Global Cement News

India: Tamilnadu Cements plans to set up a new grinding plant in Alangulam, Tamil Nadu. The Hindu newspaper has reported that the unit will serve the nearby Arasu cement plant and double its cement capacity to 0.56Mt/yr from 0.28Mt/yr. It will cost US$5.22m and produce the company's Valimai cement.

Tamilnadu Cements has sold 59,000t of Valimai cement to date.

Pakistan: Lucky Cement has recorded nine-month sales of US$1.17bn in its 2022 financial year, up by 38% year-on-year from US$846m in the corresponding period of 2021. The company’s consolidated cement volumes fell by 7.1% to 7.07Mt, while its unconsolidated cement volumes fell by 3.4% to 5.51Mt. Unconsolidated costs per tonne of cement rose by 49%. Explaining its net sales growth, the company noted the ‘impressive’ performance of its overseas cement business, which includes a stake in Democratic Republic of Congo-based Nyumba Ya Akiba Cement. Lucky Cement’s profit after tax for the period was US$143m, up by 20% from US$119m.

Lucky Cement says that a cement plant expansion in Khyber Pakhtunkhwa is progressing and on-schedule for completion in 2022.

Kenya: Bamburi Cement’s net profit was US$11.9m in 2021, up by 22% year-on-year from 2020. The company attributed the growth to increased domestic selling prices in Kenya, due to a higher proportion of premium products sales and targeted price actions in the retail segment.

Managing director Seddiq Hassani said that he envisages cement demand growth in Bamburi Cement’s markets in the rest of 2022, supported by a stable economic environment. He looked optimistically to possible export growth arising from the Democratic Republic of Congo’s admission into the East African Community (EAC) in March 2022. He further noted the impact of the Rwanda-Uganda border closure as a downside risk.

India: The National Company Law Tribunal (NCLT) has started insolvency proceedings against Andhra Cement, a subsidiary of Jaypee Group. The decision by the NCLT follows a petition filed by Pridhvi Asset Reconstruction and Securitisation claiming a default relating to bank loans taken out between 2012 and 2016, according to the Press Trust of India. Separately, Andhra Cement has asked its creditors to submit their claims by 10 May 2022 before the Interim Resolution Professional (IRP). Local media has also reported that the cement producer had been unable to operate its cement plant at above 60% capacity utilisation due to a shortage of working capital.

Bolivia: Fábrica Nacional de Cemento (FANCESA) has announced the planned closure of its Eastern Regional Office (ORO) sales agency in Sucre, Chuquisaca Department. The Correo del Sur newspaper has reported that the agency records 30 – 40% of the level of sales of its other agencies. It operating costs are US$1.57 – 1.75m. 17 people currently work at the ORO Agency. FANCESA acknowledged that it may face labour-related ‘internal problems’ in carrying out the closure.