CemWeek Magazine, Issue 19 by CemWeek

GLOBAL CEMENT INDUSTRY. KNOWLEDGE.

FEBRUARY - MARCH 2014

CONFERENCE HIGHLIGHTS:

CW Research

CBI Brazil & LatAm

World cement demand growth seen pausing in 2014

a great success in Sao Paulo

CW Research

Global cement trade prices increase 5.9% in 2013 cemweek selects award

CIMENTO APODI

“Dr. Clemente Greco Best Cement & Lime Project Award”

News

•

Analysis

•

Market Coverage

•

Interviews

•

People Moves

CBI Africa 2014 brings together stakeholders from African and international cement producers, equipment vendors, strategy and M&A, ﬁnancial, sales and marketing and trading as well as delegates from the technical and operations, engineering, environmental, logistics, maintenance, production & operations side.

A GMI GLOBAL CEMENT AND LIME INDUSTRY CONFERENCE AND EXHIBITION

CEMENT BUSINESS & INDUSTRY

2014

JUNE 12-13, 2014 • HYATT REGENCY • JOHANNESBURG, SOUTH AFRICA

This conference will gather industry experts and market participants to discuss the major topics, including: Market perspective, forecast

and competitive outlook Alternative fuels, new business models Environmental performance management Finance and capital markets Efﬁciency, innovation, new developments Technology, operations and best practices

You may also call us in the US at +1-203-516-7424

Organized by GMI Global LLC To learn more visit the GMI website www.gmiforum.com

CONTENTS FEATURES

3 World cement demand growth seen pausing in 2014 5-year outlook lowered to 3.7 percent 9 Global cement trade prices increase 5.9% in 2013 CW Research released the Global Cement Trade Price Report 11 2013: A disappointing year for major cement companies 13 Cimento Apodi, winner of the “Best new project award”

FEA

DEPARTMENTS LETTER FROM THE PUBLISHER 1 Returning from Brazil numbers in brief 2 Africa hits a new milestone in cement capacity research 21 Cement Volumes 24 Cement Energy Markets people 29 People on the move EVENTS 15 CBI Brazil and LatAm: A great success in Sao Paulo

31 34 35 37

regional reports Europe, Middle East & Africa Central & South-East Asia Asia Pacific Americas

From our industry partner 38 Construction and building materials update equipment 41 Equipment and notable projects cw group meeting agenda 43 Group’s upcoming events BUZZ 44 Top 15 CemWeek and BM Week stories

EDITOR’S NOTE Letter from the publisher and editor

Returning from Brazil

n the 5th and 6th of February, CemWeek Magazine was present in Brazil, at the CBI Brazil & Latin America conference that took place in Sao Paulo, at the Morumbi Hotel. More than 300 registrants were part of this exciting event that addressed the current issues facing the Brazilian and Latin American cement and lime industry. The conference counted with the participation of senior executives from some of the most important cement and lime companies in the region, along with a selective group of key speakers and industry sponsors. CemWeek Magazine, a main supporter of the conference, was delighted to be part of an honorable initiative, a premiere for the CBI events: the “Dr. Clemente Greco Best Cement & Lime Project Award”. The recognition was awarded by the CBI organizer, GMI Global, to the most innovative, sustainable and performance driven project identified after a tight selection that lead to three top finalists. More information on the winning project and the runners-up can be found in a special feature included in this issue of the magazine. Furthermore, this issue of CemWeek Magazine includes a special feature on the First Half 2014 Global Cement Volume Forecast Report (GCVFR). The CW Group’s twiceyearly cement demand, capacity production outlook report predicts that global cement demand will pause in 2014 at 3.9 percent year-over-year following a stronger-thanexpected 2013.

The CemWeek Magazine is published by the CW Group LLC 132 Larchmont Ave, Suite 12, Larchmont, NY 10538, USA T: +1-702-430-1748 F: +1-928-832-4762 www.cwgrp.com www.cemweek.com

STAFFBOX ROBERT MADEIRA CEMWEEK PUBLISHER HEAD OF CW GROUP RESEARCH

CRISTIAN DUMITRU DESIGNER

RALUCA NEAGU ADVERTISING PROJECT MANAGER

CLARE ASLAN ROXANA CHISCOP LAURA GOLDNER CLAUDIA STEFANOIU CONTRIBUTING WRITERS & RESEARCHERS

Our final feature covers the First Quarter 2014 Global Cement Trade Price Report (GCTPR) recently released by CW Group, based on CW Research cement trade pricing analysis. Do not miss the opportunity to read other sections of the magazine, including the monthly CW Research analysis on cement and energy volumes and prices, as well as the most important news, projects and developments that happened in the past two month in America, Asia Pacific, Middle East and other regions.

To subscribe or advertise, please contact us at T: +1-702-430-1748 F: +1-928-832-4762 E: sales@cwgrp.com ©2014 CemWeek LLC. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher. Any submissions or contributions from readers shall be subject to and governed by CemWeek’s Terms and Conditions, which are available upon request.

Robert Madeira

PUBLISHER AND HEAD OF RES EARCH

Raluca Neagu

PROJECT MANAGER

The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of its contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

CW Group

TO SUBSCRIBE please visit www.cemweek.com/subscribe

CW Group CW Analytics

numbers

Global cement prices Worldwide cement prices have followed supply-demand trends as expected, with pressure in Europe and notable increases in Asia (in local terms). Key cement export prices see up-ward trend. Retail cement prices (YoY % 2013-2012) 14% 12% 10% 8% 6% 4%

Source: CW Research

Pakistan

Turkey

Thailand

Panama

Nicaragua

Venezuela

Cyprus

Belarus

El Salvador

Belgium

Germany

Ecuador

Colombia

United States

Chile

United Kingdom

United Arab Emirates

Bolivia

France

Slovakia

Hungary

-4%

Greece

-2%

Czech Republic

2% 0%

On the positive side some of the major Asian cement markets have seen strong growth (in local currency terms) with average prices rising 10.9 percent in 2013. Thailand increased by 9.7 percent and Pakistan by 12.0 percent YoY. On the opposite side, some European & CIS countries faced a reduction. Czech Republic declined by 2.3 percent, Hungary by 1.0 percent and France by 0.4 percent in YoY 2013/2012 terms. For the Middle East countries included in our sample universe, the prices remained flat. Based on CW Research estimates, Turkey showed an increase of 7.1 percent YoY from US$56 per ton in December 2012 to US$60 per ton in December 2013. The FOB price for Korean grey cement decreased by 9 percent from US$43 per ton in December 2012 to US$39 per ton in the corresponding month of 2013. Grey cement export prices (FOB YoY % 2013-2012) 40% 30% 20%

Germany

Mexico

Canada

Greece

Turkey

Spain

Portugal

-30% Note: Some results are based on preliminary CW Research estimates

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FEBRUARY / MARCH 2014

Source: CW Research

-20%

Czech Republic

Bulgaria

Taiwan

Malaysia

Korea

India

-10%

Thailand

China

10%

feature CW Research

World cement demand growth seen pausing in 2014 5-year outlook lowered to 3.7 percent

FEBRUARY / MARCH 2014

www.cemweek.com

Research’s

Global

Cement

1H2014 Volume

Forecast Report (GCVFR) The CW Group’s twice-yearly cement demand, capacity production outlook – predicts that global cement demand will pause in 2014 at 3.9 percent YoY, following

stronger-than-expected

2013. In 2013, global cement demand expanded 6.6 percent to 3.99 billion tons on surging Chinese demand, but growth will moderate 3.7 percent per year on average through 2018.

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FEBRUARY / MARCH 2014

feature Tactical view is negative n 2013 world cement consumption neared 4 billion tons, up 6.6 percent versus 2012 (compared to our yearago view of 4.9 percent). Most of the 2013 increase was led by China, which saw demand surge by 9.4 percent in 2013. ExChina cement consumption met the most recent 2H2013 expectation and ended the year a nudge above 1.6 billion tons, notching the lowest increase since the 2008-9 crisis at 2.7 percent. However, the global slowdown for 2013 is materially below our 4.8 percent forecast a year ago on softness in large emerging markets that changed rapidly (and unexpectedly), such as Brazil, which stalled out and India that saw a preelection malaise, abetted by fiscal issues, harden.

Many pieces are still looking to gel in the global cement demand puzzle Even though we believe ex-China growth remaining positive beyond 2014, the shape of the growth curve flattened for the longer term as some of the largest cement markets, including India, Brazil, Saudi Arabia, and Indonesia, dial back. A major negative revision for 2014 was for Africa (2.5 percentage points lower), mostly driven by North Africa where countries, such as Egypt and Morocco, are still struggling to find footing, or continue seeing turbulence.

GLOBAL CONSUMPTION BY REGION (2009-2018 VOLUME) Mm Tons

China

4,000

India

3,500

Asia ex-China and India

3,000

Africa

2,500

Middle East

2,000

E Europe & CIS

1,500

Western Europe

1,000

Latin America

500 -

North America 2009

2010

2011

2012

2013

2014

2016

2017

2018

CAGR change in consumption growth (tons)

Source: CW Research

HEATMAP: 2013-18 CAGR OUTLOOK GROWTH

2015

Source: CW Research

5,000

4,500

FEBRUARY / MARCH 2014

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However, CW Research is more optimistic that Western Europe will manage to build support for a recovery in 2014; the area is the only region in our forecast that we have upgraded (+0.5 percentage points) on benign core markets. Nonetheless, the region as a whole will still be in the red for 2014 on an overall one percent decline in cement consumption – the only region as a whole that is expected to contract in 2014. Overall, we see global cement consumption slowing to 3.7 percent per year on average through 2018 (we admittedly hold conservative view on Chinese demand growth, which natural-ly drives the global view) and at 5 percent per year on average excluding China (as key markets are expected to rebound).

“Many pieces are still looking to gel in the global cement demand puzzle,” says Robert Madeira, CW Group Managing Director & Head of Research. He adds: “Once again we reverted to economic and political fundamentals of countries in dissecting growth and revising our outlook; we are reminded that the Chinese political will to drive growth with shovel-ready initiatives is not to be underestimated, even though we believe the current trajectory remains unsustainable, says Robert Madeira, Managing Director & Head of Research at CW Group.” Consequently, at a global level, the per capita cement consumption is seen expanding from 568 kilos in 2013 to somewhat more than 640 kilos by 2018. Excluding China, per capita con-sumption will grow slowly to reach 300 kg per inhabitant by 2015 and approach 340 kg by the end of 2018.

Eastern Europe & CIS is expected to operate below 60 percent Even though Western Europe is home to some of the hardest hit countries in terms of utilization rate (e.g., Spain, Greece), the region overall will see utilization rates in the 60s though 2018.

0.000507841

0.004206812

2012

4818.16777

- 0.009406492

0% - 0.022770537 - 0.040890109

2014

3923.130983

3988.399138

2013E

10%

3800

3400

4468.459183

4342.287044

4128.477379

4200

0.016636751

4145.845107

4600

4301.441354

5000

4621.152365

Fcst revision

4572.579267

2H2013 fcst

2015

2016

2017

-2% -4% -6%

LH-axis: Mm tons; RH-axis: change in CW Group forecast vs last update; bars show CW Group forecast as of 2H2013 & 1H2014

The Chinese political will to drive growth is not to be underestimated HEATMAP: 2013-18 CAGR OUTLOOK GROWTH

Source: CW Research

On the other hand, Eastern Europe & CIS is still expected to operate below 60 percent utilization rate by 2018 as its nations diverge to two extremes. Cement companies in the European areas (e.g., Romania, Bulgaria, Hungary and Ukraine), while

In some respects we are seeing a reversal of fortunes

Source: CW Research

In North America the green shoots of growth seem to have taken a hold for real. Barring any early economic frost, the region may turn out to see one of the highest for 2013-2018 as it recovers with utilization rates climbing.

1H2014 fcst

3741.051872

Worldwide cement production capacity is forecast to expand at 2.9 percent per year on average, exceeding 5.4 billion tons in annual production capacity by 2018. On a net basis, the total addition is estimated at over 730 million tons in annual production capacity during the period. Of these additions, China and India will account for 41 and 14 percent, respectively, of the total.

GLOBAL CONSUMPTION FORECAST (‘12-‘17) & COMPARISON TO LAST FORECAST

3739.152976

China’s push for economic stimulus proved to generate much faster demand pull-through in 2013; the market topped expectations and grew by 9.4 percent as it accelerated into the second half of the year (our 2H2013 forecast predicted a growth of 6.5 percent).

YoY percent change in consumption growth (tons)

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feature

“In some respects we are seeing a reversal of fortunes,” says Claudia Stefanoiu, Senior Analyst with the team. “North America growth taking steady steps towards peak volumes, while important parts of Africa and Latin America face weakness, India demand wavers. But CW Research also sees relative islands in the swirls of growth: Indonesia, Malaysia, Russia, Nigeria, Saudi Arabia, and Iraq firmly anchor the “high growth club”, with Brazil taking a step out”, says Claudia Stefanoiu, Senior Analyst at CW Group.

FORECAST SEGMENTATION (2018)

85% North America

China

80%

Latin America

75% Asia ex -China

70%

Western Europe Middle East

65%

Africa

60%

E. Europe & CIS 55%

Y-axis = 2018 capacity utilization; X-axis=2013-18 CAGR; size of bubble = 2018 market size (relative tons)

North America growth taking steady steps towards peak volumes

FEBRUARY / MARCH 2014

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Source: CW Research

further east in the CIS countries volume growth should remain exciting with new capacity to alleviate cement imports (e.g., Azerbaijan, Kazakhstan).

SLOVAKIA

COLOMBIA

Conclusion World consumption growth is expected to remain sluggish from 2013 to 2018 in most of Europe and selective markets from each region. More consistent increases are noted mostly in Africa, South America and South East Asia, particularly after 2014, supporting global YoY growth seen peaking in 2016. Overall, CW Research sees demand expanding between 3.5 and 4 percent per year for the coming years, expanding from 3.99 billion tons in 2013 to 4.78 billion tons in 2018.

About the GCVFR The CW Group’s Global Cement Volume Forecast Report (GCVFR) is a twiceyearly update on projections for cement volumes at the national, regional and global basis. The report brings together the CW Group’s principal research team to provide the latest insights on the evolution of cement volume trends for 58 important cement markets worldwide, as well as regional and global totals. The mid-year update (also included in the subscription price) is an extended report, additionally including executive briefs of country macroas well as supply-demand dynamics for the GCVFR coverage universe. The report contains the CW Group’s 5-year outlook for: National cement consumption (tonnages) National cement production (tonnages) National net-trade estimates (tonnages) Industry-wide utilization rate (%) Cement production capacity (integrated & grinding tonnages) Methodology: The GCVFR forecast is a data-oriented forecast report, providing extensive details on the outlook for key cement markets around the world. Our methodology goes beyond the obvious and average forecast, to incorporate as many inputs and as much information as needed. The GCVFR not only builds on the CW Group’s industry-leading and proprietary databases and the industry’s most extensive market intelligence platform, but also combines our analysts’ views with inputs from multiple other external analysts, industry associations, market observations, monthly tracking information, discussions with executives and management at cement manufacturing groups, plus a CW Group quantitative overlay model (econometric and statistical quant models). More information: For questions, inquiries and orders please contact your CW Group Client Service Coordinator, or sales@cwgrp.com For further information, or to arrange an interview with the analyst, please contact Raluca Neagu, Market Services & Marketing Consultant at the CW Group at either rn@cwgrp.com, or +40-741-520-372. For a complete table of contents of the report, please visit the CW Research website: http://cwgrp.com/research-a-analysis/global-monitorreports/306089-2014-first-half-global-cement-volume-forecast-reportgcvfr.html

CW Research

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feature

Global cement trade prices increase 5.9% in 2013 Based on CW Researchâ&#x20AC;&#x2122; cement trade pricing universe covered in the quarterlyÂ Global Cement Trade Price Report, which represents 97.0 million tons of traded volumes in 2013, the average global FOB gray cement price hovered between US$76 - US$77 per ton in 2013 with peak levels of US$81 per ton reached in June and October. Between December 2012 and estimates for December 2013, gray FOB cement prices worldwide increased by almost 6%, even as prices weakened somewhat from the summer peak.

FEBRUARY / MARCH 2014

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40% 30% 20%

10%

-30% -40%

The highest FOB cement price of 2013 was reported in May Global gray cement export prices (MoM %) 40%

Asia-Paciﬁc-Japan

Eastern Europe

Mediterranean Basin

North America & Caribbean

Scandinavia & Baltics

Western Europe

30%

20%

10%

0% -10%

-20%

Cement prices are expected to remain largely flat For the 1Q2014, the CW Group’s Global Cement Trade Price Report (GCTPR) forecasts that cement prices for key regions will remain largely flat. Nonetheless, for regions like Eastern Europe, CW Research expects that prices will carry momentum into the first quarter, weather permitting. As regions on the whole, main export centers Asia Pacific-Japan and the Mediterranean basin are expected to continue trading side-ways in the near term.

Source: CW Research

Turkey

Thailand

Taiwan

Spain

Portugal

Mexico

Korea

India

Greece

Germany

Malaysia

-20%

Czech Republic

-10%

China

-30%

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Source: CW Research

Stable environment for North America & Caribbean North America & Caribbean region reflected a stable environment in 2013. FOB gray cement exporting prices available for the first eight months of 2013 with 3.0 million tons of cement traded and 1.2 million tons of clinker. South America reported some of the highest gray cement FOB prices in the world, largely above US$100 per ton, but on more muted volumes as these were marginal trades in the in-land regions largely.

Jan-Febr 2014 gray cement export prices (YTD%)

Canada

May registered the highest FOB cement price in 2013 In Europe, the Western region noted the highest gray cement FOB exporting prices per ton on a volume of 8.8 million tons through the end of October. Following a seasonal pattern, yearly peaks are usually during the warmer months; the highest FOB cement price of 2013 was reported in May at US$101 per ton, on a volume of 0.89 million tons, while the minimum of the period was touched in September 2013 at US$88 per ton on a volume of 0.93 million tons.

Asia-Pacific-Japan registered a marked decline in FOB cement

Bulgaria

he Asia-Pacific-Japan region, representing 45.9 million tons of exported volume, continues to generally export gray cement at the lowest FOB prices worldwide. After the early part of the year remained comparable to the Mediterranean region, Asia-Pacific-Japan registered a marked decline in FOB cement prices, closing as a region the third quarter of 2013 in the mid-50s per ton.

South America reported some of the highest gray cement FOB prices in the world More details on the report can be found on CW Research website, accessing the following link: http://research.cwgrp.com/products.

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FEBRUARY / MARCH 2014

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2013: A disappointing year he effect of the global economic crisis can still be seen in most regions worldwide. The global construction sector remained volatile along the year with most of the major cement companies showing negative results at the end of 2013. Total cement sales volumes for major competitors (Holcim, Lafarge, HeidelbergCement, Cemex, Italcementi, Buzzi Unicem, Vicat and Titan) declined 1.4 percent compared to 2012 figures, while volumes in aggregate and concrete dropped by 0.4 percent and 3.1 percent, respectively. Aggregated turnover for all companies

contracted 1.1 percent in terms of US dollars and 4.3 percent when converted to Euros. Holcim and Lafarge share of cement volume exceeded 51 percent from the total. Holcim slightly recovers in Europe, but looses in the rest of the regions Holcim sold 2.4 percent less cement in 2013, with a similar decline in aggregates of 2.3 percent and an important deterioration in the concrete sales volume, which plunged 12.8 percent versus 2012. The largest decline in cement sales volumes was observed in the Africa Middle East region (5.2 percent) followed by Asia-

2012 - 2013 Cement Sales Volume Change

2012 - 2013 Cement Sales Volume Change % Change 6.83%

8.00% 6.00% 4.00% 0.00%

2.58% 0.87%

0.37%

-2.00%

-1.26%

-4.00%

-2.39%

-3.05%

-6.00% -8.00%

-6.10%

Buzzi Unicem

Heidelberg Cement

Cemex

Holcim

Italcementi

Lafarge

Titan

Vicat

Building Materials Volumes 2013

Source: CW Research

2.00%

Building Materials Volumes 2013 2013 Concrete Volume 22.8 18.1

3.4 12.3 17.2 30.7

192.8

136.8 12.3

Italcementi

32.5 43.1 39.5

Holcim

138.9 40.3

HeidelbergCement

241.5

91.3 54.9

Cemex

162.2

65.0 12.9

Buzzi Unicem

27.4

0.0

50.0

FEBRUARY / MARCH 2014

100.0

Asia, a favorable market for Lafarge and HeidelbergCement Lafargeâ&#x20AC;&#x2122;s output volume deteriorated 3.1 percent and 3.5 percent in cement and ready-mix concrete, respectively, while the aggregates segment recovered 2.4 percent versus last year. The decline in cement sales affected regions like Western Europe (15 percent), Latin America (4.4 percent), North America (11.7 percent) and Central and Eastern Europe (5.3 percent). Asia is the single region with positive market trend showing a 3.4 percent increase in cement sales volume. Turnover slightly declined 0.7 percent in terms US dollars (4 percent decline on turnover expressed in Euros). The company scored the biggest decline in cement revenues in Europe, with 15 percent, while in Latin America the drop reached 10 percent. In 2H 2013 the company experienced more encouraging trends, like the recovery of the residential US market, sustained growth in Middle East, Africa and Asia and the cost-cutting policy applied in Western Europe countries.

154.5

150.0

200.0

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250.0

300.0

Source: CW Research

Lafarge

2013 Cement Volume

8.5

Vicat Titan

2013 Aggregate Volume

Pacific (3.6 percent) and North-America (2.8 percent). Moroccoâ&#x20AC;&#x2122;s weak demand on housing sector and low infrastructure projects spending, plus the New Caledonia divestment of operations during 2013 were the main reasons for the declining percentage in the African region. A sign of revival was seen in Europe (1.5 percent increase in cement volumes). Russia closed the year with higher sales cement volumes, while cement sales volume in France, UK and Germany remained unchanged.

HeidelbergCement sales volume on cement and ready-mix concrete increased by 2.6 percent and 3.1, respectively. Aggregates sales volume slipped slightly by 0.6. Asia-Pacific region is the single region with increased sales volume for the three

for major cement companies

Italcementi closed the year 2013 with a downturn on turnover of 5.5 percent, especially due to a weak construction business in Western Europe. The Asian market remained a counterbalance with positive evolution. Cement, aggregates, and concrete volume sales declined by 6.1 percent, 4.4 percent and 4.7 percent, respectively. Buzzi Unicem cement volume increased by 0.4 percent, but ready-mix concrete volume showed an important decrease of 5.4 percent. The group scored a revenue decrease of 2.1 percent on 2013. According with the company retrospective view the US and Russia showed growth rates that impacted positively the 2013 financials. Vicat sales volume increased in all three segments: 0.9 percent in cement, 5.8 percent in aggregates and 7.5 percent in concrete. Vicat’s revenue slipped by about 0.3 percent during 2013. The downturn in Africa and Middle East (11.6 percent turn-

Titan’s recovery year 2013 was Titan’s first year with improved operating results over the last seven years. The recovery of the housing market in the US and focus on exports helped the company to increase sales and balance the prolonged weakness in the home market and subdued construction activity in Southeast Europe. Cement, aggregates, and concrete volume sales all increased by 6.8 percent,

12.8 percent and 0.9 percent, respectively. Consolidated turnover in 2013 increased by 4 percent. Cement companies expressed confidence and determination into obtaining more positive results in 2014, while they will focus on balancing their geographical footprint. The recovery of the developed economies is viewed as a key ingredient for a successful 2014 with innovation activities being sanguinely reinforced.

2012 - 2013 Turnover (million EUR) Change 2012-2013 Turnover (million EUR) Change 4.00%

% Change

-2.10%

-1.63%

-0.27%

-0.60% -3.91%

-4.29%

-5.46%

-10.36% Buzzi Unicem

Cemex

Heidelberg Cement Holcim

Italcementi

Lafarge

Titan

Vicat

Total

Source: CW Research

Cemex captured over 12 percent of the volume share of major companies in 2013. Cement sales volume sled 1.3 percent, concrete segment dropped 0.1 percent and aggregates had a healthy 1.8 percent increase. Positive revenues results came from US (8 percent increase), South & Central America (7 percent increase) and Asia (6 percent increase).

over decline) was balanced by the positive trends in Turkey, Switzerland, Kazakhstan and improving market conditions in the US.

Majors Cement Market Share 2013 Source: CW Group Research

3.36%

3.20%

5.10% 12.09%

Buzzi Unicem Cemex

25.44%

HeidelbergCement 16.98%

Holcim

Italcementi Lafarge Titan

Vicat

8.01% 25.83%

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Source: CW Research

category markets in 2013 with 6 percent on cement, 5 percent on aggregates and 12 percent in ready-mix concrete. The company faced one of the smallest turnover decay in 2013 – 0.6 percent in terms of Euros (2.7 percent growth in terms of US dollars). Regarding revenues, East Europe & Central Asia was the top declining region with 6.9 percent, while the Africa region was the only one that registered growth of 0.7 percent.

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Brazil’s Cimento Apodi selected by CemWeek as the first winner of GMI Global’s “Dr. Clemente Greco Best Cement & Lime Project Award”

CemWeek, a main supporter of the CBI Brazil & Latin America 2014 conference that took place in Brazil, on the 5th and 6th of February, , identified Cimento Apodi as the best Brazilian and Latin American cement project of the year. The prestigious recognition is a premiere for GMI Global’s Cement Business & Industry Brazilian and Latin American conference and exhibition and CemWeek is honored to support this exciting initiative honoring Dr. Greco and the cement industry with evaluation and selection of the awards.

“Best New Project” Award, a premiere at the CBI Conferences As GMI Global carries on the tradition of the conference and exhibition previously championed by Adriano Greco, honors the legacy of his father and great professor and engineer, Dr. Clemente Greco, with a symbolic award: “Best New Project”. The award ceremony was hosted by Maria Eugenia Arroyo Hernandez, GMI Global’s Americas Marketing Director and Claudia Ste-

fanoiu, Senior Analyst at the CW Group, representing CemWeek. Dr. Clemente Greco, an Italian descendant, was born on April 3, 1937. He was a cultivator of classical music and an excellent pianist. Graduated from Polytechnic University of São Paulo in 1969 as Mechanical Engineer and became a doctor in 1976 with the Thesis: Heat Transfer in Calciner Rotary Kilns. During 1961- 1963 he was

I was delighted to accept the honoring of my father’s name in such a prestigious award. The “Dr. Clemente Greco Best Cement & Lime Project Award” reflects not only my family tradition in the cement and lime business since 1966. It mainly represents his i mpressive achievements in the areas of combustion in cement kilns and innovative fuel usage in cement plants. Dr. Clemente Greco made viable the burning of 100 % petcoke in cement kilns - something considered a waste at that time. I would like to extend congratulations to the winning project and to express my support for the years to come in transforming the award into a tradition and landmark of the Latin American industry , Adriano Greco commented.

FEBRUARY / MARCH 2014

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Chief of the Mechanical Division of the Technological Research Institute, and until 2003 he was a professor of the Polytechnic University of São Paulo. Author of several dozens of publications about combustion in cement kilns, his works were published in specialized media worldwide. Furthermore, he is also the author of the Chapter “Fuel Selection and Use” of the Portland Cement Association

(American) publication “Innovations in Portland Cement Manufacturing.” The winning project is first of its kind in Latin America The winning project was installed by LVT, which in 2010 completed the engineering part and realized the purchase of equipment for the Quixire factory located in Ceara. The project is expected to be commissioned in August 2014. It is an integrated production line of 3,500 tpd, and a second cement mill is already operational. It is the first project in Latin America that benefits from WHR - waste heat recovery system, with generation capacity of 6MW of energy itself, unequivocally contributing to greater sustainability. Claudius Peters & Gebr. Pfeiffer runner ups for the award CemWeek received many nominations before the ceremony and the winner was selected from three finalists. Claudius Peters, one of the runner-ups, substituted a satellite clinker cooler with a 4th generation ETA cooler at Holcim Untervaz, Switzerland. The replacement was performed in just 35 days, activity that improved all indicators of thermal recovery, energy consumption and production quality.

“

To be awarded with the first “Dr. Clemente Greco Best Cement & Lime Project Award” is a great accomplishment for both LVT and Cimento Apodi. We are excited to have been able to implement the first Waste Heat Recovery within Latin America – an innovative approach that unveils new opportunities for more similar projects in the Gebr. Pfeiffer was selected as a finalist for its biggest VRM project in the world, regional cement space, says Tiago Salazar Couto, Director, LV Latino installed at Holcim Barroso, Brazil. The América. mill supplied by Gebr. Pfeiffer represents a single mill solution that can achieve the lowest specific investment cost per ton of cement. The decision for a single mill avoids the installation for a second line of feed bins and two sets of peripheral systems. More than 200 senior level executives present at the CBI Brazil Conference The CBI event took place at the Hilton Morumbi in Sao Paulo, Brazil on the 5th and 6th of February and has gathered more than 300 senior level executives and decision makers in the Latin American cement industry. The lead-

ing techno-commercial conference featured the CBI focus on content for not only the Brazilian cement and lime sectors, but also the broader Latin American industry. The conference oriented around themes such as cement company of tomorrow, innovation, environmental performance, trading, shipping and logistics challenges. More information about the conference can be accessed by following the link to the official event page on the GMI Forum website: http://gmiforum.com/welcometo-cbi-brazil-a-latam-2014.

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FEBRUARY / MARCH 2014

event

S p e c i a l

c o v e r a g e

Cement Business &

Industry 2014

Annual conference and exhibition a huge success; CemWeek Magazine reports on the exciting annual meeting and participates in launch of Dr. Clemente Greco award.

FEBRUARY / MARCH 2014

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FEBRUARY / MARCH 2014

EVENT n February 5-6, 2014 Brazil again welcomed the annual CBI Brazil & LatAm conference and exhibition, this year hosted at the Hilton Morumbi Hotel, in Sao Paolo. Sponsors, exhibitors, delegates, and important figures of the industry gathered at the meeting to discuss the main issues affecting the Latin America’s cement sector and get an opportunity to network. The success of the event was seen not only in the participation of more than 300 registrants, but also in the exhibition site that saw 16 companies showcasing their latest technologies and in the interesting presentations that covered the most important aspects of the industry, focusing on challenges and innovations. CBI Brazil & LatAm 2014, organized by GMI Global, received among its guests not only Brazilian-based companies, but also representatives from Mexico, Colombia, Argentina, Venezuela, Panama, the United States, Germany, Austria, the United Kingdom, Italy, France, Japan, China, Netherlands, amongst many others. The diverse palette of participants included directors, managers, technicians, contractors, consultants and experts in the cement and lime industry. The success of CBI Brazil & LatAm 2014 was further supported through the corporate support of Votorantim Cimentos. CBI Brazil & LatAm 2014 featured an extensive exhibition area, where around 16 companies showcased their latest innovative technologies developed for the cement and lime industries. The conference and exhibition enjoyed strong participation from the industry, notably through the important Platinum sponsorship from Haver & Boecker-Latino America, represented by its Director, Mr. Clelio Tonelli. Additional exhibits included well-known leading engineering and services companies A TEC GRECO, Loesche, Densit, LV Latino América, Thermo Scientific, RUD, BASF, Scheuch-Tersel, Claudius Peters, Schenck Process, Gebr. Pfeiffer, Boldroc-

FEBRUARY / MARCH 2014

chi, Kawasaki, Rigaku, Martin Engineering, HGH Infrared Systems, Cemengal, and Dome Technology. Notable institutions -- CemWeek.com, ABIMAQ and Brazil Steel Institute -- also helped make this a memorable event. Joseane Berti, General Manager of Brazil Densit, shared with CemWeek that “the conference was very successful. This was a unique opportunity to meet our customers, promote our products and do business. We intend to participate in future events organized by GMI Global”. Furthermore following its already standard format, the CBI conference was divided into two main sessions: A Track, focused on business, including discussions on strategies, market challenges and outlook, but also a B Track session focused on the technical elements of the business. The CBI Brazil & Latam 2014 hosted leading industry thinkers, who shared their views on key industry topics, including: Rodrigo Lara (CPX Brazil), Rafael Giuliano Pileggi (USP - University of São Paulo), Camilo Restrepo (Cementos Argos), Livia Prado Gandara (InterCement), Marcelo Fernandes Bragança (Petrobras Distribuidora), Cassius Cleber de Cerqueira (Brazil Steel Institute), Anthony Wrobleski Son (Support Role), Federico Guido Lavalle (Saxum Engineered Solutions), Robert Madeira (CW Group), and Jose Roberto Romero (Neomix Concrete) among others. In the opening presentation, Rodrigo Lara, President of CPX Brasil, opposed the two views of The Economist on Brazil to exemplify the challenges experienced by the country while pursuing a breakneck pace. As many question whether Brazil has wasted part of its growth opportunities, the cement market remains on its road toward 100 million tons in cement consumption even though the deadline to reach the milestone has been pushed forward to 2019-2020.

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At a more strategic level, in recent years, cement markets around the world have undergone transformational processes, which also redefined the cement company of tomorrow. Robert Madeira, Managing Director and Head of Research at CW Group, emphasized the benefits of focusing on diverse profit centers (core, complementary, ancillary). The cement company of tomorrow may include in its core profit center portfolio activities such as co-generation, waste and recycling or alternative fuel processing. Cassius Cerqueira, Supply and Coproducts Manager, Brazil Steel Institute, brought to the attention of the audience the opportunities of the Brazilian steel producers in relation to the slag cement market. With an installed production capacity of 48.9 million tons per year, the Brazilian steel industry is operating at only 70 percent, below the 77 percent utilization rate registered at global level. Innovation was a central theme at CBI Brazil & LatAm 2014. Camilo Restrepo Restrepo, VP Innovation, Cementos Argos, shared from his company’s experience in crossing from an R&D Management to the “*ideaxion” concept, which builds on Argos’ Innovation Center and views innovation as a corporate R&D. With 8.5 percent of revenue coming from innovation in 2013, Cementos Argos continues to develop its innovation culture. Building on the innovation theme, Livia Gandara Prado, Manager of Innovation at InterCement, presented innovation as a multi-stage process that begins with the discovery of new perspectives able to uncover innovative ideas. In return, new concepts and value propositions are designed. As ideas are transformed into projects, full implementation cannot be fulfilled without a proper testing stage.

Clelio Tonelli. In his presentation, he highlighted the diversity of products, equipment and systems produced. Additionally, leading companies like Loesche, A TEC, RUD, Thermo Fisher, Cemengal or Martin Engineering were among the presenters. Jonathan Forinton, the A TEC representative, discussed the company’s contributions at the Wietersdorf Cement Plant as an example of why should the alternative fuels should be used, in his presentation

On the technical side, as one of the most important sponsors of the event, Haver & Boecker showcased the company’s history through the presentation held by Mr.

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FEBRUARY / MARCH 2014

EVENT “The Green Line – From Alternative Fuel “AF” to Salt”. Mr. Celso Tanaka, the speaker from RUD, presented the main concept of the company, making a trip through time, presenting the history and journey until 2014, but also the technical details behind the products developed. Showcasing the RUD’s worldwide products, Mr. Tanaka’s presentation drew attention on the evolution that the company has made in the past years and on the improvements that have been brought to the cement sector. Expanding on the technical themes, Darrell Leetham, the Product Manager Cement at Thermo Fisher Scientific discussed the company’s “unique, flexible cross belt analyzer for raw material quality control.” Furthermore, Gebr Pfeiffer was also among the presenters, and they chose to highlight the grinding technology used in the cement sector. Mr. Chris Oesch shared insights on his company’s solutions at the event. The presentation focused on Gebr Pfeiffer’s vertical roller mills for the cement industry, SUV distribution table separator and MRD ball mill for the gypsum and ceramic industry. A new aspect at the CBI Brazil & Latam meeting was the introduction of GMI Global’s “Dr. Clemente Greco Best Cement & Lime Project Award”, which honors the legacy of great professor and engineer, Dr. Clemente Greco. The award ceremony was presented by Maria Eugenia Arroyo Hernandez, GMI Global’s Americas Marketing Director and Claudia Stefanoiu, Senior Analyst at the CW Group, representing CemWeek. CemWeek acted as

FEBRUARY / MARCH 2014

the selecting committee for the project as was excited to award the prize to a project from LVT Latin America, which in 2010 completed the engineering part for and construction of Cimento Apoidi’s Quixire plant located in Ceara. Notably, it is the first project in Latin America that benefits from WHR - waste hear recovery system, with generation capacity of 6MW of energy itself, unequivocally contributing to greater sustainability. “The event was very interesting and has given us the opportunity to meet diverse customers and to present new technologies available, as well as presenting how we are on the market and propose improvements and solutions for customers. The lectures also added enough for dealing with matters pertaining to the cement market and relevant to the audience that attended the event”, said Gustavo de Melo Alves, Business Manager at Claudius Peters Brazil. “The event has exceeded our expectations and the objectives we have set, and we were able to bring together the leading companies in the industry. We were excited to receive over 300 registrations this year, a record participation, which pushes us forward in delivering an even more successful and enticing event for 2015. We look forward to seeing you all and those who were unable to join this year at the 3rd edition of the CBI Brazil & LatAm,” added Jean Nogueira, Brazil Sales Coordinator at GMI Global. CemWeek Magazine is delighted to support the CBI Conferences worldwide and is looking forward to being present at the next event in Brazil that will bring new surprises and innovations in 2015 .

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C o nf e r e nc e pr e s e ntati o n h ig h l ig h t: Petcoke for the cement industry : Marcelo Braganca, Petrobras Distribuidora Petcoke industry overview Worldwide petroleum coke production surpassed 120 million tons in 2013, increasing from 117 million tons of petroleum coke produced in 2012. At that time, USA & Canada claimed the largest share of the global petcoke production (54 million tons), followed by Asia with 38 million tons, Latin America with 13 million tons, Europe & CIS with 10 million tons and MENA with 2 million tons. The American Gulf also remains the largest exporter in the world. By the end of 2017, the global petroleum coke production is forecast to reach 161 million tons. As for Brazil, petroleum coke sales steadily increased in recent years. If in 2010 sales in Brazil equaled 2 million tons by 2011 they increased to 2.6 million tons, followed by 3.2 million tons in 2012 and estimated at 3.5 million tons for 2013. Following the same pattern, the share destined for the cement industry among petroleum coke sales expanded from 7 percent to 10 percent, 25 percent and 34 percent, respectively. Although is not able to meet demand in all segments, not even in cement, Petrobras has decided to focus on the cement industry with 80 percent of its production being delivered to cement companies. Expansion plans in the domestic market The current Brazilian petcoke capacity equals 4 million tons per year with seven producing refineries. All units are concentrated in South and South East. The refineries that are already active in North and North East do not produce petcoke. Two new refineries are already being built in Brazil â&#x20AC;&#x201C; one in North East (RNEST) and one in South East (COMPERJ) with total capacity of 3.1 million tons. RNEST will be built in two phases. Under Phase 1, a 1.1 million tons plant will be commissioned in November 2014, while in a subsequent Phase 2 a similar plant will be completed by May 2015. COMPERJâ&#x20AC;&#x2122;s Phase 1 is already in construction, project that will add another 0.9 million tons by August 2016. A series of four other projects is currently in design, potentially to be reviewed still. In case all projects are concluded as announced, the Brazilian petcoke capacity will be tripled. Along with the commissioning of new production units, Petrobras will be able to supply the North East area, which was so far fully covered through imports. Petrobras Petroleum Coke Capacity (million tons) 14 12 10 8 6 4 2 0 2013

2014

2015

2016

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2017

2018

2019

2020

FEBRUARY / MARCH 2014

CEMENT MARKETS

CW Research

CEMENT VOLUMES Weakness emerges in some of South Americaâ&#x20AC;&#x2122;s traditional growing markets Signs of recovery develop in Europe After years of declines, the Polish cement market assumed leadership in the European recovery process. Both cement production and demand shoot up by around 35 percent YoY in January 2014, building on the strong recovery pattern registered last December. Along with the resumption of the construction EU funded projects, market expectations are that cement sales will increase by two to three percent in 2014, putting an end to the downward trend.

The Polish cement market is recovering boosted by EU funding

France managed to obtain a double-digit increase for its cement consumption in the wake of 2014 (12.3 percent) fueled mostly by residential construction. Housing starts have stabilized at an annual rate of 340,000 units since October 2013, while non-residential construction continued to trend on the negative side. Asian markets push forward Most of the Asian cement markets (Vietnam, Thailand, Japan, Kyrgyzstan and Republic of Korea) recorded consistent growth rates in cement production. Republic of Korea registered the highest YoY increase in January 2014 of 22.6 percent, followed by Kyrgyzstan with 16.5 percent and Thailand with 8.7 percent. In an attempt to promote domestic cement to be used internally, the Kyrgyz Parliament recently proposed to impose custom duties on exported cement. The measure generated opposition from the Minister of Economic Affairs, who believes that exports should be favored.

To learn more, please contact the CW Research team at sales@cwgrp.com or +1-702-430-1748. 21

FEBRUARY / MARCH 2014

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Source: CW Research

Poland

Ukraine

Korea, Republic of

Kyrgyzstan

France

Thailand

Vietnam

Japan

Belarus

Colombia

Saudi Arabia

40% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10%

Peru

Jan2014/Jan2013 Cement Production Growth Rate (%)

CW Research CEMENT MARKETS

Cement sales in Indonesia fell by 0.2 percent in January 2014 versus the corresponding month of last year, as distribution activities were hampered by severe flooding. Weather conditions have also led to the postponement of several construction projects. However, the Indonesian cement industry is up for even a brighter future, as the country is preparing for the implementation of a free market under the ASEAN Economic Community 2015. Saudi Arabia continues to disappoint After being regarded as a top-performer during 1H 2013, Saudi Arabia dipped toward the end of last year, situation that was further deepened in January 2014. Labor shortages kept Saudiâ&#x20AC;&#x2122;s cement production 6.2 percent below January 2013, while consumption shrank by 12.5 percent during the same period. Preliminary February 2014 results refer to a softening of the declining pattern with only a 3.2 percent reduction in cement sales versus the corresponding month of 2013.

Saudi Arabia hit by labor exodus

Cracks emerge in Latin American markets As Brazil returned to healthier growth rates in January 2014 (6.5 percent in cement consumption), Argentina and Colombia registered low single-digit increases. The negative surprise comes from Peru, which declined 3.1 percent YoY in cement consumption and 6.2 percent YoY in cement production. Some construction projects have been paralyzed on the Peruvian market, situation that is expected to continue in the first half of 2014. The construction sector will most likely increase only by single-digit this year. Ecuador also dropped in January 2014 YoY by 4.6 percent in cement consumption. Morocco notches another weak start of year In terms of consumption, Morocco is leading the negative trend among the analyzed countries, dropping by 12.8 percent in January 2014 versus the corresponding month of 2013. However, the decline is far from the 25 percent YoY that affected the North African country a year back in January. Going forward, Morocco benefits from large potential, especially that authorities are committed to overcoming the temporary shortfalls through national programs targeting tourism and infrastructure development. Legal measures and fiscal incentives have also been introduced to boost the construction sector. Jan2014/Jan2013 Cement Demand Growth Rate (%) 40%

-10% -20%

Source: CW Research

Poland

Japan

Brazil

Korea, Republic of

Argentina

Colombia

Pakistan

Indonesia

Thailand

Peru

Ecuador

10%

Morocco

20%

Saudi Arabia

30%

To learn more, please contact the CW Research team at sales@cwgrp.com or +1-702-430-1748. www.cemweek.com

FEBRUARY / MARCH 2014

MARKET DATA SNAPSJOT

CW Research

China and South Korea increase cement exports by double digits in 2013 with growth rates of 19 percent and 16 percent, respectively. In terms of volume, Chinese companies exported almost 11 million tons of Portland cement last year.

Cement Production (million tons)

Cement Consumption (million tons)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

Cement Production MoM (%)

Cement Consumption MoM (%)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

Cement Exports (million tons)

Cement Imports (million tons)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

Cement Exports MoM (%)

Cement Imports MoM (%)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year

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CEMENT ENERGY MARKETS

CW Research

CEMENT ENERGY MARKETS Coal Market Update China’s coal imports plunge in February Total coal trading volumes slightly dropped in February, driven by lower imports from China. China’s imports totaled 23 million tons during the month, a 24 percent decline from January. Inventory at the ports in China remained high in February after the country replenished stocks in advance to the end-of-January New Year’s holiday and as Chinese customers turn to cheaper supplies from local coal producers. Local price of ordinary coal (4,500 kcal) has declined 11 percent since the beginning of the year. India coal imports remain strong due to lower domestic production. Volume plunged 25 percent in January but gained 26 percent in February, after the rupee recovered 1.5 percent making imports cheaper. Coal India, the world’s largest coal miner which accounts for 80 percent of India’s local output, is expected to miss production by about 12 million tons in fiscal year 2014. The company is likely to achieve an output of 470 million tons. Loss in production has been affected mainly by weather (cyclone Phailin) and regulatory obstacles.

Inventory at the ports in China remained high in February after the country replenished stocks in advance to the end-ofJanuary New Year’s holiday

Indonesia’s coal exports were down in February as demand from China decreased, while in Colombia shipments were affected by halted exports from Puerto Drummond in early January. Drummond is expected to resume coal exports on March 24. In Australia, volume exported from Port Waratah Coal Services Limited (PWCS), located in the Port of Newcastle, increased 6 percent in February from the previous month. Coal exports in the country were partly affected by cyclone Dylan last month, which hit Australia at the end of January. South Africa delivered 4.5 million tons of coal in February from its Richards Bay Coal Terminal (RBCT), falling 2 percent from January. Coal export operations were affected by a nine-day power outage that halted all operation at the terminal for a week at the beginning of February. The power outage caused delays to vessels and is reportedly costing the industry around US$170 million in lost earnings.

Coal Global Trading (million tons)

Indonesia

Australia

Russia

South Africa

Colombia

Rest

120 100 80 40 0

Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14

Source: Customs data

To learn more, please contact the CW Research team at sales@cwgrp.com or +1-702-430-1748. Source: customs data

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CEMENT ENERGY MARKETS

CW Research

Energy Prices Update Coal Coal trading prices remained weak in main export hubs in February 2014 in a still oversupplied market and uncertainty of China’s economic growth. South African export cargoes in February, that registered delays due to a week-long power outage, were down to US$78 per ton, with price plummeting 6 percent from January and 9 percent year-over-year. The terminal suspended all operations all operations including the Export Coal train service on January 31. Service was restored February 10. More recently, heavy rain in the country has drenched coal supplies at power stations affecting production at the plants. Most of the utility’s power stations in South Africa are coal-fired. State-owned Eskom, which supplies 95 percent of South Africa’s electricity, rolled blackouts for the first time in six years. 80 percent of the company’s power come from coal generated plants.

Local prices in China have been steadily falling since January amid a weak demand and increased competition with cheap imports.

Weak demand from Chinese companies drove Australian thermal coal export price to its lowest level since October 2009. Price fell to US$82 per ton February, down 7 percent from January 2014 and 20 percent from the same month of last year. China’s Bohai-rim Steam Coal Price Index (BSPI) dropped again in February 2014 loosing 10.4 percent since last month. The index closed at 559 yuan (US$91.5) in February, 10 down from 624 yuan in February 2013. Local prices in China have been steadily falling since January amid a weak demand and increased competition with cheap imports.

Steam Coal FOB Average Prices (US$/ton) Steam Coal FOB Average Prices (US$/ton)

150

US exported

Colombia exported

Australia Newcastle

Indonesian HBA

South Africa Richards Bay

140 120

110 100 90 80 70

more, please contact the IMF, CW Indonesia Research team sales@cwgrp.com or Sources: To EIA,learn Colombia Ministry of Mines and Energy, Ministry of at Energy and Mineral Resouces 25

FEBRUARY / MARCH 2014

www.cemweek.com

+1-702-430-1748.

Feb-14

Dec-13

Oct-13

Aug-13

Jun-13

Apr-13

Feb-13

Dec-12

Oct-12

Aug-12

Jun-12

Apr-12

Feb-12

Dec-11

Oct-11

Aug-11

Jun-11

Apr-11

Feb-11

Dec-10

Oct-10

Aug-10

Jun-10

Apr-10

Feb-10

Sources: EIA, Colombia Ministry of Mines and Energy, IMF, Indonesia Ministry of Energy and Mineral Resouces

130

Shanxi mixed coal plunged 17 percent between January 1st and February 28th. Falling local prices in China represent a risk especially for Indonesian coal exports, as China represents the second largest market for Indonesian coal after India.

The HBA reference price for March 2014 has been set by the government at US$77.01 per ton FOB, US$3.4 per ton lower than February

The Indonesian Ministry of Energy and Mines set its February International Coal Price reference for thermal coal, also known as Harga Batubara Acuan (HBA), at US$80 per ton, down 1.8 percent from January 2014. Prices continue to fall after China’s weak consumption growth. The HBA reference price for March 2014 has been set by the government at US$77.01 per ton FOB, US$3.4 per ton lower than February.

US Petcoke Export Price (US$/ton) US Petcoke Export Price (US$/ton) rolling 12-month average Rolling 12-month average 120 100 80 60

J-14

D-13

N-13

O-13

S-13

A-13

J-13

M-13

A-13

M-13

F-13

J-13

D-12

N-12

O-12

S-12

A-12

J-12

M-12

A-12

M-12

F-12

J-12

Source: Customs data

Source: customs data

Petcoke The export price of U.S. uncalcined petcoke has remained mostly unchanged for the last 6 months, tracking relatively stable coal prices. Petcoke price lingered at US$77 per ton in January 2014 with a lot of uncertainty in the market around coal prices. Customers also remain cautious about potential new taxes imposed in China on coal and petcoke. U.S. petcoke exports totaled 2.3 million tons in January 2014, down 24 percent from December and 10 percent over January of last year. Exports to Mexico recovered 50 percent in January and reached 0.15 million tons after a drop of 28 percent in December due to the holidays. However volume is down 44 percent versus January of last year and the average monthly volume has consistently declined during last 8 months due to the slowdown in the country’s economy. Mexico recorded in 2013 the smallest annual gain in GDP since the global recession in 2009.

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CEMENT ENERGY MARKETS

CW Research

CEMENT ENERGY MARKETS

CW Research

The Henry Hub natural gas spot price hit US$6.0 per MMBtu in February 2014, a 27 percent increase from January’s price and up 80 percent from February 2013

Natural Gas A harsh winter in the United States with non-stop storms hitting the Northeast has driven natural gas prices to record high. The Henry Hub natural gas spot price hit US$6.0 per MMBtu in February 2014, a 27 percent increase from January’s price and up 80 percent from February 2013. Current higher than normal price together with the arrival of spring will bring down demand in the near term and push down natural gas prices. Increases in natural gas prices contributed to a decline of 10% in gas used for power generation in 2013 however shale gas production continues to rise. Output from Marcellus (largest source of natural gas in the US) surged 61% in 2013 versus last year. European natural gas price record US$11.3 per MMBtu in February 2014 slightly declining from the previous month. A sluggish natural gas demand after a mild weather in Europe has kept prices stable. However U.K. and Germany future prices jumped recently due to increased tension between Ukraine and Russia. Russia supplies about one-third of the Europe’s natural gas, more than half of which travels through Ukraine (to Slovakia, Germany, Italy and Austria).

Natural Gas Prices (US$/MMBtu)

Europe

16 14 12 10 8

Sources: EIA, World Bank

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Feb-14

Jun-13

Oct-12

Feb-12

Jun-11

Oct-10

Feb-10

Jun-09

Oct-08

Feb-08

Jun-07

Oct-06

Feb-06

Jun-05

Oct-04

Feb-04

Jun-03

Oct-02

Feb-02

Jun-01

Oct-00

Feb-00

Jun-99

Oct-98

Feb-98

Source: EIA, World Bank

MARKET DATA SNAPSHOT

CW Research Coal trading prices remained weak in main export hubs in February 2014 in a still oversupplied market and uncertainty of China’s economic growth. Petcoke - US Exports (million tons - Aug)

Coal - Exports (million tons)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

Coal Exports MoM (%) US petcoke exports prices MoM (%)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION. WWW.CEMWEEK.COM/SUBSCRIBE

Coal - Imports (million tons)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION. WWW.CEMWEEK.COM/SUBSCRIBE

Petcoke - US export prices (USD/ton - Aug)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION. WWW.CEMWEEK.COM/SUBSCRIBE

Coal - Global export prices (USD/ton)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION. WWW.CEMWEEK.COM/SUBSCRIBE

Natural Gas Prices (US$/mmBtu)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION. WWW.CEMWEEK.COM/SUBSCRIBE

Natural Gas prices MoM (%)

Coal export prices MoM (%)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

Source: CW Group analysis estimates LM: latest month February except where not specified); MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year

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FEBRUARY / MARCH 2014

people

European cement industry sees leadership changes In Germany, Frank Satzek has taken the lead of the Lafarge plant in Sötenich. The 49-year-old engineer succeeds Thomas Keller, who will move to the Karsdorf unit. Ireland-based CRH has appointed Henk Rottinghuis as its non-executive Director. Rottinghuis has a background in distribution, wholesale, and logistics. Until 2010, he was Chief Executive Officer at Pon Holdings B.V., a large, privately-held international company which is focused on the supply and distribution of passenger cars and trucks, as well as equipment for the construction and marine sectors. Rottinghuis is currently Chairman of the Supervisory Board of Stork Technical Services, which provides asset management services to the oil and gas, power, and chemical industries. He is also a member of the supervisory boards of the Royal Bank of Scotland N.V. and the retail groups Blokker Holding B.V. and Detailresult Groep. In the UK, Lafarge Tarmac has appointed Fiona Penhallurick as its new general

FEBRUARY / MARCH 2014

counsel and company secretary. This follows the departure of its former legal head to Travis Perkins last month. Penhallurick joins Lafarge Tarmac from renewable energy company Covanta Energy. Most recently, she held the post of managing director, after spending time as the company’s director of legal and corporate affairs. Prior to joining Covanta, Penhallurick worked as in-house counsel for companies including GEC Marconi and was executive assistant to the CEO of National Grid.

the rival Bamburi Cement. The competition watchdog says Lafarge’s two board seats and control of strategic committees at Portland amounts to anti-competitive behaviour that needs to be reviewed.

Kenya holds EAPCC appointments in limbo pending current court proceedings In Kenya, competition authorities have indicated the ouster of Kenya Airways managing director Titus Naikuni from a key position in the East Africa Portland Cement Company (EAPCC) board committee. The Competition Authority of Kenya (CAK) recommends that Naikuni stop chairing the Technical Committee of Portland’s board, citing the risk that his position poses to the firm’s strategic leadership in light of the fact that he represents Lafarge, which has a controlling stake in

Leadership changes on the horizon at Holcim units The managing directors of both Indiabased Ambuja Cements and ACC have offered to resign as part of broad changes at both Holcim units. Sumit Banerjee, the former MD of ACC, who had quit to join Reliance Cement, is likely to rejoin ACC as the MD. Holcim has appointed Bernard Terver as its Asia head, replacing Paul Hugentobler, who is retiring. Terver, a member of the Holcim Executive Committee, has been appointed head of a region encompassing Africa, the Middle East and the Indian subcontinent.

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Meanwhile, Kenya has blocked East African Portland Cement’s appointment of chairman Bill Lay and has stopped his predecessor Mark Karbolo from acting as chairman, until a court ruling has been made.

HeidelbergCement in Bangladesh appoints new chairman

he Bangladesh based unit of Germany’s HeidelbergCement has appointed Albert Scheuer as chairman. Scheuer is currently a member of the managing board of HeidelbergCement Group,

and in charge of Asia-Oceania and worldwide coordination of Heidelberg Technology Centre (HTC). He was previously responsible for HeidelbergCement’s operations in China as chief operating officer and worked as managing director of HeidelbergCement Technology Center in the European cement plants of the group from 1998 to 2005.

Siam Cement expansion to include foreign executives Thailand-based Siam Cement is looking for overseas executives to be non-Thais within the next five years, as part of its expansion efforts. SCG’s international staff makes up 31 percent of its 49,200 employees, up from an earlier target of 25 percent by 2015. Most of the staff are Indonesian and Vietnamese. In the short term, SCG has filled senior management positions and only 10 foreign staffmembers are at management level. Strikes loom in Jordan, Brazil, but agreements are reached in Spain The General Union of Workers at the Arab Company for White Cement has given the company three weeks to respond to the

demands of the employees of the company before resorting to trade union action that may include a strike. The head of the union, Mahmoud Hiyari, says the demands include an increase in the basic salary for employees by 30 dinars, and also includes overhauling the system indemnity. Workers at the Votorantim unit at Rio Branco do Sul, Brazil, have gone on an indefinite strike over unmet salary demands. The company offered a 0.42 percent adjustment, which angered employees. Workers were asking for a 4 percent adjustment. The workers union has called off the indefinite strike scheduled for Monday in the El Alto factory Cementos Portland, in Morata de Tajunya, Spain. This is after the assem-

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bly of workers ratified an agreement with the corporation to waive any pay cut and implement the Temporary Files employment regulation. Cement manufacturers in Spain have signed with the trade unions UGT and CCOO a state agreement for the sector, freezing the minimum wage of their workers for the duration of the agreement (2013-2015) at 18,600 euros. The industry currently employs 4,354 workers. This IV State Cement Industry Agreement was signed by the president of the employer Oficemen, Isidro Miranda, the secretary general of the Federation of Construction and CCOO (Fecoma), Vicente Sanchez, and his counterpart from MCA-UGT, Carlos Romero.

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REGIONAL REPORT:

europe Industry growth slows in Turkey In Turkey, the cement industry is aiming to grow sales this year by 6 percent, half of the 12 percent growth it exhibited last year. Total domestic production in the market last year was 63.5 million tons, and 12.5 million tons were exported for sale. A total of 2.1 million tons were shipped to Libya, while Iraq got 1.6 million tons. Poor industry performance in Spain, Poland Spain cement consumption fell 13.6 percent in January compared with January 2013, reaching 764,011 tons, the lowest volume for January since at least 2004. The industry has turned in losses estimated at 7-8 percent. There have now been six consecutive years of declines, accumulating a collapse of 80.4 percent from a record high of 55.99 million tons in 2007. Consumption over the past year has been reduced by 18.7 percent, a drop of two and a half million tons.

Cement manufacturers in Poland are expecting the market to stabilize on the back of a new EU budget. Last year saw another construction industry downturn, with the market shrinking almost 8 percent and sales of approximately 14.6 million tons of cement. The decline was more severe in 2012, when the market shrank by almost 15 percent. Cement firm merger likely in Italy A merger between Italcementi and Ciments Francais, the French subsidiary of Italian Cement, may be on the horizon. The merger would be achieved on the basis of parity eight Italcementi shares for one French Cements share. The move could generate more than 70 million euros in savings. Russia AND CIS Production rises in Russia, but growth may slow Russia-based Transbaikalia Cement has signed an agreement with the Chinese company Sinoma International Engineering for the construction of a cement plant, scheduled for launch in 2017, in the village of Ust-Borza. The

project will cost approximately 7 billion rubles. Russia-based GlobalElektroServis Company has completed the construction of a 800 million-ruble, 220-kV distribution point (RP) in the grid connection for the Lafarge Cement plant in the village of Ferzikovo, Kaluga region. Meanwhile, the new Nikolsky Cement plant is producing strong, high quality cement and is popular among construction companies. Kavkazcement, one of the largest cement producers in the south of the Russian Federation, increased clinker production by 11.7 percent (to 2.3 million tons) and cement by 1.2 percent (to 2.4 million tons) in 2013. Shipments of finished products to customers amounted to 2.4 million tons, up 1.4 percent year-over-year, while shipment of bagged cement increased by 15.5 percent. Siberian Cement President George Kleger expects sales to rise this year, albeit at a slower pace, with momentum from last year boosting demand. The firmâ&#x20AC;&#x2122;s 2013 sales totaled 4.3 million tons of cement, up 8 percent over 2012. Analysts expect growth of 3-4 percent in the current year. Cement sales up in the Ukraine Shipments of Eurocement-Ukraine increased by 28 percent in January, reaching 6,197 tons, while sales of bagged cement were 6,247 tons (up 76 percent year-over-year). The most popular products are the CEM I. 42,5 N and CEM II / AS 32,5 R variants.

EUROPE, RUSSIA RUSSIA AND AND BALTIC BALTIC REGION REGION EUROPE, Overview TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

Company/Location Cemex/Poland

Cemex in Poland has started work on the modernization of its Chelm based plant, with the demolition of the chimneys as the first step.

Transbaikalia Cement/Russia

Russia based Transbaikalia Cement has signed an agreement with Sinoma for construction of a cement plant in the village of Ust-Borza, scheduled for launch in 2017, reports Zabinfo. Budget of the project, according to preliminary estimates, will be about 7 billion rubles.

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MIDDLE EAST MIDDLE EAST Company/Location Arabian Cement/Saudi Arabia

Overview Arabian Cement has unveiled plans to install a new production line at its plant in Rabigh that will have an installed capacity of 10 thousand tons per day.

TABLE AVAILABLE IN THE CEMWEEK Oman Cement/Oman MAGAZINE PRINT EDITION.

Oman Cement is building a cement mill and is set to obtain a bank loan worth cost of $39mn.

SPCC/Saudi Arabia

SPCC is installing and operating the first two vertical roller mills for

WWW.CEMWEEK.COM/SUBSCRIBE cement grinding in the Kingdom. The two cement mills are Loesche Type LM 56.3+3, with a rated capacity of a minimum of 200 tph.

Yanbu Cement/Saudi Arabia

Evaluating the technical and financial offers for the project production line VI. The new line requires the approval of government agencies related to providing the company with the fuel needed to run the line.

Cement industry grows in Belarus Belarus-based cement plants increased cement production in 2013 by 3.1 percent to 5.057 million tons. Cement stocks grew by 27.9 percent to 156,000 tons, reaching 37 percent of the average monthly production volume. The production of ceramic tiles went up in 2013 by 99.9 percent (to 27.25 million square meters) vs. 2012, while sanitary ware increased 11.9 percent to 1.019 million pieces. The production of precast concrete products fell by 2.8 percent to 190 800 cubic meters. Belarus will make larger deliveries of cement in Russia in 2014. The cement industry in Belarus has suffered as a result of large loans issued before cement prices fell to $50-70 per ton. Belarusian cement is sold in Russia for $20 cheaper than its real value, given that plants have been left with large loans (totaling almost $200 million for the five plants combined) that must be paid off.

Saudi Arabia’s Southern Cement Company is considering new production lines and an expansion of a power plant in Tehama. The company is currently constructing a third, 1.5 million-ton clinker production line at Tehama, valued at $188 million. Saudi Arabia will continue to import cement and clinker from overseas markets this year. Imports are expected to reach about 5 million tons, compared with imports of 6 million tons in 2013. Iran cement production grows while Syrian prices spike Iran produced 58.226 million tons of cement and 60.64 million tons (a 3.6 percent year-over-year rise) of clinker in the first ten months of the current Iranian calendar year. Around 47.15 million tons

of cement were supplied to the domestic market. Cement exports exceeded 11.85 million tons, and clinker exports reached 1.79 million tons. Syrian cement prices have risen recently, to 15,600 Syrian pounds per ton, and are blamed for delays in construction works. The price jump has been caused by low demand and high power costs. Africa New cement plants in Mali, Algeria, Ghana In Mali, the completion of a new, 500,000ton cement plant in Bamako will be followed by the launch of a 10,000-unit social housing program. Equipment maker ThyssenKrupp will build a mid-three-digitmillion euro cement factory in Algeria. The plant, slated to begin operations in 2016, will have a capacity of 6,000 tons per day. CIMAF Ghana Limited will build a 1 million-ton-capacity cement plant in Ghana, near the Tema Metropolitan Area, for 60 million euros. Positive industry signs in Kenya Cement demand is increasing in Kenya, leading to fierce competition. The entry of Dangote Cement onto the market has exacerbated the situation. Kenya’s current consumption of cement is 85 kg per inhabitant, compared with South Africa’s 300 kg and Egypt’s 500 kg.

Middle East Cement industry expands in Saudi Arabia Saudi-based Yanbu Cement predicts that demand will increase 6 percent per year until the end of 2015, on the back of economic growth and government spending. Yanbu will continue to pursue expansion plans. Meanwhile, Arabian Cement will install a new 10,000-ton-perday production line at its plant in Rabigh.

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FEBRUARY / MARCH 2014

Kenya cement major Athi River Mining is building a $400 million cement plant in Kitui County, with the support of the county government. The plant will take 3-4 years to build and will double ARM’s capacity, to 5 million tons per year. Lafarge subsidiary Bamburi Cements reports improved financial performance this year, even after posting a second straight decline in annual profits. The company expects to benefit from higher regional exports, increased spending on infrastructure development, reduced electricity tariffs in Kenya and Uganda, and easing regional political tensions. Bamburi will install a Sh4.8 billion solid waste disposal plant to power its cement plant near Mombasa. The plant will generate cheaper and alternative energy, curbing energy costs in the face of competition that has intensified with the entry onto the market of new players such as National Cement, Savannah Cement, and Mombasa Cement. Sales dip in 2013 in Morocco In Morocco, the sales volume of cement decreased by 6.3 percent at the end of 2013, after a decline of 20.4 percent at the end of March 2013. Cement sales registered a turnaround in the last two quarters of 2013, making up 3.4 percent in Q3 and showing stability during Q4. For the first month of 2014, cement consumption declined by 12.8 percent year-over-year.

AFRICA AFRICA Company/Location

Overview

Athi River /Kenya

Kenya’s cement major Athi River Mining is building a $400 million cement plant in Kitui County.

CIMAF/Ghana

CIMAF will build a new cement plant in Ghana for 60 million euros. The cement plant will have a capacity of 1 million tons of cement per year.

Regulation changes on the horizon in Nigeria In Nigeria, the Cement Producers Association of Nigeria (CPAN) have requested that the suspension on cement import licenses be lifted in order to bring down the high price of cement, currently at N1,800 per bag. Meanwhile, cement production and importation in the country may be standardized at cement grade 42.5. The move would ease safety concerns.

Dangote Cement/ Kenya

Dangote Group plans to build a new cement plant in Kenya for $600 mm.

Dangote Cement/Congo

Dangote Cement will build a new plant in the Yamba area of the Congo, with an investment of $292.9 mm. The plant will produce over 1.5 million tonnes of cement per year and will create more than 650 jobs.

Cement liberalization in Tunisia may reduce prices In Tunisia, the Secretary of State for Energy and Mines Nidhal Ouerfelli has predicted that the liberalization of prices of gray cement will reduce market prices through competition.

FEBRUARY / MARCH 2014

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

Dangote Cement/Nigeria

Nigeria based Dangote Cement has commissioned a new depot in IdiWWW.CEMWEEK.COM/SUBSCRIBE Iroko, Ogun State.

Dangote/ Liberia

Dangote bares plans to build cement plant in Liberia

East Africa Portland Cement/Tanzania

The East Africa Portland Cement is looking to expand its operations in Tanzania and add a new production plant in Kenya.

Lafarge/Zambia

In Zambia, the local unit of French LAFARGE is building the first cement depot in Chipata District in Eastern Province and is investing $700,000 for the project. The depot to be constructed will have a cement storage capacity of 3, 000 metric tons.

ThyssenKrupp/Algeria

Equipment maker ThyssenKrupp has bagged a contract to build a cement factory with a capacity of 6,000 tons per day. The plant will be located near Setif, 300 kilometers east of Algiers.

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REGIONAL REPORT:

Indian cement companies face losses The India-based unit of HeidelbergCement India posted a quarterly loss of Rs 6.63 crore in the quarter ending December 2013, down from a net loss of Rs 7.36 crore in the same quarter of 2012. Sales rose 36.89 percent in the quarter ending December 2013, to Rs 350.34 crore, up yearover-year from Rs 255.93 crore. For 2013 as a whole, the company’s net loss was Rs 40.73 crore, a decline from the previous year’s net profit of Rs 30.84 crore. Sales rose 24.07 percent to Rs 1364.77 crore in 2013, compared with Rs 1099.96 crore in 2012. India-based cement makers are looking to other markets to help cushion a slide in domestic consumption, with Chettinad Cements, The India Cements, Dalmia Cements, and Ramco Cements recently increasing their exports to Myanmar.

8-12 percent in select markets like Delhi, Chandigarh, and Mumbai between September and December 2013. UltraTech’s plan to expand its operations in Uttarakhand may hit a snag since the cement maker faces opposition from local people and environmentalists amid fears that the proposed plants may cause pollution. A few positive signs in Indian market Bhutan-based Dungsam Cement Corporation is setting up operations in North-Bengal and East Bihar. The company produces 4130 tons of cement daily, and have invested Rs 1088 crore in its Indian venture.

Pakistan cement makers are encouraged to engage with distributors in India to boost cement exports there. The Indian Wahga Cement prices in India’s Ahmedabad have Customs Station has been completed and fallen 10-13 percent recently. Average will soon start functioning in order to wholesale cement prices increased by facilitate trade with Pakistan. AFRICA AFRICA CENTRAL SOUTHEAST EASTASIA ASIA CENTRAL AND&SOUTH Company/Location Company/Location Athi River /Kenya ACC Limited/ India

Overview Overview Kenya’s cement major Athi River Mining is building a $400 million ACC Limited has launched cement plant in Kitui County.a new cement blending unit in Padubidri village of Udupi district, capable of blending 30,000 tons per month of Portland Cement (PPC), thefor Times of India. CIMAF willPozzolana build a new cement plantreports in Ghana 60 million euros. The

TABLE AVAILABLE IN THE CEMWEEK Gazakh Cement/Azerbaijan MAGAZINE PRINT EDITION. Dangote Cement/ Kenya CIMAF/Ghana

Oil and Gas/Uzbekistan Dangote Cement/Congo Reliance Cement/India Dangote Cement/Nigeria Semen Indonesia/Myanmar Dangote/ Liberia

cement will is have a capacity of 1 million tons ofto cement year. Gazakh plant Cement looking to increase production 3 mmper tons per year as part of its modernization efforts. Dangote Group plans to build a new cement plant in Kenya for $600 mm. Russia based Company Oil and Gas (Moscow) will complete the con-

struction of a cement plant in the Surkhandarya region in southern WWW.CEMWEEK.COM/SUBSCRIBE Dangote Cement will build a new plant in the Yamba area of the Con-

Uzbekistan by 2015. Plant will have installed capacity of 420,000 tons go, with an investment of $292.9 mm. The plant will produce over 1.5 per year. million tonnes of cement per year and will create more than 650 jobs. Reliance Cement gets greenlight for new plant located in Chopal area of Shimla district, and will provide to 350 persons. Nigeria based Dangote Cement hasemployment commissioned a new depot in IdiIroko, Ogun State. Semen Indonesia will finalize the acquisition process cement plant in Myanmar in April thistoyear with the acquisition value of approximately Dangote bares plans build cement plant in Liberia $ 200 million, reports Berita Satu.

East Africa Portland Cement/Tanzania

The East Africa Portland Cement is looking to expand its operations in Tanzania and add a new production plant in Kenya.

Lafarge/Zambia

In Zambia, the local unit of French LAFARGE iswww.cemweek.com building the first cement depot in Chipata District in Eastern Province and is investing $700,000 for the project. The depot to be constructed will have a cement storage

The shares of listed Indian cement maker ACC rose 1.18 percent after the company reported an increase in profits in 2013. ACC’s consolidated net profit rose 3.34 percent to Rs 1094.67 crore on a 1.99 percent fall in sales turnover, to Rs 10908.41 crore, in 2013 vs. 2012. Operating EBITDA fell 25.79 percent, to Rs 1629.97 crore, in 2013 vs. 2012. Two subsidiaries to merge with India Cements Two subsidiaries of India Cements Ltd. (ICL), listed Trinetra Cement and unlisted Trishul Concrete Products Ltd., will merge with ICL, subject to regulatory and other approvals. ICL holds a 61.22 percent stake in Trinetra, which has a paid-up capital of Rs. 4.47 crore. ICL holds a 88.4 percent stake in the Rs 2.18-crore paid-up capital of Trishul Concrete, through its whollyowned subsidiaries. The appointed date for the merger is January 1, 2014. The Trinetra merger will have a swap ratio of two equity shares of ICL for every nine shares of Trinetra. The merger will have a swap ratio of seven equity shares of ICL for every three shares of Trishul. Trinetra came into the ICL fold in 2009-10 when ICL Financial Services Ltd. acquired 60.89 percent of Trinetra’s shares. The 1.5 million-ton Banswara plant in Rajasthan of Trinetra went online in 2011-12. Trinetra reported a turnover of Rs 443 crore for the year ending in March 2013, and EBIDTA of Rs 84.33 crore. Trishul Concrete reported a turnover of Rs 120 crore and EBIDTA of Rs 2.42 crore for the year ending in March 2013. The external debt of Trinetra and Trishul combined stood at Rs 283 crore as on March 31, 2013.

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REGIONAL REPORT:

Mixed trends in Chinese cement market Cement industry profits in China were boosted in the fourth quarter of 2013 by improved synergy among cement makers. Warmer weather during the period prolonged construction days and elevated market demand. The CE Cement Industry Prosperity Index report placed the prosperity index of the cement industry in the fourth quarter at 100.7, up 0.4 points over the last quarter. This is the fifth consecutive quarter of an uptrend.Total cement industry profit in 2013 was about RMB 80 billion Yuan. Cement prices in China fell 0.7 percent in the week ending February 16, mostly on the back of a 2.8 percent decline in eastern China. Prices in all other regions were largely flat. Nationwide cement inventory rose to 71.6 percent of full from 67 percent, due to weaker demand in the eastern and south-central regions. China’s State Council is expected to release specific measures to stimulate cement industry consolidation. These measures are likely to be focused on three problems.

One is the lack of financing channels; the government may strengthen financing support for the shakeup, including bank loans and equity placement or bond issuance from secondary market. The second is the current inefficient approval process, which the government may simplify, especially for cross-region deals. The third is the heavy tax burden; the government may offer tax breaks to mergers and acquisitions in the industry. With the end of the Spring Festival holiday in China, local construction projects will return to work within a few weeks, when the cement market trading will reopen. This year, cement prices in the east, south, and elsewhere have retained last year’s high level of volatility, with continued improvement in profitability of cement companies, creating favorable conditions. National cement output in 2013 reached 2.41 billion tons, an increase of 9.6 percent, 2.2 percentage points higher than the growth rate of 7.4 percent in 2012. National clinker production hit 1.36 billion tons over the period, an increase of 5.6 percent.

ASIA PACIFIC ASIA PACIFIC

TABLE AVAILABLE IN THE Overview CEMWEEK MAGAZINE PRINT EDITION.

Company/Location Lafarge/Philippines

In the Philippines, Lafarge Republic says a new mill will be up and running in its Norzagaray plant by 2015. The new mill will have an annual capacity of 850,000 tons.

Semen Indonesia/Indonesia

Semen Indonesia has installed a new grinding unit in Tuban that WWW.CEMWEEK.COM/SUBSCRIBE

will increase capacity for the cement maker. Currently Tuban plant’s capacity has reached 14 million tons per year.

FEBRUARY / MARCH 2014

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Positive predictions for Indonesian cement industry Semen Surabaya-Indonesia continued its positive growth trend in 2013, with a profit of Rp 5.37 trillion, up 10.8 percent over 2012’s Rp 4.84 trillion. As a result, earnings per share increased from Rp 817 to Rp 905. The company recorded total revenues in 2013 of Rp 24.5 trillion (US$19.5 trillion), up 25 percent over the previous year. The total sales volume equaled 27.81 million tons, an increase of 27 percent compared with 2012’s 21.9 million tons. Domestic cement sales volumes recorded 25.4 million tons, an increase of 13.2 percent, far exceeding the performance of the domestic industry, which grew by 5.5 percent. Cement sales in Indonesia, which is the biggest economy of Southeast Asia, fell 1 percent year-over-year in January, to 4.65 million metric tons, as flooding blocked cement shipments to retailers. The weather conditions caused the postponement of several construction activities, reducing demand for cement. Sales declined 1 percent in Sumatra (to one million tons) and 2 percent in Java (to 2.5 million tons). Together, Sumatra and Java accounted for about 75 percent of total Indonesian cement sales in January 2014. By contrast, sales in Kalimantan rose 7.2 percent to 374 thousand tons, while in Sulawesi sales surged 21.5 percent to 348 thousand tons. In spite of the recent declines, Indonesian President Susilo Bambang Yudhoyono has predicted a strong future for the local cement industry, linking it to rapid development of transportation facility and connectivity. The President recently inaugurated the cement factory PT Tonasa Unit V in Pangkep district, South Sulawesi. Regional integration could delay Holcim plant in Philippines In the Philippines, the local unit of Swiss Holcim may delay the construction of a proposed $550-million new cement factory in Bulacan province because of the

impending economic integration of the Association of Southeast Asian Nations. Southeast Asian countries, including the Philippines, will eliminate tariff rates on goods to facilitate free flow of commodities under the Asean Free Trade Area. Cement sales, prices grow in the Philippines Thailand-based Siam Cement reports that sales of tiles, cement, and building materials picked up in its Philippine operations last year. Sales revenues in the country grew 10 percent annually to $157 million as Siam Cement’s local subsidiaries Mariwasa Siam Ceramics (Mariwasa), United Pulp and Paper (UPPC), SCG Marketing Philippines (SCGM), and SCG Trading Philippines (SCGT) reported gains. Mariwasa’s growth was driven by expansion of its wall and tile product lines, while the jump in SCGM revenues was due to high demand for its fiber cement boards. The Philippine Department of Trade and Industry (DTI) has sent out teams to verify reports of an increase in the price of cement in Luzon. Eagle Cement advised DTI that has been no adjustment in the prices of their cement products.

Vietnam withdraws cement license due to delays Vietnam has nixed Roli Investment Corporation’s license to build a cement plant in Quang Tri province on account of persistent delays. The firm must terminate the entire investment in the project, and hand over to the Cam Lo district People’s Committee and management all resources invested in the project. The Cement Plant Roli - Quang Tri construction project has entailed a total investment of nearly 1 billion VND and has a design capacity of 1.2 million tons/year. Japan’s Taiheiyo Cement reports strong sales Cement sales for Japan’s Taiheiyo Cement amounted to 23.7 billion yen between April and December, boosted by earthquake reconstruction efforts in the country. Domestic cement sales volumes increased 8 percent year-over-year to 12.66 million tons, including consignment sales.

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LV Technology to raise capital for new factory Thailand-based LV Technology is looking to raise 350 million baht, plus shareholder warrants of one new share for two warrants, to fund an investment in Myanmar. LV’s Board of Directors has approved an allotment of 807,677,462 shares, at par value of 1 baht, to the existing shareholders up to 538,451,641 shares at the rate of 1.28 shares for 1 new share at a price of 0.65 baht, which will be paid from the capital. The proceeds will be invested in a cement factory in Myanmar, a joint venture with MAX Manufacturing, which is one of the major cement companies in the country.

FEBRUARY / MARCH 2014

REGIONAL REPORT:

Growth in Brazilian cement industry Cement sales in the Brazilian market rose 6.8 percent, year-over-year, in the month of January, to 5.9 million tons. The country’s midwestern region had the highest percentage increase, up 16.4 percent yearover year to 714,000 tons. In the northeastern region, sales were up 9.3 percent to 1.32 million tons. Sales in the southeast grew 6.3 percent to 2.76 million tons, while in the south they rose 0.6 percent to 0.84 million tons. The only decrease, of 1.8 percent, was recorded in the northern region, where sales totaled 0.28 million tons. Over the past 12 months, total sales in Brazil grew 2.5 percent to 70.4 million tons. The state of Paraíba, Brazil, currently produces 2.5 million tons of cement per year and is projected to reach 10 million tons per year following completion of six new cement plants, currently under construction at a total pricetag of R$2.3 billion. Paraíba was chosen for the new projects, which will generate 6,600 job opportunities, because of its strategic, northeast location. Completion of the plants will make Paraíba the second largest cement producing state in the nation. Honduran government temporarily freezes cement prices The Honduran government has held the price of a cement bag to 160 Lempiras for the time being, but says it expects a gradual increase. The action occurred after the company Argos Cement increased its price per 42.5-kg bag of gray cement, leading to a speculative wave that boosted the cost to the 160 Lempira level.

FEBRUARY / MARCH 2014

Cement demand in Bolivia this year is expected to reach 3.5 million tons, up from Colombian and Bolivian cement 3.3 million tons last year. The company industries report gains Soboce accounted for approximately 48 The sales of the Colombian firm Cemen- percent last year and is expected to do the tos Argos increased last year as major same this year. markets continued to propel dispatches. Construction was the main growth driver Peru cement shipments dip in January of the Colombian economy, contributing after previous year’s climb to a revenue increase of 12 percent for Ce- Shipments of cement within the Peruvian mentos Argos, which sold 5.2 million tons market totaled 0.82 million metric tons in of cement and 3.4 million cubic meters of January 2014, down 3.1 percent year-onconcrete. Total cement sales for the firm, year. Cement production during the period including those in the U.S., Central Amer- was 0.83 million tons, representing a drop of ica, and the Caribbean, reached 11.4 mil- 5.53 percent compared to the same period of lion tons last year, an increase of 5 percent 2012, when it totaled 0.87 million tons. over 2012. The firms total concrete sales reached 9.4 million cubic meters, a jump In January, cement exports reached 17,220 of 10 percent. metric tons, a decline year-over-year of 38.83 percent. Total cement dispatches As a whole, production of gray cement (exports plus domestic market) totaled in Colombia in December 2013 was up 0.84 million tons in January 2014, a decline 7.3 percent, year-on-year, to 1.02 million of 4.24 percent from January 2012, when tons. A total of 0.91 million tons were they totaled 0.88 million tons. dispatched to the domestic market, an increase of 8.9 percent. The growth was driv- By contrast, Peruvian domestic cement en by increases in distribution channels of shipments totaled 10.3 million tons in builders and contractors (up 24.3 percent 2013, up 6.9 percent from 9.6 million tons during the month) and concrete units (up in 2012. Exports at the end of 2013 reached 19.7 percent). For 2013 as a whole, gray 0.22 million tons, an increase of 11.22 percement production reached 11.3 million cent over the previous year’s 0.20 million tons, an increase of 3.0 percent over 2012. tons. Total cement dispatches totaled 10.5 Domestic dispatches increased 3.5 percent million tons in 2013, up 7.23 percent yearto 10.9 million tons. over-year. AMERICAS AMERICAS Company/Location Government/Bolivia

Overview Bolivian President Evo Morales announced the construction of a cement factory that will will cost $306 mm.

Lafarge/Canada

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

Lafarge Canada has contracted Gebr. Pfeiffer for the installation of the MVR 5000 R4 Vertical Roller Mill. Commissioning for this project is planned for early 2015.

State of Paraná/ Brazil

WWW.CEMWEEK.COM/SUBSCRIBE The Brazilian state of Paraná has granted incentives for a new cement factory that will be built in Adrianopolis.

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sector coverage : Construction & BUILDING MATERIALS by BmWeek.com

Aggregates Positive news for Vulcan Materials and Headwaters Incorporated In the US, Headwaters Incorporated, the nation’s largest manager and marketer of Coal Combustion Products (“CCPs”), has applauded a U.S. Environmental Protection Agency action that will lead to regulatory certainty for coal ash as a “non-hazardous” material. Meanwhile, Vulcan Materials Company has reported a huge profit increase. The largest producer of construction aggregates in the U.S. will pay a quarterly dividend of 5 cents per share in 2014. The quarterly dividend is equivalent to an annual dividend of 20 cents per share, yielding 0.3 percent annually. Vulcan Materials has made a deal to sell its cement and concrete operations in Florida and southern Georgia to Colombia’s Cementos Argos for $720 million, a major milestone in the company’s effort to overhaul its operations. Assets to be acquired by Cementos Argos include Vulcan’s Newberry, Fla., cement plant; Tampa and Port Manatee cement terminals; 69

ready-mixed concrete sites; and 13 concrete block and building material sites. The combined assets recorded a loss of $1 million in EBITDA on sales of $153 million in the first nine months of 2013. Vulcan will also initiate a tender offer to purchase $500 million in outstanding debt. The deal is the latest step in an asset sale plan initiated in February 2012, when the company was the target of a $4.9 billion hostile takeover bid from Martin Marietta Materials. With the deal, the company has now raised more than $1 billion in proceeds and reduced its debt by $800 million. Struggles for Lafarge and US Lime & Minerals Lafarge Tarmac plans to expand one of its flagship quarries in the UK, but villagers are concerned. The firm owns the 450acre site between Mountsorrel and Quorn and says the extension fear the expansion could create more noise, vibrations, and dust. The revenues of United States Lime & Minerals, Inc., decreased in the fourth quarter 2013 to $30.1 million from $31.9 million in the same period of 2012, a drop of 5.6 percent. Over the same period, rev-

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enues from the company’s lime and limestone operations decreased $1.5 million, or 5.1 percent, to $28.7 million, while revenues from its natural gas interests decreased $0.2 million, or 13.6 percent, to $1.4 million. For 2013 as a whole, revenues decreased to $133.8 million from $138.5 million in 2012, a drop of 3.4 percent. Construction Lower US equipment exports last year In 2013, exports of US-made equipment fell by a quarter after three years of growth. A total of $20 billion worth of equipment shipped to global markets in 2013. All world regions recorded declines, with Australia/Oceania down 66 percent to $1.3 billion, Asia down 33 percent to $2.1 billion, and South America down 22 percent to $3.6 billion. Despite a decline of 16 percent, Canada remains the largest single destination for U.S. equipment, with exports valued at $6.8 billion. The overall decline for 2013 follows growth of 13 percent in 2012, 43 percent in 2011, and 28 percent in 2010.

FEBRUARY / MARCH 2014

sector coverage : Construction & BUILDING MATERIALS by BmWeek.com

Uzbekistan to modernize building materials industry The government of Uzbekistan will invest $471 million in the modernization of the industry for the production of building materials. The program will implement projects to create new production lines costing $346 million and to master the production of about 400 kinds of new products. AK Enterprises’ Uzstroymateriali reported growth in total production for 2012 at 5.8 percent and increases in exports by 15 percent to $74.1 million. Positive industry trends on the horizon In the UK, JP Morgan raised its stance on the construction materials sector to “overweight” from “neutral,” citing its diversified geographical revenue exposure, relatively low dependence on China, and high earnings rebound potential. JP Morgan’s preferred stocks in the sector are HeidelbergCement and Wolseley, which it rates at “overweight,” plus Lafarge and CRH, raised to “overweight” from “neutral”. In Qatar, analysts say the construction industry will see a significant rise in project activity this year with contract awards expected to peak at $24 billion. Chinese construction companies are making inroads into the Bahamas, with Chinese workers in the process of building a $3.5 billion resort at Cable Beach. The

New RESIDENTIAL Residential CONSTRUCTION Construction IN in THE the U.S U.S NEW (THOUSANDS OF UNITS)

november’13

december’13

1,017 IN THE CEMWEEK 991 TABLE AVAILABLE MAGAZINE 1,091PRINT EDITION. 1,048

january’14

Authorized Units

937

Started Units

880

688 706 WWW.CEMWEEK.COM/SUBSCRIBE

Units under construction Units completed

826

778

715 814

Source: U.S. Census Bureau, New Residential Construction Statistics

Baha Mar project includes four new hotels, 200,000 square feet of convention space, an 18-hole Jack Nicklaus Signature Golf Course, and a casino with a 50-foot glass water wall and a Vegas-style show lake. VM Matériaux looks to optimize organization French building materials firm VM Matériaux is changing its organization and operational performance to suit market needs. In 2014, the building specialist is strengthening the authority granted to the various activities with responsibility for operational management of the branches. Jordan may freeze foreign building projects The president of the Jordan Housing Developers Association (JHDA) has urged the government to ban foreign and Arab investors from developing residential projects in the Kingdom due to issues related to post-sale maintenance contracts.

Mexico, China line up infrastructure development fund Mexico and China are in talks to create a joint fund for investments in Mexico’s infrastructure projects. A year ago, Mexican President Enrique Pena Nieto announced that his government expected to see more than $300 billion in public and private spending on infrastructure between 2013 and 2018. Concrete Concrete quality and use in the spotlight Russian experts have issued guidelines stating that one of the most important factors in the quality of concrete and reinforced concrete structures is the use of high-quality cement. The optimal value of the specific surface should be between 350-380 m. m / kg, or 009 sieve residue should not exceed 5 percent. Researchers at the MIT Concrete Sustainability Hub recently found that how the road is constructed could have a significant impact on the fuel economy of cars and trucks. Use of stiffer pavements, for

FEBRUARY / MARCH 2014

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Cement shortage stalls construction in Venezuela In Venezuela, there is currently no cement in Bolivar state, leading to cement prices on the black market that exceed 10 times the regulated amount. The shortage has led to the shutdown of 17 projects in the Caroni municipality, most of them small shopping centers and housing complexes. Other Boral upbeat on H1 profit In Australia, Boral Ltd is confident of delivering strong first-half net profit as

sector coverage : Construction & BUILDING MATERIALS by BmWeek.com

example, could reduce fuel use by as much as three percent. This would reduce emissions of CO2 by 46.5 million tons per year. In Germany, experts are working on new concrete blends to improve the aesthetics of the construction material. The basic recipe for concrete is simple: cement from limestone and clay, water, and the so-called aggregate of sand, gravel, or crushed stone. But new industry advances allow translucent, solid, and lighter components to be used, as well as the development of thinner forms.

favourable weather and strong volumes buoy the group’s performance. Boral expects a first-half net profit after tax before significant items of around $90 million, subject to finalization of the audit review. In the second half of 2012, Boral posted a net profit before significant items of $52.2 million. Wienerberger looks at new extraction site Wieneberger is looking to move its extraction works in the UK from Teynham to Hartlip. Wienerberger currently uses brick earth from a site in Claxfield Farm to make its products, but the company wants to move its operations to Paradise Farm, off Lower Hartlip Road. Coal ash spills in North Carolina A coal ash spill in North Carolina has turned the water of the Dan River into dark muck. It took nearly a week to stem the spill, which sent millions of gallons of sludge from a retired power plant into a river that supplies drinking water to communities in North Carolina and neighboring Virginia.

Production in Construction Index (2010 = 100)

country

PRODUCTION IN CONSTRUCTION INDEX october’13

november’13

Czech Republic

84.1

79.5

84.3

Germany

106

106.3

106.8

italy france slovakia

TABLE AVAILABLE IN THE CEMWEEK 96.8 96.8 MAGAZINE PRINT EDITION. 72.4

70.6

71.5 101.2

83.2

85.7

96.5

99.5

98.2

poland

100.2

104.3

99.1

portugal

58.5

58.6

57.5

united kingdom

99.9

95.9

97.9

sweden

110.2

112.7

113.6

hungary

WWW.CEMWEEK.COM/SUBSCRIBE

Source: Eurostat

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FEBRUARY / MARCH 2014

equipment

New order for Siwertell system from Oman Raysut Cement Company has ordered a road-mobile Siwertell system. The order is for its cement-handling operations at the ports of Duqm and Sohar. The order has been booked into Cargotec’s 2013 fourth quarter order intake. The contract, which supports the company’s expansion plans in Oman, comprises the delivery of a road-mobile Siwertell 10 000 S unloader unit and a road-mobile Siwertell PumpMaster blow pump conveying unit, commissioning, supervision, and spare parts.The system will have a rated cement discharge and conveying capacity of 300t/h. The system will be built at Cargotec’s Siwertell manufacturing facilities in Bjuv,

Sweden, and delivered by July 2014. It will serve the Sultanate of Oman’s eastern port of Duqm, located on the Arabian Sea, and one of its largest ports, Sohar, which is situated on the country’s north coast in the Gulf of Oman. KHD bags deal with Lafarge units Firm will supply equipment for clinker production lines at Exshaw, Ravena plants. KHD Humboldt Wedag International has firmed up two orders with Lafarge North America and Lafarge Canada for engineering, delivery of equipment, and site services of new clinker production lines at their Exshaw and Ravena plants. KHD’s scope of supply for the projects

begins with the raw material feed and ends at clinker handling. According to the company, for Exshaw, located approximately 1,400 meters above sea level on the edge of the Rocky Mountains in Alberta, Canada, equipment delivery is currently underway. In addition to the core KHD equipment above, a KHD kiln bypass system will be supplied for this project. KHD is also incorporating an owner supplied Pfeiffer raw mill into the system. Other auxiliary equipment included consists of material handling systems; dosing systems for raw material, blending, kiln feed, and coal systems; as well as engineering and supply of structural steel, ducts, and chutes. The Ravena project, located approximately 50 meters above sea level near Albany, New York, will utilize the same KHD core equipment above. KHD is also incorporating an owner supplied Pfeiffer Mill and supplying similar auxiliary equipment scope as well as structural steel, ducts, and chutes. In addition a coal grinding system is included for this project. Loesche wins new order in Tanzania The order comes from Tanga Cement Company. The order covers engineering and supply of two Loesche vertical roller mills. One LM

FEBRUARY / MARCH 2014

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41.4 which will grind cement raw material at a product rate of 200 t/h with a fineness of 15% R 90 µm and one LM 19.2 D coal mill with a grinding capacity of 20 t/h with a fineness of 12% R 90 µm. Included in the scope of supply are rotary star feeder for the raw meal mill and coal screw feeder for the coal mill. The delivery of the mill key parts is planned for July 2014. This is the first order of Tanga Cement for Loesche. The construction of the cement plant was started in 1978 and commissioning took place in July 1980. The cement plant currently owns a daily cement capacity of 3,000 tons. New order for Cargotec from Turkey Cargotec will supply a standard roadmobile Siwertell 10 000 S cement unloader. A Turkish construction services company, Mussa Insaat Dis Ticaret Ltd of Istanbul, placed an order with Cargotec for a standard road-mobile Siwertell 10 000 S cement unloader. The diesel powered unit will have a rated discharge capacity of 300t/h and is scheduled for delivery in mid-May. The new unloader will be equipped with a double bellows system and dust filter,

which deliver consistently high levels of efficiency and environmental protection. IT-Logistic Solution VAS is now also present in Africa Ciments de l’Atlas automates processes with Fritz & Macziol. VAS has already been implemented in the Ben Ahmed plant (Province Settat, Morocco) in October 2013, which includes a fully automatic and non-manipulative waiting list for the trucks in the plant. With the use of displays at the parking area, the loading order also remains transparent for the truck drivers. Therewith, Fritz & Macziol is now also present in Africa with its ITLogistic solution VAS, including a continuous French language version. The next step is the systematic conversion of fully automating the logistics of the two Moroccan cement plants - including the integration of the central SAP systems. Another plant, which is currently in construction in Nador, is to be equipped with the IT-Logistic solution VAS after its completion. With the introduction of the IT-Logistic solution VAS of Fritz & Macziol, Ciments de l’Atlas (CIMAT) which is located in Casablanca, will continuously automatize

the processes in its Moroccan plants. The implementation is carried within the scope of a KPI-Project, in which all processes have been analysed initially. Following, VAS is used to identify and eliminate weak spots by illustrating the potentials of optimisation. FLSmidth wins large cement order in Indonesia FLSmidth has received an order from PT Semen Gresik for a greenfield cement plant. The order is worth approximately EUR 42m (approximately DKK 310m). The greenfield cement plant has a capacity of 8,000 tonnes per day. The new plant will be located just outside the city of Rembang in the north-eastern part of Central Java, Indonesia. The order comprises equipment for the main part of the production line, including a raw mill, coal mill, preheater, kiln, burner, clinker cooler and silo equipment as well as a complete control system for the entire plant. Fives FCB may set up shop in the Philippines French group says it is open to putting up unit in the country if it secures more orders from local cement makers. Fives FCB has indicated it may open a Philippines based unit if it secures more local projects, the Business Mirror reported. Chief Executive Officer Alain Cordonnier says while a decision has yet to be made, this may be considered very soon so as to be closer to clients in providing technical assistance and maintenance services. The global industrial engineering group expects to get more projects in the Philippines, especially in the cement industry, to serve not only Lafarge Republic Inc. (LRI) but even competitors. “If these [projects] continue, we will consider installing our own subsidiary here in the Philippines”, he said.

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FEBRUARY / MARCH 2014

FLASHBACK NEWS FLOW IN CEMWEEK.COM LAST TWO MONTHS (darker red shows higher news volume)

CW Group Meeting Agenda The CW Group will be hosting and participating in a number of webinars and conferences. We invite you to join us on-line or in person at the events to discuss our views of the industry. To learn more, please visit http://research.cwgrp.com/meetings

Conferences where the CW Group will be presenting World Paper & Pulp (WPP) Brazil & LatAm 2014

May 15-16, 2014

Golden Tulip Paulista Plaza Sao Paulo, Brazil

AshTrade Europe 2014 Fly Ash Industry Conference

May 22-23, 2014

Sheraton D端sseldorf Airport Hotel, Dusseldorf, Germany

Cement Business & Industry (CBI) Africa 2014

June 12-13, 2014

Hyatt Regency Johannesburg, South Africa

AshTrade Americas 2014 Fly Ash Industry Conference

October 15-16, 2014

Houston, United States

Cement Business & Industry (CBI) India 2014

November 12-13, 2014

Holiday Inn New Delhi International Airport, New Delhi, India

FEBRUARY / MARCH 2014

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CW Group Hosted Executive Summits CW Summit Asia

June 2014

Bangkok, Thailand

CW Summit Americas

September 2014

Miami, US

CW Research Webinars: Global Cement Trade Prices Report (GCTPR) 1Q2014

April 8, 2014 at 2:00 PM GMT

buzz TOP CEMWEEK STORIES 1

Argos purchase of Isagen goes under the microscope

Dalmia Cement marks anniversary in North East India

Report: Holcim looking to pull out of Sri Lanka

India’s CMA elects new President

Votorantim installing new cement plant in Brazil

Korea cement makers announce price hike

UltraTech unit rapped for pollution

Yemen: Amran Cement looking to fastrack second production line

Dangote to finalize 5 new plants in Africa this year

Dangote Cement to expand its business in South America

LVT completes construction of new cement plant in Myanmar

Oficemen inks labor agreeement

UAE cement makers rail against proposed import ban

India: Jaypee keen on selling more cement assets

Profit warning for KHD Humboldt Wedag

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