Global Cement News

UK: The Competition Commission (CC) has demanded that Lafarge Tarmac sell one of its cement plants in the UK to create a fifth cement company in the country to increase competition in the market. The CC also intends to increase competition in the supply chain for ground granulated blast furnace slag (GGBS) by forcing Hanson to sell one of its GGBS production facilities. The CC is also introducing measures to limit the flow of information and data concerning cement production and price announcements.

"We believe that the entry of a new, independent cement producer is the only way to disturb the established structure and behaviour in this market which has persisted for a number of years and led to higher prices for customers," said CC Deputy Chairman and Chairman of the Inquiry Group, Professor Martin Cave.

The measures follow a two year investigation which found that both structure and the conduct in the cement sector restricts competition by aiding coordination between the three largest producers: Lafarge Tarmac, Cemex and Hanson. Competition problems also arose from the UK having only one domestic producer of GGBS in the UK (Hanson) with exclusive rights to use the output of Lafarge Tarmac, the single domestic producer of granulated blast furnace slag (GBS), which is the main raw material input into GGBS. The CC estimates that the lack of competition for both of these issues may have cost UK customers up to Euro60m/yr.

The final report follows the publication of the CC's provisional findings in May 2013 and an Addendum to the provisional findings and its provisional decision on remedies in October 2013.

Cameroon: Dangote Cement has signed an agreement with Gaz du Cameroun for the provision of gas for its 1.6Mt/yr cement plant in Douala, Cameroon. Commissioning of the cement plant is planned in January 2014 and the gas supply is scheduled to start in the second half of 2014. Construction at the Douala cement plant was delayed by a land dispute in 2012. The new plant is expected to reduce cement prices in the country.

India: The Cement Corporation of India's (CCI) Bokajan cement plant has halted production since 1 January 2014 due to a shortage of funds to purchase coal. Employees, unions and other local bodies have threatened to thwart any 'conspiracy of management' to close down the plant on 'insubstantial grounds' and have sought the intervention of Assam's Chief Minister to restore production.

Previously, the Board for Industrial and Financial Reconstruction (BIFR) declared that the state-owned CCI was a 'sick' industry but following good revenues from the cement producer's plants in Rajbon, Tendur and Bokajan the Indian government decided to keep the plants running.

China: Construction of the No. 1 rotary kiln at the Shaaxi Fuping cement plant, Shaaxi Province has been completed by the China 20MCC Construction Group (20MCC Group). Construction started in March 2013.

The range of the masonry work covered by 20MCC Group included the rotary kiln, grate cooler, hot kiln hood, tertiary air duct, hot-blast stove and the other equipment of the two production lines, casting of wear-resistant ceramic materials for the raw mill, cement grinding mill and the pipelines on the top of the slag mill.

Clinker production capacity at the plant will be 4.03Mt/yr, ground slag capacity will be 1.2Mt/yr and cement capacity will be 3.35Mt/yr.

UK: Cement production is due to restart at Cemex's South Ferriby plant in February 2014. The 0.8Mt/yr cement plant was flooded on 5 December 2013 with water from the neighbouring Humber Estuary causing considerable damage to the site's electrical network, according to the Scunthorpe Evening Telegraph.

"From our other UK sources we have been able to ensure a continued supply to all of our customers since the flooding took place and will continue to do so, ensuring that all receive the excellent service they expect from Cemex UK," said a spokesperson for Cemex. "The work entailed clearing up the site from the debris and silt deposited by the flood water, drying out buildings and components and working closely with our insurers, developing and starting to implement a plan to get the plant back to production as soon as possible." Silos at the site were not damaged in the flooding.