Merry Christmas and Happy New Year / Boas Festas e um feliz Ano Novo / Chuc Mung Giang Sinh / Colo sana wintom tiebeen / I'D Mubarak ous Sana Saida / Froehliche Weihnachten und ein gluckliches Neues Jahr / Felices navidaes y prósperu añu nuevu

AFRICA: TOGO: Les mines et l’énergie, des secteurs clés de l’économie en pleine restructuration

Considérés comme des leviers de l’économie nationale, les secteurs des mines et de l’énergie sont en pleine restructuration ces dernières années, suite à l’élaboration de différentes politiques nationales.

Dans le secteur de l’énergie, d’immenses efforts sont déployés pour venir à bout du délestage qui avait plongé en 1998, l’économie de plusieurs pays de la sous-région dont celle du Togo dans le gouffre.

"Notre objectif est d’assurer une stabilité énergétique, à la fois au niveau des ménages et au niveau industriel et commercial. Il est également de notre ambition de réduire notre dépendance extérieure tout en consolidant les approches régionales", avait déclaré en juin dernier le Premier ministre Gilbert Fossoun Houngbo lors de la présentation de son programme d’action devant les députés.

Les autorités togolaises ont renforcé les actions entreprises depuis 2008 pour développer l’offre énergétique et augmenter le taux d’accès des populations à l’énergie, singulièrement en milieu rural, et étendre l’éclairage public à Lomé et dans les grandes villes du pays. 

En Octobre dernier une centrale thermique de 100 MW de ContourGlobal, a été mis en service et permettra au Togo de disposer de 70% de sa consommation sur son territoire, soit 130 MW (avec les 20 MW de la turbine à gaz de la CEB et les 20 MW de Nangbéto) et ainsi dépendre moins de l’extérieur.

Le projet de renforcement et d’extension du réseau de la ville de Lomé ainsi que le projet d’électrification rurale ont démarré, alors que celui d’électrification transfrontalière avec la contribution des compagnies électrique du Togo et du Ghana s’achèvera au plus tard en 2011, et permettra ainsi à 50.000 nouveaux abonnés et à une centaine de localités d’être reliés aux réseaux électriques. Les efforts seront poursuivis au cours des cinq ans à venir pour doubler ces raccordements.

Le gouvernement entend mettre en place un fonds pour l’électrification du monde rural.

Cette mesure dont l’échéance est fixée pour fin décembre 2010 n’a pas encore connu un début d’exécution car le financement n’est pas encore bouclé en vue de l’étude de faisabilité.

Sur le plan régional, le gouvernement s’investit pour le démarrage effectif du projet d’interconnexion 330kV entre le Nigeria, le Bénin, le Togo et le Ghana en 2012.

Le projet permettra de disposer d’un réseau puissant facilitant les transits d’énergie, l’optimisation des moyens de production des quatre pays précités ainsi que de secours mutuel en cas de difficulté.

Par ailleurs le gouvernement s’est engagé à accélérer, en concertation avec les autorités béninoises, le processus de construction du barrage hydroélectrique d’Adjarala qui devrait couvrir d’une manière excédentaire les besoins énergétiques des deux pays.

Tous ces travaux de renforcement devront efficacement contribuer à la relance de l’économie nationale, en accompagnant notamment la relance du secteur des phosphates, le démarrage de la production de trois nouvelles sociétés dans le secteur des mines et l’extension du Port Autonome de Lomé.

Privée d’aide substantielle des bailleurs de fonds pendant près de quinze années, l’économie togolaise se redresse très lentement.

L’Union Européenne et les principaux partenaires bilatéraux avaient suspendu leur coopération avec le Togo en 1993 pour «déficit démocratique». Suite aux efforts déployés par le gouvernement togolais dans le domaine du respect des droits de l’homme, tous ces partenaires ont renoué avec le décembre 2007.

Les prévisions macroéconomiques affichent des taux de croissance économique réelle de 3,4% et d’inflation de 2,1% pour le Togo pour l’année 2010, selon le ministère des finances.

L’inflation s’est située à 2,1% à fin juin 2010, alors qu’elle était de 1,9% pour toute l’année 2009 et de 8,7% en 2008", affichent les statistiques.

Outre l’énergie, les mines constituent également l’une des grandes priorités de l’Etat.

Ces dernières années, des réorganisations en profondeurs ont été opérées dans ce secteur, notamment les phosphates et le clinker.

Vital pour l'économie togolaise, le secteur du phosphate - premier produit d'exportation du Togo avec 40% des recettes - est en cours de redressement depuis environ 3 ans.

La production s'est effondrée ces dernières années, passant de plus de 5 millions de tonnes en 1997 à environ 800.000 en 2007. Entre 2008 et 2009, la production annuelle tournait autour de 800.000 et 900.000 tonnes.

Quatrième producteur mondial de phosphate, le Togo entend investir 80 milliards de F.CFA dans ce secteur pour le renouvellement de l'outil de production, le renforcement des capacités humaines à tous les niveaux, une meilleure négociation des contrats à terme et une écoute plus attentive des préoccupations des collectivités locales.

Toutes ces actions permettront de porter la production de 1,6 millions tonnes en 2011 à 2,5 millions de tonnes en 2012 et 3 millions tonnes en 2013. 

S’agissant du clinker, le Togo entend tirer meilleur profit de la récente réorganisation de la filière par l’octroi d’un 2ème permis d’exploitation à CIMTOGO, et l’extension du permis d’exploitation de WACEM, et rendre plus disponible le ciment et à un prix attractif.

Au plus tard fin 2012, CIMTOGO démarrera une usine de production de clinker d’une capacité 1,5 million tonnes par an. Une société de production de ciment est en cours d’installation et devra démarrer son exploitation en moins d’un an avec une production annuelle de 500.000 tonnes.

VIETNAM: Vietnam exports to top $71 bln

VietNamNet Bridge - Exports are likely to be worth $71 billion this year, a 23 percent year-on-year rise, the Ministry of Industry and Trade's Planning Department said.

 

Thirteen of 35 export items saw prices increase -- cashew was up 21 percent; tea, 11 percent; pepper, 40 percent; rice, 4.8 percent; and rubber, 81 percent.

Among key items, apparel exports were worth $10 billion, rice shipments, nearly $3 billion, seafood, around $4.5 billion, and wood and wooden products, $3 billion.

Iron and steel, chemicals, rubber, vehicles, and cashew exports were all sharply up while that of crude oil tumbled nearly 23 percent.

Statistics from customs show that in the first 11 months exports were worth $64.5 billion, 25 percent up from the same period last year.

Sixteen items had posted an export value of more than $1 billion, two more than last year.

Exports are expected to grow 10 percent in 2011to $78 billion, the ministry said.

Trade deficit down

This year the trade deficit is estimated at $12 billion, down $1 billion from last year and the lowest in the last four years.

Imports in the first 11 months were cost over $75.5 billion, 20.7 percent up year on year.

By the end of November the trade gap was around $11 billion after imports rose for the third straight month to $7.94 billion, the highest ever monthly figure.

Import of certain items soared, especially that of gemstones and precious metals -- which rose 155.5 percent to $244.4 million after the government lifted a ban on gold import -- fertilizers, insecticides, tobacco, and liquefied petroleum gas.

With imports higher than exports, the trade gap persisted for a fourth month, exceeding $1 billion in the last two months.

Among 43 items imported, there was a fall in value in six, including clinker (down 33 percent) complete-built cars and motorbikes, petroleum products, and fertilizers (from 10 percent to above 20 percent).

Some items saw a strong rise, including machinery and equipments, feedstock like plastic and materials for the garment and textile industry.

Import of goods categorized as essential commodities by the ministry was worth $61.2 million, a year-on-year rise of 18.5 percent and accounting for 81.7 percent of total imports, while those categorized as “unnecessary and need to be controlled or limited” rose to $4 billion and $5.4 billion, up 20.9 percent and 22.9 percent.

Thus around $10 billion was spent this year for importing luxury goods, the ministry said.

PARAGUAY: Falta de cemento se debe al auge de la construcción, argumentan

Claudio Montiel, gerente de la Industria Nacional del Cemento (INC), expresó que la falta de cemento se debe al auge en la construcción.

“Se disparó la demanda de cemento, estamos viviendo un auge en la construcción con un crecimiento de aproximadamente 10%. A principios de año, estimamos 5 a 7% cuando se disparó”, expresó a la 650 AM el funcionario.

El mismo expresó que Paraguay no es el único que sufre la falta de cemento; la misma situación vive Brasil con el Mundial 2014 sobre sus espaldas, también Chile por la reconstrucción luego del terremoto.

Uruguay, Bolivia y Argentina se suman a los países afectados por la falta de cemento. 

“Brasil, porque tiene el Mundial en el 2014, está importando y realizando varias plantas de cemento; lo mismo ocurre en Uruguay y Argentina. Chile, por el terremoto, está importando más cemento de África y Europa, entonces lo mismo ocurre con Bolivia, que importa cemento y Argentina que importa clínker”, aseguró.

Montiel expresó que el horno del INC produce 2.000 toneladas de clínker, lo que permite a las plantas de Villeta y Vallemí producir entre 60.000 y 70.000 bolsas diarias.

“Tenemos un déficit y como medida hemos hecho un contrato con una empresa de la Argentina para el suministro de 50.000 toneladas de clínker y hasta ahora no han podido pasar lo acordado justamente por la demanda de cemento a Chile y de clínker a Bolivia”, indicó.

BOLIVIA: Prevén escasez de cemento para el segundo semestre de 2011

El ministro de Obras Públicas, Walter Delgadillo, informó ayer que durante el segundo semestre de 2011 la demanda de cemento se incrementará por encima de la capacidad productiva de las industrias cementeras. 

“De enero a junio no vamos a tener problemas, pero tenemos que tomar previsiones para el resto del año, incluso porque en esos meses el crecimiento del uso del cemento va a exigir una mayor demanda que la capacidad de producción”, advirtió. 

Delgadillo explicó que para evitar la escasez del principal insumo para la construcción se estima importar 180 mil toneladas de clinker porque el problema de la oferta no radica en las industrias, sino en la materia prima. 

Según la proyección del Gobierno, se trabajará con las industrias cementeras para afrontar esta situación. La demanda de cemento se incrementa cada año a un promedio de 10%. Este año varias obras se paralizaron por falta de cemento. /ANF

CHILE: Gasco rematará el martes el 40,8% de Cementos Polpaico

El próximo martes será el día en que se rematará el 40,78% de la propiedad que Gasco tiene de Cementos Polpaico.

Según informo el agente asesor y colocador, Banchile Inversiones, las órdenes se recibirán a partir de hoy hasta el 27 de diciembre, con un precio mínimo reservado.

Así, la corredora colocará en el mercado un total de 7.306.449 acciones de la compañía.

Producto de la operación se estima que Gasco recaude unos US$ 138 millones, monto que como se informó destinará a financiar proyectos en Chile y el exterior.

Durante la mañana de hoy, la acción de Polpaico no registra variaciones en su precio, ubicándose en los $ 8.100. En el año acumula una rentabilidad de 18,81%.

TURKEY: Free trade agreement with Turkey

Jordan’s free trade agreement with Turkey will come into effect as of next month. The agreement recognised the fact that the two countries are not on the same footing, therefore the Jordanian products will be allowed to enter the Turkish market tax exempt, while the Turkish products imported by Jordan will enjoy the tax exemption on gradual basis and will not reach full exemption until 2018.

As a matter of principle, trade between any two countries is beneficial to both. It encourages industrial specialisation and large-scale production. Producers in both countries will not confine themselves to their local market. They will look further and try to reach external market as well.

The absence of equality between the two countries when it comes to labour wages, industries’ subsidies, exports incentives and difference on exchange render the graduation stipulated in the agreement hardly enough to secure balanced and fair exchange of products between the two countries.

Yes, Turkey will grant full exemption to the Jordanian products entering Turkey.

This is good. The problem is that there are no Jordanian products which are ready to take advantage of this. If such products exist, they will not be able to compete with the Turkish products’ prices and/or quality.

Under the circumstances, it is very likely that trade between Jordan and Turkey will be in one direction. Jordan will play the role of importer and Turkey will be the exporter.

It is only fair to say that this state of affairs does not apply only to Turkey; Jordan did not hesitate to enter into sweeping free trade agreements with Gulf countries, which either do not impose taxes on imports or charge a symbolic tax, but there is almost nothing to exempt.

On the contrary, customs taxes in Jordan form a major source of revenue for the budget. Tax exemption in this case is very costly indeed, and not reciprocal.

In this respect, one should take into account that the Saudi or Emiratie producer enjoys cheap fuel, electricity and water, while the Jordanian producer has to pay more than the world prices for such industrial inputs.

How can competition between the two sides be fair under such situation?

One of the results of this state of affairs is the establishment in Jordan of a Saudi cement company with no factories, which imports clinker from Saudi Arabia at less than 50 per cent of the cost of producing this commodity in Jordan.

No wonder the Saudi local company was able in no time to expel Jordan’s cement factories from the market that produce their own clinker using fuel and energy at high prices.

The government hesitated and finally failed to act to protect local cement companies from unfair competition.

The share price of the Jordan Cement Factories Company, for example, dropped from JD12 to JD4. This is only one example, but it applies, at various degrees, to most local industries.

Jordan dared enter into free trade agreements with some advanced and industrialised countries like the United States and the European Union, but the results were extremely bad. The value of European Union’s exports to Jordan is 15 times the value of Jordanian exports to the EU.

Had it not been for the Qualifying Industrial Zones, trade with America would have been similar to that with the EU, perhaps even worse.

I am a supporter of opening up the Jordanian market to the world, provided, of course, that the exchange of goods and services is fair. Trade between two countries should be balanced or near balanced. Subsidised products, on the other hand, should not be allowed to enter the Jordanian market unless they pay a big enough tax to absorb the subsidy.

AFRICA: NIGERIA: Dangote moves to re-brand Nigeria with cement

The Dangote Group has expressed its readiness to make Nigeria a recognised nation in the global cement market–post 2016, in much the same way as Nigeria is a recognised oil and gas producer in the world.

The President, Dangote Group, Alhaji Aliko Dangote, who stated this in Lagos at the annual dinner of the Lagos Business School (LBS) Breakfast Club, said it was time Nigeria started to look away from oil and gas and began to develop other viable sectors of the economy such as the cement industry.

“Given the abundance of the basic raw material for cement in Nigeria (21 out of 36 states), the Federal Government needs to consistently follow a set of policies deliberately designed to maximise the advantage of this endowment,” he said.

According to him, the Dangote Group is committed to fully meeting national cement demand by ramping up its domestic production capacity to 20 million metric tonnes per annum within the next 12 months.

Noting that the envisaged production target would exceed local demand, which falls below global average, he added that the group was working towards ensuring that Nigeria became a net cement exporting nation by 2011.

He expressed the desire of the group to list on a major international bourse in 2011, in line with its global aspirations, saying that the listing of Dangote Cement Plc on the floor of the Nigerian Stock Exchange (NSE) recently, was a step towards this direction.

He said the merger between Dangote Cement Plc and Benue Cement Company Plc (BCC), which gave rise to the listing of the emergent company, Dangote Cement Plc on the Exchange, was designed to promote economies of scale and enhance operational efficiency.

He also restated Dangote Cement’s target of becoming one of the top 15 global cement producers in 2015, by which time it envisages a total capacity of 46 million metric tonnes in all its pan-African operations.

Dangote Cement currently accounts for more than 50 percent of the market in Nigeria and is expanding its plants across the country to match and surpass increasing local demand.

The group is also trying to consolidate its cement assets in other African countries as part of its strategy to become a major global player.

Already, the group has a cement plant in Ghana, which has commenced production, while it signed a $400 million (N60 billion) Investment Promotion and Protection Agreement (IPPA) with the government of Zambia recently, to enable it to establish a cement plant in that country.

It is expected that the 1.5 million metric tonnes per annum cement plant would come on stream by 2013.

The group also recently, increased its stake in South Africa’s Sephaku Cement from 19 percent to 64 percent in a deal valued at R779 million-the highest foreign direct investment (FDI) by an African company in South Africa.

RAK: Investors pour into RAK Cement stock

Investors looking to buy into cheaper stocks boosted Ras Al Khaimah Cement in trading yesterday, as its shares rose for the first time in a week. RAK Cement is trading at a "very much cheaper" price than its book value of Dh1.65, said Hettish Karmani, a senior analyst at Global Investment House in Kuwait.

The company gained 1.1 per cent to 86 fils and was the second-most actively traded stock on the Abu Dhabi Securities Exchange (ADX) General Index, with more than 17 million shares changing hands.

"The trigger… is that it is trading well below its book value, because from a financial perspective it is not as impressive as last year," said Mr Karmani. The company is expected to benefit from Qatar's spending spree on its infrastructure after it won the rights to host the 2022 FIFA World Cup, and from neighbouring Oman's cement deficit.

"It was a spontaneous event for the shares, all of a sudden the stock started getting traded heavily by the investors on the floor," said Sobhi Asim, a trader at the ADX.

"Within the UAE cement universe, RAK Cement remains our preferred stock," said Ankur Agarwal, an analyst at Nomura Securities in Dubai. "Compared with other peer firms, their management has remained conservative and they stay clear from investing in non-industrial sectors."

It is the season, Mr Agarwal said, to purchase shares of companies in anticipation of strong dividends. Last year, the cement firm provided a 10 fils dividend a share, which gave investors a yield higher than 10 per cent. "Shareholders in this region demand dividends and are more excited about it here than in places like Europe," Mr Agarwal said. Nomura anticipates a slimmer dividend this year, of 6 fils a share, providing a yield of 7 per cent, due to overcapacity in the sector. The company is expected to announce the dividend in March.

IRAQ: Sinoma International Wins $112.5M Iraqi Contract

Sinoma (Suzhou) Construction, a subsidiary of Sinoma International Engineering (600970), won a $112.5 million contract from Iraqi company, MASS IRAQ to build a cement production line in Iraq, reports yicai.com, citing a company filing.

The project is scheduled to be completed in 24.5 months from the signing of the contact.

Except for the down payment of $20 million, both parties will equally share the foreign exchange rate risk of the $92.5 million portion of the contract. The maximum compensation amount is five percent of the contract value.

RUSIA: The construction of Lafarge's new cement plant in Kaluga started

Lafarge Russia invests 300 millions of Rubles into environment protection in the Uralcement plant of Korkino, Chelyabinsk region. In order to decrease the dust emissions of its Korkino plant in the Chelyabinsk region, Lafarge replaces the electro filters of its two most important rotary kilns. The new dust filters allow decreasing the dust emissions at the stack by more than 10 times and reach at least current European regulations.

The construction of Lafarge's new project, a cement plant at Ferzikovo in Kaluga Region has started. This is the first project of Lafarge Russia and its business partner EBRD (the European Bank for Reconstruction and Development) which supports Lafarge's growth in Russia.

The construction of Lafarge's new project, a cement plant at Ferzikovo in Kaluga Region has started. This is the first project of Lafarge Russia and its business partner EBRD (the European Bank for Reconstruction and Development) which supports Lafarge's growth in Russia.

The new plant will have a production capacity of two million tons a year. This greenfield project will represent a breakthrough in Russia in terms of energy efficiency, safety performance and minimised environmental impact. The carbon footprint per ton of cement produced will as a result be cut by 31 per cent and energy consumption will be halved from current levels. Lafarge also plans to make use of renewable energy sources at this plant.

The cement production will start in 2014

The leveling, plant site roads works and temporary infrastructure on the field will be completed before end of 2010. The concrete & steel construction is expected to be completed before end of 2011. Also the mechanical erection will start in last quarter of 2011. The plant is expected to start producing cement in the first half of 2014.

Alex de Valukhoff, GM of Lafarge Cement Russia stated: "Russia is an important country in the Group's agenda. This new greenfield project shows our strong confidence in the potential and future of the country. We are glad to contribute to the development of the cement sector and to the economical development of the regions where we are present. The Kaluga region has been selected for its proximity to the market, but also in reason of the significant involvement of its Governor, Anatoly Artamonov, and his administration.

For our new projects a pool of Russian speaking technical managers is being trained in the different dry technology plants the Group operates in the European Union. We already have a Kaluga team in our head office."

Investments in current plants ongoing

Lafarge and EBRD will subsequently work on the next steps in the investment program, as well as on further enhancement of existing plants in Voskresensk, 120 km southeast of Moscow, and Korkino, 40 km south of Chelyabinsk in the Urals industrial heartland of Russia. (EBRD has since 2006 invested €190 million Euros in the equity of Lafarge Vostok SAS, the company which owns 100 percent of Lafarge Cement Russia.)

A program aimed at achieving an annual reduction in greenhouse gas emissions at the Voskresensk and Korkino plants equivalent to up to 200,000 tons of CO2, as measured in terms of constant cement output (2008), has already been launched. This involves, amongst others, the commissioning of new filters at both plants to improve their environmental performance.

FRANCIA: Lafarge lanza 'Aether', un clinker de baja emisión

El grupo Lafarge ha presentado Aether, un tipo de clínker (materia base del cemento) desarrollado para promover la conservación del medio ambiente a través de la reducción de emisiones de CO2. Aether ofrece propiedades técnicas muy similares a las del cemento Portland pero con un menor impacto ambiental. Esto ha sido posible gracias a su composición química que reduce la cantidad de piedra caliza necesaria para la fabricación de cemento, sustituyéndola por materias primas alternativas como yeso, arcilla y bauxita. Esto permite reducir un 25% las emisiones de CO2. Además, rebaja la temperatura del horno necesaria para conseguir la reacción química (1.300°C), permitiendo recortar en un 15% el consumo de energía.

Concebido por la compañía en colaboración con el Instituto de Materiales de Construcción de Polonia (MBM) y el Centro Británico de Investigación de la Construcción (BRE), este proyecto cuenta con la financiación del Programa de la Unión Europea 'LIFE+' destinado a apoyar proyectos medioambientales.

PARAGUAY: El suministro de la INC es mínimo porque ya no tiene clínker en Villeta

El stock de clínker en la fábrica de Villeta de la Industria Nacional del Cemento (INC) es cero, hecho que le obliga a reducir a su mínima expresión sus suministros. La estatal atiende hoy menos del 50% de la demanda local.

El director de la fábrica de Villeta, Silvio Delgado, fue muy claro al decir que “todo lo que llega vuelve a salir”, haciendo referencia a que al descargar una barcaza de clínker en la planta se procede de inmediato a molerlo para la producción de cemento.

En la fábrica de esta ciudad se encuentra el molino principal de la INC, en tanto que en Vallemí, donde se encuentra el horno de clínker, hay un pequeño molino. En Concepción hay un punto de despacho y actualmente el depósito de Sajonia de la estatal también es utilizado para entregas. 

Los despachos en los frentes mencionados, del 1 al 14 de diciembre, se pueden observar en el cuadro de la derecha, que fue proveído por la cementera.

El día 15 de este mes entregaron 15.000 bolsas en los tres frentes, mientras que ayer tenían previsto una entrega similar, de acuerdo con los datos oficiales.

Estas mínimas cantidades resultan insignificantes si se tiene en cuenta que el mercado de la construcción está demandando hasta 80.000 bolsas de cemento por día.

Según los registros, el despacho promedio diario de la estatal rondaría las 35.323 bolsas de cemento, que es apenas el 44 por ciento de los requerimientos locales.

Pero el problema no es solamente la disminución en las entregas, sino también la provisión a personas que no tienen ninguna relación con el sector. De acuerdo con las denuncias de los distribuidores, políticos y amigos de las autoridades de la INC son los que acceden al cemento en detrimento de los “depositeros” formales.

Este suministro irregular es el causante del aumento de los precios, que actualmente oscilan entre 65.000 y 80000 guaraníes por bolsa. En el interior del país ese precio alcanza hasta 100.000 guaraníes por bolsa. El valor normal del material de construcción oscila entre 38.000 y 42.000 guaraníes.

Según los distribuidores los precios normales son impracticables porque ellos tampoco consiguen el material con los valores usuales. Mientras que el precio en puerta de INC es 35.000 guaraníes, los “depositeros” están consiguiendo a 60.000 guaraníes de los revendedores, ya que de la estatal no consiguen provisión desde hace semanas.

Escaso fueloíl

No solo escasea el clínker para la molienda, sino también hay un mínimo stock de fueloíl, necesario para el funcionamiento del horno de INC. Según técnicos de Vallemí, se tiene combustible para elaborar el insumo hasta el 26 de este mes y no está asegurada la posterior provisión, porque no hay novedades de un cargamento en camino.

CHINA: China Shuangji Obtains Operating License Extension for Dongfang Cement Plant

China Shuangji Cement, Ltd. (OTC Bulletin Board: CSGJ) ("China Shuangji" or the "Company"), a leading producer of high-quality Portland cement in Shandong and Hainan Provinces in the People's Republic of China (PRC), announced that its Dongfang cement plant on Hainan Island, which it previously announced was on a published list of more than 2,000 production lines across China that the Ministry of Industry and Information Technology (MIIT) wanted to phase out due to concerns over outmoded production methods, has been granted a long-term extension of its operating license until after a new state of the art 2,000,000 MT cement plant is completed and fully operational.

"We have been working closely with both the Hainan government and PRC national authorities to resolve this matter so that it is mutually beneficial for all our stakeholders including our shareholders, employees, suppliers, customers, and also the people and businesses of Hainan Province who depend on our high quality cement for their construction needs. Everyone is very pleased by this outcome," said Mr. Wenji Song, Chairman and President of China Shuangji Cement, Ltd. "Under this agreement, we will be able to keep our Dongfang production line open, which has a current annual capacity of 500,000 MT, until after we have constructed a new modern cement plant." Mr. Song added, "We are presently negotiating with several banks and commercial funders to secure interest only loans for the money needed to build this new plant and are confident that we will be able to secure the funds on commercially competitive terms."

Mr. Song continued, "Hainan Province is growing rapidly and has gained significant strength and prosperity with many new real estate projects and infrastructures projects being planned. Once completed, this new, state-of-the-art 2,000,000 MT cement facility in Dongfang, Hainan Province, will have an annual capacity 4 times greater than the capacity of the present plant. This will greatly assist us in our goal to become one of the top suppliers of high-grade bulk cement in China." 

Once this new plant is online and fully operational, China Shuangji's total annual production run rate will be roughly 4,500,000 tons which would roughly equate to $180 million in sales and about $15 million in profits.

ESPAÑA: El consumo de cemento caerá en 2011 al nivel más bajo de los últimos 40 años

El consumo de cemento en España se situará en 22 millones de toneladas en 2011, el nivel más bajo de los últimos 40 años y un 10% menos que en 2010, según informó este jueves la Asociación de Empresas de Fabricantes de Cemento (Oficemen).

El presidente de Oficemen, Joaquín Estrada señaló, en una rueda de prensa en la que presentó las previsiones de la patronal de este año y el siguiente, que a cierre de 2010 el consumo de cemento se situará en 24,5 millones de toneladas, lo que supondrá un descenso del 15% respecto al año pasado.

Asimismo, Oficemen señala que la producción de cemento ha disminuido un 55% desde los máximos alcanzados en 2007, en pleno "boom" inmobiliario.

En cuanto al consumo acumulado entre enero y noviembre de 2010, Estrada apuntó que se ha situado en 23,06 millones de toneladas, un 15,5% menos que en el mismo periodo del año anterior, y aseguró que las exportaciones crecieron un 31,85%, hasta 3,6 millones de toneladas.

Por su parte, las importaciones decrecieron un 30,6% hasta noviembre, aunque aún representan un 9% del consumo nacional de cemento.

Más pérdida de empleo

Por lo que respecta al empleo, Oficemen espera que el sector finalice el año con la pérdida de cerca de 6.000 puestos de trabajo directos, una disminución similar a la experimentada en 2009, y cree que el empleo podrá seguir cayendo en 2011.

Estrada achacó la caída del consumo de cemento a "la incertidumbre macroeconómica" y a la "falta de visibilidad" de las cementeras, al tiempo que subrayó que, para que el consumo pueda estabilizarse, sería necesario que a medio plazo se demandasen entre cerca de 30 y 40 millones de toneladas de cemento.

El presidente de la patronal cementera resaltó que, de dicha demanda, la edificación residencial representa cerca de un 25%, pero que el 50% deberá corresponder fundamentalmente a proyectos de obra civil.

Según el director general de Oficemen, Aniceto Zaragoza, el recorte en inversión en infraestructuras del Gobierno ha provocado una "caída" del 35% de la licitación de obras públicas, que ha hecho que las perspectivas de la patronal sean "muy pesimistas".

Añadió que las cementeras "no esperan ningún efecto a corto plazo" del Plan Extraordinario de Infraestructuras (PEI), con el que el Ministerio de Fomento pretende incentivar la obra civil a través de la colaboración público-privada.

Por otro lado, Estrada recalcó la necesidad de un nuevo marco energético que permita a las cementeras ser competitivas, ya que, a su juicio, la política energética en España es "muy errática", y existe una gran "incertidumbre" sobre la evolución a corto plazo del coste energético de la producción de cemento.

Además, pidió a la Confederación Española de Organizaciones Empresariales (CEOE) que se generen "ideas, alternativas y propuestas" para el sector, y señaló que, por el momento, Oficemen no tiene una opinión formada sobre su posible apoyo a uno de los tres candidatos a la presidencia de la patronal.

OMAN: Raysut a casualty in cement price war

A price war between Oman and the UAE is creating a rocky outlook for shares of Raysut Cement.

The Omani company plans to buy Pioneer Cement Industries, a UAE company, reportedly for about US$180 million, although a final price has yet to be announced.

But the move is "not fruitful" for Raysut, say analysts at Global Investment House (GIH) in Kuwait. GIH downgraded Raysut's stock to "reduce" with a target price of 1.088 Omani rials.

Raysut was down 0.9 per cent to 1.217 rials yesterday, and has fallen 3.5 per cent just in the past four days. In the aftermath of the UAE property crash of late 2008 and last year, contracts for building projects have drastically diminished, creating a surplus of materials such as cement.

UAE cement companies have been increasingly selling their product in Oman, said Hettish Karmani, a senior analyst for GIH.

This has driven prices down in Oman because UAE cement is cheaper.

For the first nine months of this year, cement prices in Oman averaged $70 a tonne compared with an average price of $82.70 a tonne in the same period last year.

Average profit margins for Omani cement companies in 2008 and last year were 40 per cent and 45.6 per cent, respectively, compared with the UAE's 27.5 per cent and 22 per cent.

The difference has been even starker this year. UAE profit margins stand at 11.6 per cent, whereas those of Oman have increased to 50.5 per cent.

Mr Karmani expects the combination of the Pioneer acquisition and lower UAE cement prices to cut into Raysut's total revenue and cause a 20 per cent decline in net income to 22.9m rials this year compared with 28.6m rials last year.

AFRICA: EGYPT: TITAN EYES READY-MIX TO CEMENT EGYPT EXPANSION

The Egyptian unit of Greek cement maker Titan (TTNr.AT) will consider bidding in tenders to build new factories but is also growing rapidly in ready-mix cement to keep expanding while keeping costs down, a Titan executive said.

REPUBLICA DOMINICANA: El consumo de cemento alcanza los 2.7MM toneladas

Casi al cierre del 2010 el consumo de cemento ha alcanzado las 2.7 millones de toneladas, de las cuales aproximadamente 260,000 fueron consumidas en el mes de noviembre.

El consumo de cemento, uno de los indicadores más relevantes para evaluar el nivel de actividad en la construcción, ha registrado una ligera mejoría en la demanda de alrededor de un 5.3%, en los once meses que han transcurrido del presente año al pasar de 2, 651,000 toneladas que se consumieron en igual período el año pasado (2009) a 2,790,000 toneladas en el 2010. 

Durante el primer semestre del año, la Asociación Dominicana de Productores de Cemento se mostraba optimista hacia el desempeño que podría tener la industria, sin embargo a pesar de que el primer semestre del año la demanda creció situándose en 11,900 toneladas diarias en promedio, a partir del mes de Junio hasta noviembre el consumo diario descendió a 10,600 toneladas creando una diferencia de hasta 10% menos demanda entre un semestre y otro.

El consumo de este material ha estado impulsado principalmente por las ventas a granel (77% versus 23% empacado) lo que sugiere un mayor crecimiento en la demanda generada por las grandes obras que se construyen.

AFRICA: ZIMBABWE: Chinese Owned Cement Giant Reopens

Gweru - The Chinese owned cement giant, Sino-Zimbabwe has reopened following its closure last year for failing to comply with an environmental order.

The company had been closed following an inspection by environmental inspectors after they had received several complaints from the local communities, mainly resettled farmers. The inspection found out that the amount of cement dust emissions from the factory chimneys into the atmosphere was higher than normal and was affecting crops.

An environmental officer for Midlands Province, Timothy Nyoka, said they were now satisfied with the steps taken by the company to rectify the problems.

Nyoka said the company had received a certificate of compliance and had also constructed a wall to contain dust emissions from the silos. The company was also required to submit quarterly environmental reports.

Sino-Zimbabwe is one of the largest cement manufacturing Company in Zimbabwe located in Lalapanzi in the outskirts of Gweru town.

INDIA: India’s Shree Cement Buys 500,000 Tons of Power Coal, ICMW Says

Shree Cement Ltd. agreed to buy 500,000 metric tons of imported coal for delivery by April next year, India Coal Market Watch reported, without saying where it got the information.

The Kolkata, India-based cement maker paid a delivered price of $105 a ton for the imported coal used in power plants, the coal newsletter said. The company last month took delivery of a 147,000-ton cargo at Navlakhi port in western India.

India’s thermal-coal imports rose by about 16 percent to 44 million tons in the year ended March 2010, according to data from the coal ministry. The country faces a shortfall of 52 million tons in the year ending March 2011, according to a statement by Coal MinisterSriprakash Jaiswal.

AFRICA: NIGERIA: Cement price may crash as manufacturers target 30 million MT

Hope of a crash in cement price in the country has been raised following projections by indigenous manufacturers that output will soon hit about 30 million metric tonnes per annum.

The figure is above the current national average demand of 15.5 million metric tonnes per annum. The indigenous manufacturers are supplying about 11.5 million metric tonnes, with importation making up the number.

The projections of output rise are hinged on the success of the various expansion projects being undertaken by the manufacturers, with some of the projects scheduled for take-off towards the end of 2011 and early 2012.

A 50-kilogramme bag of cement currently sells for about N1,650 in the market, though the Federal Government had targeted that it should not be more than N1,000 per bag. About three years ago, the price had climbed to an all time high of about N2,000 per bag. 

The manufacturers are upbeat that the target of satisfying local demand and having excess for exportation will be achieved by 2012.

Corroborating this view, an official of Dangote Industries Plc, who refused to have his name in print because he was not authorised to give out the information yet, told our correspondent that the group planned to increase its production capacity from the current eight million metric tonnes to 20 million metric tonnes before the end of 2011.

He said that the group‘s Obajana Cement Plant was currently being expanded to add five million metric tonnes per annum to its initial five million metric tonnes production capacity.

The group is also speeding up the construction of its Greenfield cement plant at Ibese, Ogun State, which will yield another five million metric tonnes. Another of its subsidiary, Benue Cement Company Plc, is currently producing about five million metric tonnes per annum.

The group is the largest importer of the product, with import licences currently estimated at 80 per cent of the total national exports, according to figures provided by the company on Thursday.

BUA Cement Plc is said to be producing about three million metric tonnes of the product yearly, with plans to increase the figure to five million in the shortest possible time. 

In an electronic mail sent to our correspondent, the Country Manager, Lafarge Nigeria/Benin, Mr. Jean-Christophe Barbant, said the capacity of local cement manufacturers had increased in the last few years. 

He said, ”Next year will be more challenging because capacities are expanding. At Lafarge WAPCO for instance, we will inaugurate a new cement factory (Lakatabu) in the second quarter of next year. By 2011, the local manufacturers will be producing enough to meet local demand.”

currently producing five million metric tonnes per annum, Lafarge operates in Nigeria through its different subsidiaries, which include Lafarge WAPCO Cement Company Plc, Ashaka Cement Plc and Unicem. The group also imports about 0.5MMT through its subsidiary, Atlas Cement Company.

By 2011, Barbant said Lafarge would be contributing seven MMT to the national cement market, which would be half of the current national demand of 14 MMT per annum.

Dangote, the source said, had also forecast production figure of 46 MMT of cement per annum by 2015. This, he noted, would place it among the top eight in the world.

“Demand will be greatly supported by the need to refurbish infrastructure and supply the residential and commercial real estate sector. The consumption of cement per capita, which is put at 75kg, is set to increase,” the source said.

The world‘s highest consumers of cement per capita are Philippines, 300kg;

The figure is compared to an average of and‘ 1,180kg, Korea‘s 1100kg and Malaysia‘s 880kg, world‘s highest consumers of cement in that order.

A ban on the importation of cement had been in place since 2001 as part of the Federal Government‘s policy of promoting self-sufficiency in the production of the commodity and boosting local production.

Barbant said, ”We are fully in support of government‘s policy on backward integration, encouraging local manufacturing and restricting import of cement. This policy encourages the cement manufacturers to produce more and make cement available and affordable.

”It is in the long-term interest of the country to attract and maintain competitive industrial activities and to reduce expenses in foreign currencies from imports.”

He, however, gave a caveat that the availability of the product might not necessarily lead to price reduction, especially if other factors failed to support it.

The Lafarge boss added, ”The price of cement depends largely on its production costs. Availability of cheap sources of energy - fuel, natural gas and power - is a key factor to stabilise the price of cement overtime.” 

Out of the 36 states in Nigeria, 21 are said to have limestone, which constitutes 80 per cent of the input to cement manufacturing.

The Chairman of the Dangote Group, Aliko Dangote, had said recently at the annual dinner of the Lagos Business School‘s Breakfast Club, ”Given the abundance of the basic raw materials for cement in Nigeria, the Federal Government needs to consistently follow a set of policies deliberately designed to maximise the advantage of this endowment.”

IRAN: Iran's Northern Province Ups Exports by 79%

The value of exports from Iran's Northern province of Mazandaran has witnessed a 79% increase during the last eight months compared with the same period last year, a provincial official announced on Monday.

Deputy Head of Mazandaran's Commerce Organization for Trade Development said that 614,000 tons of different food stuffs, cement, agricultural products, different types of mineral materials, construction materials and wooden products have been exported from his province to Turkmenistan, Uzbekistan, Tajikistan, Kazakhstan, Armenia, Russia, Iraq, Afghanistan, UAE, France, Austria, Belarus and other countries since the beginning of the current Iranian year (started on March 21, 2010). He said that the value of the exported goods amounted to $118 million, adding that exports from the province have witness a 217% increase in terms of volume and a 79% growth in terms of value. The provincial official further noted that the volume and the value of goods imported by Mazandaran have decreased by 30% during the same period. Meantime, Head of Mazandaran's Agricultural Jihad Organization Enayatollah Torang announced exports of agricultural products from Mazandaran have increased by 91% in terms of volume and 81% in terms of value since the beginning of the current Iranian year compared with the same period last year. Last Tuesday, Iranian President Mahmoud Ahmadinejad announced that the country has broad plans for constructing several major industrial complexes in Mazandaran within the next few months. He further pointed out that Mazandaran province enjoys the required cultural, human and natural resources to become the most advanced province of the country and a role model of progress for the other provinces.

EGYPT: Suez Cement to shut 14 production lines in Cairo

Egypt's Suez Cement (SUCE.CA) said on Tuesday it would shut down 14 production lines as part of an agreement with the government to relocate out of the capital to reduce pollution.

Suez Cement, Egypt's largest listed cement company and a unit of Italcementi (ITAI.MI), has agreed to shut 13 wet lines at its Helwan Cement HCCO.CA and Torah Cement (TORA.CA) subsidiaries and a 1.1 million tonne-per-year dry line for clinker at Torah.

In return, Suez will open a new line with an annual capacity of 2 million tonnes of clinker at its plant 30 kilometres east of Cairo, it said.

The new $400 million line will help Suez increase its cement production by 900,000 tonnes.

The firm said in March it planned to spend more than 3 billion Egyptian pounds ($517 million) to relocate 2.5 million tonnes of Torah's capacity to a new, energy-efficient site to adhere to environmental regulations

. 

EGYPT: Following truckers' strike, Finance Ministry reverses move to raise cargo taxes

The Egyptian Finance Ministry has reversed an earlier decision to raise taxes on cargo transport after truck drivers staged a nationwide strike on Friday.

The decision was formally reversed following a meeting between Tax Authority President Ahmed Refaat and Drivers Association President Mostafa Nowhy on Sunday.

On Monday, Prime Minister Ahmed Nazif denied that the Finance Ministry had intended to raise taxes on cargo transport. “Drivers did not have to stage these strikes since the whole thing was based on rumors,” he said.

Yet drivers have nevertheless maintained their strike for four consecutive days amid fears that clashes might erupt between strikers and security forces.

One truck--whose owner was not taking part in the action--was reportedly destroyed by strikers, who have also blocked roads to cement factories and quarries in the southern city of Beni Sueif.

CHINA: Chinese company eyes cement factory in Fiji

Fiji's interim foreign minister, Ratu Inoke Kubuabola, has met a six-member delegation from China reportedly interested in opening a cement factory in Fiji.

The Fijivillage website reports the group from the Northern Heavy Industries Group Company Limited is on a fact-finding mission to assess the scope and detailed design of a proposed cement factory in Sigatoka.

Ratu Inoke says Fiji is the hub of the Pacific and their business can easily expand both in the domestic and regional markets given the current boom in the respective construction industries in most countries in the region.

CHINA: China Shuangji to build cement facility in Hainan

China Shuangji Cement, Ltd. ("China Shuangji" or the "Company"), a leading producer of high-quality Portland cement in Shandong and Hainan Provinces in the People's Republic of China (PRC), announced today that it has begun the permit process to build a new a new 2,000,000 MT cement plant on Hainan Island to replace its existing Dongfang production line.

China Shuangji's new state-of-the-art cement factory will have an annual production capacity that is 4 times greater than its existing Dongfang cement plant, which has a current annual capacity of 500,000 MT. In accordance with the beginning stage of the permit process, the Company has removed the vertical kiln at its existing Dongfang production line in order to be granted a permit to build a new plant and local government approval for new construction. The Hainan provincial government has already given their approval for the new plant in writing and the company is waiting for the approval of the local Dongfang City government, which it expects to receive in the near future.

"We are excited to have started the permit process to build a new, modern cement factory on Hainan Island to replace out existing Dongfang production line," said Mr. Wenji Song, Chairman and President of China Shuangji Cement, Ltd. "Though we have removed the vertical kiln from our existing Dongfang production line, we will still be able to purchase clinker nearby and continue to produce cement from this facility at the same production rate as before. Building a new Dongfang cement plant will allow us to keep up with the expected market growth in Hainan Province, which has been gaining significant economic strength, and comply with the higher emissions and environmental standards that China is now promoting."

China Shuangji already has one other existing cement plant on Hainan Island with a current annual capacity of 500,000 MT. The new Dongfang facility, which will be strategically located in close proximity to raw materials and water transportation, will complement the Company's cement producing activities in the region, optimize logistics, and provide greater cost efficiencies.

Mr. Song added, "China Shuangji is confident that it will be able to continue operating its existing plant at full capacity during this final permitting stage and until the proposed new cement plant is completed and fully operational." Mr Song continued, "China Shuangji Cement currently sells all of the cement it produces and increasing production capacity is management's number one priority. Hainan presently has cement shortages and imports some of its cement in barges from the mainland. As we continue to expand in Hainan province, we believe that there will be more than enough demand to absorb all of our expected new production capacity from our larger Dongfang production line."

CHINA: Wannianqing Cement Predicts 2010 Profit To Double

Jiangxi Wannianqing Cement predicts that it will record a 100-150 percent year-on-year increase in its net profit for 2010 to between 132 million yuan and 165 million yuan, reports China Securities Journal, citing a company filing.

Earnings per share (EPS) is expected to range from between 0.33 yuan and 0.42 yuan.

The company expects to generate a net profit of between 149 million yuan and 182 million yuan in the fourth quarter, an increase of between 229 percent and 302 percent year-on-year.

For the first three quarters, the company recorded a loss of 17.25 million yuan.

The company attributes the gains to an expansion of output, greater demand for cement and increased prices.

CHINA: FLSmidth wins cement order in China

FLSmidth has signed a contract with Chinese cement producer Conch to supply a 12,000 tonnes per day cement kiln for the Tongling plant in the Anhui province in eastern China.

With an annual production capacity in excess of 100 million tonnes cement, Conch is the largest cement producer in China. The Tongling plant's two existing kilns, each with a capacity of 10,000 tonnes per day, were delivered by FLSmidth in 2002-03. FLSmidth has not since supplied cement kilns to Chinese customers.

The new 12,000 tonnes per day cement kiln will have the maximum capacity available on the world market today, and the project is benefitting from the expertise and knowledge recently gained by FLSmidth from the installation of a similar capacity pyroprocessing line at Holcim Ste. Genevieve on the banks of the Mississippi, USA.

Parallel with the Conch contract, FLSmidth is embarking on a long-term strategy to strengthen its presence and competitive edge on the Chinese market.

The long-term goal is to become a competitive supplier in China of cement plants and selected types of minerals machinery and services. Based on a Chinese sales organisation and Chinese production facilities, FLSmidth will therefore launch equipment designed for the Chinese market.

FLSmidth has been permanently represented in China since establishing an office in Peking in 1912. Today it has a sales office in Beijing and an approximately 13,000 square metre manufacturing plant in Qingdao that produces both cement and minerals equipment. To handle the increasing production for international projects and the stronger focus on the local Chinese market, the Qingdao production facility will be expanded to double its present size in 2010. 

"We are determined to increase our competitiveness in China in terms of major cement plant components and selected types of minerals equipment and services, and the Conch order matches this ambition perfectly," Group CEO Jørgen Huno Rasmussen comments.

The Conch contract will contribute beneficially to FLSmidth's earnings until the kiln is commissioned by mid 2011.