Global Cement News

UK: Cemex UK has been fined Euro230,000 following the death of a worker in an explosion at its Rugby cement plant. The UK Health and Safety Executive (HSE) prosecuted Cemex after the death of 28-year-old Peter Reynolds on 15 January 2008.

Leamington Spa Crown Court heard that Reynolds was treating waste cement dust in the bypass dust plant at the company's Rugby Cement Works. While he was clearing a blockage in the lower mixer, there was a violent explosion of steam and dust from inside the machine. The force of the explosion blew Reynolds out through the side of the building onto the road ten metres below. He was pronounced dead at the scene.

HSE's investigation into the incident found that Cemex had recognised the potential for blockages to cause explosions as steam pressure built up within the mixer but it took no action to prevent them. The court also heard the company had failed to review its risk assessment following a previous incident in May 2006, when another man was injured using the same machine. This explosion bent a metal-cladded external wall, pushing it out by 50cm.

Speaking after the hearing, HSE Principal Inspector Neil Craig said, "This was an entirely avoidable tragedy, which has left a young family without a husband and a father. If Cemex had investigated the previous incident properly, Mr Reynolds would still be alive today."

"Cemex's protection against the build up of pressure was for the plant to be continuously vented when processing waste cement dust, but it frequently blocked. These blockages then caused steam to build up to a high pressure."

"The company could have made a number of changes to the mixer to reduce the flow of dust and improve the venting and cooling systems, or devised a new system of work. However, no action was taken and employees were expected to operate this dangerous piece of machinery."

Cemex UK pleaded guilty to breaching Section 2(1) of the Health and Safety at Work etc Act 1974. The company was fined Euro230,000 and ordered to pay Euro200,000 costs.

India: Indian cement companies are facing a shortage of coal from Coal India Ltd, the country's largest producer. However they are unlikely to be affected by this due to the high levels of imports, a cement trade official has said.

"Most cement companies import up to 70%-75% of the coal needed to run their captive power plants. As of now, I don't expect cement supply to be affected by the coal shortage," said Sanjay Ladiwala, president of the Cement Stockists and Dealers Association of Bombay.

A brokerage report by Emkay Securities has stated that large cement companies such as ACC, Ambuja Cements and Ultratech Cement source around 20% of their thermal coal needs from Coal India's monthly electronic auctions. The report also said that Coal India has diverted the 4Mt for auction in October 2011 to power generation companies. This could lead to some cost escalation for cement producers as they have to rely on higher-priced imported coal.

Separately, Ladiwala said that cement prices rose across most of the country in October 2011, except in southern regions, as demand from the construction sector revived after the summer monsoon rains ended.

Brazil: Domestic demand for cement in Brazil is leading to an increase of imports. Imports of cement and clinker reached 2.2Mt from January to September 2011, an increase of 74% from the same period in 2010. The total value of imported cement cost USD135m from January to September 2011, compared with USD80m from the same period in 2010.

From 2007 to 2010 Brazilian per capita consumption rose from 224kg to 310kg while production rose from 40Mt/yr to 59Mt/yr. The country has 70 plants to meet this growing demand. Exports have fallen from 515,000t/yr in 2008 to 36,000t/yr in 2010.

Votorantim Cimentos leads the market with 40 plants and a production of 21Mt/yr. It currently plans to build eight plants by 2014 with investments of USD1.4bn, a sum that includes concrete units as well. CSN Cimentos is an emerging player in the market and it is planning to meet a production level of 8.4Mt/yr by 2013. Camargo Correa Cimentos runs 5.2Mt/yr and Joao Santos 5.9Mt/yr.

Saudi Arabia: Saudi Cement Co has reported a 39% rise in its third quarter net profit. The rise was attributed to increased efficiency and higher local demand. The firm made a net profit of USD52m in the three months ending 30 September 2011, compared with USD37m in the same period in 2010. The company said it had raised efficiency by using new production lines and that local demand had grown. It attributed the fall in profits from the second quarter to a seasonal decline in sales. The company posted a second quarter net profit of USD57m.

Indonesia: The Makassar-based Bosowa Corporation, which has interests in property development, cement, financial services, power and rice production, has announced plans to spend USD120m to expand its cement production and distribution capacity. The company is hoping to cash in on a planned infrastructure spending spree by the government and a rapidly developing property market.

Erwin Aksa, president director of Bosowa, said that the combined production of its two cement units, Semen Bosowa Maros and Semen Bosowa Batam, was expected to reach 3.5Mt/yr in 2011. Between January and September 2011 the company sold 3Mt of cement, 86% of its production target for the whole of 2011.

"We are bullish that our target is achievable as demand for cement remains stable, supported by the growth in the property and infrastructure sectors," said Erwin.

Bosowa will spend USD70m to build another cement plant in Maros, South Sulawesi. After completion of the factory in 2012 Erwin said that the group's cement production capacity would rise to 4.5Mt/yr.