Global Cement News

US: Officials from Carolinas Cement Company have announced that the Division of Air Quality of the North Carolina Department of Environment and Natural Resources (DENR) has issued an air quality permit to parent company Titan America LLC to construct a cement plant in Castle Hayne. The issuance comes after four years of technical review of the proposed facility to ensure it will comply with North Carolina's air quality regulations and standards.

The permit was issued after extensive evaluation by DENR, including using air models that incorporate government-approved local meteorological, topographic and site-specific information. The models calculate the concentrations of regulated emissions at the boundaries of the plant property and ambient concentrations throughout the local region and other designated locations to assure they are below legal limits.

"These laws and regulations governing industrial emissions are among the strictest in the world," said Dan Crowley, Titan America's VP of Corporate Engineering. "The issuance of our air quality permit is only a first step. After the plant begins operating we will be subject to unannounced audits by State and Federal regulators as well as internal compliance audits to ensure our emissions are consistently within permitted limits." Carolinas Cement will meet all the new Environmental Protection Agency federal regulations for Portland cement plants that were finalised in 2010, and these regulations are fully represented in the Department of Air Quality permit.

Now that the air quality permit has been issued, Carolinas Cement plans to proceed with completing the federal Environmental Impact Statement (EIS) needed to obtain necessary wetlands permits. The EIS is an 18-24 month process led by the US Army Corps of Engineers (COE) and it requires Carolinas Cement to hire an independent third party to conduct studies of potential impact to numerous ecological and social factors, such as water, aquifers, traffic and flora and fauna.

Parallel to the COE permitting process, Titan America will begin a two-year process to design and engineer the new plant. The design process could not begin prior to the issuance of the air permit, as the design must correspond to the exact standards outlined by the air permit. The new plant will pioneer the industry's most advanced emission control technologies to ensure that public health, the aquifers, Cape Fear River and Island Creek are protected throughout every step of this process.

When it clears all of the regulatory hurdles, Carolinas Cement will create 161 permanent, full-time jobs. During construction it will create 1000 temporary jobs over two-years.

South Africa: Lafarge Industries SA has admitted taking part in a cement cartel and agreed to pay a US$19.6m penalty. The company reached the settlement with the South African Competition Commission after admitting to having taken part in price fixing and market division in the cement industry. As part of the deal Lafarge agreed to pay the penalty, 6% of its 2010 annual turnover in the Southern African Customs Union (SACU) region, which covers South Africa, Botswana, Lesotho, Swaziland and Namibia.

The case, which has been running since 2008, has investigated dealings at Lafarge, Pretoria Portland Cement (PPC), AfriSam and Natal Portland Cement-Cimpor (NPC-Cimpor). Following a 2009 raid at the offices of the accused parties, PPC applied for leniency and confirmed the existence of a cartel among the four cement producers. In December 2011, an agreement was reached with Afrisam, in which it confirmed the information provided by PPC and agreed to pay a US$16.5m penalty, representing 3% of its 2010 annual turnover in the SACU region.

The commission said that it will continue to investigate NPC-Cimpor.

France: The French High Court has decided to block Lafarge's project to close its plant in Frangey, northern France, until 25 November 2012. The Frangey facility employs 74 workers and had previously been slated for closure in 2012.

The planned closure is part of a much larger restructuring plan at the building materials' giant, which was also annulled by the High Court. However, the court said that the fundamental economic case behind closing the Frangey plant was valid. The group had explained that its decision to shut down the plant was due to overcapacity and high production costs.

The management of Lafarge will now propose a new restructuring plan to the staff representatives starting from November 2012.

Saudi Arabia: Saudi Arabia's Ministry of Commerce and Industry has removed restrictions that had been in place on imports of cement, saying that it "has adopted several decisions to ensure the stability of the price of cement and its provision in the local market." The decisions include halting exports, making it obligatory for cement factories to work at full capacity and making producers bear the freight costs to the areas of increased demand. It expects that these measures will mean that cement reaches consumers at a 'reasonable' price.

This is not the first step taken to ensure that the cement supply keeps pace with the huge demand for cement that the construction boom has created. Earlier in 2012 Saudi cement factories were ordered to open up new production lines. These are estimated to have added an extra six million bags to the Kingdom's production every month, taking its total monthly production to about 80 million bags.

The moves come following complaints by cement consumers in remote areas that the price of cement had skyrocketed in recent months, with some accusing dealers of fixing artificially high prices. Saudi Arabia currently has an estimated US$163.5bn-worth of construction projects in the concept phase. It is understandable that it wants to secure the best value cement possible.

China: The major Danish cement plant manufacturer FLSmidth has achieved authority approval of its first acquisition in China, which will help it to secure a lucrative share of the multibillion dollar Chinese market for environmental control technologies. The move comes less than a month after China announced new NO_x emission regulations, providing an excellent market for FLSmidth's new capabilities.

Together with a minority shareholder, FLSmidth has started a company to market and sell air pollution control products to the cement industry in China. This local company is groundbreaking for FLSmidth as it combines local presence and relations with global technologies and resources. The founder company, Chinese Sino Environment Engineering Development Co. Ltd. (SEPEC), continues as a minority shareholder and brings a large reference base and contact network from the cement industry in China, both on a corporate and a plant level.

"FLSmidth and SEPEC are the perfect fit," said FLSmidth CEO Jørgen Huno Rasmussen. "FLSmidth's strong technological platform coupled with SEPEC's strong organisation, reputation and customer base in China will enable us to develop air pollution control products that are uniquely designed together with the Chinese customer and fit his specific requirements."

The local company will market FLSmidth's highly-efficient air pollution control products and thereby help Chinese cement manufacturers to fulfil the new and stricter emission standards imposed on the industry. As the majority shareholder, FLSmidth will retain the intellectual property rights to the technology. The Chinese market accounts for half of the total world market for air pollution control equipment. "With China's increased focus on environmental aspects as stated in the 12th five year plan, the timing of FLSmidth's local expansion is just right," said CEO of FLSmidth China, Anders Bech.