘Rizal’ and ‘Island’ trademarks for US$4.53m. This follows Cemex's strategic withdrawal from the Philippines, completing the sale of Apo Cement and Solid Cement to DMCI Holdings, Dacon and Semirara Mining and Power of the Consunji family for US$305.6m in April 2024.

Vietnam: Export prices for clinker and cement in Vietnam have dropped significantly in May 2024, impacting the construction industry and raising concerns among exporters. This decline is due to decreased international demand, intense competition, and evolving trade policies, according to the Vietnam News Brief Service. The Ministry of Construction noted that after a decade of growth, export volumes have fallen sharply since 2022, with exports dropping to 10.9Mt in 2023 from 15.2Mt the previous year. Only 5.4Mt is expected to be exported in the first half of 2024.

The Vietnam Cement Association (VNCA) has highlighted ongoing challenges, particularly influenced by the downturn in China’s real estate market and competitive pressures from Chinese cement surpluses. The VNCA has urged Vietnamese exporters to explore new markets, improve product quality and increase production efficiency. Additionally, the VNCA recommends that the government consider eliminating export taxes on clinker to mitigate these challenges.

Brazil: The heavy rains and flooding in Rio Grande do Sul state have negatively affected cement sales in May 2024, with volumes dropping by 5.6% year-on-year to 5.3Mt, according to the National Union of the Cement Industry (SNIC). Overall sales for the first five months of 2024 reached 25.2Mt, a slight increase of 0.8%. Despite a 0.8% growth in GDP in the first quarter of 2023, the construction sector saw a 0.5% decline due to high interest rates impacting financing and investments. A positive business outlook is expected for the second half of the year, buoyed by labour market trends and wage increases.

Paulo Camillo Penna, President of SNIC, said "In support of the population affected by the severe floods and rains, cement plants in Rio Grande do Sul are fully operational to assist in reconstruction, with normalised supply of the product, which will be essential for the execution of hundreds of necessary projects throughout the state."

Zambia: Chilanga Cement has commissioned a US$20m kiln upgrade project, known as the Phoenix Project, at its Ndola plant. This initiative will double the plant's cement production capacity from 500,000t/yr to 1Mt/yr.

Zimbabwe: Khayah Cement has reported a significant increase in sales volumes across its operations for the year ending 31 December 2023. Dry mortar product sales volumes surged by 153%, bolstered by the demand for the Supagrow agricultural lime range within the government's Pfumvudza agriculture programme, absorbing 0.34Mt during the period. The firm's cement business also saw a 34% year-on-year increase in sales volumes following the installation of a vertical cement mill in the third quarter of 2022.

Despite challenges such as power quality issues and equipment breakdowns impacting production, bulk cement volumes grew from 1% to 4% during the period. However, clinker production volumes fell by 21%, mainly due to the mothballing of the kiln in the last half of 2023.

The company said “A total of 1000 hours were lost as a result of the unplanned breakdowns which in turn impacted negatively on both clinker, cement production and sales volumes and with it profits and cash generation.”