Global Cement News

China: The China Building Materials Federation has released plans to cut cement production capacity by 70Mt in 2019 as part of its efforts to reduce air pollution and increase industry efficiency through consolidation. Ideally the federation’s work plan wants the largest 50 national producers to cut all production lines with a capacity below 2000t/day and tp upgrade old technology on the remaining lines, according to Yicai Global. Typically larger cement production lines in the country manufacture 5000 – 7000t/day.

China produced 2.2Bnt of cement in 2018. The new work plan will order all cement companies to shut down production lines producing below 2000t/day in areas where pollution is high. The Beijing-Tianjin-Hebei region in northern China has been identified as one of these areas. The scheme also encourages industry consolidation, aiming to bring over 60% of national production to the top 10 cement makers, and wants to eliminate poor-quality cement products so that they make up less than half of all cement made. It wants to use mergers and restructuring to do this and it supports integration through cross shareholdings and asset exchanges.

Czech Republic: Lafarge plans to invest around Euro2m on upgrades to clinker and cement production at its Cizkovice integrated cement plant, according to the Česká Informační Agentura. The subsidiary of LafargeHolcim is also planning rebuild an access road to the plant, improve noise protection and work on fire protection measures. The cement producer is anticipating an increase in cement production in 2019.

Zambia: Dangote Cement has denied that it will cut jobs in response to a new sales tax by the Zambian government. The local subsidiary of the Nigerian cement producer clarified comments by its chief executive officer (CEO) Albert Corcos that the new tax would negatively affect production costs, according to the Lusaka Times. The General Sales Tax will replace the existing value added tax (VAT) with a standard 9% rate and a 16% rate for imports. However the new tax has been delayed to September 2019.

Iraq: The government has approved a series of recommendations from the Ministerial Economic Council to support the growth of Iraq’s cement industry and to ensure that production capacity continues to meet domestic demand.

The cabinet approved a loan agreement between the Republic of Iraq and the International Bank for Reconstruction and Development for an electricity services reconstruction and enhancement project. It also approved a recommendation from the housing consultative group that investors in housing projects need to complete a percentage of the planned building work before they are allowed to own the land.

Myanmar: Four local activists have been sentenced to 14 months hard labour for protesting in May 2018 against a new cement plant being built at Patheingyi Township in Mandalay Region. The residents of Aungthabyae, Patheingyi were charged and convicted of Roads and Bridges Law offenses for blocking a road to prevent access by vehicles, according to Radio Free Asia. The activists allege that they were not allowed to testify in court describing the process as ‘totally unfair.’

Around 20 people were injured in 2018 when police fired rubber bullets and tear gas into a crowd protesting against the construction of the Alpha Cement Plant, a joint venture between China’s Anhui Conch and a local company. During the protest, activists blocked factory vehicles and demanded compensation for land they claim they lost when a road was built to support the plant. Police said that over US$40,000 worth of damage was caused at the site. The cement plant is scheduled to be commissioned in 2021.