Global Cement News

China: China's environment ministry is planning to launch stricter rules regarding nitrogen oxide emissions from cement plants, according to local press. An industry expert said that the policy change could wipe out a third of the industry's total net profits.

The report illustrates the challenges faced by the government to balance pressures for strong economic growth with public demands to lessen pollutants caused by industries that currently operate with few environmental restrictions. China had previously said that it planned to cut the cement industry's overall nitrogen oxide emissions, a key cause of acid rain and photochemical smog, by 10% by 2015.

Chinese Vice Minister of Environment Protection, Zhang Lijun, during a visit to the Anhui Conch Cement Company in January 2012, told accompanying officials and executives that the ministry plans to introduce stricter rules.

Kong Xiangzhong, the president of China's cement industry association, said that the ministry is considering tightening nitrogen oxide emission standards to 400mg/m³ from the current 800mg/m³. "It will translate into huge pressure for the cement industry," Kong was quoted as saying.

China's cement industry, polluting but profitable, has thrived during China's infrastructure spending spree. Anhui Conch, for instance, announced that its 2011 net profit is expected to be at least 80% higher than in 2010. China is the world's largest cement producer, with some 3000 plants producing 2Bt/yr. Beijing announced earlier that it wants to shut at least a third of the country's least efficient cement plants by 2015.

US: Ozinga Bros. Inc., a concrete producer, has been given the go-ahead to build a new US$250m cement plant in Chicago, Illinois. The Illinois Environmental Protection Agency issued a permit for the project in December 2011. A comment period has now passed with no known objections. Ozinga has 27 concrete plants in the Chicago area.

It is forecast that the new plant would provide around 300 construction jobs until it is completed in 2015. It would then be commissioned to a capacity of 1Mt/yr. The company has lined up a 50-acre site near Lake Calumet for the project, which was formerly a Cargill grain facility. Development officials are enthusiastically welcoming Ozinga's proposal as Chicago has suffered a massive loss of manufacturing over recent decades. No new industrial plant has been built within the city limits since the 1980s.

The proposal by a concrete producer to set up a new cement plant, which was first mooted in summer 2011, is surprising given the current financial and environmental regulatory climate. Ozinga says that it wants to be able to ensure a reliable supply of cement for its concrete, despite an estimated 60% drop in its revenue since 2007.

Ozinga is looking to keep pace with vertical integration by other concrete and cement producers, which it sees as a potential threat to its own cement supply. Commonly cement producers are looking to buy-up smaller concrete producers in order to increase efficiencies and their bottom lines. This move would see an unusual reversal of these roles. In previous economic booms, Ozinga has seen its cement supply dry up due to competition with larger producers. On occasion it has been forced to source cement from as far afield as Thailand and South Korea, increasing its transport costs to unsustainable levels. It fears that it may be left with the same problem again when demand for concrete returns in the US.

However, despite the enthusiasm from many quarters within Chicago, the Ozinga plant is far from a done deal. Expected to employ about 80 full-time employees, it could yet be subjected to an incentive-spiked bidding war between the job-hungry states of Illinois and Indiana. Ozinga executives have met with Govenor Mitch Daniels and other officials in Indiana, where Ozinga already has seven ready-mix plants, but neither state has yet offered project-specific incentives.

"We're happy to work with the group and show them the advantages Indiana has to offer," said Jim Staton, regional director in Crown Point at the Indiana Economic Development Corp. "We do that with every company." Ted Stalnos, president of the Calumet Area Industrial Commission, which has backed the project, said, "We would be very disappointed if Ozinga suddenly decided to go in that direction."

"This is like a survival move for us," said Martin Ozinga IV, the fourth generation at the 84-year-old firm. "If the economy comes back at some time, the country is going to be short (of cement) again." Ozinga added that he did not expect financing the project to be a problem, with banks already interested in the plan.

France: Ciments Français, part of the Italcementi Group, has announced its consolidated revenues and sales results for the year ending 31 December 2011. These show that, in a difficult economic environment, group sales decreased marginally in its cement sector. Cement and clinker sales were down by 1.4% year-on-year to 42.4Mt in 2011 but sales increased in France, North America, India and Morocco.

In western Europe the company sold 9.9Mt of cement and clinker, an increase of 1.3% year-on-year. In North America it sold 4.2Mt, a 5.1% improvement on 2010. In 'emerging' Europe, north Africa and the Middle East it sold 16.1Mt of cement and clinker, 5.4% less than in 2010. In Asia the company sold 11.1Mt, up by 0.3% compared to 2010.

In the fourth quarter of 2011 Ciments Français' sales were down by 1.7% year-on-year at 10.2Mt. The group sold 2.2Mt of cement and clinker in western Europe (+0.7% year-on-year), 1.1Mt in North America (+7.4%), 4.0Mt in emerging Europe, north Africa and the Middle East (-3.0%) and 2.6Mt in Asia (-5.0%) during the final quarter. Sales in Thailand took a large hit due to the severe flooding there in late 2011.

The group's total consolidated revenues for 2011 across all of its business units came in at Euro3.89bn, which it attributed to reduced volumes and currency fluctuation effects in some countries, notably Egypt, North America and India. Revenues improved in France, Belgium and Thailand.

Its cement segment took in Euro2.59bn, a drop of nearly 8% compared to 2010. Sales were highest in western Europe (Euro1.27bn), followed by emerging Europe, north Africa and the Middle East (Euro1.03bn), Asia (Euro499.5m) and North America (Euro405.1m).

Germany: The Dyckerhoff Group has announced preliminary key figures for 2011, which show a 13% improvement in sales compared to 2010. Sales hit Euro1.6bn in 2011, up from Euro1.41bn in 2010. Breaking down its sales performance geographically, the group took Euro829m in Germany and western Europe (+14% year-on-year), Euro598m in eastern Europe (+21%) and Euro175m in the United States (-9%).

The company reported that sales volumes increased in all countries, except cement in the USA and sand and gravel in the Netherlands. Cement prices exceeded those of 2010 in Poland, Ukraine and Russia, falling in each of the other countries in which the group operates. The proportion of sales generated outside of Germany fell by 1%.

Looking forward to its full 2011 results, Dyckerhoff's management board expects a slight improvement in performance for 2011 compared to 2010. For the 2012 fiscal year, the company expects its sales and results to remain stable compared to 2011.

Romania: The Romanian unit of Lafarge has appointed Sonia Artinian as its new country CEO. She is in charge of the French group's cement, aggregates and concrete business in Romania. Artinian replaces Philippe Questiaux, who had managed Lafarge's cement activity in Romania since 2002.

Russia: Vladimir Petrov has been appointed as General Director of Pikalevskiy Cement, a part of Russia's Eurocement Group.

Ukraine: The Balakleya-based Eurocement-Ukraine company dismissed its director general Demis Halchev on 31 January 2011 after a tenure of around three years in the post. According to a report, the position is now vacant.