AFRICA: Nigeria: Dangote to Increase Cement Production to 20 Million Tonnes

Lagos — Dangote Cement Limited says it will jerk up local production of cement in the country to about 20 million tonnes this year.

The company explained that the move was borne out of the need to improve production capacity of the product in Nigeria than consumption.

Managing Director of the company, Mr. Knut Ulvmoen, disclosed this in Lagos, yesterday.

He said overall production of cement in the country is expected to peak at 8 million tonnes between now and 2012.

He however said the problem militating against slash in the price of cement is energy.

He said: "Even in a place that is producing locally today, the energy cost is our greatest problem. If this comes down there should be room for cement price to come down. You can produce much less at less cost if your production is higher.

"This is because there is fixed cost, financial cost and lot of cost element you have to put into consideration. What is important is for us to continue to improve production capacity in Nigeria than consumption."

Knut, who is also the Deputy President of the Lagos Chamber of Commerce and Industry (LCCI) also spoke on the role of government in the nation's business environment.

According to him, government's attention should be focused on improved energy and infrastructure rather than running round checking companies to see those that are failing.

On the preference of Nigeria by foreigners, Dangote said the development is because the country has lots of potentials to offer the world.

He said: "Nigeria is a country that should be better. We have oil, gas, energy, and lots of solid minerals and huge home market. Of course if you look into the market, the whole ECOWAS has been part of it. There is good business for any foreigner who wants to move their business into the country.

"There are very few countries in the world with greater potential to succeed than Nigeria. That's why they are coming. It is a country with billions of people and the market. There is money to make here; all they have to do is make things right and they have to make business partners in the country."

PAKISTAN: Cement production enough for local demand

ISLAMABAD: Cement manufacturers assured the government that cement requirements of the public sector infrastructure projects like small dams and canal lining could be met with the current production capacity of the industry.

They said this in a meeting held between cement manufacturers and government officials. It was also decided that all the four provinces, Azad Jammu and Kashmir and Gilgit-Baltistan will provide details of annual cement requirement whereas cement manufacturers will provide details of possibility of deferred payment in the next meeting.

The meeting was presided over by federal minister for industries and production and attended by Sindh minister for finance and the officials of ministry of petroleum and natural resources along with representatives of including Lucky, Best way, Fauji and Kohat Cement.

INDIA: Big boost for Assam cement

The cement sector in Assam today got a Rs 450-crore investment with Birla Corporation Limited signing a memorandum of understanding (MoU) with Assam Mineral Development Corporation for setting up a 1 million tonne cement plant.

The plant — to be located in the Umrangsu area of North Cachar Hills — will be commissioned in 27 months. It will produce 3,200 metric tonnes of cement or about 64,000 bags per day.

“These are signal investments from outside which show that Assam is a safe place and can also absorb the investment,” principal secretary, mines and minerals department, Ravi Capoor, said today at the MoU signing ceremony.

The MoU was signed by B.R. Nahar, chief executive officer of Birla Corporation, and J.P. Baruah, managing director, Assam Mineral Development Corporation, in the presence of Assam chief minister Tarun Gogoi.

Capoor said the company was selected through an open bidding system by advertising the matter in various media. Twenty-three companies had submitted their offers and Birla Corporation was selected. In the first phase, Jaiprakash Associates Limited was selected and in the second phase, Birla Corporation was selected.

Chief minister Tarun Gogoi said the day is a milestone in industrialisation of Assam. “This gives a positive signal to the investors and the misconceptions on security problems have been cleared,” Gogoi said.

Chairman of Birla Corporation Limited H.V. Lodha said Assam has the capability to compete and was a good option for investment. “This will give confidence to others in investing in Assam,” he said.

Lodha said the region offers a huge potential for cement players and the present capacity of the plant would be increased.

The corporation has offered 12.5 per cent free equity to Assam Mineral Development Corporation and also a facilitation fee of Rs 100 per tonne of limestone extracted.

The mining lease will remain with the AMDC and will not be transferred to Birla Corporation Limited, which will have to acquire land on its own.

The company today deposited one per cent of the equity base as earnest money, which is Rs 1.5 crore. The earnest money shall stand forfeited and MoU will be cancelled if the project is not commissioned within the time specified and will be liable for cancellation if the project remains non-functional for a period of 24 months after commissioning.

During the functioning of the project the interests of the AMDC as well as the state government will be protected by two directors nominated to the board of directors of the joint venture promoted company by the AMDC.

An AMDC official said once the project was implemented and the flow of revenue starts, the corporation would be use it for increasing its activities for locating mineral deposits and their utilisation.

EUROPA: Norway's $186 Billion Gas Loss to Cement Russian Grip on Supply

Europe may face a shortfall of Norwegian natural gas as soon as 2015 after the country slashed its estimate for undiscovered resources because of a dearth of discoveries from companies such as Royal Dutch Shell Plc.

Europe’s second-largest supplier yesterday cut its estimate for gas yet to be discovered by 31 percent, or 570 billion cubic meters. That’s equal to more than five years of production at current rates and would be valued at about $186 billion based on today’s prices at the U.K’s trading hub.

“This will rack up the pressure on the European Union to develop and secure access to reliable energy,” Thina Saltvedt, an analyst at Nordea Markets in Oslo, said by e-mail. “The EU will be forced to increase imports from the Middle East and Africa to compensate for and reduce Russia’s domination.”

Shell, Statoil ASA and other companies have been finding smaller and smaller amounts or striking out in drilling off Norway, casting in doubt Norway’s status as reliable supplier of the fuel and its goal of transforming itself into a gas nation as oil production slumps. The troubles may help Russia, Europe’s biggest supplier, cement its grip on the market and provide an opening to exporters from the Middle East, where Qatar has become the largest producer of liquefied natural gas.

“It is the estimates for the gas resources in the North Sea and the Norwegian Sea that have been written down,” Bente Nyland, head of the Norwegian Petroleum Directorate, said yesterday in an interview in Stavanger, estimating a potential decline in gas production after 2015. “Our gas production will go down and other countries will pass us by.”

Undiscovered Gas

Norway’s undiscovered gas resources may total 1.26 trillion cubic meters, down from an estimated 1.82 trillion cubic meters last year. The country had total gas proven reserves of 2 trillion cubic meters in 2009.

As fields in the North Sea become depleted four decades after Norway first discovered oil, companies are moving north into the Norwegian Sea and the Arctic Barents Sea. Norway is counting on gas output to make up for declining oil production, which has dropped 50 percent in the past decade.

The “revised estimate of undiscovered reserves should be taken seriously, although it should also be remembered that it’s part of their job to be ultra-cautious in assessing the nation’s future hydrocarbons wealth,” said Patrick Heren, founder of European price-information service ICIS Heren. The implication may be that exporters in Central Asia or the Middle East will find it easier to sell their gas in Europe, he said.

Challenges

Statoil, Norway’s biggest oil and gas producer, has a goal of maintaining Norwegian production at current levels until 2020, which Chief Executive Officer Helge Lund on Nov. 3 called “ambitious.”

“Our goal hasn’t changed from what we’ve previously communicated,” Statoil spokesman Ola Anders Skauby said today. “The 2020 target is based in large part on discovered resources. The Norwegian shelf is definitely still interesting to Statoil.”

Shell drilled a dry well at the Dalsnuten prospect in the Norwegian Sea in November, a further blow to its nearby Gro discovery. An appraisal well at Gro had earlier indicated the find could be at the lower end of the 10 billion to 100 billion cubic meters estimate. Total SA also reduced the size of its Victoria field after more drilling in 2009.

Ormen Lange

“The fact that Gro didn’t deliver means that other surrounding prospects also decline and thereby the totality is gone,” said Nyland. “The question is whether Statoil will find profitability in the gas discoveries they’ve made.”

Shell last year had to cut the estimated reserves at its Ormen Lange field, Europe’s third largest, by 24 percent to about 302 billion cubic meters.

Norway may have to pin its hopes on the Barents Sea, where it’s preparing to map out an exploration area after reaching a maritime border agreement with Russia in September. Some seven to eight exploration wells are expected this year in the area, where there has been little exploration to date. So far this year, Eni SpA on Jan. 5 announced a dry well near its Goliat field in the Barents Sea, the directorate said on Jan. 5.

Norway estimates the Barents Sea holds 520 billion cubic meters and the Norwegian Sea 455 billion cubic meters in undiscovered gas resources.

“Most geologists are more optimistic than the Norwegian Petroleum Directorate about the prospects for large gas discoveries in the Arctic, where the Russians have already made a colossal find at Shtokman,” Heren said.

PARAGUAY: INC anuncia llegada de 20.000 toneladas de clínker importado

El gerente industrial de la Industria Nacional del Cemento (INC), Claudio Montiel, anunció la llegada de 20.000 toneladas de clínker importado para este fin de mes, cantidad con la que se podrá elaborar alrededor de 480.000 bolsas del material de construcción. La idea es aumentar la provisión del producto, cuya demanda interna asciende a 80.000 bolsas por día.

Se trata de un  cargamento  de clínker Minetti y se anunció también la llegada de otras 150.000 toneladas, para  próximos meses.   

Las autoridades de INC ya habían prometido el incremento del despacho de cemento a 65.000 bolsas por día a partir de enero. Sin embargo, hasta el momento eso no se ha cumplido.    

De acuerdo al informe de ventas y despacho de la estatal, del 3 al 10 de enero se entregaron en promedio 47.498 bolsas de cemento por día (de lunes a viernes), pero hubo ocasiones en que el despacho fue mucho menor.    

    

Por ejemplo, el jueves 6 en la fábrica de Villeta, donde se encuentra el molino principal de la cementera, se despacharon solo 610 bolsas del material de construcción y en el frente de Vallemí, 34.852 bolsas.    

El viernes 7, la cantidad llegó a 24.754 bolsas de cemento en Villeta y 990 en Vallemí, según los datos oficiales.    

    

Así también, las autoridades no solo prometieron mayor despacho y no cumplieron, sino que aseguraron que el promedio de entrega en  2010 fue de 56.240 bolsas por día, cuando a fines de año, los despachos cayeron drásticamente.    

    

Como se observa en el cuadro, durante diciembre el promedio diario de distribución fue de solo 37.165 bolsas. Hubo ocasiones en que la entrega fue de solo 12.400 bolsas, como el martes 7, ó 13.612, el miércoles 15. Así también, no se registró despacho en  vísperas de Navidad y Año Nuevo.    

Muchas promesas, pocas acciones    

Otra promesa realizada recientemente por Optaciano Gómez Verlangieri, presidente de la INC, es alcanzar la provisión diaria de 85.000 bolsas de cemento en febrero, para atender las demandas locales del producto, que están entre 70.000 y 80.000 bolsas por día, según la Cámara Paraguaya de la Construcción (Capaco).    

Los técnicos, sin embargo, habían desmeritado esa posibilidad, ya que sobrepasa la capacidad de producción de la fábrica de INC.    

En cuanto al stock de insumos, la estatal cuenta con 20.142 toneladas de clínker, que permitirán producir 483.408 bolsas de cemento. La existencia de cal agrícola es de 1.773 toneladas.

AFRICA: Cement prices rise sharply in Rukwa

From PETI SIYAME in Sumbawanga, 11th January 2011 @ 12:00, Total Comments: 0, Hits: 199

PRICES of cement in Sumbawanga and other parts of Rukwa Region have gone up tremendously due to acute shortage of the product for more than a month. 

A survey by the 'Daily News' in Sumbawanga reveals that a 50-kg bag of cement was currently selling at 18,000/- each, up from 15,000/- a few weeks ago. 

''I am surprised with the scarcity of cement. Prices keep on rising and once a consignment arrives a bag sells at 18,000/- in retail outlets," said Mr John Mwanambata, a resident of Kizwite area in the municipality. 

Most traders told the 'Daily News' that they were buying cement in Mbeya and Iringa. "We have to take in account transport costs in order to sell cement at profit," a trader said. 

But to some traders, they regard the shortage as a blessing in disguise. 

"Some people run to our shops and buy in large quantities fearing that prices might go up further during the rain season. I will not be surprised when the price will reach 20,000/- a bag," said a trader who identified herself as Mama John.

IRAN: Annual production of cement in Iran was 73 million tons

Secretary of the professional association of entrepreneurs cement industry Purhalil Mohammed Hassan said that the annual production of cement in Iran was 73 million tonnes, more than 2 times the volume of production in 2003 (32 million tons of cement).

The growth of cement production in Iran due to investment attraction and attention of the Government to cement industry-related demand for products in residential construction, dams, highways, power plants, etc. - Considers MH Purhalil.

He stressed that the private sector so as to invest in the cement industry.

INDIA: Binani Cement, Gujarat government sign MoU worth Rs.42 bn

Binani Cement Thursday said it has signed an agreement worth Rs.4,200 crore (Rs.42 billion) with the Gujarat government to set up a 610 megawatt power plant, a cement factory and a captive jetty.

"The agreement was recently signed between the Gujarat government and Binani Cement during the Vibrant Gujarat Summit," the company said in a statement.

In the 2009 edition of the Vibrant Gujarat Summit, the company had inked an agreement to build a cement factory of 2.5 mtpa capacity. During the current summit, Binani signed a deal for another unit of 2.5 mtpa capacity, taking the total capacity to 5 mtpa.

The cement plant would be located in Junagadh and would manufacture both ordinary portland cement and pozzolona portland cement in equal ratio, the statement added.

The 610 MW thermal power plant would be built in three phases, starting with an initial capacity of 110 MW with two subsequent expansion of 210 MW each.

Also inked was an agreement with the Gujarat Maritime Board to set up a jetty having 10 mtpa capacity, which also would be completed in three phases.

At the Bombay Stock Exchange, the shares of the company closed 0.11 percent higher at Rs.87.40.

AFRICA: SA cement sales dip for three years in a row

South African cement sales dropped for a third consecutive year in 2010, as growth in the construction industry slowed and the housing market remained weak.

Sales fell 7.8% to 10.87 million tons last year compared with 2009, when they declined 13%, the Johannesburg-based Cement and Concrete Institute said yesterday.

The recovery in South Africa’s economy has been slow, with house prices expected to increase 5% in 2011, down from an estimated 7% last year, Absa Group, the country’s biggest mortgage lender, said in December last year.

The central bank cut its benchmark interest rate to a 30-year low of 5.5% last year to help spur consumer spending and support the recovery.

Pretoria Portland Cement, Africa’s biggest maker of the building material, said in November that the outlook for South African cement demand “remains subdued.”

Low interest rates and the government’s infrastructure spending plans “bode well for medium and long-term cement and aggregate demand in South Africa,” the Johannesburg-based company said.

Construction growth slowed to an annualised 0.8% in the third quarter compared with 1% in the previous three months, Statistics SA reported in November.

INDIA: Binani Cement to invest Rs 4,200 cr in Gujarat

Binani Cement, part of Braj Binani Group, has signed a memorandum of understanding with the Gujarat Government to set up a greenfield cement plant of 2.5 million tonnes per annum (mtpa), a 610 MW thermal power plant and a jetty to handle cargos with a cumulative investment of Rs 4,200 crore.

In 2009, the company had signed an agreement to set up a 2.5 mtpa cement plant with an investment Rs 800 crore.

The proposed cement plant will come up on 188 hectares at Lodhva village of Junagadh. The plant will manufacture ordinary portland cement (OPC), Pozzolona Portland cement (PPC) in various grades.

The cement plant will be located near rich limestone deposits and will ensure a steady supply of raw material, the company said in a press release. Further, the association of Binani Cement with the Gujarat Government will help develop the region in terms of employment generation and overall standard of living, it added. The company signed an agreement with the Department of Mines and Geology to set up the cement plant.

With the additional plant, the total greenfield cement plant capacity proposed will be 5 mtpa.

Further, the company has signed an MoU with the Gujarat Department of Energy and Petrochemicals to set up a 610 MW thermal power plant to be completed in three phases.

A captive jetty capable of handling cargos of 10 mtpa will also be built in three phases of 1 mtpa, 2.5 mtpa and 6.5 mtpa.

Binani Cement has proposed to tap the UAE, Mauritius and East African markets from Gujarat

BOLIVIA: Ministerio de Obras Públicas: desabastecimiento de cemento es coyuntural

La Paz - Bolivia.- El ministro de Obras Públicas, Servicios y Vivienda, Walter Delgadillo, aseguró el lunes que el abastecimiento de cemento en Bolivia "es coyuntural", fundamentalmente por el paro de autotransporte que afectó el suministro regular de ese producto.

"Ha habido un problema coyuntural, el paro del transporte ha evitado la llegada de los productos a los diferentes centros, resuelto esto en general el mercado se está estabilizando", dijo.

En una conferencia de prensa, Delgadillo puso énfasis en la estabilización de los precios y la escasez de las "colas" para comprar cemento, pero reconoció también que los volúmenes de producción de ese producto "es un problema mucho más profundo".

"Seguramente vamos a tener dificultades y estamos tratando de tomar previsiones con la importación especialmente de clinker, tanto en el sector privado como en el sector con participación estatal", dijo.

La autoridad subrayó que en los primero cuatro meses del año la demanda de cemento es baja debido a la temporada de lluvias, lo que permitirá estabilizar la comercialización de ese producto.

Adelantó que para los períodos de construcción, el Gobierno garantizará el abastecimiento de ese producto con la importación de clinker, que es la principal materia prima de la que se obtiene el cemento.

JAMAICA: New cement import measures

Industry, Investment and Commerce Minister, Karl Samuda, says his ministry is working on a plan to ensure cement imports do not threaten the financial viability of the Carib Cement Company. 

He says a recent ruling by the Anti-Dumping and Subsidies Commission that while imported cement was being dumped on the market, they caused no material damage to the local industry, has opened the door for further imports. 

Samuda says while he supports competition in the sector, the Government would not allow that competition to lead to the demise of the local cement industry. 

He says the Ministry is working on a plan to contain cement imports within 15 and 20 per cent of demand. 

However, Samuda has not provided details of the sanctions to be implemented. 

He says he already has the support of local cement importers and would soon be holding talks with representatives of Carib Cement regarding the matter.

AFRICA: Ethiopia: Govt Starts Delivering Imported Cement

However, this might not last for long if the government keeps importing cement for its own use, the experts predicted.

The government started delivering the 250,000ql of cement, out of the 1.5 million quintals it had ordered from Pakistan, to different construction sites nationwide from Djibouti Port, on Wednesday, January 5, 2011.

An agreement was signed about a month ago between the Ministry of Finance and Economic Development (MoFED) and Maple Leaf Cement Factory to import the Ordinary Portland Cement (OPC), which is mainly used for the construction of heavy-duty structures like bridges and highways. Maple, a Pakistan based company that was established in 1956, is to supply the cement at a monthly rate of between 500,000ql and 750,000ql.

The Merchandise Wholesale and Import Trade Enterprise (MWITE) is in charge of distributing the cement, which will be transported from the port by the Maritime and Transit Service Enterprise (MTSE), to the government's construction projects. For the transportation, the latter has employed 625 trucks, each with the capacity to carry 400ql.

"The cement will be delivered to the respective sites it has been allocated to, in about 12 days," Yimam Mohammed, general manager of the MWITE, told Fortune.

The cement's destinations include construction sites where large government projects are underway in Asaita, Afar Regional State; Kombolcha, Amhara Regional State; Adama, Oromia Regional State; and Addis Abeba, according to the general manager of the MWITE, which was established in 1993 when the Ethiopian Domestic Distribution Corporation (EDDC) merged with the Ethiopian Import Export Corporation (EIEC).

The construction of major infrastructure, such as roads, railway lines, and dams, is planned by the government as part of the GTP. It plans to increase the road network from 49,000km to 136,000km, build a 2,000km railway line, and construct housing units to increase the current number of 213,000 to 700,000 within the next five years.

Cement production in the country is handled by eight companies, which has been producing a combined 2.6 million tonnes annual, as of May 2009, according to research conducted by Access Capital Services. The consumption of cement has increased by an average of close to 30pc over the four years before 2009, according to the research.

State owned Mugher Cement; Messebo, owned by the Endowment Fund for the Rehabilitation of Tigray (EFFORT); and National Cement, a private company; are the top three producers with a combined total capacity of two million tonnes.

The importation of cement will reduce the government's huge demand on the private sector, according to experts in the construction sector.

Last week, the price of a quintal of cement reached close to 430 Br, from 390 Br the previous week.

However, this might not last for long if the government keeps importing cement for its own use, the experts predicted.

Another 170,000ql are being loaded in Pakistan to be transported here, according to Yimam.

AFRICA: Ethiopia: Tax Authority Charges Three With 29.4 Million Birr Duty Tax Evasion

Prosecutors of the Ethiopian Revenues and Customs Authority (ERCA) have sued three defendants for allegedly committing customs and duty tax fraud of 29.4 million Br over 1.3 million bags of cement it imported using franco valuta.

A and G Global Trade and Construction Plc was charged with transferring 1,302,680 bags of cement, which it was allowed to import duty free, to third parties. It imported the cement despite not having a construction licence, the prosecutors alleged.

Mohammed Hussien Abdela, the managing director of the company, was charged for facilitating the transfer to the third parties.

Abdulrashid Abdulkadir Shockado, one of the company's shareholders, whose position in the company is not clear, was charged with ordering the sale of the cement to third parties. Shockado, a Somali national, was also charged with destroying evidence of the company's alleged criminal act.

In the same file, prosecutors also charged the company and Abdela, a Yemeni national with Somali origins, with evading VAT and income tax. The company was charged with evading the payment of VAT in the amount of 14.6 million Br for the 2008/09 fiscal year.

The company falsely reported its income as 30.6 million Br, while it was 92.5 million Br, prosecutors claimed. Mohammed was charged with the same offence as he was the company's managing director at the time the alleged VAT and income tax evasion was committed, prosecutors claimed further.

In a separate charge filed the same day, the company was charged with using the duty-free privileges of a Djibouti based company with a similar name, A and G Global Trade and Logistics FZCO. It was also charged with transferring 1.2 million tonnes of cement it imported to third parties.

Mohammed, who also acted as an agent for the Djiboutian company, was charged with gaining undue tax privileges in the amount of 21.6 million Br. He also transferred 959,232 bags of cement that had been allocated to the Addis Abeba Housing Development Project (AAHDP) to third parties, prosecutors claimed.

Included in the second file, are 13 defendants, including Shockado, charged with various offences for facilitating the transport and sale of the cement, as well as falsely testifying to tax officers about the commissioning of the crime by the company and its managing director.

Gebrezgahbeher Ambaye and Haile Assefa, the 11th and 12th defendants were charged with evading taxes to the tune of 92.8 million Br and 24.1 million Br, respectively.

During the reading of the charges on Thursday, January 6, 2011, only six of the defendants who were represented by eight lawyers requested bail. The remaining defendants were not present in the court as some of them had not received the court summons and the whereabouts of three of the defendants were not known.

The court adjourned the case to February 3, 2011, to decide on the bail request.

AFRICA: UGANDA: Cement Price Expected to Drop With New Plant

Cement prices are expected to drop following the commissioning of a new plant by Hima Cement. The plant in Kasese District is expected to boost the construction industry with an expected drop in the price of cement as a result of increased production.

Cement, a major construction material has witnessed a volatile price trend forcing a retail price of 26,500 in the later part of December 2010.

Mr Hussein Mansi, the Larfage chairman, said the Shs280 billion plant will not only increase supply for the local and regional markets, but will also see prices become more competitive, especially if the government continues to lend support to local investors against an influx of cheap imports.

Mr David Njoroge, the general manager of Hima Cement, said with the plant already in operation, the impact of increased production from a previous capacity of 350,000 tonnes a year to 850,000 tonnes is already showing some benefits to Ugandans.

He said: "With a daily average of 500,000 bags, the price of cement has already dropped from a high of about Shs30,000 to about Shs26,000."

"This is a good start, and as other factors that increase the cost of production get sorted, it will not be long before prices further drop."

However, despite the increase of cement production, observers say prices must further drop in order to genuinely develop the construction.

Observers say current prices make it hard for a common man to build a house for himself. However, industry players maintain that this is a good start, which will see the cost of cement drop further as prices tagged on the cost of doing business improve.

While opening the plant, President Museveni promised to engage regional leaders on the Common External Tariff, after Mr Mansi cited it as a move that will increase regional competitiveness.

The President, who was upbeat about the number of jobs to be created also, said that by next year the cost of power will have drastically dropped, as the government commits to seeing Bujagali operational by 2012.

"Beginning next year, the cost of power will be more competitive matching that of Asia where it is cheaper."

He also promised to fix roads and later embark on the railway construction, as he said industrialisation is the way to go.

The new automated plant, according to Hima Cement is environmentally friendly. It internally treats its emission, meaning that there will be no harmful discharge of dust to the environment.

The plant is expected to generate about Shs1 billion as the government revenue

SAUDI ARABIA: Saudi Arabia’s December cement output rises 16%; Exports climb

Saudi Arabia’s cement production rose an annual 16 percent in December and exports increased from the Arab world’s biggest economy.

December production was 3.83 million tons compared with 3.31 million a year earlier, according to industry data posted today on Yamamah Saudi Cement Co.’s website. Exports rose 8 percent to 139,000 tons from 129,000 a year earlier.

Saudi Arabia has 13 cement companies with an estimated annual production capacity of 49 million tons, according to a report from NCB Capital.

BOLIVIA: Fancesa duplicó la producción de Cemento, Presionada por la demanda

De 350 a 600 toneladas de cemento por cada día, subió la producción de la Fábrica Nacional de Cemento Sucre. Aún no suficiente, por eso los ejecutivos le piden a su competencia que haga lo suyo para abastecer la demanda de la creciente construcción. El presidente del Directorio de factoría, Luis Alberto Iriarte informó de la producción al tope.

“Estamos casi duplicando la producción de cemento, de unas 350 que producíamos, ahora producimos casi 600 toneladas, por día”, dijo.

La venta se restringe a 10 bolsas por cada una de las personas que hacen largas filas en los almacenes de Sucre.

El fin de semana, rumbo al principal mercado de Santa Cruz, en un solo envión se trasladaron 40 mil bolsas de cemento.

Como la producción tocó techo, se dijo que no son los únicos proveedores, por lo tanto la competencia tendrá que hacer lo suyo.

Por otro lado, se informó a Fides, esta semana serán conocidas convocatorias a cargos en la cementera para formalizar los cargos interinos.

AFRICA: Dangote to invest $100m in Cameroon

Nigerian cement manufacturer Dangote plans to invest $100 million to build a cement factory in Cameroon, local media cited the group as saying on Monday.

“We have reached an agreement with Cameroonian,” Dangote general manager Aliko Dangote told the official daily Cameroon Tribune. “If the cement business succeeds our group will move into other domains of the Cameroonian industry,” he said.

Cameroon has only one cement producing company, CIMENCAM, with annual output of about a million tonnes from two plants.

While the country has reached other deals with South Korean and Chinese firms to build cement factories, the projects have yet to be launched.

PAKISTAN: Cement sales likely to decline by 4% in Nov

KARACHI: Cement dispatches for the month of November 2010 are expected to decline by 4 percent year on year (YoY) to around 2.4 million tonnes compared to 2.5 million tonnes in the same period last year, industry sources told Daily Times. 

The major decline is likely to be seen in exports which fell by 9 percent to 0.7 million tonnes versus 0.77 million tonnes last year, while local dispatches remained flat to 1.7 million tonnes compared to 1.7 million tonnes seen in November 2009.

With these numbers, cement dispatches in 5MFY10 fell by 10 percent YoY to 12.5 million tonnes compared to 13.9 million tonnes. During the period, exports eroded by 19 percent to 2-year low of 3.9 million tonnes versus 4.8 million tonnes while local dispatches fell by 6 percent YoY to 8.6 million tonnes compared to 9.1million tonnes in same period last year.

“The decline in exports was due to declining sales to Middle East and a complete halt in exports to India amid expiry of BIS certificate (Bureau of Indian Standards) quality assurance certificate from Indian authorities,” Furqan Punjani, an analyst said. Similarly, slowdown in demand amid recent floods remains the major reason behind decline in local dispatches. 

Analysts expect cement dispatches to improve from 2HFY12 with major contribution from local demand once reconstruction activities begin. 

Coal prices on the rise after floods in Australia: Floods in Australia, the world’s biggest exporter of coal, have caused production disruptions from the mines in Queensland. This in turn has resulted in an upward pressure on the international coal prices. Coal prices have shot up to $117 per tonne, (up 8 percent since December 1st) highest since October 2008. Though the rising prices remain a concern for the local cement manufacturers, analysts have already assumed an average coal price of $102 per tonne in FY11. So far this year, coal prices have averaged $97 per tonne. If coal prices average $110 from now, it still would be at par with full year assumption. 

Moreover, with the bulk of Pakistan’s coal imports coming in from South Africa and Indonesia, analysts remain slightly protected. Lucky Cement (LUCK) is likely to be least affected due to the presence of a long-term contract with its suppliers.

INDIA: Cement becomes dearer in Maharashtra, North may follow suit

Cement makers today increased the price of the commodity in Maharashtra by Rs10 per 50 kg bag in the wake of a spike in demand.

Industry officials feel the rise in price would soon be reflected in the northern market though similar chances are remote in southern and eastern markets.

“Cement prices in Mumbai and Maharashtra have increased by an average of Rs10 per bag.... The northern region may follow suit soon, but it has not effected any hike,” an industry official said.

Cement price in the retail market is now around Rs250 per bag in Mumbai, Rs210 in Delhi, Rs255 in Chennai and Rs240 in Kolkata.

While the southern market is already ruling high, despite over-capacity, there is no apparent reason for the prices to go up in the eastern region, the official said.

Confirming the development, north India’s leading player, Shree Cements, today said it had not effected any rise in prices, but strongly felt that prices should go up in the coming days.

“We have not increased the price. Nor anybody I know in the sector in north India has done so.... But I strongly feel the cement price should go up in the market, as cement makers are bleeding in view of the rising raw material costs,” he said.

Input costs like coal have become dearer in recent times, escalating pressure on the cost of production. Coal price has gone up to $225 per tonne from $210 per tonne a quarter earlier.

The price of cement, like any other commodity, mainly depends upon the prevailing demand-supply dynamics and input costs.

Since cement is largely a regional commodity, the price differs from region to region.

The consumption of cement and its demand relies on the pace of construction activity, which remains subdued during the monsoon and gets momentum after the monsoon period is over.

As the south-west monsoon was a prolonged one this year, it impacted construction activity.

However, despite an increase in prices, margins of cement companies are likely to remain under pressure, as the sector is expected to run on an oversupply situation, thanks to huge capacity addition by the almost all players.

India produced 247 million tonnes (mt) cement in 2009-10 and is expected to add 29 mt in 2010-11, 24 mt in 2011-12 and 17 mt in 20102-13, according to a report by Elara Capital.

While, the industry is expected to add 71 mt between 2010-11 and 2012-13, the demand is expected to increase by 63 mt in the same period, it said.

INDIA: Holcim group firms' 2010 sales up 2.7%

Cement makers ACC Ltd and Ambuja Cements, which are controlled by Swiss major Holcim, have recorded a combined sales growth of 2.7 per cent in 2010 to 41.29 million tonne, over 2009.

Both the firms, however, exuded confidence that the new year would be a better one for them in the face of rising demand, enhanced capacity and better utilisation.

Cumulative sales of the two firms were 40.19 million tonne in 2009.

ACC sold 21.17 million tonne cement in 2010 and Ambuja Cements 20.12 million tonne. In the previous year, ACC had sold 21.36 million tonne cement and Ambuja Cements 18.83 million tonne, statements by the two firms showed.

An analyst, who wished not to be quoted, told PTI that till November 30, 2010, the average industry sales growth was 6.6 per cent over the corresponding period of the previous calendar year.

Holcim holds a little over 46 per cent stake in Ambuja Cements and 46.2 per cent in ACC.

Officials from both the firms declined to guess on the projected sales in 2011. However, sources in the industry said sales would certainly go up as both of them were expanding capacity and demand would certainly pick up in the year on increased government spending on infrastructure and a spurt in housing demand.

"We begin the year with the hope of a better growth and there is no apparent reason why sales would not improve in the year," an ACC official said.

Ambuja Cements' spokesperson said that company's sales would definitely be in line with the industry growth or "even better".

Production of the two firms in 2010 was 41.23 million tonne against 40.21 million tonne a year-ago. ACC produced 21.21 million tonne in 2010 and Ambuja Cements' production stood at 20.12 million tonne.

ACC and Ambuja have 30 million tonnes per annum (mtpa) and 25 mtpa installed cement making capacity respectively now. Ambuja will add 2 mtpa capacity by the year-end.

According to the analyst, ACC might record 26 million tonne sales and Ambuja at around 21.5 million tonne in 2011.

India produced 247 million tonne cement last fiscal and expects to add 29 million tonne in FY11, 24 million tonne in FY12 and 17 million tonne in FY13, according to a report prepared by Elara Capital.

INDIA: Cement industry likely to regain positive growth

Positive sales growth of ACC, Ambuja coupled with UltraTech’s flat growth is likely to bring the industry back in positive territory in December.

Though, the sector’s overall statistics will be released next week, analysts said the industry would not slide further for the second consecutive month and might bounce back. “It would not be a high growth as demand was not strong across the country. But according to our estimates, cement sales would be around 2-3 per cent in the month,” said a Mumbai-based research head who monitors the cement industry.

ACC’s sales growth was 2.13 per cent while its sister concern Ambuja Cements posted a growth of 5.61 per cent. Jaiprakash Associates reported 28 per cent rise in its despatches while Shree Cement saw a decline of 3.38 per cent in its sales figures on a year-on-year basis.

Except ACC, cement majors have reported a slide in November. UltraTech’s sales had dramatically plunged 9.25 per cent during the month resulting in a negative growth of six per cent in the month.

 

December sales of top cement majors
Company	Sales	Growth (y-o-y %)
ACC	1.92	2.13
Ambuja	1.83	5.61
UltraTech	3.27	0.00
Jaiprakash	1.35	27.40
Shree	0.83	-3.38
All figures in million tonnes Source: Companies

According to a industry note from India Infoline, this would be another month of moderate growth with 0-3 per cent rise in sales. “Demand from the infrastructure segment has improved marginally,” said the note.

December saw cement prices moderating further by Rs 10 on an average across the country bringing the national average price at Rs 230 for a 50 kg bag.

Cement dealers said multi-national companies (MNC), including Holcim (which owns ACC and Ambuja Cements), that follow the calendar year cycle to maintain their accounts, were more interested in clearing off their inventories instead of maintaining prices. “Cement prices declined in most regions as pricing discipline waned,” said an analyst.

However, going forward, experts pointed out that cement majors have given an indication to the dealers for a price rise as input costs, including freight rates, are on the rise. Analysts expect there would be a rise of around 10 per cent in cement prices in the next two quarters.

On the Bombay Stock Exchange, shares of cement majors closed flat on Tuesday. Stocks of ACC traded last at Rs 1,070.10 while those of Ambuja closed at Rs 143.95 a share and shares of UltraTech traded at Rs 1,085.80.

INDIA: Ultratech Cement to set up Rs 2,000-Cr cement unit in Jhunjhunu

A Memorandum of Understanding (MoU) was today inked in Jaipur between Rajasthan State Industrial Development & Investment Corporation (Riico) and Ultratech Cement Limited (Birla Group) for setting up a Rs 2,000-crore cement project in Jhunjhunu district. The MoU was signed by Riico Managing Director Rajendra Bhanawat and Ultratech Cement Company Senior Executive President Radhamohan Gupta.

With an annual installed capacity of three million tones – the project will provide direct and indirect employment to a number of persons. It will be established on around 1,006 hectares of land.

INDIA: Cement: Margin pressure

Low demand and rising capacities will continue to exert pressure on price realisations.

December brought some respite to cement companies after they saw overall sales plummet 5.4 per cent year-on-year and 18.4 per cent sequentially during November. ACC’s December despatches grew 2.1 per cent year-on-year to 1.92 million tonnes (mt), while production surged 2.7 per cent to 1.91 mt. Ambuja Cements recorded growth of 5.61 per cent in despatches, while Jaiprakash Associates reported a 28 per cent rise.

Cement manufacturers had hit a rough patch in November, courtesy heavy stocking in anticipation of demand growth after monsoon. However, the demand remained sluggish, forcing analysts to revise estimates. Analysts at Kotak Securities have cut their demand growth estimate for 2010-11 from 10 per cent to 7.6 per cent.

Lower demand, coupled with incremental capacities, will continue to exert pressure on price realisations, reckon analysts. Rising coal prices may also continue to hit margins. December saw cement prices fall by Rs 10 on an average, bringing the national average price at Rs 230 for a 50-kg bag.

For the year ended December, analysts at Ambit Capital peg ACC’s revenues at Rs 7,843.7 crore and adjusted profit at Rs 1,219.2 crore, down 4.2 per cent and 24.1 per cent year-on-year, respectively. They estimate the fair value of the stock at Rs 1,126.

Ultratech, hit the hardest in November with sales plummeting 9.25 per cent year-on-year, saw December despatches (3.27 mt) and production (3.22 mt) in line with the December 2009 figures. A strong brand name and distribution, coupled with consolidation of Samruddhi Cement’s assets, may help revenues grow 88.26 per cent during 2010-11 to Rs 13,272.1 crore. However, realisations can come under pressure due to more exposure to South and West India. According to Ambit Capital estimates, Ultratech’s adjusted profits are likely to rise 55.6 per cent to Rs 1,701 crore, with the fair value of the stock being Rs 1,307.

VENEZUELA: Gobierno y Cemex ultiman un acuerdo amistoso

El gobierno venezolano y la cementera mexicana Cemex, expropiada de sus activos en el país sudamericano en 2008, están negociando un acuerdo amistoso "que debe anunciarse en los próximos días", informó el ministerio de Ciencia y Tecnología hoy en un comunicado

El gobierno venezolano y la cementera mexicana Cemex, expropiada de sus activos en el país sudamericano en 2008, están negociando un acuerdo amistoso "que debe anunciarse en los próximos días", informó el ministerio de Ciencia y Tecnología hoy en un comunicado.

"Se viene trabajando entre las partes un proyecto de acuerdo para alcanzar un arreglo amistoso, que debe anunciarse en los próximos días", reza el texto oficial.

En abril de 2008, el Ejecutivo venezolano ordenó la nacionalización de las plantas cementeras y en agosto de ese año anunció la expropiación de la filial de la mexicana Cemex, responsable de un 50% de la producción local de cemento.

Desde entonces, las partes mantienen un litigio internacional ante el Centro Internacional de Arreglo de Diferencias Relativas a Inversiones (Ciadi) del Banco Mundial.

El gobierno venezolano ya logró acuerdos monetarios con las otras dos cementeras presentes en el país, la francesa Lafarge y la suiza Holcim.

En el comunicado, el ministerio venezolano recordó que el Ciadi ya negó medidas cautelares solicitadas por la cementera mexicana para evitar que Venezuela tome posesión de más activos de la empresa.

El pasado 30 de diciembre este organismo del Banco Mundial reconoció que tenía jurisdicción para ocuparse del caso.

"La decisión del Tribunal no implica condena alguna contra nuestro país, ni se pronuncia sobre el fondo del asunto vinculado al ejercicio soberano del Estado venezolano sobre la ordenación de las empresas productoras de cemento", subraya el ministerio en el texto.

Hace algunos meses, el ministerio mexicano de Relaciones Exteriores manifestó que promovería el diálogo entre Cemex, tercera cementera del mundo, y el gobierno venezolano para buscar soluciones a este conflicto.

El gobierno del presidente Hugo Chávez ha nacionalizado desde 2007 sectores estratégicos de la economía como el petróleo, la electricidad, las telecomunicaciones, la siderúrgica y la industria cementera. 

VENEZUELA: Socialismo de Chávez no garantiza la producción de cemento

La nacionalización de la industria cementera, ejecutada hace dos años por el Gobierno revolucionario de Hugo Chávez, no ayudó a avanzar en la producción del rubro, sino que por el contrario hizo a Venezuela dependiente de las importaciones

La nacionalización de la industria cementera, ejecutada hace dos años por el Gobierno revolucionario de Hugo Chávez, no ayudó  a avanzar en la producción del rubro, sino que por el contrario hizo a Venezuela dependiente de las importaciones.

La semana pasada llegó al país un cargamento con dos mil 355 toneladas de cemento proveniente de Cuba, que fue sólo el primero de un total de nueve que se espera que arriben a l puerto de La Guaira en los últimos días.

El Gobierno sostiene que las importaciones forman parte de un mega proyecto de construcción de viviendas para las familias damnificadas por las lluvias, pero la verdadera razón podría radicar en la insuficiencia de la producción.

Richard Bracho, representante de la Asociación Civil para la Defensa de los Ex Trabajadores del Cemento (Asocemento), aseguró que la oferta local del rubro está limitada como consecuencia de problemas en las plantas.

“La producción de cemento está en 50 por ciento, las empresas no están trabajando a plena capacidad. Si las empresas estuvieran trabajando como deberían, no habría sido necesaria esa importación que hizo el Gobierno”.

En el año 2008, el presidente Hugo Chávez anunció la estatización de las filiales de las cementeras Cemex (mexicana), Holcim (suiza) y Lafarge (francesa), las más grandes del país, que concentraban 90 por ciento del mercado.

Al momento de la expropiación, el mandatario sostuvo que tomó la decisión para garantizar el abastecimiento local del rubro, puesto que las compañías extranjeras únicamente se dedicaban a producir para exportar el rubro.

Bracho aseguró que Cementos Venezuela, antes Cemex, que es la empresa cementera madre, por ser la más grande del país, con capacidad para garantizar 45 por ciento del producto que requiere el mercado, enfrenta problemas de producción.

Recordó que la empresa cuenta con tres plantas ubicadas en Anzoátegui, Lara y Zulia que en conjunto tienen en capacidad de suministrar cuatro mil 200 toneladas métricas de producto por año, pero que actualmente operan a media máquina.

Además de las plantas de Cementos Venezuela, el país cuenta con otras grandes instalaciones, que anteriormente pertenecían a Holcim y Lafarge, que tienen una capacidad de producción  conjunta de otras cuatro mil toneladas métricas del rubro.

Bracho aseguró que si en el país se generaran las más de ocho mil toneladas métricas de cemento que se producían anteriormente, no habría la necesidad de importar de países como    Cuba.