Global Cement News

India: Gangotri Cement has appointed Rajendra K Shah as an additional Independent Director with effect from 25 November 2013. Shah has also been appointed as a member of the Audit Committee and Shareholders' Grievances Committee of the Board of Directors of the Company. Gangotri Cement said that Ravi Kamra had resigned as a Director due to personal and professional commitments.

China: Guangdong Province plans to launch carbon emission trading in December 2013. It will be the world's biggest carbon trading scheme after the European Union.

Guangdong has started allotting 388Mt of carbon emission quotas to selected enterprises, according to the provincial development and reform commission. Initially 242 companies from cement, power, iron and steel and petrochemical industries have been included in the quota allocation. The scheme will cap CO₂ emissions at 350Mt for 2013.

Quotas equivalent to 29Mt of carbon emissions will be auctioned and the base price will be US$9.8/t. The rest of the quotas will be allotted to companies for free.

Shenzhen City started its carbon trading market in June 2013 and Shanghai launched its market on 26 November 2013. The National Development and Reform Commission has also approved pilot carbon emission trading schemes in Beijing, Tianjin, Chongqing and Hubei. China has pledged to reduce CO₂ emissions by 40 – 45% per unit of GDP by 2020.

Uganda: A slowdown in the construction sector and increased competition from imports has seen the price of cement fall by 13% in the third quarter of 2013 in Uganda, according to the Uganda Bureau of Statistics (UBOS) Construction Sector Indices report.

Cement production in the country has increased following the entry of new producers including Moroto Cement, whose production capacity is estimated at 3000t/day. Hima and Tororo Cement factories have also increased cement production capacities. Cement supply in the country is currently estimated at 137,000t, up from 115,000t in 2012. As cement production increases prices are also expected to continue trending downwards.

Tanzania: The East Africa Cement Producers Association (EACPA) has opposed a proposal by Tanzania Electric Supply Company (Tanesco) to increase power tariffs by 68%, citing the risk of 'significant' rises in cement production costs.

The association also claimed that its members are already penalised by the costs related to power rationing, adding that cement producers recorded 1782 power rationing cases between 2012 and 2013.

"We strongly oppose any increase on the power supply tariff by Tanesco and request an urgent solution for the deficient service provided. Should the proposal be accepted, it would have a direct impact on the Tanzanian cement industry production costs up to US$0.71/bag. This amount will be 100% charged directly to the final consumer thus negatively affecting infrastructure and the economic development of Tanzania," said EACPA Tanzania chairperson Catherine Langreney in a statement.

Langreney, who is also the chief exexutive officer of Mbeya Cement, added that Tanzania's cement industry was also set to be further penalised with cheap imported cement since cement imports would not be affected directly by the increased production costs.

Spain: Cemex has said that it 'complies scrupulously with all legal and tax obligations in Spain,' in response to reports in the Spanish media about its tax affairs in the country. The company 'does not have any debts outstanding or face any penalties from the Spanish tax service as of this time,' said Cemex. The Mexico-based cement producer has reserved the right to take legal action against anyone publishing inaccurate reports about the company.

Cemex issued the statement following reports in the Spanish media about the firing of a tax inspector for rejecting its appeal of a large penalty. The dismissal led to the resignation of the head of the department overseeing large taxpayers. Subsequently, Deputy Prime Minister Soraya Saenz de Santamaria denied that Finance Minister Cristobal Montoro had any relationship with Cemex's tax advisers before taking up his Cabinet post.