Global Cement News

Pakistan: The inauguration of the Dasu dam has reinforced optimism in the local cement industry, which has been banking on the continuous increase in local demand owing to mega construction projects.

The Dasu dam, one of the mega dam projects, is expected to increase cement demand in Pakistan by 1Mt/yr for the next five years. The 4320MW dam will be completed in two phases at an estimated cost of US$4.8bn. Since the Dasu dam is located in the north, the cement for the project will most likely be procured from nearby cement plants. Cement companies like Maple Leaf, Fecto, Bestway, Cherat, DG Khan, Fauji are the most likely to benefit from the dam construction.

Analysts say the construction of big dams like Dasu and Basha will supplement the already improving cement demand in Pakistan. "Dasu dam will add an additional 1Mt/yr of cement demand, which will be significant for the local industries," said BMA Capital analyst Sajjad Hussain. "It will increase the already escalating cement demand in the country."

"The launch of the Dasu dam is important for the cement industry in northern region of the country," said Standard Capital Securities analyst Saad Hashmi. "Other major infrastructure projects that are expected to start soon will further increase cement demand and it may jump 5% in fiscal year 2015."

Turkey: The Competition Authority of Turkey has launched a probe into six cement companies that operate in the Aegean Region. The authority will investigate AS Çimento, Batiçim Bati Anadolu Çimento, Batisöke Söke Çimento, Çimentas Izmir Çimento, Denizli Çimento and Göltaş Göller Bölgesi Çimento to see if the companies have engaged in activities that breach competition law.

US: Martin Marietta Materials' US$2.7bn purchase of Texas Industries has been approved by the US Justice Department under a settlement that requires asset sales. Martin Marietta will sell rail yards in Texas and a quarry in Oklahoma to maintain competition in the market for gravel, sand and crushed stone.

"Without the divestiture obtained by the antitrust division, customers would have likely faced higher prices as a result of this acquisition," said Bill Baer of the US Justice Department.

Indonesia: A new cement plant being built in the Regency of Lebak, Banten Province, is expected to come on stream in 2015. Construction of the plant is already 60% completed. The cement plant, which is owned by PT Cemindo Gemilang, is being built over a 5km² plot of land and will have a production capacity of 4Mt/yr of cement when it starts operation in 2015. The Regency of Lebak is included in the Master Plan for Acceleration and Expansion of Indonesian Economic Development, an initiative of the Indonesian government.

Colombia / Trinidad & Tobago: Trinidad & Tobago's Trinidad Cement Limited (TCL) has entered the Colombian cement market. The company has imported the first shipment containing cement to be processed at its Barrancabermeja facility in Santander. The shipment contains 300t of Type G oil well cement.

In total, TCL has spent US$320,000 on its facility in Barrancabermeja, and it plans a similar project in Llanos Orientales for the second half of 2014.