GLOBAL CEMENT INDUSTRY. KNOWLEDGE.
SUMMER 2014
21
feature
anti-trust in the global cement sector
CW RESEARCH
HIGHLIGHTS FROM THE GCTPR 2Q2014
feature
Slight rebound in cement prices as FOB levels tick up around the world
News
•
Analysis
Solid economic development for Malaysia •
Market Coverage
•
Interviews
•
People Moves
CONTENTS FEATURES 5 HIGHLIGHTS FROM THE GCTPR 2Q2014 Slight rebound in cement prices as FOB levels tick up around the world 11 Solid economic development for Malaysia Country close-up view
5
17 anti-trust in the global cement sector Navigating the razor’s edge
11
FEA
17
DEPARTMENTS LETTER FROM THE PUBLISHER 1 Cement trade prices + Malaysia = good times ahead?
39 From our industry partner Construction and building materials update
numbers in brief 3 White cement segment turns the corner
42 equipment Equipment and notable projects
research 23 Cement Volumes 26 Cement Energy Markets people 31 People on the move 32 35 36 38
regional reports Europe, Middle East & Africa Central & South-East Asia Asia Pacific Americas
43 cw group meeting agenda Group’s upcoming events 44 BUZZ Top 15 CemWeek and BM Week stories
EDITOR’S NOTE Letter from the publisher and editor
Cement trade prices + Malaysia = good times ahead?
I
n this issue of CemWeek Magazine, CW Research provides an update from the release of one of its key research products: the quarterly Global Cement Trade Price Report 2Q2014.
According to the report, the FOB prices for gray cement in the second quarter of 2014 have seen a slight rebound in comparison to previous months. With widespread oversupply in many large trade markets, prices have proven somewhat stuck. Continued weak domestic demand in countries in Southern Europe, such as Spain and Portugal, remains the main driver for local producers to offload excess supply by exporting product.But without going into all the detail that can be found in the article in this issue, this critical topic for the trading community remains at the fore, as volumes may look bound for sustained growth. Relevant to this, we also take a quick pass by the white cement segment in the Numbers in Brief section for a snapshot view of this key specialty segment. We also take a closer look at an exciting country that is also part of global cement trade flows: Malaysia. Malaysia is a South-East Asian country located just north of Equator, is home to a population of 29.6 million, including Malays, Indians, Chinese and many other ethnic groups. Malaysia is a federal constitutional monarchy and the last four decades’ relative political stability has fueled a solid economic development. Malaysia’s GPD jumped 4.7 percent in 2013 and is expected to further expand with a 5.0 percent compound annual growth rate by 2018. We invite you this issue of the CemWeek Magazine that includes special features, interview, most recent news worldwide, as well as the regular update the cement and cemenergy markets in the Research & Analytics section.
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STAFFBOX ROBERT MADEIRA CEMWEEK PUBLISHER HEAD OF CW GROUP RESEARCH
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PUBLISHER AND HEAD OF RES EARCH
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PROJECT MANAGER
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CW Group
numbers
White cement segment turns the corner The specialty white cement segment has a good year in 2013, building on 2012; 2014 expected to go sideways Principal exporters (volumes, ‘000 tons) Turkey
Egypt
Denmark
Spain
Mexico
UAE
Tunisia
Canada
USA
Iran
Greece
Italy
0
2009
2010
2011
2012
2013
2014E
Source: CW Research
5000
Hitting a low in 2009, white cement exports have been steadily improving since the low-point. Consequently in a five-year span, CW Research expects volumes for this set to expand by over 60 percent. White cement capacity and trading volumes (mm tons) Capacity
Trading
0
2009
2010
2011
2012
2013
2014E
Source: CW Research
25
Some capacity enhancements have been seen, but overall, the segment remains fairly stable from a supply-side as well as trading view. Capacity has expanded by 2.5 percent per year on average, while trading has expanded at a much faster rate as markets have recovered, according to CW Research. 3
SUMMER 2014
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A Cement & Lime Conference & Exhibition
CEMENT BUSINESS & INDUSTRY
2014
CBI India 2014 Conference will focus on the various aspects of India’s cement industry from a business growth & investment perspective. Notably, the program will take a dual-track business and technical approach to the issues around: Market perspective, forecast and competitive outlook Alternative fuels, new business models Environmental performance management Finance and capital markets
NOVEMBER 12-13, 2014 • NEW DELHI, INDIA
Coal as mainstay fuel option and outlook
Holiday Inn New Delhi International Airport
Technology, operations and best practices
Organized by GMI Global and again with the great support from the India Cement & Construction Materials (ICCM) journal, the event is expected to bring together more than 200 cement and lime professionals. GMI is excited to build on the success of the CBI series to expand the scope to include participants from the entire region this time around.
Efficiency, innovation, new developments
CO-HOSTED WITH:
India contact: Dr. SN Pati dr.snpati52@gmail.com • 09891415719 • Global contact: Beatrice Ene be@gmiforum.com • +40 722 764 802
SUPPORTED BY:
FEATURE
Highlights from:
GCTPR 2Q2014
Slight rebound in cement prices as FOB levels tick up around the world
5
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econd quarter 2014 global FOB prices for gray cement slightly rebounded from previous months reaching levels over US$80 per ton from February to April 2014. With oversupply still a major issue in some markets and competitive pressures in cement deliveries still high, prices have been largely stagnant. Continued weak domestic demand in countries in Southern Europe like Spain and Portugal remains the main driver for local producers to offload excess supply by exporting product.
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FEATURE
ith the economic recession still hitting Southern Europe and the construction industry struggling to recover, cement firms have only being able to increase cement sales by trading products abroad. Export volumes out of some countries in the region remain at historical highs. In Spain, cement exports reached a peak in April 2014 and volumes out of Portugal over the last 2 months have not seen at least since 2004. Total average gray cement FOB trading price in 2014 has been slowly recovering from the previous year, yet it has not reached the highs 80’s observed in 2010 and 2011. January-April price for the last available country set is 9 percent higher than the same period of 2013, while volume declined 18 percent.
economic recession still hitting Southern Europe Lowest priced gray cement continues to be shipped from the Asia-Pacific-Japan and the Mediterranean Basin , both regions reporting minor changes during the first quarter of 2014. In the Mediterranean Basin, which includes Spain, Portugal, Turkey and Greece, price in the first two months of 2014 lingered around 22 percent below the total average. Volume exported out of the region plunged in the first 4 months of 2014, following a 1.7 mil-
Lowest priced gray cement continues to be shipped from the Asia-Pacific-Japan and the Mediterranean Basin
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lion tons decline in Turkish exports. Most of Turkey’s cement goes to Libya, Iraq and Russia. Trade in Libya and Iraq has been affected by armed conflicts in both countries while Russia’s cement imports have been falling due to the natural drop in demand after the 2014 Sochi Olympic Games. In Eastern, Western and Northern Europe cement industry continues to show signs of recovery, favoring healthy prices. Recovery of the construction sector in Germany, Belgium, Norway, Sweden and other countries of the region is continuing and mild weather conditions at the beginning of the year have also favored building activity and increased trading.
CEMENT VOLUMES Major cement traders reported increased trading activities during the first half of 2014. HC Trading, owned by Heidelberg and one of the largest international trading companies for cement and clinker worldwide, moved 7.6 million tons from January to June (volume includes cement, clinker, lime, other building materials and solid fuels), 24.3% more than the same period of last year. In 2013, Heidelberg reported a 28.5% surge in trading volume of cement, clinker and other building products, such as lime and dry mortar. From the 13.6 million tons moved, the largest volumes were destined for Africa, Bangladesh, and Saudi Arabia. The key supply countries were Turkey, Vietnam, and Taiwan. Holcim’s cement exports in the first half of 2014 improved in Spain and the group also benefitted from higher clinker exports to the Ivory Coast. In 2013 the company posted a trading volume of 18.5 million tons, 22 percent less than 2012. The Asia Pacific countries represented nearly 40 percent of the overall demand, while Central, South America and Africa represented slightly under 20 percent. Most of the traded volumes were purchased by customers in the Philippines, United States and the United Arab Emirates. Global gray cementexport export prices prices ($/ton) Global gray cement ($/ton) EASTERN EUROPE
MEDITERRANEAN BASIN
NORTH AMERICA & CARIBBEAN
SCANDINAVIA & BALTICS
WESTERN EUROPE
Relative pricing*
ASIA PACIFIC JAPAN
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
*The CW Research GCTPR includes full pricing for each region and country
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INTERVIEW Cemex, which has trading relationship with more than 108 countries, totaled 9.5 million tons of cementitious materials traded in 2013, including one million tons of granulated blast furnace slag, 0.7 million more than 2012. Outlook GCTPR 2Q2014 update FOB prices for gray cement in the AsiaPacific-Japan region are expected to remain at the lower end of the global trade for the period ending September 2014. Thailand is expected to ship significantly more gray cement to foreign countries due to the political turmoil hampering local construction activity, while excess capacity fuels more exports from India and potentially Indonesia and Malaysia.
Export prices for gray cement are projected to remain depressed in the Mediterranean Basin Export prices for gray cement are projected to remain depressed in the Mediterranean Basin . With no signs of recovery on the domestic markets in countries like Spain, Portugal, Greece and Italy, the region will continue to focus on exporting excess capacity to maintain utilization rates, while price pressure is expected to remain high. In South America, Brazil is expected to import clinker at significantly lower prices during the third quarter of 2014 as compared to last year’s averages. On the other side of the planet, Iran’s strategy on lowpriced exports is expected to continue to shape gray and white cement trade in the Middle East region and beyond. Forecast through September shows a decline in gray cement export price from the end of 2013, down to an average of US$51 per ton in the third quarter of 2014.
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Global Cement Trade Price Report GCTPR The Global Cement Trade Price Report (GCTPR) is the source for cement and clinker prices, as well as for market information for most regions worldwide. This extensive quarterly report includes current pricing in comparable units for cement and clinker traded internationally through imports and exports, and compares price trends in five continents. The Global Cement Trade Price Report, the source for global cement and clinker price data. Each report is approximately 80 pages in length and includes gray cement, white cement and clinker import and export prices from all major regions of the world. The key factor determining a cement trader’s global price competitive position remains its pricing strategy. This applied to vertically integrated cement traders, independent traders, shippers as well as buyers. Timely knowledge of global cement prices and trends remains a cornerstone for competent internal strategic planning within the cement industry. Join a global group of international cement companies, analysts and others in subscribing to the only publication that consistently tracks cement trade prices. For questions, inquiries and orders please contact your CW Group Client Service Coordinator or sales@cwgrp.com . For a complete table of contents of the report, please visit the CW Research website: http://research.cwgrp.com .
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FEATURE
Solid economic development for
Malaysia
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Malaysia is a South-East Asian country located just north of Equator with an estimated population of 29.6 million and a mix of different races and cultures, including Malays, Indians, Chinese and many other ethnic groups. The country has a total landmass of 126,350 square miles and consists of two main regions: Peninsular (West) Malaysia, where roughly 80 percent of the population lives, and East Malaysia (Malaysian Borneo located on the Island of Borneo) separated
ďƒ¨
by the South China Sea.
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INTERVIEW
alaysia is a federal constitutional monarchy and the last four decades’ relative political stability has fueled a solid economic development. Malaysia’s GPD jumped 4.7 percent in 2013 and is expected to further expand with a 5.0 percent compound annual growth rate by 2018. The Economy of Malaysia The Malaysian economy is mostly based on the services sector; currently accounting for 55 percent of the country’s GDP and expected to remain the largest contributor to the country’s economy by 2020, and on the manufacturing sectors, with total contribution to GDP of around 25 percent. Malaysia is the second largest oil and natural gas producer in Southeast Asia and the second largest exporter of liquefied natural gas in the world, as well as the world’s fourth largest producer of natural rubber. Furthermore, the country is the number one trader and second largest palm oil producer in the world. The timber industry has also played an important role in Malaysia’s development and economic growth, the country now being ranked the eighth global furniture exporter. One of the top five preferred economies for investments in Asia, Malaysia’s development was further fueled by foreign direct
investments. According to the United Nations Conference on Trade and Development (UNCTAD), Malaysia ranked 16th among the best investment destinations in 2013, up from the 19th position in 2012. The country also advanced in the top 10 of the World Bank Ease of Doing Business 2014 ranking of nations, upgrading to the 6th position compared to 12th a year ago. Even though foreign direct investments (FDI) inflows have shrunk to an average share of 3 percent of the GDP per year from 6 percent in the 1990s, Malaysia achieved in 2013 its highest-ever FDI at US$12.7 billion. The funds were mainly invested in the manufacturing sector (38 percent), followed by the services sector and mining sub-sectors, each accounting for roughly 29 percent. The U.S., Japan, and Hong Kong are the top three countries investing in Malaysia. The construction sector A substantial driver for the Malaysian economy, the construction industry expanded 10.7 percent in 2013 and contributed 3.7 percent to the country’s GDP. The construction sector is set for further growth following the general elections held in May 2013, fuelled by the Economic Transformation Program (ETP) under which around 200 projects have been
MALAYSIA MACRO OVERVIEW 80,000 Size of ball = population
70,000 60,000
Singapore Brunei Darussalam
50,000 40,000 30,000 20,000
Malaysia
10,000
Kuala Lumpur photo by: Ville Miettinen
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Thailand
Vietnam
Lao PDR
Cambodia
Philippines
0 -10,000
Indonesia
2.5%
3.0%
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3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
Myanmar
6.5%
POPULATION/TOTAL INVESTMENT
Total investment
35
50 45 40 35 30 25 20 15 10 5 0
30
Millions
25 20 15 10
launched, bringing in a total committed investment of RM220 billion. Also, changing demographics and socio-economic growth trigger the construction market expansion, as demand for new buildings and refurbishment of existing ones is on the rise. Driven by mass affordable housing projects and economic development corridor programs, the construction industry, dominated by the private sector, is expected to maintain its growth. The non-residential sector accounts for around 32 percent of the construction scene in Malaysia, followed by residential development. Even though it currently holds a lower share of the country’s construction spending, forecasts see infrastructure play a larger role and become the fastest-growing construction sub-sector. One of the largest non-residential projects across the country is Tun Razak Exchange, a RM26-billion (around US$8 billion) mega property development launched in July 2012, which targets tenants that include office buildings, as well as commercial and hospitality venues, residential components, a park and a business university. Construction works for another major
landmark building in Kuala Lumpur, Warisan Merdeka, have started in March 2014. The RM5 billion (US$1.6 billion) development consists of a shopping mall, residences, a public park, a luxury hotel, and office spaces, and with a height of over 500 meters is expected to surpass Malaysia’s tallest, the 452-meter Petronas Twin Towers. Around 85 percent of Malaysia’s housing stock is owner-occupied, while government-provided housing accounts for 7 percent of the total. The Malaysian government is committed to providing affordable housing through various programs for low- and middle-income earners. As part of the commitment, 1MDB’s state agency is developing Bandar Malaysia which aims to be the yardstick for sustainable and affordable urban housing. Construction works at the 196-hectare site are due to start. Under the Economic Transformation Program, high impact infrastructure projects are being developed. The Klang Valley Mass Rapid Transit system is Malaysia’s first Mass Rapid Transit system and is scheduled for completion in 2016. Petronas’ US$16 billion world scale Refinery and Petrochemical Integrated Development is another anchor project of the Economic
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2019E
2018E
2017E
2016E
2015E
2013
2014E
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
0
1990
5
Percent of GDP
Population
Transformation Program. The Kuala Lumpur - Singapore High Speed Rail (HSR) project, currently in its planning stage, will facilitate uninterrupted travel between Kuala Lumpur and Singapore for an estimated cost of US$30 billion. Cement market The beginnings of the Malaysian cement industry date back to the dawn of the 20th century. The first cement factory was established at Batu Caves in 1906, but the steam-powered plant did not last long. The Japanese built a factory in Batu Caves during World War II, which only operated until the end of the war. The first cement plant per se in Malaysia was commissioned in 1953 by Malayan Cement Berhad (now part of Lafarge Group), which was incorporated as a subsidiary of Blue Circle Industries PLC, United Kingdom. The unit, located in Rawang, had a production capacity of 0.11 million tons per year. The country’s cement production now reaches almost 31.5 million tons per year, corresponding to 18 facilities operated by 9 companies. Cement manufacturing units are concentrated in peninsular Malaysia, which accounts for 91.6 percent of the total production of the country.
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INTERVIEW
Cement demand has significantly dropped in 2008 after several years of year-onyear double-digit growth. However, local demand recently improved, mainly due to the 10th Malaysia Plan (2011-2015) and the Economic Transformation Program (ETP) as the government allocated significant funds to the development of infrastructure projects. As works begin for the implementation of these projects, demand is expected to remain strong in the coming period. In the past decade, Malaysia’s cement industry has been more or less characterized by domestic oversupply. Overall, demand expanded by a 4.0 percent com-
pound annual growth rate, while supply improved by a 3.2 percent compound annual growth rate over the analyzed period. Malaysia therefore exports consistent volumes of cement every year. In 2013, the country supplied external markets with 1.9 million tons of cement. Cement producers in Malaysia The cement industry, one of the strategic industries of Malaysia, is represented by both local and international producers. The largest four manufacturers in the country are Lafarge Malaysia Berhad, YTL Cement Group, Cement Industries of Malaysia Berhad (CIMA), and Tasek Corporation Berhad, accounting for about 81.5 percent of Malaysia’s cement production. Lafarge Malaysia Berhad operates four cement plants with a combined cement production capacity of 12.95 million tons per year, roughly 43.5 percent of the country’s total cement output, while the YTL Cement Group has a production capacity of 5.95 million tons of cement per year. The third largest cement manufacturer in the country is Malaysia Berhad (CIMA), fullyowned by UEM Group Berhad, having a 3.4 million ton annual cement production. The company aims to boost its production to 5.2 million tons by 2015, when additional capacity will become fully operational. Tasek Corporation Berhad, the fourth largest cement produces in Malaysia, has an output capacity of 2.5 million tons of cement per year. Furthermore, Hume Cement recently entered the Malaysian cement market; its new integrated 1.8 million tons cement plant in the proximity of Kuala Lumpur having started commercial production in April 2013. Holcim Malaysia, one of the smallest players on the market, has a production capacity of 1.2 million tons per year, while Aalborg Portland Malaysia, the only producer of white cement in the country, makes about 0.2 million tons of the commodity per year.
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MS Clinker is the only clinker producer in East Malaysia, accounting for 9 percent of the local cement industry in terms of total installed capacity. However, CMS Clinker cannot sustain the entire cement production of the region. CMS Cement, with a total output capacity of 1.75 million tons, holds the monopoly in the state of Sarawak, while Cement Industries (Sabah), producing about 0.9 million tons of cement per year, is the sole cement maker in the state of Sabah. As large ongoing infrastructure projects continue to drive local demand, cement manufacturers expand their production capacities. Malaysia’s installed capacity is expected to receive a 7 million tons boost by 2018, representing a 23.1 percent increase as compared to 2013 numbers. Peninsular Malaysia is the most attractive for investments in both in greenfield and brownfield given its significant share of the country’s total cement demand. YTL Group, through its subsidiary, Straits Cement, will develop the only greenfield project under way, announced at the end of March 2012. The EUR 100 million project, awarded to German equipment supplier KHD, comprises of an integrated cement plant with an installed capacity of 5,000 tons of cement per day. YTL Group’s production unit will be located near Kuantan, approximately 260 kilometers east of Kuala Lumpur. In order to meet increased demand, Lafarge Malaysia also announced expansion plans in April 2013. The company’s grinding facilities in Kanthan and Rawang integrated plants will have an additional capacity of 1.2 million tons of cement, boosting Lafarge Malaysia’s 12.95 million ton capacity in 2013 to 14.5 million tons by 2018. The amount of the investment has not been disclosed yet. Aalborg Portland Malaysia is undergoing
a US$18.6 million expansion for its white clinker production unit in Ipoh, Perak. This expansion will add another 0.15 million tons per year to the company’s capacity, thus increasing the total amount to 0.38 million tons per year by 2015.
Outlook Cement demand is expected to further increase in 2014, as the first quarter of the year already posted a 5.8 percent year-onyear increase in cement production, revealing the recovery trend of the industry.
In East Malaysia, CMS Cement will add a grinding facility at the Mambong Plant, which is currently producing only clinker. The capacity of CMS Cement will increase to 2.75 million tons of cement per year with the 1 million ton expansion coming online by 2016.
On the long term, the construction sector is expected to maintain increased levels of activity, largely supported by the civil engineering and residential segments. The Malaysian government’s successful attraction of foreign and private sector parties to implement and finance its investment plans boost the country’s construction activity.
The Holcim-Lafarge merger is anticipated to affect operations of both companies in Malaysia as the Malaysian subsidiaries are likely to merge. The newly formed entity will have a combined capacity of 15.35 million tons by 2016, when Lafarge’s expansions will be complete. Cement prices The Malaysian government abolished ceiling prices for cement in 2008 to support the country’s construction activity. While between 1995 and 2008, production costs rose 40 to 50 percent, ceiling price recorded only one 10 percent adjustment over the entire period, in December 2005.
Cement consumption peaked in 2013 even though demand growth cooled in the recent years. The cement industry’s volume growth is expected to reach 4.8 percent in 2014, while annual demand is estimated to amount to 24.7 million tons by 2018, rising by 20 percent over the volumes posted in 2013. The overall forecast for 2014 and beyond is positive as strong and growing demand counter rising operating costs.
Cement prices in Peninsular Malaysia have historically been higher due to the higher input costs that have to be absorbed by producers. At the end of the first quarter of 2014, the average price of a 50-kg bag in Peninsular Malaysia was around RM18, while in East Malaysia RM17. Fueled by the growth in input costs, Malaysian cement prices have been on the rise in recent years. Average cement prices were 26 percent higher in December 2013 compared to January 2010. The upcoming capacity additions are expected to put increased pressure on cement prices.
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FEATURE
Navigating the razor’s edge:
anti-trust in the global cement sector
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No doubt, coordinated industrial activity can be good for the cement sector and ensure efficient allocation of capital that in emerging markets can help stop a drain on the foreign account, build domestic value, add capability and create jobs on a large scale. However, antitrust authorities in many markets have followed developments with a watchful eye.
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ďƒ¨
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FEATURE
s markets have evolved, so have competition authorities around the world and seemingly becoming more assertive. A series of recent antitrust enforcements in emerging countries is bringing the issue to the fore. Anti-competitive penalties imposed across the world in recent years against cement makers and industry associations in different countries, including Argentina, Korea, Pakistan, Romania, may indicate that antitrust agencies have become more activist in many countries around the world. In this light, it is becoming increasingly challenging for cement makers around the world to navigate profit maximization and industrial coordination – and the bar seems to be rising.
Brazil’s CADE Imposes RecordBreaking Fines on Cement Producer In a ruling, Brazil’s antitrust watchdog Administrative Council for Economic Defense (CADE) fined six cement makers with a combined 3.1 billion reais (US$1.4 billion) for fixing prices for two decades and ordered the companies to dispose of many assets. In addition, a fine of US$1.9 million is to be imposed on the two national cement associations ABCP and SNIC and on Brazilian Association of Concreting Services (ABESC). The six companies fined by the CADE for cartel formation are Votorantim Cement, Lafarge, Cimpor, Camargo Correa (InterCement), Cement Company Itambe, Itabira Agro Industrial and Switzerland’s Holcim. These companies together control around three-quarters of Brazil’s cement and concrete market.
Votorantim Cimentos - Fabrica Cuiaba
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The ruling came after an eight-year long inquiry by CADE. The government had strong evidence that the companies were involved in takeovers and assets swaps to prevent rivals from entering the Brazil’s lucrative cement industry. The regulator suspects that the companies have been practicing a collusion-oriented culture ever since the Brazilian government made efforts to expand roads and other infrastructure as a part of its economic reforms announced in the early 1990s. Following the government’s measures, many cement players entered the market and established their control over specific regions. However, regional control increased the potential for collusion and cartel formation.
The cartel had supposedly caused substantial losses for producers as well as consumers in Brazil. For instance, the local cement sales more than doubled and cement prices increased more than two-thirds. The number of cement producers in the country shrunk to about 10 in 2011 from almost two dozen in the early 1990s because of the cartel formation by these companies in the cement market. Under the terms of the ruling, the companies will have to pay fines worth millions of US$ and will be forced on average to sell 24 percent of their assets. For example, Votorantim, the largest cement producer in Brazil will have to pay US$672 million, Cimpor will pay US$133 million, InterCement Brasil will pay US$108 million, Itabira will pay US$184 million, Holcim will pay US$227 million and Itambé will have to pay US$39.4 million. Votorantim will be the most affected by the forced divestments, as it will have to sell 3 percent of its production capacity, which CADE says is equivalent to some 15 percent of the Brazilian cement market. InterCement will have to sell 25 percent of its capacity, equivalent to 4 percent of the market, Itabira sale of 22 percent of its assets is put at three percent of the market and Holcim Brazil’s 22 percent divestment equates to 2 percent of the market.
The ruling generated widespread reaction from companies and cement associations. Several industry leaders allege that CADE has no legal power to impose any asset sales. Votorantim, SNIC, Cimpor, Holcim are said to appeal against the ruling. Eight Cement Firms Fined in Hungary on Cartel Charge On a similar note, Hungary’s competition watchdog Gazdasagi Versenyhivatal or GVH fined 2.79 billion forints (US$12.3
million) on eight cement companies alleging that they formed a cartel between 2005 and 2007 and curbed competition. The Hungarian watchdog also assessed a fine of £1,000,000 (US$1.7 million) against the Hungarian Concrete Association, an industry trade group that according to the GVH provided the cartel members with support on administrative tasks. The GVH alleged that the members held secret meetings in 2005-2007 to fix prices
Fines on recent antitrust cases (MM US$) 0
500
1,000
1,500
2,000
2,500
1,920
Europe-Electronics
1,100
India-Cement
790
USA-Cars Manuf
500
USA-Elecronics
Argentina-Cement
61
China-Electronics
57
Chile-Pharmaceutical
38
South Africa-Food
15
Spain-Cement
14
Brazil-Cement
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1,400
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FEATURE
and colluded on market share and allocated customers among themselves. Their acts, the watchdog alleges, were unlawful as it restricted competition between hardcore cartels. Among the eight firms fined, Cemex Hungaria would have to pay the largest penalty of US$2.83 million followed by Osteuropaeische Zementbeteiligungs AG, a unit of Swiss-based Holcim Ltd. who will have to pay of US$2.4 million followed by HeidelbergCement AG subsidiary DanubeDrava Cement Ltd. that has been fined US$2.04 million. Unprecedented Fines Imposed on Cement Producers in India In India, the Competition Appellate Tribunal (COMPAT) directed 11 cement companies to pay 10 percent of the RS6,307 crore penalties imposed on them by the Competition Commission of India (CCI) in June 2012 for creating artificial shortage and price-fixing. The companies had filed
petitions with the COMPAT against the penalties imposed by the CCI as it found that the companies had violated Competition Law of the country, and had colluded to increase cement prices even with lower market demand. Among the companies found guilty were Jaiprakash Associates, Ultratech Cements, Ambuja Cements and ACC. The huge fines imposed in the cement market were unprecedented and marked the arrival of India on the global stage of criminal antitrust enforcement. No Immediate Relief for Cement Producers Although the cement companies in Brazil and India appealed against the antitrust enforcements, there is no certainty about how long will it take the companies to settle the matter with the antitrust enforcement agencies. This is mainly because cartel investiga-
For cement companies looking to operate in emerging economies, it has become imperative to be prepared for the risks such as years of investigation, documentation, litigations and penalties that follow a cartel offense.
tions usually take years to be completed especially when a company files an appeal against penalties meted upon it. For example, in Germany, HeidelbergCement was found guilty of cartel infringements from 1990 to 2002 and the fine was imposed back in 2003. However, it was only recently that the Federal Court affirmed the Higher Appeal Court’s 2009 verdict on the cartel fine. Establishing an Antitrust Risk Regime There is no doubt that urbanization and infrastructure development are critical components of economic development in emerging economies. Owing to this, the governments of such countries spend a lot of money in infrastructure development
21
SUMMER 2014
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Jaypee Group - Jaypee Rewa Cement Plant (JRCL)
making the cement industry one of the most active business sectors. Considering the level of capital investment involved, the cement industry has been a common target of competition authorities in emerging economies. In fact, most antitrust regulators are always on the lookout for cartel offenses. Many times, most emerging markets have no historical data to streamline the process and most implementations are supported by practice rather than legislation. Hence, for cement companies looking to operate in emerging economies, it has become imperative to be prepared for the risks such as years of investigation, documenta-
tion, litigations and penalties that follow a cartel offense. Additionally, with competition law being now set up in over 115 jurisdictions, management of antitrust risk has become critical for companies that conduct international transactions. Now is essential for a company to analyze the risks in meeting the demands of one enforcement regime and its impact on the company’s ability to defend itself in other enforcement jurisdictions. For companies selling their products in other markets abroad, maintaining a global perspective in implementing major capital investments in other parts of the world can be a key to mitigate antitrust risks.
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SUMMER 2014
22
CEMENT MARKETS
CW Research
CEMENT VOLUMES Winners and losers Cement production in the United States totaled 8 million tons in May 2014, representing an increase of 10 percent from 7.2 million tons registered in April 2014. The growth has come amidst a fall in the new-home construction activity in May 2014 which had hit a record high in April 2014. In April, U.S housing starts jumped and building permits hit their highest level since 2008. In Russia, cement production grew 7 percent to 7 million tons in May 2014 from 5.9 million tons reported in April 2014. The surge has come because of record rise in the output of some of the cement companies in the country. For example, Eurocement’s Russian subsidiaries – Mikhailovcement and NevyanskiyCementnik played a major role in boosting the cement production of the country. NevyanskiyCementnik reported a 16 percent increase in April 2014 as compared to April 2013 whereas Mikhailovcement showed steady growth in first four months of 2014 compared to the same period last year.
Colombia, Russia volumes surge
Cement consumption in France increased 15 percent to 1.8 million tons in June 2014 from 1.5 million tons in May 2014. However, the year-to-date cement consumption was still down 2 percent. The decline in consumption can be attributed to a sharp drop in housing starts. Spain’s cement consumption rose 14 percent in May 2014 as compared to the previous month. The strong growth is attributed to a slight recovery of the country’s economy. However, the cement consumption in Spain fell 3 percent year-on-year due to slower than expected recovery of the Spanish economy. A series of investments in public works by the Development Ministry is expected to boost the cement demand in the country in the coming months. Domestic cement production in Argentina increased 6 percent in May as compared to the previous month. However, year-on-year cement production fell 7 percent owing to an overall drop in the construction activity of the country. Construction in the country declined 5.2 percent despite growth in the public works center. Brazil’s cement consumption totaled 5.9 million tons, up 5 percent from 5.6 million tons consumed in April 2014. The total volumes of cement from January-May also posted an increase of 2 percent as
May 2014/May 2013 Cement Production Growth Rate (%) 20%
5% Japan
US
China
Thailand
-10%
Russia
-5%
Colombia
0%
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Source: CW Research
Vietnam
10%
Argentina
15 %
CW Research CEMENT MARKETS
compared to the same period last year. Much of the growth in the cement consumption can be attributed to the government’s efforts which has been investing heavily in Brazilian infrastructure and awarding new contracts. However, year-on-year sales still declined by one percent. Cement production in Colombia increased 12 percent in May 2014 over the same month of 2013. In first five months of 2014, production grew to 4.9 million tons, up 12 percent year-to-date (YTD). Local demand has been driven by social programs aimed to build around 100 thousand houses and to subsidize interest rates. Vietnam’s cement market growth has been fuelled by increasing demand in the country, triggered by both the government and private investors. All the cement plants in the county are running at 100 percent capacity. Cement production rose 3 percent in June over the same month of 2013.
Pakistan, Indonesia volumes climb, but Europe continues sagging
A series of development projects launched by the federal and provincial governments have contributed to an improved demand for cement in Pakistan. Owing to these concentrated efforts by the government, domestic cement sales in Pakistan rose from 2.1 million tons in May 2013 to 2.3 million tons in May 2014. The growth is commendable considering the rise in cement prices that occurred because of high transportation costs in 2013. In China, cement production increased for the third consecutive month in May 2014. Cement volume in China was 234.3 million tons in April 2014 up 3.7 percent from 225.9 million tons reported in April 2013. Total cement output in the first five months of 2014 was 905.6 million tons, up 6 percent from a year ago. However, the growth of the cement sector in the coming months will largely depend on the measures taken by the Chinese government to boost the real estate sector which has been showing a steep decline lately. Recently, the Chinese officials have taken several measures to bolster confidence in the real estate prices and boost real estate sales and to prevent a knock-off effect of the housing industry on the cement industry in the coming months.
Saudi continues to struggle
Cement sales in Indonesia recovered in May after slow sales in April 2014 due to the legislative elections. The cement consumption in the country rose 15 percent in May 2014 to 5.2 million tons from 4.5 million tons reported in April 2014. Sales in May increased 8 percent as compared to the same month last year. The growth in the cement sales is expected to continue based on the government infrastructure projects and other private companies’ developments. Saudi Arabia’s cement demand remained unchanged at 5.1 million tons in May 2014. However, the country reported a decline of 6 percent in year-on-year sales. The reduced demand can be attributed to a slowdown in the construction activity of the country. May 2014/May 2013 Cement Demand Growth Rate (%)
France
Peru
Source: CW Research
-10.0%
Indonesia
-5.0%
Pakistan
0.0%
Spain
5.0%
Brazil
Germany
10.0%
Saudi Arabia
15.0%
-15.0%
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MARKET DATA SNAPSJOT
CW Research
Cement production continues to pick up in Colombia, Russia, China, USA and Japan. Solid performance in construction activity in all these countries. Measures taken by the Chinese government to boost the real estate sector. Still weak cement demand in Europe. Vietnam plants running at 100% to support growing demand. Cement Production (million tons)
Cement Consumption (million tons)
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
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Cement Production MoM (%)
Cement Consumption MoM (%)
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
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Cement Exports (million tons)
Cement Imports (million tons)
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
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Cement Exports MoM (%)
Cement Imports MoM (%)
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
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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 Higher volumes exported from US, significant drop recorded from Colombia In May, global coal trading volumes improved 3 percent compared to the previous month, with significantly higher volumes from US and Russian ports. South African coal deliveries in May stood at 8.8 million tons, with Richards Bay exports expanded to 5.6 million tons, 2.3 percent from April and 28 percent compared to May 2013. 64 percent of the total exports went to Southern Asia (13.5 percent more than in April), 16 percent to Europe and no exports were delivered Eastern Asia, which usually receives high amounts of coal from South Africa.
South Africa exports strong YoY
Colombian coal exports considerably dropped 21 percent in May to 4.3 million tons after the recover in April. The volume of 24.3 million tons for January-May period waned 8.2 percent versus 2013. At the end of June, protests on Cerrejon’s private railway by security workers caused stocks at its port to fall to one or two days of shipments. Australia exported 2.3 percent more coal in May compared to April, recovering from a two months in a row drop. Port of Newcastle shipped 15.1 million tons of coal from April 28 to June 1. Port of Waratah Coal Services shipped 8.7 million tons of coal in May, of which 42.4 percent went to Japan, 27.6 percent to China, 13.8 to South Korea and the rest had destinations like Taiwan, Mexico, Malaysia and Indonesia. From January to May, Australia’s coal exports reached 45.8 million tons, 3.9 percent more than the same period of 2013. In its efforts to curb illegal coal exports and better monitor the trading volumes, Indonesian government announced its plan to build 14 coal export seaports in Sumatra and Kalimantan. In May, coal deliveries raised 2.2 percent reaching to 35.3 million tons, while the total volume for January-May period slightly increased with 0.6 percent compared to the same period in the previous year. From other perspective, the government announced its intentions to conduct some restrictions for coal exports that encounter a significant part of country’s output, considering also the expected increase in internal demand. Coal Global Trading (million tons) Australia
Russia
South Africa
Colombia
US
Rest
Source: Customs data
Indonesia
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 Mar-14 Apr-14 May-14
120 100 80 60 40 20 0
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CEMENT ENERGY MARKETS
CW Research
Energy Prices Update Coal June coal trading prices lowered almost 3 percent to US$76 per ton for the main export hubs. The Indonesia HBA coal export index price closed at US$73.64 per ton, up 0.1 percent versus May and down 13 percent from a year ago. In Australia price lost 3 percent from the previous month and in Colombia it waned 5 percent. In Europe and Asia, the prices lost more than halved since spring of 2011. Poor summer demand, mild weather in Europe and oversupply are the major factors affecting prices.
Coal prices soften into the summer months
In US, export prices stood at US$87 per ton, losing US$2.3 per ton compared to the May prices. EPA’s new rules with the purpose of slashing by 30 percent carbon dioxide emissions from the power sector from 2005 to 2030 will have a high impact on demand. In its July Short-Term Energy Outlook, the agency boosted price prediction to US$2.39 per MMBtu for 2014, and to US$2.41 per MMBtu for 2015, up from June projections of US$2.36 per MMBtu and US$2.38 per MMBtu, respectively. In June, the rising output of two of the country’s biggest exporters determined Australia to revise down its metallurgical coal price projections. The Bureau of Resource and Energy Economics forecasted a major dip in metallurgical coal prices to US$118.90 per ton in 2015, significantly low compared to its March forecast of US$134.60 per ton. Despite a brief shutdown of the Barito River coal transportation route in South Kalimantan, Indonesian coal prices remained stable at the beginning of June. Later in the month, the benchmark for Asian coal prices plunged 16 percent this year, being traded at the lowest level since late 2009. Slowing growth in demand from China, the world’s No.2 economy, made the prices dramatically fall to US$72.38 per ton in the week to June 13. The decision of the large Chinese coal producer Shenhua’s to cut its domestic coal prices left the Indonesian thermal coal market with a wide bid-offer price gap for cargoes, aggravating the situation. At the end of June, European physical coal prices for July delivery dropped to a five year
Steam Coal FOB Average Prices (US$/ton) Colombia exported
Australia Newcastle
Indonesian HBA
South Africa Richards Bay
130 110 90
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Jun-14
Apr-14
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
50
Jun-10
70
Sources: EIA, Colombia Ministry of Mines and Energy, IMF, Indonesia Ministry of Energy and Mineral Resouces
US exported
150
CEMENT ENERGY MARKETS
CW Research
low under US$70 per ton in the context of poor summer demand and extensive supply. Cargoes for July delivery to Amsterdam, Rotterdam and Antwerp (ARA) were valued at US$69.75 per ton, 1.4 percent under the previous settlement. Increasing production levels in coal exporting countries like Australia, Indonesia, South Africa and Colombia, along with weak demand in industrialized and emerging markets will continue to affect price levels in Europe. In South Africa, the metallurgical coal benchmark price remained at US$120 per ton, being expected to improve to US$140 per ton by the end of 2015. The recent collapse was driven by the global supply, and also by the fall in Chinese imports, the ramp-up in Australian output and the downshifting of the global cost curve. US Petcoke Export Price (US$/ton) rolling 12-month average
100 80 60
20
Petcoke Price of U.S. uncalcined petcoke for export markets slightly improved 0.02 percent in June from last month and reached US$75.42 per ton. Despite the small recovery from May, the price remains at low levels but fairly stable in the US$75 – US$80 range since the end of 2012. After reaching record volumes in March in the context of falling domestic demand, US petcoke exports dropped significantly in the next two months.
J-14
M-14
A-14
M-14
F-14
J-14
D-13
N-13
O-13
S-13
A-13
J-13
J-13
M-13
A-13
M-13
F-13
J-13
D-12
N-12
O-12
S-12
A-12
J-12
J-12
0
Source: Customs data
40
US petcoke prices remain flat
Chinese domestic petroleum coke market continued its weakness at the beginning of June, while downstream companies actively control their inventory due to contraction of demand. With the pressure of General Office of the State Council of PRC on high-polluted downstream companies to meet eco-friendly regulations, production costs increase and determine lots of companies to close their kilns. Low sulfur petcoke’s prices dropped to CNY500 per ton (US$ 81.05 per ton). Decreasing demand of steel market, over capacity, and lower price of petroleum coke, are expected to slow down the domestic petroleum coke market in the middle to long term. To learn more, please contact the CW Research team at sales@cwgrp.com or +1-702-430-1748. www.cemweek.com
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CEMENT ENERGY MARKETS
CW Research
US natural gas lose some steam
Natural Gas US natural gas prices posted a slight overall increase in the middle of June as temperatures warmed, and demand for natural gas that is consumed for electric generation (power burn) improved. By the end of the month, prices depressed, with the Henry Hub spot price falling to US$4.57 per MMBtu. The price of the Nymex 12-month strip (the 12 contracts between July 2014 and June 2015) also declined to US$4.48. Supply and demand both recovered in the last days of June, driven by increases in the industrial and power sector. Despite the minor recovery in US, European prices lost on average 3.9 percent compared to May, tumbling to a new bottom in more than three years. In mid-June, prices boosted on Russia-Ukraine war fears that could threaten supplies to the continent. After Moscow cut supplies to Kiev following a row over debts, ICE July UK natural gas rose as much as 9 percent. But on the back of high storage levels and ample supplies, U.K. spot gas prices continued to slide by the end of the month after multi-years lows, down 13 percent versus previous month and 35 percent compared to 2013. U.K. Gas-fired power plants have been encouraged by lower prices to use natural gas-fired generation and the consumption raised 14 percent compared to June 2013.
Natural Gas Prices (US$/MMBtu)
18
US
Europe
16 14 12 10 8 6
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Jun-14
Oct-13
Feb-13
Jun-12
Oct-11
Feb-11
Jun-10
Oct-09
Feb-09
Jun-08
Oct-07
Feb-07
Jun-06
Oct-05
Feb-05
Jun-04
Oct-03
Feb-03
Jun-02
Oct-01
Feb-01
Jun-00
Oct-99
Feb-99
0
Jun-98
2
Source: EIA, World Bank
4
MARKET DATA SNAPSHOT
CW Research
Coal prices continue to trend down. Weak demand in industrialized and emerging markets in Europe, slowing growth in demand from China and global oversupply affecting price levels. Chinese coal producer Shenhua’s cut in domestic coal prices left the Indonesian thermal coal market with a wide bid-offer price gap for cargoes, aggravating the price situation.
Petcoke - US Exports (million tons - Aug)
Coal - Exports (million tons)
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Coal Exports MoM (%) US petcoke exports prices MoM (%)
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Coal - Imports (million tons)
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Petcoke - US export prices (USD/ton - Aug)
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Coal - Global export prices (USD/ton)
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Natural Gas Prices (US$/mmBtu)
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Natural Gas prices MoM (%)
Source: CW Group analysis estimates LM: latest month April 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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people
Bambury splits its Kenyan and Ugandan management teams
New CEOs take over at Kant Cement Factory and Raysut Cement The Board of Directors of Kant Cement Factory has voted to terminate the contract of CEO Salina Daniar Ravilyevich. Acting Director General of Kant Cement Factory, Arpachai Askar Karagulovich, has been elected to replace the CEO. Kant’s parent, United Cement Group, is the largest in the Central Asia Cement Holding, with a total production capacity of 7.6 million tons, and specializes in the production of general and special types of cement. Raysut Cement has installed Salem Alawi Mohammed Baabood as chief executive. The cement firm, Oman’s largest by market value, reported flat first-quarter profit in May, missing analysts’ estimates. Pedross to lead Marketing and Communications at Lafarge The market leader in Austria, Lafarge, has reinforced its Marketing & Innovation 31
SUMMER 2014
I
n a shift, Bamburi, majority-owned by French cement giant Lafarge, has announced that it will appoint separate chief executives for its Kenyan and Ugandan businesses, to enable separate management of the two operations. The company’s Kenyan business has three subsidiaries, Bamburi Cement, Bamburi Special Products, and Lafarge Eco Systems, while the Ugandan unit is managed as Hima Cement.
team by appointing Daniela Pedross as its new Marketing & Communication Manager. Pedross will be responsible for all marketing agendas. She reports to Gernot Tritthart, Director of Marketing & Innovation at Lafarge. Semen Indonesia nabs awards President Director of PT Semen Indonesia, Dr Dwi Soetjipto, has been named “The Best CEO of 2014” and his company called “The Best Listed Company Basic Manufacturing Industry Sector 2014” by MNC Business Channel. State Owned Enterprises (SOEs) PT Semen Indonesia (Persero) Tbk was one of 12 companies receiving awards this year. FCC revamps management team The CEO of FCC, Juan Béjar, has announced that the company is engaged in an ongoing process to replace its management team with more trained professionals. www.cemweek.com
The firm expects to reach its hiring objectives in the next three years and reports that is has thus far achieved 40 percent of its goal. The purpose of the initiative is to develop a management team with a global mindset. Looking ahead, the company expects to achieve EBITDA of 1,100 million euros, placing debt below 5,000 million euros and achieving a cash flow of 850 million euros. Juan Béjar CEO of FCC
REGIONAL REPORT:
europe Mediocre performance in French industry Cement and aggregates sales volumes for Ciments Francais, the second-biggest French cement producer, fell again in 2013. Performance was further affected by depreciation of currencies including the Egyptian pound, the Indian rupee, and the dollar against the euro. In spite of these factors, the group recorded profits of €48 million in 2013. The company’s road to recovery was paved by a cash takeover bid from its parent company Italcementi, nearly five years after its failed attempt to merge public offering. Market outlook predicts that 2016 will be the year of recovery for the construction industry. Following a series of meetings with investors in Geneva, Oddo confirmed its stance of “neutral” on France’s Vicat, raising the price target to 67 euros vs. the previous 63 euros. Due to investments made in recent years to improve the underlying markets, Vicat Group has considerable leverage in the medium term (+575 basis points margin against 300 peer). The merger between Lafarge and Holcim exerts only marginal change on the environment. Solid waste power plant under development in Romania Lafarge Romania has initiated the construction of a solid municipal waste coprocessing station, to be used as alternative fuel in the cement production process. The project is co-financed by the European
Montalieu, FR
Regional Development Fund and is valued at 40.8 million lei. The project, which will be finalized in 19 months, reduces chlorine in the flue gas, enabling an increase in the percentage of alternative fuel used and generating reduced emissions from the cement manufacturing process. Other partners on the project include Eco Gest and Apollo Ecoterm, and Medgidia’s city hall has offered its support.
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Consumption slides in Spain Cement consumption in Spain fell 2.9 percent in May to 978,688 tons, down by 28,849 tons from the same period last year and representing the first May in 1965 in which the cement consumption in the country has not reached one million tons. Decline in the first five months of the year has totaled 3.5 percent, for a total consumption of 4,229,479 tons so far this year
SUMMER 2014
32
Siberia imported more than 220,000 tons of cement, up about 40 percent year-over-year. Middle East
or 154,431 tons below the same period in 2013. In all, consumption has dropped 12.4 percent over the past 12 months. Cement imports decline in Gran Canaria The Port of Puerto de los Marmoles received 3,980 tons of cement for the costruction industry in May, down 2.5 percent year-over-year. However, consumption over the first five months of the year rose 15 percent, year-over-year, to about 18,421. Russia AND CIS Belarus offers loan assistance, sees boosted production The Belarus Council of Ministers has adopted a decree to pay the interest on loans undertaken by cement companies between now and the end of 2015. The cement plants JSC Belarusian, Krichevcementnoshifer, and Krasnoselskstroymaterialy will benefit from the action.
manufacturers. BaselCement’s holding factory Achinsk Cement produced more than 320 thousand tons of cement between January and May. The greatest increase occurred earlier in the year, a traditionally low-demand period. In May, at the beginning of the active construction season, the company produced 100,000 tons of cement. The production growth exceeded the dynamics of the cement industry: across the district, cement production during the period increased by about 11-12 percent. At the same time, there is a growing market presence from producers from western regions and other countries, particularly Kazakhstan. Between January and May,
BaselCement boosts production in Russia BaselCement increased volumes of cement production in Siberia by 20 percent in the first five months of 2014. The company’s position in the market has strengthened despite tougher competition from foreign
SUMMER 2014
New cement product in Iraq In Iraq, the local unit of French Lafarge has launched a new version of Karasta, its multipurpose cement, tailor-made for the Iraqi climate. Karasta is produced at Lafarge’s Bazian and Tasluja plants, located near Slemani. Karasta’s new formula meets the Iraq specification 3868 and the international standards EN 197-1:2011 CEM II/A-L 42.5 R, making it similar to Lafarge products in other countries. The Karasta formula was revised to improve its work-
BaselCement - The Republic Of North Ossetia-Alania, RU
In Belarus, cement production between January and May reached 1.943 million tons, up 8.5 percent year-over-year. In May, cement production totaled 530,400 tons, up 12.4 month-over-month and 11.7 percent over May 2013. Cement production in 2013 topped 2012’s production by 3.1 percent, amounting to 5.056 million tons.
33
Cement demand rises in Jordan In Jordan, construction and real estate activity picked up in May and June, with market sales between 10 and 12 thousand tons per day. Real estate activity, in particular, has exhibited remarkable activity with the onset of summer, hiking demand for cement in its different forms. Meanwhile, cement prices have declined from the beginning of this year, ranging between 105-110 dinars per ton.
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Limited and three of its contract companies have paid fines to the National Council for Construction (NCC) for flouting construction regulations. Dangote was fined K18,000 for contracting three companies that were not registered with the NCC to construct its multi-million Kwacha cement factory in Masaiti District. The three contractors, Sinoma Engineering, Rockseed, and Ayoki Company, were also charged K18,000 each for operating in Zambia before registering with the council.
Dangote Industries, Zambia
ability, decrease cracking, and improve setting time as well as adhesion. Iranian cement exports rise Iranian cement plants exported 3.4 million tons of cement during the first two months of the current Iranian fiscal year, which started on March 21. The figure indicates an increase of 20 percent over the same period last year. Azerbaijan, Russia, Ukraine, Uzbekistan, Turkmenistan, Tajikistan, Armenia, Iraq, Georgia, Kazakhstan, Kyrgyzstan, and Gulf States are the main importers of the Iran’s cement.
Cement price war likely in Uganda In Uganda, recent price spikes in the cement market may signify a looming price war. Cement in Uganda is currently selling at about $124 per ton. That is higher than the average global price for gray cement, which hovered around $76-77 per ton in 2013, and higher than the $100 average in Sub-Saharan Africa. Kenyans and Tanzanians buy cement cheaper than Ugandans, who pay an
average of Shs 28,000 per 50-kg bag in local retail shops, a price that is quite high for a product whose main raw material is locally abundant. Cement sales down in Morocco Moroccan cement sales, a key indicator of the building and public works sector, posted a 3.4 percent decline at the end of May 2014, representing a total drop of 14.5 percent over May 2013. Funding allocated for housing grew by 5.4 percent at the end of April 2014. Outstanding loans granted to real estate fell by 4.7 percent after rising 1.9 percent in the previous year, bringing the total for outstanding loans in the real estate sector to nearly 232 billion dirhams, an increase of 2.4 percent over April 2013. The volume of transactions in the building sector behaved positively, increasing by 10.1 percent at the end of the first quarter of 2014 with increases in all sub-categories (10 percent for residential construction, 16 percent for commercial, and 8.1 percent for land).
Egyptian production falls In Egypt, total production of gray cement reached 3.608 million tons in April 2014, down 21.6 percent year-over-year from 4.603 million tons. Sales of gray cement amounted to 3.535 million tons in April 2014, compared with 4.305 in the same month last year. The average domestic price for gray cement was 770.9 pounds per ton in April 2014, up 15.5 percent from 667.6 in the same month last year. A fresh batch of clinker production imports, weighing 28 tons, has arrived in Egypt from Greece. Africa Dangote settles fines in Zambia In Zambia, Dangote Industries Zambia
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REGIONAL REPORT:
India Cement prices fluctuate in India In India, the Confederation of Real Estate Developers’ Association (CREDAI) has declared that construction activities in the southern states will come to a halt beginning July 7 if the 25 percent hike in cement prices is not rolled back. Cement prices have risen by around Rs. 70 per bag since June 1. In India, local cement firms have declined to bring down prices as proposed by the Telangana government. The firms discussed the issue for three days, but the eventual decision to hold prices steady was unanimous. As a “goodwill gesture,” the companies are willing to offer cement at lower prices to the government for its housing program for the poor.
Due to the approaching monsoon season, cement price hikes are unlikely in India in the near term, even though freight rates are set to pick up. However, higher prices may appear in 4-6 months as cost increases of Rs. 8-10 for a 50-kg cement bag are passed on to consumers. A construction group in India has asked the government to set up a regulatory body for cement. Setting up a regulatory authority, along the lines of the Telecom Regulatory Authority of India, and liberalizing the market to allow import of cement from the Asian market would help to control the price of cement. The current price of Arasu Cement, manufactured by Tamil Nadu Cements Corporation Limited, stood at less than Rs. 275 a bag, but stock was too meager to meet the massive requirements of the construction industry.
Pakistan Positive movement in Pakistani cement market In Pakistan, the first 10 months of this fiscal year have witnessed sales of 21.3 million tons of cement, up 2.7 percent over the same period last year. Overall, the period witnessed growth of 1.17 percent year-over-year, as total dispatches increased to 27.986 million tons compared with 27.664 million tons from July 2012 to April 2013. Dispatched cement reached an all-time high of 3.21 million tons in April, raising industry hopes of a long-awaited turnaround. In Pakistan, the gas development surcharge and additional tax on cement will be withdrawn. The Gas Infrastructure Development Cess (GIDC) has been reduced to Rs. 100 on power, zero on cement, Rs. 150 on general industry, Rs. 200 on captive power, and zero on the commercial sector. Cement prices may increase as the government implements additional excise duties on the product. The additional excise duty on cement will add Rs. 2.5 per bag, while the duty on coal will further increase the price of cement since fuel is the major cost of production. The government has raised the excise duty on cement manufacturers to Rs. 50 per ton in the federal budget, in spite of the industry’s demands that the duty be reduced in line with stated government policy. Electricity rates have already been raised to historically high levels, further worsening the overall situation. Cement manufacturers are maintaining current cement prices, although the tax measures equal high expected cost escalations.
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REGIONAL REPORT:
Increased industry activity in Philippines, Malaysia, and Vietnam In the Philippines, Iloilo has felt the bite of cement shortages amid stronger demand for the material. The shortage has impacted contractors and traders for several weeks now as demand peaked during the summer season. In Malaysia, Narra Industries has secured approval to acquire concrete and cement assets from its sister companies under Hong Leong Group. The resolution to acquire Hume Industries (Malaysia), Hume Cement, and irredeemable convertible preference shares of Hume Cement, was approved by 99.08 percent of shareholders. The move will cost RM448 million, to be satisfied with the issuance of new Narra shares. In Vietnam, the Chinese firm Huaxin Cement Co has purchased a 40 percent stake in the Cambodia Cement Chakrey Ting Factory, currently under construction in Kampot province. Huaxin’s $24 million investment in Cambodia Cement lifted the local factory’s working capital to $60 million, up from $32 million. The total
investment for the factory’s building is $100 million. Of this, $32 million comes from shareholders and the other $67 million has been funded by the Bank of China. In Vietnam, the Vicem Hoang Mai Cement Joint Stock Company has sold 765,600 tons of cement on the domestic market since the beginning of 2014, equivalent to 113 percent of the year’s plan. Sales of Hoang Mai cement have risen in many localities. The central province of Ha Tinh accounts for 58 percent of the market share of the firm and Nghe An province for 30 percent. The company attributed the success to its efforts to applying advanced technologies in production, adopting innovative sales activities, and improving its management structure. These helped the firm maximize the capacity of its machines and equipment and cut down considerably on production costs.
Java. The loan is worth Rp. 5 trillion, which totals Rp. 5.07 trillion if interest is included. The loan will carry interest of around 8 percent per annum, higher than the interest rates of three-month deposits offered by state-owned lenders Bank Mandiri, Bank Negara Indonesia (BNI), and Bank Rakyat Indonesia (BRI).
Semen Indonesia helps to fund new plant Semen Gresik has secured a fresh loan from its parent Semen Indonesia to help defray the cost of a new cement plant in Central
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REGIONAL REPORT:
Venezuelan cement industry looks to boost production Venezuela’s Invecem is looking to produce three million tons of cement this year. In December, the company plans to open a new line to increase production by 950,000 tons per year. Invecem provides 35 percent of its production to the Great Housing Mission Venezuela (GMVV), the state housing policy. The expansion of the plant, which will generate 250 direct jobs, will require an investment of $168 million. The Venezuelan Chamber of Construction has asked the government to oversee cement and rebar plants to address shortages of inputs affecting construction. The union leader urged the government to create conditions that will generate confidence among builders, and also expressed concern that the majority of domestic firms are not producing the amount of cement they produced before. Since January this year to date, Cemento Andino has produced 283,308 tons of cement, equivalent to more than 6.5 million bags, for sale in Trujillo, Mérida, Barinas, Portuguesa, Lara, and Southern Zulia. The company is now working on a second production line to increase its capacity to 2.1 million tons per year. The company sends 81 percent of its production to the Great Mission Housing Venezuela. Cemex receives “hold” rating Mexican cement maker Cemex has been given a “hold” rating by Jefferies, with a price target set at $14.3. Cemex’s US operations are concentrated in the south, principally Florida, California, Texas, Arizona, and Nevada. With the exception of Texas,
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these states were some of the worst affected by the housing downturn. The prevalent bullish thesis on Cemex is that, as the U.S. economy recovers, Cemex’s U.S. operations can pick up. Its Mexico business can follow suit when Mexico comes out of its economic slump, which stemmed from that of the U.S. Peruvian cement industry shows mixed performance Shipments of cement in the Peruvian market totaled 4.13 million tons between January and May, representing an increase of 0.51 percent year-over-year. Cement production over the period was 4.23 million tons, an expansion of 0.95 percent yearover-year. Exports during the same time period reached 95,716 tons, an increase of 17.65 percent year-over-year. A slowing economy hit cement sales in Peru in April, which fell 7.6 percent year-onyear. Causal factors seem to include Easter (representing two non-working days) and decreased physical progress on works, especially in some (regional and municipal) subnational governments. Cement consumption last declined, by 1.2 percent, in September 2013. In February 2014, the indicator showed a positive growth of 6.9 percent, followed by 6.4 percent in March.
For May 2014, preliminary results show an increase of 2.7 percent. Brazil’s Camargo Correa rated as “stable” Camargo Correa has been rated at “stable,” taking into account its broad business diversification and an expectation of continued stable dividend flow from its main business segments. Business diversification is reflected in the composition of its 2013 consolidated EBITDA of BRL3.6 billion, with the cement, energy, transportation, engineering & construction, and footwear segments representing 44 percent, 19 percent, 13 percent, 12 percent, and 11 percent, respectively. Moreover, the ratings consider the diversification and credit quality of Camargo’s dividend flow, with approximately 78 percent of the company’s dividend receipts expected to come from cement, toll road concession (CCR), energy concession businesses, and engineering & construction. CEMEX specialty cement used for building a high tech stadium for the Brazil 2014 FIFA World Cup CEMEX participated in the construction of the Arena da Amazonia soccer stadium that has hosted several competitive open-
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ing round matches of the 2014 FIFA World Cup including England vs. Italy, USA vs. Portugal, and Honduras vs. Switzerland in the northern city of Manaus, Brazil. The stadium, located in the heart of the Amazon, has an innovative ecological design and is one of the world’s first stadiums to be LEED certified. CEMEX worked in close collaboration with renowned construction company Andrade Gutierrez S.A. providing 28,000 tons of its specialty high-quality cement and its tailormade customer service throughout the project. CEMEX supplied cement via its marine terminal located in Manaus, approximately 20 kilometers from the stadium. TCL group - STAYING ON THE ROAD TO LOWER INTEREST RATES Trinidad Cement Limited’s recent roadshow to refinance its USD300 million debt on the buoyant US High Yield Bond market remains a topic, which has attracted several informed as well as innumerable ill-informed views. The company recognizes that this is a new approach to financing by a local company and as such, feels duty bound to clarify some of these perceptions for the edification of Business Guardian readers, many of whom are valued stakeholders of the TCL Group.
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sector coverage : Construction & BUILDING MATERIALS by BmWeek.com
Aggregates Martin Marietta Materials enters competition agreement Martin Marietta Materials, Inc., expects to enter into an agreement with the U.S. Department of Justice to resolve all competition issues with respect to Martin Marietta’s proposed acquisition of Texas Industries, Inc. While Martin Marietta is not in a position to state the terms of the agreement until it is final, it anticipates that the agreement will require the divestiture of Martin Marietta’s North Troy aggregates quarry in Mill Creek, Oklahoma, and two rail yards located in Dallas and Frisco, Texas. Completion of the acquisition of TXI is also subject to approval from both Martin Marietta and TXI shareholders.
volume agreements, customer and region sharing, and other competition-restricting behaviors. Housing construction underway in Zambezi Zambezi Portland Cement has begun construction in Masaiti of 127 two-bedroom houses and six boreholes for displaced residents from land acquired for industrialization. The construction project will take six months to complete and will cost US$1 million. Zambezi announced that the
Construction Competition probe in Turkey Turkey’s competition board plans to open a probe into Batısöke Recycling Cement, Cement Çimentaş Izmir, Denizli Cement, and Cement Göltaş Lake District for possible anti-trust violations. The probe will investigate activities that may have violated competition law, including price and
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quantity of units constructed is based on a survey of affected households conducted by the company and exceeds the initial number approved by the Zambia Environmental Management Agency (ZEMA) in 2012. Bevon creates new Hydromedia finish Bevcon Construction has created a new finish for Hydromedia, Lafarge’s industryleading pervious concrete. Hydromedia with Aquatere combines the strength and function of Lafarge’s Hydromedia with
Nigeria cuts construction costs Nigeria is exploring alternative technologies to achieve reduction in construction costs for houses and infrastructure. Nigeria’s pilot plant for pozzolana production is at an advanced state of completion at the Nigerian Building and Road Research Institute (NBRRI) in Ota, Ogun State. Pozzolana cement, produced with locally-sourced, readily-available raw materials, may serve as partial replacements for conventional Portland cements. Pozzolanas are more eco-friendly and sustainable since their production process yields fewer harmful emissions. New plant rises in Erbil BASF has joined hands with cement and concrete materials leader Lafarge to set up a new plant in Erbil for the production and marketing of construction chemicals in the autonomous Iraqi region of Kurdistan. Chinese tidal project on horizon After the Chinese government commissioned an economic study into the viability of building a dynamic tidal power (DTP)
Source: U.S. Census Bureau, New Residential Construction Statistics
facility off the east coast of China, a proposal to build the unit has attracted prospective bidders. A consortium of eight Dutch companies, including Arcadis and Strukton, is leading the development of the new, patented technology, and is working with the Chinese government. A series of feasibility projects over the past three years has demonstrated proof of principle and assessed potential locations. The current economic assessment will look at the design and construction costs, estimated to be in the region of US$40 billion. Spain pushes sustainability Sustainable construction is being pushed in Spain’s construction industry, which is showing signs of slight recovery. The National Statistics Institute (INE) reports that housing mortgages grew by 2 per-
cent in March 2014 compared to March 2013, representing the first advance in four years. This small upturn and positive balance match statistics from the Bank of Spain and notarial records, which confirm increased lending for real estate after the crash produced by the bursting of the housing bubble in 2008. Construction grows in Pakistan, Poland, India, and Algeria In Pakistan, the construction sector posted exceptional growth in fiscal year 2013-14, up 11.3 percent year-over-year. The revival has surpassed the government’s estimates of 6 percent by a wide margin. The Association of Builders and Developers of Pakistan (ABAD) has stated that the resurgence in the construction sector is a positive sign for the economy. In the first quarter of 2014 PKP Cargo, Poland’s largest rail operator, reported record growth for aggregate and construction ma-
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sector coverage : Construction & BUILDING MATERIALS by BmWeek.com
Bevcon’s innovative Aquatere finish. This new finish provides both aesthetic beauty and increased functionality to paved surfaces.
sector coverage : Construction & BUILDING MATERIALS by BmWeek.com
terials. This may a result of a warm winter, but could also be a sign that the industry is on its way out of the woods. Case in point, steel production in Poland rose in the first quarter by 10 percent, surpassing hopes of 4-5 percent. Another barometer for the construction industry is overall sales of cement, which finished last year down 8 percent. Just 14.3 million tons of raw material were consumed by cement producers in 2013. This year, there has been a trend reversal. Sales increased by 46 percent between January and April. In India, infrastructure output growth rose at a faster pace in April. Together, the coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity sectors grew 3.7 percent in April 2013 . Growth in these industries decelerated to 2.7 percent from 2013 to 2014. The eight industries have a combined weight of about 38 percent in the Index of Industrial Production. Production of building materials in Algeria picked up in 2013 after five years of decline. Production in the second and third quarters of 2013 rose 6.2% and 7.8% respectively. Production of construction materials increased slightly (+0.3%) in 2013,
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after declines each year since 2008. Production of other branches of the building materials industry fell. After a significant increase of 13.6 percent in 2012, the glass industry declined by 2.6 percent in 2013. Concrete Dan Morrissey survival plan under development A troubled concrete and quarrying company can continue trading pending efforts to come up with a company survival plan. Joint receivers appointed to Carlow-based Dan Morrissey Irl Ltd by AIB, which is owed ₏27 million by Dan Morrissey, must cease to act and an interim examiner put in place to come up with a survival scheme within 100 days. The Morrissey family company, established in the 1930s, was at one time one of the biggest suppliers of materials in the building trade. Coal ash sales fail to keep up with demand In spite of the Charlotte region’s abundance of coal ash, sales are failing to keep up with demand. Concrete Supply, whose product built the Duke Energy Center, has had to import ash, a concrete ingredient, from South Carolina and other states.
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equipment
LOESCHE hands over world’s largest slag mill As a technological pioneer LOESCHE is following on from the success of the largest coal mill LM 43.4 in India and the world’s largest raw meal mill LM 69.6 in Nigeria. This latest triumph involves the largest slag mill in the world, which already produces 255 t/h blast-furnace slag meal in Taiyuan, northern China. In September 2011, LOESCHE was delighted by the order from the Taigang Group International Trade Co., Ltd. (China), which commissioned a LOESCHE vertical mill of the type LM 63.3+3 for grinding granulated blast-furnace slag for its customers. This was to be the largest slag mill in the world. In March 2014, the plant went into operation in the steelworks of TISCO, Shanxi Taigang Stainless Steel Co. Ltd in Taiyuan, China and attained a new record product rate with 255 t/h blast-furnace slag meal after only a short time. The first LOESCHE mill of the type LM 63.3+3 commenced production back in 2009 in Nallalingayapalli, India. In the steelworks of TISCO, the LM 63.3+3 has now been used for the pure grinding of granulated blast-furnace slag for the first time. The mill is driven by a motor with Source: Eurostat
an output of 7400 kW, the most powerful motor to have been installed so far by LOESCHE in a mill. The projected guarantee values of 255 t/h granulated blast-furnace slag at a fineness of 4400 Blaine are reliably attained here. This is also ensured by the newly developed LOESCHE LDC classifier, used in the grinding plant and ideally customized to the LOESCHE mills. Semen Indonesia opens new IT unit Semen Indonesia recently opened its subsidiary for IT related products. The potential of evolving across various sectors, not just the field of cement, is appealing to the company. In realizing this, the SMI continues to conduct a study to analyze the development and opportunities in existing industries. One development that has gone through is information and communication technology (ICT). Its ICT team has an excellent reputation in the provision and management of ICT services, both for internal Indonesian Cement Group and the Indonesian Cement companies outside the group, even overseas. Indonesian Cement Group ICT team is able to unify the IT platform in PT Semen Gresik, PT Semen Padang and PT Semen Tonasa into one integrated IT platform, so that the company’s operations become more efficient and faster.
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Cemex orders new dredger for cement plant in Germany The ISD350-M dredger, supplied by Idreco from The Netherlands, will be used in Cemex’s plant in Lüttow, northern Germany. The new and more efficient unit, which has a bigger pump, will help the plant to achieve the same level of production at a lower pump rpm, reduce wear, increase production and consume less energy. Sinai Cement Company prepares to use coal Danish engineering company FL Smidth will provide Sinai Cement Company (SCC) with equipment for it to start working using coal. The cement manufacturer will also partner with local contractors and suppliers to equip the factory to use coal as an alternative energy to natural gas and Mazut fuel oil. Following the petroleum products price hike announcement, the government has raised gas prices for cement factories to $8 per million British Thermal Units (BTUs) compared to $6 previously. The price of fuel oil increased from EGP 1,500 to EGP 2,250 per ton. The industrial use of coal as an alternative energy source has been approved in April.
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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
CW Group Hosted Executive Summits CW Summit Americas
SEPT 11-12, 2014
JW Marriott Miami, Miami, USA
CW Summit Middle East
DEC 9-10, 2014
Dubai, UAE
Conferences where the CW Group will be presenting
Conferences where the CW Group will be presenting Cement Business & Industry (CBI) India 2014
NOV 12-13, 2014
Holiday Inn New Delhi International Airport, New Delhi, India
Cement Business & Industry (CBI) Brazil & LatAm 2015
FEB 4-5, 2015
Sao Paulo, Brazil
BrasCon 2015 Industry Conference
NOV 12-13, 2014
Sao Paulo, Brazil
AshTrade Americas 2014 Fly Ash Industry Conference
OCT 15-16, 2014
Houston, United States
AshTrade India 2014 Fly Ash Industry Conference
NOV 11, 2014
Holiday Inn New Delhi International Airport, New Delhi, India
AshTrade Europe 2015 Fly Ash Industry Conference
MAR, 2015
TBA
Solid Fuels Summit India 2014
NOV 11, 2014
Holiday Inn New Delhi International Airport, New Delhi, India
World Paper and Pulp Brazil & LatAm 2015
APR 15-16, 2015
Sao Paulo, Brazil
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buzz TOP CEMWEEK STORIES 1
LafargeHolcim unlikely to dispose of assets in India
2
7 new production lines to start production in Saudi Arabia
3
Two cement plant to be built in Congo
4
Holcim and Lafarge announce first list of proposed asset disposals
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Russian Nev’yansky Cementnik boosts production
6
Holcim rules out Kenya’s Bamburi takeover
7
Lafarge Romania invest in solid waste co-processing at cement plant in Medgidia
8
Cementos Molins acquires Bolivian cement manufacturer
9
Suez Cement did not increase prices in Egypt
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Lafarge sells its cement business in Pakistan
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Cement firm to build new plant in Philippines
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Cemex sales in Colombia increased
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Russian cement prices increased in June
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Sale of Holcim Romania assets attracts interest
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Cemex orders new dredger for cement plant in Germany
CEMWEEK.COM acquire africa aims algeria amounted area bank board boost building cements chairman china addition
coal
countries court crisis dalmia dangote decision decline development director economic egypt egyptian egypt’s energy environment environmental equipment estate estimated expansion export exports facilities facility factories factory fuel furthermore general governor grade grinding growth impact implementation improve increased india india’s indonesia industries investment kyrgyzstan lafarge launched limited located long materials mining minister ministry natural nigeria operations pakistan plans plants power previous prime produce products program project province quality real region resources sccl self shares shortage signed stake supplies vessel vietnam youth 2020
BMWEEK.COM
TOP BMWEEK STORIES 1
Synbra acquires German-owned Knauf Insulation
2
Building material taxes to fund housing scheme in India
3
Anglo American PLC sells Lafarge Tarmac share
4
New milestone achieved at the Panama Canal
5
Cement prices increase in Panama
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Illegal quarries in Peru investigated
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Cementir to supply concrete for Italian project
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Landfill expansion in US for coal fly ash storage approved
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Tata Power to export fly-ash from plant in India
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TISCO steelworks starts operations in Taiyuan, China
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Egyptian steel companies file anti-dumping claim
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Skanska to cut back on Latin America operations
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China’s Guangdong province to cut manufacturing capacity
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U.S. Concrete posts Q2 results
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UAE’s construction sector is set to rapidly accelerate in 2014
completed consumption contractors costs
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tivity africa aggregate aggregates agreement aims approved brick build-
ers built canal capital cemex chief coal commercial
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contract contractors costs cubic
decline development dubai economic energy engineering
environmental estate executive expansion facilities facility firm general global
government growth home housing india industrial
infrastructure insulation international investment lafarge leading management meters middle mining minister ministry national operations
output plans plants posted power price private product program
project public
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quality rail rate ready real
region residential results rise road roads russia
sales sand saudi says sector signed spending states steel technology united units waste work workers zawya 2014 2015
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P E T C O K E - T H E R M A L C O A L - F LY A S H The Solid Fuels Summit India 2014 is a focused executive-oriented meeting and networking opportunity for coal and petcoke industry professionals who are involved in the Indian coal and petcoke sectors. The Summit will bring a special dual focus on business and industrial issues.
NOVEMBER 11, 2014 HOLIDAY INN NEW DELHI INTERNATIONAL AIRPORT NEW DELHI, INDIA
WORKSHOP THEMES ↘ Is there enough solid fuel to support India’s industrial growth? ↘ Outlook for shipping and impact on India solid fuel prices ↘ Logistics challenges: an unsolved bottleneck problem? ↘ India petcoke supply side and marketing ↘ Global regulations forcing re-thinking the supply options ↘ Thermal coal price outlook: world markets and India ↘ Coal ash: utilization in India and global markets; challenges and regulations
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