CemWeek Magazine (vol. 1 / issue 33)

GLOBAL CEMENT INDUSTRY. KNOWLEDGE.

JUNE / JULY 2016

Q&a: LEADERS

LIGHTING THE SHADOW

ADRIANO GRECO, CEO, FCT INC

feature:

THE FUTURE STARTS NOW: SUSTAINABILITY IN THE CEMENT INDUSTRY event:

CBI AFRICA 2016: CEMENTING THE FUTURE News

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Analysis

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Market Coverage

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Interviews

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People Moves

33

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STAFFBOX ROBERT MADEIRA Strong and determined actions are required for the cement industry to become sustainable in the near future, as carbon emissions and raw material consumption pose increasingly high threats to the environment and to the industry itself. The 33rd issue of CemWeek Magazine covers best practices, solutions and measures taken by the cement companies in pursuing sustainability.

Mr. Adriano Greco, Global Sales Director, FCT, went into the combustion business, knowing that the shadow of his renowned father, professor Clemente Greco, would be a tough obstacle to overcome. After a career spanning more than 20 years, his work reached all continents, taking the Greco name further than it’s ever been. Mr. Greco agreed to talk about challenges and opportunities that the company faces, about current issues and future solutions, in a detailed interview for our Q&A: Leaders section.

In difficult economic times for the industry, top international and African industry experts attended the 12th edition of the annual Cement Business & Industry Conference and Exhibition. This 33rd issue of our magazine covers CBI Africa 2016, as the meeting served as an excellent platform for new business development and setting future trends of the market.

And as usual, CemWeek Magazine provides all the relevant news about the main indicators of the industry, including the latest facts and figures about cement volumes, energy prices, relevant people in the business, regional developments, equipment and construction projects. Don’t miss out the numbers and the trends laid out in the special sections.

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CEMWEEK PUBLISHER HEAD OF CW GROUP RESEARCH

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CONTENT EDITOR AND ONLINE COORIDNATOR

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CONTRIBUTING WRITERS & RESEARCHERS

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CONTENTS FEATURES 3 LEADERS Q&A Mr. Adriano Greco talks about challenges and opportunities that the company faces, in a detailed interview for our Q&A: Leaders section.

9 THE FUTURE STARTS NOW Strong and determined actions are required for the cement industry to become sustainable in the near future 15 CBI AFRICA 2016 Top international and African industry experts attended the 12th edition of the annual Cement Business & Industry Conference and Exhibition, in Johannesburg

9

3

LEADERS Q&A ADRIANO GRECO, CEO, FCT INC

15

THE FUTURE STARTS NOW

CBI AFRICA 2016

DEPARTMENTS EDITOR'S LETTER 1 Sustainability: Keeping the flame alive NUMBERS IN BRIEF 3 Emerging economies to enjoy sustained growth in the coming years RESEARCH 21 Cement Volumes 23 Cement Energy Markets PEOPLE 25 People on the move

27 29 31 33

REGIONAL REPORTS Europe, Middle East & Africa South-East Asia Asia Pacific Americas

CONSTRUCTION & BUILDING MATERIALS BY BMWEEK.COM 35 Construction and building materials update PETCOKE PRODUCTION, SHIPPING, AND PRICING BY PETCOKEWEEK. COM 36 Petcoke industry news update

EQUIPMENT 37 Equipment and notable projects CW GROUP AGENDA 39 CW Group’s upcoming events BUZZ 40 Top 20 CemWeek and BMWeek stories

NUMBERS IN BRIEF

CW GROUP RESEARCH:

EMERGING ECONOMIES TO ENJOY SUSTAINED GROWTH IN THE COMING YEARS The latest WB forecast highlights a more conservative growth scenario to 2018 for both advanced and emerging economies.

In advanced economies, some countries are facing vulnerabilities related to the recent effectiveness of the monetary policy stimulus while in the US, the pace of monetary policy normalization is considered a delaying effect for the economy growth. As such, the moderate but still consistent growth expected in the US, will be more subdued than expected.

REAL GDP PERCENT CHANGE FROM PREVIOUS YEAR (%) Advanced economies

5

Emerging and developing economies

4 3 2 1

2015E

2016F

2017F

2018F

Source: CW Group and World Bank

As far as oil prices are concerned, the plunge did not boost the importers’ growth as initially imagined: the new adjustments for the advanced economies predict a contraction of 0.5 percent points for 2016 growth, which is now expected to stand at 1.7 percent. The change reflects a weaker investment landscape and increasingly high uncertainty in the political scenario.

The emerging and developing countries are facing further declines in the commodities’ prices and weaker manufacturing. These countries are expecting a weak investment growth especially in commodity exporters. Consequently, the real GDP is expected to grow by 3.5 percent in 2016, a downgrade of 0.6 percent points when compared to the January’s report.

REAL GDP PERCENT CHANGE FROM PREVIOUS YEAR 2015E

6

2016F

2017F

2018F

4

2

US

Euro Area

China

India

Brazil

South Africa

Russia

-4 Source: CW Group and World Bank

China and India continue to have the highest growth expectations for the following years. In China, the increase in services and policy support measures are bringing some rebound to the industrial activity slowdown. Therefore, the adjustments were null, except for the year of 2018, when the forecast has been downgraded by 0.2 percent points www.cemweek.com

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Q&A: LEADERS

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LIGHTING THE SHADOW

ADRIANO GRECO CEO, FCT INC

Mr. Adriano Greco went into the combustion business, knowing that the shadow of his renowned father, professor Clemente Greco, would be a tough obstacle to overcome. After a career spanning more than 20 years, his work reached all continents, taking the Greco name further than it’s ever been.

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FEATURE

WHAT DIFFERENTIATES FCT FROM OTHERS IS THAT WE HAVE SUCH DEEP PROCESS AND COMBUSTION KNOWHOW COUPLED WITH OUR BEST IN CLASS LABORATORIES, TEST FACILITIES AND MODELLING TECHNIQUES TO SUPPORT US.

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YOU ARE A LONG-TIME VETERAN IN team to do from the design phase to the THE COMBUSTION SPACE AND IT IS final delivery and commissioning.

A FIELD THAT RUNS IN THE FAMILY. TELL US HOW IT ALL GOT STARTED AND WHAT After that I have been in some partnerships LEAD YOU TO THIS POINT. and alliances where I managed to expand First thanks for giving me the the company all over the world, becoming opportunity to talk to you. one of the main global players in the cement I n fact it was a I never inherited a company from my father. tough decision to go There was no company to inherit after all into combustion when I was young. combustion market with a major presence in Europe, Americas and Asia.

Several factors were holding me to get into combustion business. Firstly, my father I finally left the business i n was a Professor at the best University in 2012 and I moved to Brazil and a very well-known consult- the United States to ant for combustion matters, with a deep seek other interests knowledge on that. I was very afraid of and new chalworking in a field where I could potentially lenges. always be in his shadow. Secondly, because his company was a very small consultancy In 2015 I company but it was doing well enough for saw a very what my father projected. It was not what I interesting wanted for my life, though. I never wanted o p p o r t u to be a consultant. nity with FCT. I Here comes the interesting part that most trust and of the people don’t know. I never inherited b e l i e v e a company from my father. There was no FCT prodcompany to inherit after all. The company ucts, but was his brain and he never sold one piece of the comequipment – he was selling designs. pany is not an ordinary I started completely from scratch with a one, because new company in Europe, with no money. Con Manias I was buying the design from my father’s is not an ordicompany and selling the complete package nary man. He to the final customer. The first project I got managed to was quite big in terms of scope and value have a top of so with that very first project downpayment the line, diverI started to run the company and pay the sified range of sub-suppliers (including my father). products, from a country far away, Unfortunately, my father passed away in such as Australia, to 2003. In the same year I opened another become leading compacompany in Brazil and hired a complete nies in their industries.

All the three companies from FCT Group have products and solutions that are top class in their respective fields.

I hope that I can contribute and become more and more part of that, bringing my knowledge and my expertise to help them on theirs fields of expertise.

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DURING YOUR TIME WORKING THE COMBUSTION FIELD, WHAT ARE SOME OF THE BIGGER CHANGES THAT YOU HAVE SEEN, BOTH ON THE TECHNOLOGY SIDE AS WELL AS IN THE NEEDS OF YOUR CUSTOMERS? That’s a very good q u e s tion. During all these years I have seen various phases of bur ners evolution, styles a n d t e n dencies. I have myself invente d s o m e different designs.

What I have realized in the end is that things are a little bit more complex.

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FEATURE In fact, the burner must be designed to be taken into consideration. The air com- I don’t know any other burner company that overcome the challenges of a specific kiln. ing from the burner is only 10 – 15% of the has the resources that FCT has. FCT has the But the question is how to do it if every kiln stoichiometric air. The rest is secondary air facilities to make not only the physical and is different and has differmathematical modeling, but also ent raw meals, fuels and hot modelling (pilot plants).

I don’t know any other burner company that aerodynamics ? has the resources that FCT has.

The FCT client is a client that is The only way to go through looking for something that is that is to have a deep underabove the average. A client that is standing of the process and have a burner coming from the cooler. So every burner looking for a product that is specialized and design that can be flexible enough to designer / supplier can have a burner that that will work no matter what. overcome the challenges of each kiln. can work in a specific kiln but this is not necessarily true in another kiln. So, There’s also our entertainment division.

You need to have t h e how can we do to maximize the FCT Flames is all about trust. Can you knowledge to design effectiveness of a burn- imagine an Olympic Cauldron that is not something specific ing system to work in lighting when 4.5 billion people are watchfor that kiln that a optimum configu- ing this moment? There is no opportunity at the same time ration in all kilns ? to fail. There is no second chance. These can operate in Only a few com- projects are managed all over the world a wide range panies in the and we operate them 24/7 during the whole to accept world can do games period. This means worldwide prochanges that. ject management with no chance to fail. and variThat’s all what FCT is about. ation on NOW raw mateWITH WITH RENEWED FOCUS ON EMISrial, fuels A SIONS AROUND THE WORLD, WHAT and operSPECIALIST IS THE ROLE OF COMBUSTION TECHational FIRM, WHAT NOLOGY IN MEETING THIS CHALLENGE? condiAT T R A C T S CO, NOx and SOx are an increasing tions.

YOUR CLIconcern in all industries around the ENTS TO world. It is important to highlight For comWORK WITH that the burning system cannot be seen as parison A FIRM WITH the villain of the emissions. Several times effects, YOUR FOCUS the burning system can mitigate these emisjust imagAND SCOPE? sions, but they mainly come from the proine a simExactly cess itself. ple canas I said dle, having b e f o re . A good example to use is NOx. We spend a a stable What differen- lot of resources to develop Low NOx burners flame.

Now tiates FCT from but there are limits imposed by the combusblow it with others is that we tion phenomena that we cannot avoid. So, your mouth very have such deep pro- when reaching the limit, we need to make a smoothly.

The cess and combustion choice: Do we want a decent combustion or flame will distort know-how coupled a Low NOx? There are opposing opinions completely. This is the with our best in class lab- in the marketplace from the customer side. same with a burner in a cement oratories, test facilities and mod- Several Cement companies today realized kiln. The secondary air effect and elling techniques to support us. that they prefer a very good combustion the aerodynamics of the hood must that will secure them a very good product

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quality while taking care of NOx emissions fied to other industries like pulp and paper, with post combustions techniques such lime, zinc, nickel, ceramics and several SNCR. other minerals.

O t h e r Can you imagine an Olympic compaWe still nies pre- Cauldron not lighting when 4.5 billion have a lot fer to have to do people are watching? the lowin the est possicement ble NOx emissions on the combustion side market. I like to say that there while maintaining a decent combustion. is one place that is more diffiThere is no right or wrong. There are differ- cult to be geographically for a ent approaches for that, and each company company them Brazil. This is has its own strategy in this regard.

Australia. Life gave me both to experience.

MORE BROADLY, HOW IS FCT EVOLVING TO CONTINUE TO LEAD Growing a company in AusTHE MARKET IN ITS SECTOR? tralia is a challenge and I There is a saying that the key for think FCT accomplished sucsuccess is 10% inspiration and 90% cessfully. transpiration. That’s true. So, at the end of the day, it is a combination Now there are further steps to of factors that can keep you strong in the be taken that involve the new marketplace. offices that are being opened.

Presently we have companies First of all we are constantly investing in established in Australia, USA, R&D and working hard on this. We have Germany, Canada and Turkey. developed the Lofting AirTM for High Summarizing, I think the chalsubstitution rates of Solid Alternative lenge is to keep in the leadership Fuels. Right now we have several other on the technical side but also to be developments on track. able to be local in every continent.

We have good customer segments, so we have a good customer base and we are able to solve problems for them.

Our channels are being brutally improved through our new offices and decentralization strategy.

We have excellent customer relationships, and we are able to create demand through them.

We could address the revenue streams through the three companies (Combustion, ACTECH and Flames) and also because of a diversified customer base.

We have a very well established key resources and key partners.

Finally the cost structure is quite balanced, also due to the decentralization process.

Another very important aspect is that we WHAT CAN WE EXPECT TO don’t give up in any new challenge. Most of SEE FROM THE COMPANY IN THE us in the company came from the cement FUTURE? That being said, we can clearly Industry, however we are constantly workI like to see that we have addressed see that FCT was very capable in ing with different products and industries several important points in a comestablishing the basis for a successful – therefore we do not get to accommodate pany. business model. in our comfort zone.

A very important Answering your question, I FCT will be a worldwide market leader in each of part of our revenue believe the only expectation of comes from other its fields of actuation, sooner rather than later. a company with that solid busiindustries. We work ness model is success and leada lot with Iron Ore ership.

Pelletizing, for instance. This is a completely different kind of burner. We are talking First we have excellent value proposition, So, my firm belief is that FCT will be a about furnaces with 30 – 40 burners. Each because we have a good product and service worldwide market leader in each of its fields one has its own BMS, valve train, ignit- with unique features and benefits. of actuation, sooner rather than later. er and flame sensor. We also have diversi-

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FEATURE

The future starts

now

Tough decisions are needed for the cement industry to become sustainable 9

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FEATURE

S

trong and determined actions are of alternative materials. Worldwide, the each year, is the largest user of natural rerequired for the cement industry to cost of energy is rising inexorably as fuel sources in the world. Typically, ordinary become sustainable in the near fu- sources deplete. This has clear, traceable concrete contains about 12% cement, 8% ture, as carbon emissions and raw impacts on the cost of producing cement mixing water, and 80% aggregate by mass. material consumption pose increasingly and its market price; Green taxes are an ad- In addition to the 1.6 billion tons of cehigh threats to the environment used worldwide, ment and to the industry the concrete industry itself. Concerns about the Industrial ecology involves recycling the waste is consuming 10 billion sustainability of the industry products of one industry by substituting them for tons of sand and rock, are amplified by a number of and 1 billion tons of mixchallenges that include de- the virgin raw materials of another industry ing water annually. pleting fossil fuel reserves, scarcity of raw materials, Mining, processing, and perpetually increasing demand for ce- ditional cost that is incurred if emissions transporting huge quantities of aggregate, ments and concretes, climate change and are not restricted, potentially leading to a in addition to about 3 billion tons of the an ailing world economy. doubling in the price of cement by 2030 raw materials needed every year for ce-

IN SEARCH OF ALTERNATIVES

(OECD/IEA and World Business Council for Sustainable Development, 2009).

ment manufacturing, consume considerable energy and adversely affect the ecology of the planet.

The long-term approach to lower the environmental impact of using any material is to reduce its Simply stated, the practice of industrial rate of conAlternative fuels derived from waste are currently ecology involves recycling the waste sumption. The products of one industry by substitutcement indus- being used in some parts of the world. ing them for the virgin raw materials of try, like the another industry, thereby reducing the rest of the construction industry, is facing In turn, the concrete industry, which environmental impact of both. unprecedented challenges relating to enuses 12.6 billion tons of raw materials ergy resources, CO2 emissions and the use

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In this regard, locally available minerals, recycled materials and industrial, agricultural, and domestic waste may be suitable for blending with OPC as substitute, or in some cases replacement, binders.

Fly ash, blast furnace slag and silica fumes are three well known examples of cement replacement materials that are in use today that, like OPC, have been documented and validated both in laboratory tests and in practice. Fly ash is a by-product of coal combustion, slag is generated by iron smelting and silica fumes are by-products of electric arc furnace production of elemental silicon or ferro-silicon alloys.

from coal-fired power plants and groundgranulated slag from the blast-furnace iron industry provide excellent examples of industrial ecology because they offer a holistic solution for reducing the environmental impact of several industries. The construction industry already uses concrete mixtures containing cementitious material replacements with 15 to 20% fly ash or 30 to 40% slag by mass.

tions suggest that it will only be economically viable for the cement industry to use biomass sourced alternative fuels until 2030. It remains to be seen if other alternative low carbon fuels can be found or developed before then.

EMISSIONS – A SERIOUS MATTER

The push to reduce global CO2 emissions is backed by governments and corporations who understand that the present rate of release Dramatic changes are needed to make the cement of this greenhouse gas into industry, both in the UK and globally, less energy the atmosphere is a serious threat to future life and intensive and more sustainable. prosperity on the planet.

Another source of alternative materials are construction and demolition waste materials.

Reportedly, over 1 billion tons of construction and demolition wastes are generated every year. Cost-effective technologies are available to recycle most of these wastes as partial replacement for the coarse aggregate in fresh concrete mixtures.

Similarly, industrial wastewaters and nonpotable waters can be substituted for municipal water for mixing concrete, unless they are proven harmful by testing. Blended Portland cements containing fly ash

Alternative fuels derived from waste are currently being used in some parts of the world, in order to reduce energy costs, generate income and reduce landfill, but not all alternative fuels reduce CO2 emissions. The use of other fossil fuels such as biomass, on the other hand, can be an effective fuel substitute, producing CO2 emissions that are about 20–25% less than those of coal. However, the IEA’s predicwww.cemweek.com

Despite the incremental improvements in process efficiency that have been adopted by the cement industry in recent years, OPC production is still responsible for around 6% of all manmade global carbon emissions. Every ton of Ordinary Portland Cement (OPC) that is produced releases on average a similar amount of CO2 into the atmosphere, or in total roughly 6% of all man-made carbon emissions. Improved production methods

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FEATURE and formulations that reduce or eliminate CO2 emissions from the cement manufacturing process are thus high on the agenda. Emission reduction is also needed to counter the impacts on product cost of new regulations, green taxes and escalating fuel prices.

tribute to emission reduction then, in addition to improvements in process efficiency and reliance on OPC blends incorporating waste materials, moving to less carbon intensive fuels, developing clinker substitutions employing other low carbon materials with cementitious properties and new low carVarious authoribon and The push to reduce global CO2 ties have introcarbonduced legislation emissions is backed by governments re ducing and incentives cement and corporations (such as CO2 taxfor mu l aes, quarrying and tions and extraction tax, etc.) in order to regulate production processes are needed. and reduce the activities of the industrial sectors most responsible for greenhouse Carbon-reducing cements, if they could gas emissions. However, the rate of in- be developed for commercial-scale apcrease in emissions continues almost una- plication, probably offer the safest, most bated as a result of population growth and economical and elegant Carbon Capture increased industrialization and economic and Storage (CCS) technology. Other apactivity in developing countries, notably in proaches to CCS that require piping CO2 Latin America, Africa, the Middle East, In- emissions from cement production (and dia and developing countries in Asia where other polluting sources such as power gena three to fourfold increase in demand is eration), are viewed by some as the best projected by 2050. way forward. However, widespread concerns relating to long-term reliability and If the cement and concrete industries are high capital cost suggest that ideas such to become sustainable and effectively con- as pressurized, pumped storage of lique-

fied CO2 in geological formations may be neither technically nor commercially viable. They cannot be relied on to provide a permanent solution, as the risk of containment failure is simply too great.

In order to appeal to major cement manufacturing companies, an alternative cement product has to be able to generate at least the same economic value as that from an OPC production plant. At 7.6% of world cement production, the cement industry in Europe comprises around 56,000 direct jobs. The average cement plant will produce around 1 million tons of cement per annum and cost around â‚Ź150 million.

Advances in automation mean that a modern plant is usually manned by less than 150 people. Each ton of OPC produced requires 60–130 kg of fuel oil or equivalent, depending on the cement variety and the process used, and about 110 KWh of electricity. This accounts for around 40% of the average 0.9 tons of CO2 emissions per ton of cement produced, with the rest attributed to the calcination process, other manufacturing processes and transportation.

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your neighbors do not have the same tax as you they can undercut you. Similar arguments exist in Australia and the US. Since 1990 emissions in the UK have dropped by 25%, but the UK will undoubtedly miss the targets that have been set for the next twenty years. It is clear that some dramatic changes are needed to make the cement industry, both in the UK and globally, less energy intensive and more sustainable. The proposal is that, through investment in alternative fuels and novel cement technologies, the cement industry can achieve lower CO2 emissions, reduced costs and increased profitability, and at the same time pay less in green taxes.

A large percentage of the CO2 that is released in the production of Portland cement is from the calcination process itself.

It is a byproduct of the firing of calcium carbonate and silica in a rotary kiln to produce calcium silicate (clinker) and carbon dioxide. It is therefore conceivable that a more permanent solution to achieving carbon reduction is to use different raw materials and/or different manufacturing processes. These are subjects of major research initiatives worldwide, most of which generally remain shrouded in secrecy, but there should be no doubt that the race to develop the next generation of cements is underway.

DRAMATIC CHANGES NEEDED

The UK was the first country with “legally binding targets for greenhouse gas emissions beyond 2020”. A carbon price floor of GB £16 per ton of CO2 was introduced from April 2013 and this is expected to rise to GB £ 30 per ton in 2020.

The introduction of the carbon price floor was immediately opposed by industry as

the costs were so high and compensation was requested. In November 2011 it was announced that a package for energy intensive industries, such as cement, to the value of UK £250 Million would be avail-

In order to ensure sustainable, cost-effective but still profitable cement production in the second decade of the 21st century, the industry needs to change. The two most important challenges facing the industry are a pressing need to reduce CO2 emissions and improve energy efficiency. Some of the remedies are known to the industry, but scientific research is still needed.

The most effective methods of producing green, environmentally and economically sustainable cements of the highest quality

Carbon-reducing cements probably offer the safest, most economical and elegant Carbon Capture and Storage (CCS) technology. able to help with high energy costs and the carbon price floor plan. The package would also help raising the green taxes that were announced in 2012. It is estimated that the UK will pay an extra €36 Euros per megawatt hour (MWh) of electricity by 2020 with the introduction of climate change policies. This compares to €22 Euros in Germany, €20 Euros in Denmark, €19.3 Euros in France and the equivalent of €12.7 Euros in China. The differences raise one of the core problems of any green or carbon tax in a global economy – i.e., if

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are the use of alternative, low carbon fuels and the development of novel cement formulations and production methods.

In the “do nothing” scenario the cost of production will increase significantly as cement production continues to emit large volumes of greenhouse gases into Earth’s atmosphere. There is still a huge demand for cement and the industry contributes greatly to the economy and employment prospects of its host nations. But without change, the cement industry will decline.

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FEATURE

CBI AFRICA 2

CEMENTING THE FUTURE POLICIES TO MOVE THE IND FORWARD

Top international and Africa industry experts attended the 12th edition of the annual Cement Business & Industry Conference and Exhibition, as the meeting served as an excellent platform for new business development and setting future trends of the market.

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2016

BETTER DUSTRY

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FEATURE

"The legislation is at the same time a problem and a goal for all of us involved in the cement industry; the issue of regulation needs to be set as a priority"

“We need to have a key understanding of the market as the positioning insights guide our efforts going forward ” 17 JUNE / JULY 2016

osted on June 13th and 14th at Radisson Blu Gautrain Hotel, the event was packed with multiple networking opportunities among African, regional and international guests from Australia, France, Germany, India, Kenya, Lebanon, Nigeria, Pakistan, South Africa, Spain, Swaziland, Switzerland, Turkey, UAE, UK, and Zambia.

The conference benefitted of the support of Gebr. Pfeiffer, Scantech, Fives, Maize & Blue, Siemens, Donaldson, FLSmidth, Cemtech and offered program guidance

by CemWeek, Maputo Corridor Logistics Initiative, the Association of Cementitous Materials Producers, and the Southern Africa Ready Mix Association.

Managing Director, Albarka Africa Investments focused on the “African cement industry against the backdrop of 1997 ASEAN Financial Crisis”. The potential for future growth and the regulatory frame shaping the industry were brought into discussion by Mr. Maciek Szymanski, Corporate Fi-

As the major problem faced by the cement sector at the moment relates to legislation, the industry goal will orient towards reaching an agreement and adapting the regulations to support the development of the industry. In this context, collaboration and interaction are essential for getting more use of the available resources, protecting the environment and driving innovation.

Presentations included a thorough local market outlook, opening the discussions on the prospects and challenges for the cement industry in the coming year: Mr. Prashant Singh, Associate Director, CW Group, presented: “A snapshot of the African cement market and outlook”, Mr. Albert Corcos, Regional CEO East & Southern Africa, Dangote shared a valuable insight on “Dangote's strategy in Africa” and Mr. Alan Mukoki, CEO, South African Chamber of Commerce and Industry focused on “Regulatory challenges and trade barriers in Africa”.

Strategic and financial insights were shared by the invited speakers: Ms. Lei Zhang, Principal Investment Officer, IFC discussed “IFC's investment portfolio in cement, global market trends view and investment criteria”, while Dr. Stanley Ko,

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nance, Bowden & Co C orporate Finance, who presented "The emerging force in African cement".

Innovation and development strategies, matched by a careful consideration of the environmental aspects were analyzed by experienced industry

specialists: Mr. Dhiraj Rama, Executive Director, Association of Cementitious Material Producers (ACMP) for South Africa presented “The currently proposed Carbon t a x re-

gime for the cement sector”, Mr. Sabelo Zulu, Engineer Representative, Royal Haskoning DHV focused on "Evaluating the effects of increasing

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“My main objective for attending the conference was reading the trends in the SADC region.

The event fully met my expectations, plus more”

“CBI revealed a common meeting point over the different sectors of the industry, bringing together thought leaders and influencers of the industry.”

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FEATURE the content of fly ash in concrete", Mr. Cyril Attwell, Group Concrete and Research Manager, Murray & Roberts Construction Group Services shared a valuable insight on “The application of high cement replacement concrete and its practical concerns, as well as further development of near zero carbon footprint cements”, while Mr. Johan Van Wyk, General Manager, South African Readymix Association opened the discussion on “Recycling in the Readymix industry”.

The importance of new developments in infrastructure for the local cement industry was the focus of the presentations made by Ms. Nomvuyo Dludlu, Corporate Planner, Swaziland Railway, discussing the “Future of rail transport in the SADC region” and

by Mr. Ini Urua, Snr. Vice PresidentEast and Southern Africa, Africa Finance Corporation, who shared his expert opinion on “Regional developments in the African infrastructure”.

From a technical perspective, focusing on cost and productivity optimization, as well as product quality increase 19 JUNE / JULY 2016

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and technological applications, Mr. Christian Altherr, Senior Sales Manager, Gebr Pfeiffer shared his expertise on “Gebr.

Pfeiffer modular grinding unit” and Mr. Mert Balcik, Project Manager, Cemtech Global Engineering presented a case study on “How We Built 4 Cement Grinding Plants in 3 Years & 3 Different Countries of Africa”. Mr. Jacques Cato, General Manager - Industrial Air, Donaldson Filtration Systems presented the “Latest developments in Filtration and Dust Extraction technology by Donaldson”, while Mr. Hennie Botes, CEO and founder, Moladi Construction Systems shared a very interesting insight on “ Pushing optimization forward with innovative building systems ”.

The specific factors shaping the lime sector were analyzed in the presentations of Mr. Bertrand Mulenga, Project Manager- Cement Project, ZCCM-IH, who introduced a comprehensive study on “Updates on the Greenfield Cement Project in Africa” and Mr. Weston C. Mwape, Business Development Manager, Handyman’s Lime Quarry focusing on the uses of lime products.

Energy management and alternative materials were also among the hot topics of this year’s edition: Mr. Egmont Ottermann, CEO, New Horizons Energy shared an interesting perspective on “Integrated energy management in the cement industry” and Mr. Nico Singh, Project Manager, Eskom presented the “Progress on Eskom’s journey to optimize coal ash utilization”.

The final highlight of the event was the opportunity to visit PPC Cement’s Hercules plant in Pretoria, South Africa. The delegates joined the visit that was organized on June 14th, after the Cement Business & Industry Africa conference and exhibition wrap-up and enjoyed discussing with the plant’s representatives and discovering one of South Africa’s eldest cement plants that is still running today.

In difficult economic times for the industry, the presence of the most important local

cement producers, suppliers and industry specialists in Johannesburg set CBI Africa 2016 as the ideal forum for discussing the key burning topics of the cement and lime sectors, integrated in a complex program covering technical subjects, business & strategy, and logistics.

Attendees enjoyed the interactive discussions, meeting their peers and setting the fut u r e scenario to

guide innovation, e nv i r o n mental care, alternative resources and optimizing processes and costs.

The next Cement Business and Industry conference and exhibition is going to be held in India, for the South Asia edition (1920 October, Mumbai) and the next Africa edition, in 2017 in Johannesburg. Follow gmiforum.com for updates. www.cemweek.com

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CEMENT MARKETS

CW Research

CEMENT VOLUMES

In May 2016, cement production in China has increased by 2.8 percent year-onyear, but there’s little hope for recovery this year.

China continues to rebalance its economy and, as a result, growth in the construction sector is slowing. However, there could be opportunities for growth in the sector given the country's large infrastructure deficit and ongoing reforms to boost private investment and improve regional connectivity through its One Belt One Road initiative. Economic slowdown continues to weigh down on demand for cement in China, even though cement demand for property and infrastructure has picked up since March. In May 2016, cement production in China has increased by 2.8 percent year-on-year, but there’s little hope for recovery this year.

Demand for cement declined in Ecuador by 18.5 percent in January-May 2016 driven by reduced investment in infrastructure, which resulted from liquidity constraints by the government. Heavy rains also negatively impacted private construction.

The Brazilian cement market continues to post weak results for demand as the country is still struggling tough economic conditions coupled with decreasing consumer confidence and political uncertainty. Results to May 2016 show a 15.0 percent decline in cement demand in Brazil, cumulative volumes in the first five months of the year reaching 23.2 million tons in 2016 as opposed to 27.3 million tons in the same period of 2015.

Argentina is facing lower cement volume due to a temporary delay in public investments following the government change in 2015.

Demand in the first five months of the year declined by 13.7 percent as compared to the same period last year.

Russian cement production has been declining, falling by 13.6 percent in JanuaryMay 2016 as opposed to the same period last year. The cement industry is in the midst of implementing the new standard for cement production, in line with European standards, aimed at ensuring the quality of materials and allowing Russian manufacturers compete in international markets.

Spanish economic growth is slowing and, as a result, cement consumption has been affected.

Furthermore, the government’s lack of measure to promote public works drove demand to its lowest in 25 years. In January-May 2016, demand for cement in Spain fell by 1.5 percent as compared to the same period last year.

Saudi Arabian demand increased by 0.5percent in January-May 2016, but the Ramadan is expected to impact cement sales and lead to slowdown in construction activity and constrained working hours.

Cement Production May 2016 – YoY change (%)

Cement Demand May 2016 – YoY change (%)

25%

30% 20%

15%

10%

5%

0%

Source: CW Research

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Cyprus

Vietnam

Thailand

India

Source: CW Research

China

Peru

Belarus

Ukraine

Colombia

Saudi Arabia

Italy

-15%

Japan

Cyprus

Pakistan

Morocco

Indonesia

Peru

Thailand

Colombia

Saudi Arabia

Spain

Japan

Argentina

Brazil

Ecuador

-20%

Russia

-5%

-10%

CW Research

CEMENT PRODUCTION (million tons) Country

LM

MoM (%)

CEMENT CONSUMPTION (million tons) YoY (%)

YTD

YTD (%)

LM

MoM (%)

YoY (%)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

WWW.CEMWEEK.COM/SUBSCRIBE

CEMENT PRODUCTION MOM (%)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

WWW.CEMWEEK.COM/SUBSCRIBE

LM

YTD

YTD (%)

YTD

YTD (%)

CEMENT CONSUMPTION MOM (%)

CEMENT EXPORTS (million tons) Country

Country

CEMENT IMPORTS (million tons) MoM (%)

YoY (%)

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

YTD

YTD (%)

Country

LM

MoM (%)

YoY (%)

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

CEMENT EXPORTS MOM (%)

CEMENT IMPORTS MOM (%)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

WWW.CEMWEEK.COM/SUBSCRIBE

Source: CW Group analysis estimates 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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22

CEMENT MARKETS

Volume variation analysis for selected countries that are major consumers, producer, importers and exporters of cement. This is a selection of notable markets. Additional detail is available from CW Research as well as on-line at http://www.cemweek.com to the market data section.

CEMENT ENERGY MARKETS

CW Research

ENERGY PRICES UPDATE COAL: The average coal price for June 2016 closed at $55.23 per ton, falling 9.7 percent YoY as

compared to June 2015’s price of $61.16 per ton. It also increased slightly by 1.0 percent as compared to May 2016’s price of $54.69 per ton.

STEAM COAL FOB AVERAGE PRICES (US$/TON)

Global trading volumes for six major coal countries decreased to 68.84 million tons in April 2016, down 5.2 percent in comparison with 72.61 million tons recorded in March 2016.

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

COAL TRADING VOLUMES: Global trading volumes for six major coal countries decreased to 68.84 million tons in April 2016, down 5.2 percent in comparison with 72.61 million tons recorded in March 2016.

A decrease in coal trading volumes was seen in all the observed countries, which include Indonesia, Australia, South Africa, Russia, Colombia and the US.

PETCOKE: US petcoke exports increased by 6.3 percent to 3.13 million tons in April 2016 as compared to the previous month, and up by 13.8 percent as compared to April 2015. The US export price for petcoke for April 2016 closed at $36.09 per ton, decreasing 5.8 percent as compared to March’s price of $38.31 per ton and down 41.6 percent as compared to April 2015’s price of $61.80 per ton.

US PETCOKE EXPORT PRICE (US$/TON)

Source: customs data

NATURAL GAS: The US Henry Hub spot price traded at $2.59 per MMBTU in June 2016, up 34.9 percent as compared to May 2016 and down 6.8 percent

as compared to June 2015. Price in Europe increased by 2.5 percent MoM, reaching $4.10 per MMBTU in June 2016.

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Volume variation analysis for selected countries that are major importers and exporters of coal and petcoke. This is a selection of notable markets. Additional detail is available from CW Research as well as on-line at http://www.coalweek.com/ to the market data section.

COAL - EXPORTS (million tons) - Apr 2016 Country

LM

MoM (%)

PETCOKE - EXPORTS (million tons) - Apr 2016 YoY (%)

YTD

YTD %

Country

LM

MoM (%)

YoY (%)

YTD

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

WWW.CEMWEEK.COM/SUBSCRIBE

YTD %

COAL EXPORTS MoM (%) US PETCOKE EXPORTS PRICES MoM (%)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

WWW.CEMWEEK.COM/SUBSCRIBE

COAL - IMPORTS (million tons) - Apr 2016 Country

LM

MoM (%)

YoY (%)

YTD

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

YTD %

PETCOKE - GLOBAL EXPORT PRICES (USD/ton) - Apr 2016 Country

COAL - GLOBAL EXPORT PRICES (USD/ton) - May 2016 LM

MoM (%)

YoY (%)

YTD

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

COAL EXPORT PRICES MoM (%)

MoM (%)

YoY (%)

YTD

YTD %

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

Country

LM

WWW.CEMWEEK.COM/SUBSCRIBE

YTD %

NATURAL GAS PRICES (US$/mmBtu) - May 2016 Country

LM MoM (%) YTD TABLE AVAILABLE IN(%)THE YoY CEMWEEK MAGAZINE PRINT EDITION.

YTD %

WWW.CEMWEEK.COM/SUBSCRIBE NATURAL GAS PRICES MoM (%)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

WWW.CEMWEEK.COM/SUBSCRIBE

Source: CW Group analysis estimates LM: latest month Jan 2016 except where specified; MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year

To learn more, please contact the CW Research team at sales@cwgrp.com or +1-702-866-9474 www.cemweek.com

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CEMENT ENERGY MARKETS

CW Research

DEPARTMENTS

PEOPLE LAFARGE AFRICA APPOINTS NEW MANAGING DIRECTOR

DANGOTE CEMENT APPOINTS NEW DIRECTOR Nigeria-based Dangote Cement has appointed Dorothy Ufot as independent non-executive director.

“I am proud that Dorothy Ufot, SAN, became the first woman to serve on Dangote Cement’s board.

She brings formidable legal skills and business insights that will strongly enhance the company’s governance.

Her appointment represents a positive step forward in our goal to improve the diversity and functioning of our board,” said Aliko Dangote, Chairman of Dangote Cement.

Ufot is one of most experienced legal practitioners and has more than 26 years’ experience in commercial litigation at trial and appellate levels, having been admitted to the Bar in 1989 and made a Senior Advocate of Nigeria in April 2009. She also qualified as a chartered arbitrator from the Chartered Institute of Arbitrators, London in 2003.

Lafarge Africa has appointed Michel Puchercos as its new Group Managing Director/Chief Executive Officer.

Michael has worked in several market environments including South Korea, Kenya, Uganda, Tanzania and France.

In 2003, Michel became the Director of Cement strategy, Lafarge Group in France.

In 2005, he moved into cement operations as the CEO for Lafarge operations in

VICAT APPOINTS A NEW PRESIDENT The company has announced the appointment of Gregory Douillet as president of Bureau de Cimbéton.

Gregory Douillet will succeed Roberto Huet as President of the firm.

Gregory Douillet joined the French cement company in 1994. Rising through the ranks, he became director of alternative fuels and raw materials, before becoming Sales Director France. He also serves as director for

Dorothy Ufot

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Kenya and Uganda simultaneously working as the Chairman of Tanzania operations. While in this role, he was the Head of African Health as well as Supply Chain Management Committees for East and South-East Africa. He started his career in 1982 at the French Ministry of Agriculture, where he was head of two departments. He left the ministry after seven years to other companies as General Manager and Executive Vice President in the Biochemistry and Food industry.

various other companies. The new president is planning to increase the customer base of the company and he is also planning to launch a new brand of cement for its customers.

Gregory Douillet

PEOPLE ASSIUT CEMENT PROMOTES CONTEST FOR INNOVATORS Assiut Cement launched a competition to encourage innovative ideas for the construction sector. This initiative has the support of Mustafa Madbouli, Egyptian Minister of Housing, Utilities and New Urban Communities and from the Yasser ElDesoki, governor of Assiut.

The competition will hold two phases: one for Egyptian contesters and other for worldwide contesters. Each phase will award the contesters in nine distinct categories. The nine Egyptian winners were already determined and will soon be announced in a ceremony.

FLSMIDTH SOUTH AFRICA APPOINTS NEW COUNTRY MANAGER FLSmidth South Africa has appointed Deon de Kock as vice president for Minerals, as part of a series of structural changes within the company. Effective 1 July 2016, Deon de Kock will also work as Country Head of South Africa and he will be taking over from Charl Drury, who will remain as country CFO of the company. De Kock has more than 20 years of experience in mining and construction, working with growing business volumes, increasing profitability and large-scale operational improvement initiatives.

TITAN GROUP HAS A NEW CHAIRMAN Takis Arapoglou is the new chairman of the Titan Group. Arapoglou will succeed the former chairman and main shareholder, Andreas Kanellopoulos, who was part of the board of directors since 1971 and chairman since 1997. The group’s CEO, Dimitris Papalexopoulos, showed optimist following the inauguration ceremony.

Papalexoupoulos expects positive results from the expanding activities of the group

REFRATECHNIK CEMENT HAS A NEW MANAGING DIRECTOR German-based company Refratechnik Cement renewed its leadership, making several internal changes in management positions, announced the company.

Wolfgang Tabbert ended its 13-year mandate as managing director. He will be succeeded by Stefan Puntke, a wellknown manager of the company. After 30 years of service to Refratechnik, Tabbert will remain in the company as a consultant, helping his successor with the transition process. Christian Meyre will assume Puntke’s previous management tasks.

Meyre is a very experienced manager, with his field-of-specialty being the international cement market. He has been especially present in the North American market.

INDIA: JSW CEMENT APPOINTS NEW MANAGING DIRECTOR JSW Cement has appointed Parth Jindal as Managing Director of JSW Cement.

Parth will join the office in July. He will be assisted by Anil Kumar Pillai as CEO. Path has shown keen interest in growing the cement business and was instrumental in convincing the group to invest INR 800 crore in the grinding unit at the site, where the work on a 10-million tons integrated steel plant with an investment of INR 35,000 crore in the US market, and a slight recovery on the Greek front. Growing margins are also expected on the Egyptian and Turkish markets. The company is looking to start new business opportunities in the developing world, including Africa, Middle East, and Latin America.

was stopped due to delay in allocation of raw material linkages.

Parth Jindal

NIGERIA: ASHKACEM APPOINTS NEW MANAGING DIRECTOR A subsidiary of Lafarge Africa, AshkaCem, has appointed Alhaji Rabiu Abdullahi Umar as a new Managing Director. He will succeed Leonard Palka, who has resigned from the company.

Umar's appointment is effective from April 13 when Palka's appointment ends. Umar is currently the Energy and Strategy Director for Lafarge Africa.

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REGIONAL REPORT

EUROPE, MIDDLE EAST AND AFRICA ANGOLA WITNESSES CEMENT SUPPLY-DEMAND IMBALANCES Angola cement sector has an installed cement production capacity of eight million tons, which exceeds two million tons of domestic demand for cement. The cement production has grown exponentially over the last 14 years, with the largest investment in the sector was conducted by the China International Fund Angola.

The second largest investment was done by. New Cimangola Company, with a production capacity of more than five million tons.

According to the data from Ministry of Industry, in 2014 and in 2015, the New Cimangola the Kwanza Sul Cement Factory (FCKS), the Industrial Cimenfort, China International Fund Angola (CIF) and Secil Lobito, the five plants operating in the country, produced together more than five million tons of cement, well below the installed capacity.

EGYPT: IDA RECEIVES MORE REQUESTS FOR CEMENT LICENSES Egyptian Industrial Development Authority (IDA) received eight requests from the local and international companies for gray Portland cement licenses after the deadline ended on May 31,2016. “The authority will immediately begin studying submitted documents and offers in accordance with the rules and regulations approved by the

KENYA: ARM CEMENT GETS INVESTMENT FROM CDC GROUP Kenya-based ARM Cement has secured a USD 140 million investment from CDC Group, which is a British development finance institution, reports Reuters. The funds would be used to retire some of the cement maker's debt.

In March, the company announced that it would use USD 110 million to retire debts and the remaining amount will be used for capital expenditure.

Earlier in September, the company was relying on production of clinker,

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Terms of Reference (TORs) and verify their match to requirements within 60 days,� said Ismail Gaber, Chairperson of IDA. Meanwhile, the association has completed the delivery of TORs on 14 new licences for the launch of Gray Portland Cement projects in nine governorates, with a total production capacity of 28 million tons by two million tons annually for each plant. produced by them, for its African cement plants to improve profitability.

ARM Cement has three plants, including Tanzanian plant has annual capacity of 1.5 million tons of cement, while its Kenyan plant can produce 1 million tons and its Rwandan plant can make 100,000 tons.

REGIONAL REPORT SENEGAL RECORDS A SURGE IN CEMENT PRODUCTION Senegal recorded a 12.8 percent increase in cement production in the first two months of the year 2016 as compared to the same period a year earlier.

The production capacity of the two production plants, Sococim and Ciments du Sahel, increased from 944,500 tons in 2015 to 1,065,600 tons in 2016.

RUSSIA: SIBERIAN CEMENT POSTS FIRST QUARTER RESULTS Kemerovo-based Siberian Cement recorded a 21 percent decline in cement production to 568,900 tons in the first quarter of 2016 as compared to the same period a year earlier. Amongst its three cement plants, managed by the company, Topkinsky Cement recorded a 19 percent decline in cement production to 422,300 tons in the first quarter as compared to 520,500 tons in the same period a year earlier.

The Krasnoyarsk Cement plant recorded a 27 percent decline in production to

GAZA STRIP CONTINUES TO STRUGGLE WITH CEMENT SHORTAGE Absence of compensation and lower production capacity affect the region (CW Group) Gaza Strip continues to witness shortage of cement. The cement shortage has worsened due to limited availability of cement and

The production increased due to surge in exports and domestic sales. The exports increased by 19.8 percent to 446,200 tons in first two months of 2016 as compared to 372,600 tons in the same period a year earlier. The domestic sales increased by 14.7 percent to 659,000 tons in the first two months of 2016 as compared to 574,400 tons in the same period a year earlier.

ZIMBABWE CEMENT MAKERS DEMAND TARIFF ON CEMENT IMPORT Zimbabwe cement companies have demanded the government to impose an industry protection tariff to equate the landed price of imported cement. The country has three cement manufacturers who have a combined installed capacity of 1.85 million tons.

The Cement and Concrete Institute of Zimbabwe explained that Dangote’s cement unit in Zambia along with the imports from SA, Mozambique and Botswana, are having a negative impact on the local cement market.

123,800 million tons in the first quarter as compared to 169,700 tons in the same period a year earlier. The Timlyuyskom cement recorded a 18 percent decline in cement production to 22,800 tons in the first quarter as compared to the same period a year earlier.

The company’s results were affected by lower production rated, overall fall in capacity in the domestic market and economic slowdown in the country.

Meanwhile, the cement company expects the cement consumption to decline further in the next few months.

Unregulated imports may cause closure of several cement operations in the local market. "The industry requests the ministry to impose an industry protection tariff to equate the landed price of imported cement to the cost of local manufacture (of) USD 50 per ton," said an official from Cement and Concrete Institute of Zimbabwe.

The local cement market is growing an annual rate of two to three percent and the cement manufacturers are expected to produce 1.17 million tons of cement this year.

The three companies had invested around USD 185 million to upgrade cement plants and increase production in the last five years.

lacl of compensation of cement in the market. The lower cement quantities has affected the pace of construction works in the region, cement being sold at higher prices in the black market, decline in economic activity. The only projects running the region are the ones managed by the UNDP and UNRWA, which get sufficient cement supply from neighboring regions.

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REGIONAL REPORT

SOUTH EAST ASIA PAKISTAN MAY INCREASE FEDERAL EXCISE DUTY ON CEMENT

INDIA: KERALA CEMENT DEALERS UNHAPPY WITH MARKET CONDITIONS In the Indian state of Kerala, cement dealers are protesting against manufacturers by failing to unload cement in the city of Kochi. Dealers accuse companies from not paying them the difference in the billing and selling price of the product. Losses by the dealer, when selling according to the market trend, are usually supported by cement manufacturers through letters of credit.

According to the Kerala Cement Dealers’ Association (KCDA), companies have not made these payments over the past 15 months.

KCDA has 6,500 registered members, with an estimated 25,000 sub-dealers also taking part on the protest. Kerala consumes around nine lakh ton of cement per month.

The Ernakulam district, where Kochi is situated, consumes around 1.5 lakh ton per month.

The Pakistani federal government has proposed increasing Federal Excise Duty (FED) on cement by almost 100 percent from the next fiscal year. Currently, the domestic cement industry is paying FED in percentage, while as per budget proposals 2016-17, a fixed FED will be charged on cement starting next fiscal year. “Cement is currently chargeable to FED at the rate of 5 percent of the retail price. Now, the federal government has proposed to replace the current regime with fixed rate basis at the rate of PKR 1 per kg,” said an official. “This proposal is against the industry’s” demand as we were seeking some relief in taxes to further enhance domestic dispatches, he added. It is believed that proposed change in FED rate will increase the

CHINA: GUANZHONG REGION MAY WITNESSES LOWER UTILIZATION RATES The cement sector in China’s Guangzhong region may witness lower utilization rates reaching to around 50 percent. The cement demand is falling continuously due to unfavorable market conditions. The cement companies are likely to operate kilns for the next two months to avoid overcapacity situation in the market.

The companies have requested a mandatory shutdown of kilns. During

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illegal trade, i.e, smuggling of cement into the country,” said Muhammad Ali Tabba, Chairman All Pakistan Cement Manufacturers Association (APCMA).

In case the proposed changes are approved, it will lead to in over 100 percent increase in FED on local sales of cement. In addition, the government is likely to increase custom duty on clinker.

the shutdown, companies may upgrade the kiln after doing required tests, including environmental management, equipment maintenance, staff training.

REGIONAL REPORT CEMENT BENEFITS FROM CHINAPAKISTAN ECONOMIC CORRIDOR The China-Pakistan Economic Corridor is expected to boost cement production in Pakistan. The joint project between China and Pakistan brought hopes for an investment wave in Pakistan that will benefit the country’s entire industrial sector, especially the cement and steel ones. Pakistan is already a large cement producer, taking advantage from large limestone and gypsum deposits.

currently selling large amounts to Iraq, helping with the reconstruction works.

Other potential buyers include Yemen, Sudan, Ethiopia, and Algeria. DGKhan Cement is currently building a new cement plant in the country.

It currently exports cement to several countries including Iran, India, and the UAE. Traditionally, Pakistan is a large supplier of cement to Afghanistan– having exported 2.5 million tons of cement into the country – and is

M&AS MADE EASIER IN INDIA Selling cement assets in India has now been made easier by changes in the Mines and Minerals (Development and Regulation) Act.

BEIJING WANTS TO CUT CEMENT PRODUCTION CAPACITY The Chinese State Council says that China must cut 500 million tons of cement production capacity over the next three years. Chinese authorities are trying to tackle cement oversupply by scaling-back production, as they are already doing with coal and steel. Currently, the country has the capacity to produce 3.2 billion tons of cement per annum, but it only uses 67 percent of it. Last year, production fell by 5.7 percent on the fourth quarter of 2015.

Cement manufacturers still hope that China’s economy will get back to doubledigit pace of growth, and they continue to build new cement plants. In the last three months of 2015, 31 new cement plants were put into operation.

Cement companies will be able to transfer captive mines when selling plants. However, the transfers will now be targeted by higher fees. Until now, every captive mine could only be transferred by open auction.

The government is yet to announce the formula to calculate transfer fees. Some responsible in the sector are afraid this may become too high, putting additional burden to companies trying to buy new assets.

INDIA: CEMENT SECTOR HOPES FOR GOVERNMENT INVESTMENTS Dalmia Cement expects demand for cement to increase following federal investment on roads and affordable housing. India has the installed capacity to produce 360 million tons of cement but consumed only 270 million tons in the last fiscal year.

Dalmia Cement hopes that government schemes like Swachh Bharat Mission will boost cement consumption in the country. During the first five months of 2016, cement demand increased by 3.8 percent year-on-year. The real estate sector is not bringing real growth and demand increase is being supported mainly by the state. About 60% of the country's cement consumption is from housing, with infrastructure and new manufacturing facilities each contributing 20%. This year, Dalmia Bharat Group predicts a turnover of INR 8,000 crore, up from INR 6,700 in 2015, with cement accounting for over 80 percent of that.

The current state of weak demand is being attributed to seasonal factors like water shortages and severe heat. A better monsoon and higher government spending on infrastructure projects are expected to change the situation. Right now, the eastern region was relatively spared from those seasonal conditions, with demand remaining higher than national average. Even so, companies are not getting much benefit from that, as prices remain generally weak given stiff competition from the new suppliers on the market, Shree and JK Lakshmi Cement.

The changes are predicted to make mergers and acquisitions easier, include some that are still underway like the merger of Holcim and Lafarge and the acquisition of Jaypee’s cement assets by UltraTech.

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REGIONAL REPORT

ASIA PACIFIC VIETNAMESE CEMENT MAKERS STRUGGLE TO EXPORT Vietnamese cement producers struggle to export their product, as cement production installed capacity will continue surpassing demand.

This year, Vietnam will consume 56.5 million tons of cement, 4 percent more than in the last year.

Even so, the country will still run on a 25-million-ton supply. In 2015, the country consumed 55.7 million of cement and exported around 16 million tons of cement, mainly to Bangladesh, Malaysia, Indonesia, and the Philippines.

Vietnam’s cement sector is expected to run into surplus during the next decade. Vietnamese cement manufacturers are struggling to create their place in the southeast cement market, as Chinese rivals offer lowpriced products and Thai competitors offer quality products and rapid transportation. Vietnam has no dedicated ports or logistic systems to export cement and many factories are located inlands, away from seaports.

Many plants continue to operate under the designed capacity, with many small players in the market.

Mergers and Acquisitions are seen as a possible solution to consolidate those small enterprises into larger, more efficient groups.

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INDONESIA BOOSTS CEMENT EXPORTS Indonesian cement producers are exporting more of their output. During the first four months of the year, Indonesian clinker and cement exports increased year-on-year an impressive 136.3 percent, to 482,000 tons. Several producers are pushing their way into the external market, with Semen Indonesia, the largest manufacturer in the country, planning to establish a new subsidiary exclusively dedicated to exports.

VIETNAM'S CEMENT EXPORTS DECREASE SLIGHTLY Vietnamese cement exports decreased during the first four months of 2016, compared to the same period last year.

During that period, Vietnam exported 5.99 million tons of cement worth USD 218.08 million, going down by 1.7 percent in volume and 17 percent in value.

Bangladesh continues to be the largest destination for Vietnamese cement, with 2.17 million tons imported or 30 percent of Vietnamese exports. The Philippines

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Semen Indonesia is also considering the acquisition of two foreign cement firms to expand its overseas presence.

Semen Tonasa, a subsidiary of Semen Indonesia, started exporting cement into the Philippines in June, shipping 4,100 tons, while its top foreign buyer remains East Timor. Semen Padang, another subsidiary from Semen Indonesia, is also engaged in exporting, especially to the Middle East. Apart from Semen Indonesia, Holcim Indonesia has been exporting cement to Bangladesh and Sri Lanka for some time now.

were second with 1.3 million tons imported, followed by Mozambique with 351,000 tons. In the mean time, domestic cement consumption skyrocketed by 117.4 percent to 18.85 million tons, with VICEM alone selling 7.52 million tons, 131.5 percent up from 2015 figures.

REGIONAL REPORT THAILAND: SCG UPGRADES CUSTOMER SERVICES Thailand cement company SCG has revamped three key platforms including SCG Building Materials website, the SCG Contact Centre, and the SCG Experience Store, its flagship store in Bangkok.

The website, scgbuildingmaterials.com, consolidates all the information that was previously assigned to around 50 product websites of the group.

The company has spent more than THB 20 million on a major renovation of the 6,200-square-metre SCG Experience Store, which showcases popular housing trends.

"Customer-centricity is our bottom line.

For us, customers come before sales and profit, since we believe that if customers are satisfied, sales and profit will follow," said Nithi Pattarachoke, vice president for the domestic market of SCG Cement-Building Materials. “SCG would use the feedback it gathers from these customer touch points to develop and improve its products and service,” added Nithi.

INDONESIA RECORDS UPTAKE IN SALES

significantly higher domestic cement demand.

Indonesia cement recorded a 4.2 percent increase in cement sales to 19.3 million tons in the first four months as compared to the same period a year earlier. The cement sales increased due to three new cement makers in the market.

Rainfall could be a factor that has hampered development of property and infrastructure projects in April,” said Widodo Santoso, General Chairman of the Indonesian Cement Association (ASI).

The new cement companies supplied around 600,000 tons of cement in the first four months. In the absence of these three new players in the market, the cement sales would have increased by 0.7 percent on a YOY basis. Meanwhile, several companies in the country recorded a steady increase in their production capacities. “[The] government-led infrastructure development is yet to give rise to

PHILIPPINES: CEMAP DEMANDS CHANGES IN POLICIES

JAPAN IMPORTS RUSSIAN COAL FOR CEMENT KILNS Coal produced in the Russian region of Sakhalin was delivered to Tomakomai, in Hokkaido, Japan, for use in the cement industry. 6,000 tons of coal were delivered as part of an experimental batch to be used

by Japanese cement manufacturers. Until now, Japanese cement plants used coal from Australia and Indonesia, but after a visit by Russian representatives to Japan, several deals were signed to ship coal from much-closer Sakhalin to Hokkaido.

The Cement Manufacturers Association of the Philippines (CeMAP) has demanded change in its policies relating to the use of ordinary Portland cement in public infrastructure projects. The move is aimed at helping the country achieve its goal of slashing carbon emissions by 70 percent by 2030.

The local cement producers are trying to increase the use of blended cement as it is more eco-friendly than Portland cement. “In the Philippines, the private sector uses more than 80 percent blended cement. The government, on the contrary, does the opposite. They

use 80 percent Portland cement,” said Ernesto Ordoñez, President of CeMAP. The officials highlighted that the greater the amount of mineral additives used in cement, the greater would be the reduction in ordinary Portland cement clinker demand, and thus, less greenhouse gas emissions. Meanwhile, the Association is requesting the Climate Change Commission to further promote and push the use of blended cement. In October 2015, Philippines submitted its initial commitments to the United Nations to address climate change that included a 70-percent reduction of carbon emissions by 2030.

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REGIONAL REPORT "BANCO DE MATERIALS" CONTINUES TO DISTRIBUTE CEMENT IN MEXICO

AMERICAS

Vouchers for affordable cement have been distributed to families in the region, with the equivalent to 17,000 cement bags already distributed.

Cemex is the company responsible for providing the necessary cement.

Each family is given a maximum of 10 cement bags at the cost of MXN 85 per unit.

CEMENTOS ARGOS CONTRIBUTES TO CONSTRUCTION OF PANAMA CANAL Cementos Argos has contributed to construction of Panama Canal, under a contract that was signed in 2010 with Consorcio Grupo Unidos por el Canal.

The company was awarded the design and construction of the third set of locks and creating the navigation channel.

A contract for USD 65 million was later expanded to USD 92 million given the magnitude of the work and high levels of service offered by the company. “We are extremely pleased and proud to be part of this historical legacy that will be delivered to the

ARGENTINA RECORDS A DROP IN CEMENT SHIPMENTS The Argentine Portland Cement Manufacturers Association (AFCP) recorded a 27 percent drop in cement shipments in April as compared to the same period a year earlier. The cement shipments fell by 13.7 percent in the first quarter of 2016 as compared to the

world. We believe that this extension is one of the most important works of infrastructure in Latin America," said Juan Esteban Street, president of Cementos Argos. Meanwhile, as of May 2016, the company supplied 1,100,000 tons of cement materials including bulk cement, ground pozzolan cement, conveyor cement pipes. same period a year earlier. The cement shipments are likely to fall even further in the next few months. The corporate executives attributed the slowdown to the recession and the newly introduced changes in the laws of audits in the region.

Meanwhile, the domestic consumption reached just over 756,000 tons in April, indicating a decrease of 14.5 percent from March and 27.6 percent compared to April last year.

The monthly declines in local demand for the main construction input had been 12.1 percent in November, from 5.9 percent in December and, from 8 percent in January, 6.6 percent in February and 10.4 percent in March.

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The “Banco de Materials” program is witnessing a large demand in Mexico’s Monclova region. Officials connected to the program have already asked for more trucks to handle the large volumes required to meet demand for the project.

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MEXICO RECORDS SURGE IN CEMENT PRICES Mexico cement sector recorded an eight percent hike in cement prices. The hike in cement prices is likely to affect the profit margins of the construction companies in the region.

"In addition to this there are others that are trading at price and dollar necessarily have to buy inputs, which also comes to affect the finances of those who are dedicated to this activity," said Roberto Salinas Ferrer, president of Mexican Chamber of Construction Industry (CMIC). Meanwhile, the cement prices are likely to increase even further in the next few months.

REGIONAL REPORT

TRUJILLANOS LIKELY TO PRIORITIZE CEMENT PRODUCTION Trujillanos is likely to prioritize cement production. Recently, Cemento Adino conducted a meeting to discuss the several ways to improve cement production in the region.Though the cement company is doing a better business in the market, it is keen on improving its regional hold in the market. However, the company also believes in creating equal opportunities for several market players. Meanwhile,

the company also stressed on the need for regionalization on cement in the market, which is likely to have a positive impact on the domestic market.The company will continue to implement eco-friendly ways of cement production.

INCREASED COMPETIVENESS IN THE BARBADOS MARKET

In the last five months, cement price has dropped from USD 220 per ton to USD 160 per ton in Barbados. The new market

PERU: CEMENT MARKET WITNESSES SIGNS OF RECOVERY According to the Association of Cement Producers (Asocem), the Peruvian cement market continues to show signs of recovery. The cement production has increased by 1.4 percent after May,

player, Rock Hard Cement, took credit for this sharp decrease in prices. According to the company’s responsible, Rock Hard added competitiveness to the Barbados’ market. They also claimed that, in the five months Rock Hard has been operating, the company managed to get a 65-percent share in the market, a claim that is not verifiable. In the future, the company wants to explore new markets, including Guyana, Haiti, Jamaica, Panama, Suriname, the Eastern Caribbean, the French-speaking nations and South America.

2016 as compared to the same period a year earlier. "During the fifth month of 2016, cement production had a slight decline but national and total shipments continue to rise," said an official in Asocem. During the month of May 2016, production decreased slightly by 0.2 percent compared to May 2015.

MEXICO: HOLCIM TO REDEFINE ITS MARKETING STRATEGY Holcim Mexico plans to redefine its marketing strategy in a bid to improve its market share.

The company has begun the process of change internally as they will initiate a new operational phase that entails the development of a new organization divided into four main business segments including distributors; edification; infrastructure and industrial segment.

The company officials believe that the Mexican market has changed widely in the last few years and it is important to improve its operations to fulfill the needs of the new customers.

"We see a positive outlook on the Mexican market for the coming years and a great opportunity to be closer to customers with tailored solutions, the best support and excellence in quality of Holcim products, with the overall support of Lafarge Holcim," said an official from the company.

VENEZUELA DISCUSSES WAYS TO REVIVE CEMENT SECTOR Venezuelan minister, Juan Arias held a meeting with the cement sector workers to discuss ways to revive cement industry.

The meeting focused on increasing cement production to meet proposed plan of building around 500,000 homes in the country. The minister also discussed generating space and discussed effective way to produce cement using available resources.

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BMWEEK.COM

CONSTRUCTION & BUILDING MATERIALS

BY BMWEEK.COM MEXICAN RESEARCHERS USE FLY ASH IN CEMENT PRODUCTION

financial benefits, by cutting costs while also reducing waste.

Researchers from the Technological Institute of Saltillo, in Mexico, developed a new cement mix made with industrial waste. Specifically, researchers used fly ash from metallurgical coal used in the kilns to produce cement. This new method brings environmental and

Researchers say that the use of fly ash in cement making does not impact human health, because this kind of waste from kilns does not contain heavy metals.

This mixture cannot, however, be used to produce conventional Portland cement because worldwide standards do not allow it.

RESEARCHERS MAKE IMPORTANT COAL ASH BREAKTHROUGH In the U.S., researchers at the North Carolina A&T State University found a new, safe way to store coal ash underground and to reutilize it in building materials. "This coal ash is not waste, it is a valuable resource if we handle it properly. We have a problem and, yes, we have a method of solving the problem,” said Kunigal Shivakumar, director of the University’s Center for Composite Materials Research. The new technique requires mixing large quantities of ash with polyurethane. The resulting substance could then be pressed into a variety of forms in order to make building 35

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supplies, such as exterior siding, decking and interior moldings. It could be shaped into large blocks for long term storage.

This would avoid the necessity of burial in a costly, lined landfill by permanently entrapping heavy metals and other coal-ash pollutants within the plasticized matrix.

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MEXICAN RESEARCHERS DESIGN ECOLOGICAL CEMENT Mexican researchers at Instituto Tecnológico de Saltillo have designed a new ecological cement using industrial waste.

The researchers used the combination of slag and chemical additives that when mixed with water form a paste that reacts and hardens, which simplifies the traditional method.

"We are doing some research focused on the development of new cementitious from abundant industrial waste in the region. Are materials that are confined in open sky patios and don't have a massive use,” said Dr. Oswaldo Burciaga Diaz from Instituto Tecnológico de Saltillo. Researchers are trying to use the materials to develop new variant of cement which has lower environmental impact.

The researcher of ITS stated that the development of these cements would impact positively in the society, as they are ecological materials from recycled waste and low production cost. He explained further the new variant of cement can be used in new construction technologies that by its energy efficiency would reduce the costs of heating and air conditioning, which generates an economic profit.

PETCOKEWEEK.COM

PETCOKE PRODUCTION, SHIPPING AND PRICING

BY PETCOKEWEEK.COM INDIAN COMPANY TO INCREASE PETCOKE CONSUMPTION The move will help in improving operational efficiency.

India-based Ramco Cement is planning to increase petcoke consumption. The move will help improving the operational efficiency.

The company is also expected to benefit from cost controlling measures, coastal shipping and fleet optimization.

The company already recorded improved results in FY16, as compared to the previous year.

REDUCED PETCOKE PRICES BOOST INDIAN CEMENT INDUSTRY As the demand in cement rises, and petcoke prices drop, India’s infrastructure industry is going through a boom.

According to a statement by Dalmia Bharat, the demand in cement could double until the end of the financial year, boosting the Indian real economy.

"We expect the first quarter growth to be about 5% and by the year-end, we would probably see a growth of 7-8%," said Amandeep Gupta, Director and CEO of

LOWER PETCOKE PRICES IMPORVE HEIDELBERG’S EBITDA HeildelbergCement India benefited from a reduction in petcoke prices.

OCL India, a listed subsidiary of the Dalmia Bharat Group, referring to the demand.

"While prices didn't improve much since the last quarter, all cement companies have tried to bring down costs, and with stable and lower pet coke prices, we would see margins in the current as well as the second quarter continuing at levels seen in the fourth quarter," he added.

Another representative of the company, B.K. Singh, is confident that this rise in demand will bring the industry back to the growth it was a few years ago, as the cement industry is in close relation with the Gross Domestic Product (GDP).

Additionally, the company is using petcoke to improve its operational efficiencies. HeidelbergCement expects to sustain the improved EBITDA margin in the long run.

The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margins improved by 18.50 percent in the fourth quarter of FY16.

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EQUIPMENT

EQUIPMENT FLSMIDTH RECEIVES ORDER FROM TANCEM The company will share the contract with Larsen and Toubro. Denmarkbased FLSmidth and Indian company Larsen and Toubro have signed a contract with Tamil Nadu Cement Corp to supply equipment for a complete cement production line. The cement plant will have a capacity of 3000 tons per day and will be located in Ariyalur region in Tamil Nadu.

The company did not reveal the value of the order, however, the order of this kind is usually valued at SEK 200 million. The delivery of the equipment in over the next 16 months and the equipment includes systems for environmental pollution control, maintenance technology and the Danish engineering group's proprietary automation systems.

Meanwhile, Larsen & Toubro will construct the cement plant and FLSmidth will supply technologies to the proposed cement plant.

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SAUDI ARABIA: ABB TO INCREASE EFFICIENCY OF CEMENT PLANTS Saudi Arabia’s Al Eastern Province Cement Company plant in Al Khursaniya will receive extensive electrical infrastructure upgrade for two 30-year-old cement production lines from ABB. “ABB completed the final upgrade on site in record time during the planned maintenance shutdowns of the plant,” said Mohammad Arif Khan, electrical and

EGYPT: NATIONAL CEMENT TO BUY COAL MILL The Egyptian company National Cement wants to raise EGP 250 million to buy a new coal mill by the end of July. The company is currently studying ways to finance the project, that may include refinancing and bank loans. National wants to secure an environmental approval for the use of coal in its production lines during July.

Coal-fired generation is set to begin almost immediately after the approval issuing. National Cement expects to save around EGP 338 million in 2016-17 by

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instrumentation manager at EPCC. He added, “The excellent teamwork between EPCC and ABB engineers made it possible to meet this challenge without affecting the production of the other production lines.”

The scope of supply includes, existing 75 medium-voltage (MV) switchgear panels to the latest protection relay generation, and integrated the power supply systems with the ABB 800xA automation system.

switching its fuel source from natural gas to coal. During the second half of 2015, the company profited EGP 9.8 million, compared to a loss of EGP 228.1 million in the same period 2014.

EQUIPMENT

LOESCHE TO SUPPLY HINDUPUR GRINDING PLANT Sri Balaha Chemicals has placed an order for a vertical roller mill designed

by Loesche for their Hindupur grinding plant at Andhra Pradesh, India. The mill designed for grinding granulated blast furnace slag will produce at a capacity of 50 t/h and the material is ground to a fineness of 4,000 cm²/g Blaine.

Additional equipment is included in the contract, such as mill fan, dampers, expansion joints, magnetic separator and metal detector. The lead time for

the main components of the mill is 10 months. The same mill type is operating successfully in the Indian cement plant at Bhavanipuram since 2001. Loesche India has sold over 100 vertical roller mills for the grinding of raw material, coal, and cement to various clients in the country.

CHINA: ANHUI CONCH CEMENT AUCTIONS FIRST GRINDING UNIT China-based Anhui Conch Cement has successfully auctioned its cement grinding unit with a capacity of 1,598,400 tons of cement. The company has also auctioned another cement grinding unit with a capacity of 1,589,200 tons of cement. Meanwhile, Wuhu conch, Digang conch will invest CNY 1.5 billion each, the original cement mill system for technological transformation of energy saving and environmental protection, raise the level of technology and equipment,

Alexandria Cement wants to install its new coal mills until the end of the year. The company is spending EGP 600 million to convert its plants in Alexandria and Beni Suef to work based on coal and waste fuel.

Alexandria Cement hopes to cut costs by reducing expenses with fuel.

Alexandria has three production units, one in Alexandria and two in Beni Suef, with the combined capacity to produce 3 million tons.

SIAM CEMENT ADOPTS NEW DIGITAL PLATFORM

Siam City Cement Group adapts the new software, S/4 HANA, to its digital operations. Siam was the first company in Thailand to go live through the new S/4 HANA environment. The cement company

EGYPT: ALEXANDRIA CEMENT SWITCHES TO COAL AND WASTE FUEL

is gambling strongly on the technology sector, running a company called INSEE Digital, which provides digital solutions to the whole group and to customers outside the company. S/4 HANA, an integration platform, was had a good reception among the 400 Siam workers, at least according to the company’s Chief Executive Officer of INSEE Digital. Sirivasukarn says that tasks like end-month consolidations were now made much easier, and that, in general, the platform promotes efficiency and new solutions. promote the comprehensive utilization of resources, effectively reducing energy consumption per unit. After the completion of the project, the two companies cement (grinding) total production capacity will increase from 6 million tons to 9 million tons.

During the first quarter of 2016, the company had a net loss of EGP 106.76 million, compared to a net loss of EGP 529,000 in the same period last year.

Part of this year’ losses can be attributed to the investment needed to convert the fuel source of the plants and the reduced capacity resulting from the switch.

HAIL CEMENT COMPLETES MAINTENANCE WORKS Saudi manufacturer Hail Cement has just restarted cement production on one of its production lines after completing regular maintenance work. The production line was stopped last May 23. The financial impact of this works will be presented on the report for the second quarter of 2016.

This same production line had already been stopped between December 8 and December 19, 2015, for annual maintenance of both the kiln and the mill.

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

Germany:

11 articles

Iran:

Algeria:

15 articles

Mexico:

Egypt:

China:

25 artciles

Pakistan:

47 articles

49 articles

26 artciles

Saudi Arabia:

10 articles

25 artciles

India:

60 articles

Indonesia:

24 articles

Brazil:

10 articles

South Africa:

10 articles

CW GROUP AGENDA / REPORTS 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 MEETING AGENDA INCLUDE: October 4-5, 2016 October 19-20, 2016 December 6, 2016 February 15-16, 2017

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CW Group’s Cement Finance, Strategy & Trade Summit Americas 2016 Miami, USA

CW RESEARCH NEWEST REPORT:

Conference

Cement Business & Industry South Asia 2016 Mumbai, India

Conference

AshTrade India 2016 New Delhi, India Conference

Cement Business & Industry Brazil & LatAm, 2017 Sao Paulo, Brazil

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Conference

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GLOBAL CEMENT VOLUME FORECAST REPORT

1st March

GLOBAL CEMENT TRADE PRICE REPORT 2Q2016

1st July

WHITE CEMENT REPORT 2016

1st June

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Brexit to affect UK construction sector Philippines: Slowdown in construction retail prices 3. Fly ash units installed in Bokaro 4. Record expansion for Irish construction sector 5. Indian power plants to supply free fly-ash 6. Jamaica: Used tyres to be utilized in asphalt 7. Australian construction sector hits record high 8. Malaysia's CIDB to invest in India 9. US: Frac sand mines plan investments 10. Japan: Obayashi launches new cementbased product

region economic development

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TOP PETCOKEWEEK STORIES 1.

Saudi arabia: yamama cement posts decrease in net profit 2. Sibtsem posts lower production figures 3. Semen Gresik posts results for June and 1H2016 4. Lower petcoke prices boost cement industry in India 5. Belarusian companies invest in refineries and services 6. China refinery gets new hydroprocessing technology 7. Reliance's performance exceeds expectations 8. Chinese thermal coal prices must not rise too fast 9. BHP Billiton: thermal coal production goes down 10. Coal production to continue falling in the US

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Italcementi sells assets in Belgium Nirma enters race for Lafarge India Chinese company Sinoma to build cement plant in Egypt 4. India: Indian Overseas Bank to sell Binani Cement’s non-performing assets 5. Bolivia: Caracolla Cement advances construction the plant 6. Eurocement unlikely to sell Uzbekistan unit 7. Pakistan: Fauji Cement temporarily halts operations 8. Spain: Cement consumption continues to fall in April 9. Egypt: El Sewedy Cement acquires stake in Sinai Cement 10. LafargeHolcim to exit Sri Lanka market

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13

A CEMENT AND LIME INDUSTRY CONFERENCE AND EXHIBITION BY

CEMENT BUSINESS & INDUSTRY

2016

OCTOBER 19 - 20, 2016 PAST PARTICIPATING COUNTRIES

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MUMBAI, INDIA

REGISTER NOW! LOCAL CONTACT SRIRAM GANAPATHI Sr. Conference and Events Executive (India) sg@gmiforum.com P: +91 22 66072700 M: +91 9969297536

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PAST PARTICIPATING COMPANIES ABG Cement • ACC Limited • Aditya Birla Group • AIPMA • Alley-Cassetty Companies • Alliance Polysacks • Alternative Resource Partners • Ambit Capital • Ambuja Cement • Amrit Cement Industries • ASEC Trading • ATS Conveyors • Beroe Consulting • BEUMER Group • Bharathi Cement Corporation • Biltech Building Elements • Binani Industries • BQB InfraTechnorium • Browz • Burundi Cement (BUCECO) • Cachapuz • Cement Manufacturers Association (CMA) • Chettinad Cement • Chryso • Cimpor • Cimprogetti • Claudius Peters • Credit Suisse • CRH India • CTTL • CW Group • Dalmia Cement • DPTS Enterprises • Dron Energy • Emerald World Resources • Evonik Degussa India • Fly Ash Association of India (FAAI) • Fives FCB • FLSmidth • Golder Associates • Gujarat Siddhee Cement • Heidelberg Cement Group • HGH Systemes Infrarouges • Hi-Bond Cement India • Hirmi Cement Works • Holcim • International Finance Corporation (IFC) • Indian Institutes of Technology (IIT) • I-maritime • India Cements • Indian Concrete Institute • Indus Marketing Engineers • InGlobal Resources • Intelesco Solutions • IPIRTI • Italcementi Group • J.K.Cement • Jaypee Group • JK Sons • Jyotech • KHD • KJS Concrete • Lafarge • Lakshmi Cement • Larsen & Toubro • Loesche • Lytag • Madras Cement • Magnesita Refractories • Mapei • MASA India (MASA Group) • Maverick Consulting • McKinsey & Co • Merrill Lynch • Middle East Green Energies • Ministry of Mines Afghanistan • Ministry of Mines and Petroleum • Mitsui • Mjunction Services • Mondi Oman • Murli Cement • MyHome Industries • National Council for Cement and Building Materials • Neptune India • OM Consultants (AIPMA) • Orient Cement • Phillip Capital India • Plant Supervision • Prism Cement • Promac India • PricewaterhouseCooper • Quality Circle Forum Of India (QCFI) • Qualical • RAMCO - Enterprise Process Solution • Ready Mixed Concrete Manufactureres Association (RMCMA) • Refratechnik • Reliance Industries • Rexnord • RMC India • RNB Cements • RNCOS Business Consultancy • SABIA • Sagar Cements • SAIF • Sanghi Industries • Satna Cement Works • Saurashtra Cement • SB Engineers • Segezha Packing • SFK • Sharjah Cement • Shree Cement • Shri Digvijay Cement • Societa Impianti Calce (SIC) • SKF India • Somi Conveyor Beltings • Starlinger & Co • String Automation • Takraf • Tata Strategic Management Group • Tenova Mining & Minerals • The Crescent Group • The Energy and Resources Institute • Timken India Limited • Ultratech Cement • Union Cement • Vasavadatta Cement • Vicat • Vyankatesh Chemical Industries • W.R. Grace and Company • World Business Council for Sustainable Development (WBCSD) • Zawawi Minerals • Zuari Cement

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