AFRICA: NIGERIA: Nigeria’s Cement Output to Reach 17 Million Tons, Trust Reports

Nigeria’s cement production will rise to 17 million tons this year from 10.5 million tons in 20100, Commerce and Industry Minister Jubril Martins-Kuye said, according to the Abuja-based Daily Trust.

Martins-Kuye said on Sept. 30 that the West African country aims to produce 22 million tons of cement by 2013, 2 million tons more than is needed locally.

INDIA: J K Lakshmi Cement profit plummets 89.86% for Dec`10 qtr

J K Lakshmi Cement  reported a phenomenon drop in standalone net profit for the quarter ended December 2010.  During the quarter, the profit of the company declined 89.86% to Rs 46.00 million from Rs 453.50 million in the same quarter previous year.

Net sales for the quarter declined 10.73% to Rs 3,153 million, while total income for the quarter fell 8.45% to Rs 3,246.00 million, when compared with the prior year period.

It reported earnings of Rs 0.38 a share during the quarter, registering 89.76% decline over previous year period.

Shares of the company declined Rs 2.25, or 4.46%, to trade at  Rs 48.20.  The total volume of shares traded  was  71,723 at the BSE 

MEXICO: Cemex to post fourth quarter loss but operating growth returns

For the first time in two years, Mexican cement maker Cemex is expected to post operating growth in the fourth quarter, but weak sales and a heavy debt mean it will still report a net loss, analysts say.

Seven analysts polled by Reuters expect Cemex, the world's No. 3 cement maker, to post a net loss of $132 million in the October to December period of last year.

However, that is a smaller amount than the net loss of $209 million in the same period of 2009.

In a sign that Cemex, one of Latin America's biggest companies, is pulling out of the worst crisis in its century-long history, earnings before interest, taxes, depreciation and amortization, or EBITDA, likely grew nearly 17 percent year-on-year to $553 million, the first growth since the second quarter of 2008.

"The fourth quarter should have marked a turning point in operational performance and finally put Cemex back on a growth path," Credit Suisse analysts' Vanessa Quiroga and Alan Solis said in a report.

Cemex, once an emerging market darling famed for buying up rivals in developed economies, has been struggling through a deep slump ever since it bought Australia's Rinker with short-term bank debt just before the U.S. housing crisis.

But an improving U.S. economy and both a stronger Mexican peso and euro appear to be helping Cemex, which reports in U.S. dollars. Drastic cuts in operating costs also seem to be helping make the company more profitable and drive up EBITDA.

Investors are still cautious because of weak sales in Europe, particularly in Spain, one of Cemex's top markets, while the company is juggling its debt maturities to avoid a payments bottleneck in 2012 and faces higher financial costs.

Analysts say Cemex ended 2010 with a net debt of $15 billion, a similar level to that of 2009, and many investors say it is still not clear how long it will take the company to reach a more reasonable level.

Cemex's debt plus its perpetual bonds is currently more than seven times its annual EBITDA, when a more reasonable level that could allow it to regain its investment grade rating would be three times EBITDA, analysts say.

PAKISTAN: Cement prices hit two-year high

KARACHI: Cement manufacturers have increased countrywide prices by eight to 13 rupees on a 50kg bag amid rising demand and costly import of coal, dealers said on Thursday.

Cement prices in the last two days have touched the highest level of Rs360 per 50 kg, a level last seen in 2009. It is selling at Rs340 per bag in northern part of the country while in south the rates are hovering at Rs360, said Wali Bhai Patel, a Karachi-based cement dealer. 

Sheikh Adeel, Senior Manager Sales & Marketing at Maple Leaf Cement, dispelled a notion that the price increase by almost all the industrial players was due to cartelisation. “First, it was demand and then the rise in the cost of production.” 

He said the post-flood demand in the northern region was on the rise and infrastructure projects in Punjab also indicated a growing appetite of the binding material. “The Pioneer Cement, alone, booked up an additional demand of one thousand tonnes last month in the district Mianwali,” he added.

Coal prices in the international markets have surged by around 30 dollar a tonne to 150 dollars since early December last year due to floods in Australia and ever-rising demand by China.

Moreover, the price of an empty cement bag has risen by Rs7 to Rs21 in a span of few months.

Majority of the cement plants in the country are coal-fired and coal makes up some 50 to 55 percent of the total raw material cost incurred by a cement factory. 

Omar Rafiq, an analyst at BMA Capital, said the flood-hit areas in Pakistan could see a significant increase in the construction activities ahead of wheat cultivation in February. He said a visible impact of the increase in cement price on cement manufactures’ margins would become apparent in the fourth quarter (April-June) of the current fiscal year.

AFRICA: NIGERIA: Cement manufacturers target 17 metric tonnes output

The Cement Manufacturers Association of Nigeria (CMAN) says estimated supply of 17 million metric tonnes of local production of cement is achievable in 2011.

The executive secretary of CMAN, James Salako, said in Lagos that this was part of the manufacturers’ efforts to guarantee self sufficiency in the local demand of cement.

He said that new cement plants with combined capacity of 14 million metric tonnes were currently under construction, adding that they were expected to come on the stream at different periods of the year.

“This year, we expect all the new facilities presently under construction to come on stream,” he said.

VIETNAM: Cement exports tipped to expand

HA NOI — Viet Nam will export 1.5 million tonnes of cement this year, an increase of 500,000 tonnes over last year, according to the the Viet Nam Cement Association.

Twelve new cement plants would become operational this year, with a capacity to supply 10.18 million tonnes annually, said the head of the association's secretariat, Nguyen Van Diep. This would increase the total capacity of the domestic industry to 60 million tonnes, Diep said.

Since domestic demand has been forecast to rise 10 per cent over last year to about 55-56 million tonnes, most of the additional capacity would be exported, he said.

In an attempt to find new export markets, the Ministry of Construction has urged cement manufacturers to look for potential markets in Bangladesh, the Middle East and Africa.

It has also worked with the association to help cement producers nationwide apply more advanced technology to reduce input costs.

Cement prices have remained stable since the end of last year, at VND900,000-VND1 million (US$46-51) per tonne in the north, and VND1.2-1.3 million ($61.5-66.5) in the south, Diep said. However, prices could be affected by rising electricity and coal prices, he cautioned.

There are currently 90 firms nationwide producing or trading cement. Of these, 33 are subsidiaries of the State-owned Viet Nam Cement Industry Corporation, five are foreign-invested joint ventures and 50 are smaller producers.

PAKISTAN: Pakistani cement export to Afghanistan, India declines by $20m

ISLAMABAD: Pakistani cement exports to Afghanistan and India declined by $20 million in the first-half of the current fiscal after the Afghan government increased the transit fee and Indian authorities refused to renew export licences of some Pakistani manufacturers, sources in the ministry of industries said on Thursday.

The Afghan government increased the transit fee by 100 percent at Torkham border for each truck that carries cement from Pakistan, they said.

Indian businessmen played a cardinal role in pursuing the Afghan government to increase the transit fee and they succeeded in their designs, they added.

The Afghan government had earlier been charging Rs9,000 transit fee on a truck, which has now been doubled to Rs18,000. The decision was taken 14 days ago and the cement industry so far has lost $14 million worth deals.

The concerned ministries of commerce and foreign affairs remain unmoved over this development. However, the businessmen engaged in exporting cement to Afghanistan, including cement dealers, transporters and some representatives of the cement industry, are scheduled to hold talks with the Afghan authorities on Monday to resolve the issue of transit fee.

In 2008/09, Pakistan exported 3.18 million tonnes of cement worth $150 million to Afghanistan, which surged further to four million tonnes, valuing $200 million in 2009/10.

However, during the first six months of the current fiscal year, Pakistan’s cement exports stood at 2.265 million tons worth $110 million. 

Similarly, Pakistan suffered a decline of $6 million in its exports to India because of the non-renewal of quality licences by the Bureau of India Standards (BIS), the sources said.

An official said that in 2008/09, Pakistan exported 0.634 million tonnes cement worth $35 million to India which increased in 2009/10 to 0.723 million tonnes worth $40 million. But during the first-half of the current fiscal year, the country exported only 0.215 million tonnes of cement worth $12 million.

The cement companies of Pakistan are required to obtain quality certification from the BIS. Between 2007 and 2008, BIS had granted quality licences to 22 Pakistani cement companies. Some of these licences, such as those obtained by DG Khan Cement and Maple Leaf, expired. 

These companies, according to the All Pakistan Cement Manufacturers’ Association (APCMA), have approached BIS for renewal, but their applications remain pending for the last four to five months. The BIS did not reply to an emailed query.

“Pakistani cement has been well received in India. The BIS should renew licences as early as possible after completing the formalities,” said a spokesman for APCMA. 

Since 2007, Pakistan has exported 2.32 million tonnes of cement to India and more licences would expire in the coming months, he added.

According to Anudeep Singh Madan, president of the Amritsar-based Cement Importers Association, the region is getting good quality cement from Pakistan at a lower price.

After taking into account the cost of rail transport from Wagah to Amritsar and further transportation within the country, the Pakistani cement is delivered to Indian buyers at Rs220 per 50kg bag, Rs30 less than the Indian cement. 

Diminishing local demand also remains a concern for the Pakistani cement industry, which has been particularly hit hard by few projects in public sector development. 

In 2008/09, Pakistan exported 6.06 million tonnes cement, earning $600 million. In 2009/10, it exported 5.6 million tonnes of cement, valuing $530 million. During the first six months, the industry exported 2.08 million tonnes worth $230 million.

ESPAÑA: La cementera activa un ERE de un mes que afecta a 43 trabajadores

La multinacional brasileña CSN, con la que hay un acuerdo para vender la fábrica, examina las cuentas a través de una auditoría 

Paro pactado para 43 de los 118 trabajadores de la cementera. La fábrica del Grupo Gallardo activa el ERE temporal, por un mes, que culminará el próximo 14 de febrero. La bajada notable de la demanda de cemento propiciada por la brutal crisis del ladrillo, más el propio bajón que la construcción experimenta cada invierno, son los motivos que han derivado en este expediente temporal consensuado entre el comité de empresa de Cementos Balboa y Gallardo. Para julio y agosto, en principio, está acordado otro ERE de un mes, aunque se desconoce si se mantendrá si para entonces el empresario jerezano ya ha culminado la venta de la cementera a la multinacional brasileña CSN.

Desde el sábado 15 de enero, la plantilla de la fábrica ubicada en Alconera se ha reducido en un 36,4 por ciento al entrar en vigor el pacto laboral cerrado el año pasado. «Estaba previsto y se está desarrollando según lo consensuado. Lo de la posible venta no ha cambiado el ERE temporal, entre otras cosas porque el propietario sigue siendo el Grupo Gallardo», indica José María Toro, presidente del comité de empresa, uno de los incluidos en ese ERE.

En diciembre, Alfonso Gallardo anunció que había llegado a un principio de acuerdo para vender la cementera, que puso en marcha en 2005, a una multinacional brasileña, Companhia Siderúrgica Nacional, junto a dos acerías vascas, por un total de 382 millones de euros. Una operación imprescindible, asegura el grupo empresarial, para pagar créditos a los bancos y garantizar su supervivencia.

La venta aún no se ha formalizado porque una auditora española, por encargo de CSN, se está encargando de examinar las cuentas de Cementos Balboa. Han estado en Alconera y Jerez de los Caballeros antes de Navidad y a mediados de enero. Estamos, en terminología anglosajona, en el periodo 'due diligence', que no es otra cosa el tiempo en el que el comprador realiza una auditoría exhaustiva de los activos que son objeto de la operación para verificarlos.

Los trabajadores viven un compás de espera con sosiego moderado a la espera de que se formalice el cambio de dueño. Han pedido una entrevista con el director general del Grupo, Juan Sillero, para intentar conocer detalles del futuro de Cementos Balboa, una empresa que, en principio, esperaba cerrar con beneficios el ejercicio de 2010 a pesar del panorama económico general y que desde su puesta en marcha ha sido una de las joyas de la corona del emporio empresarial que tiene su sede en Jerez.

Desde Gallardo se ha asegurado que el acuerdo con CSN «garantiza el mantenimiento de todos los puestos de trabajo» de la cementera, por lo que la continuidad de los trabajadores no debería ser un asunto de inquietud.

«Los trabajadores estamos a la expectativa. Tenemos un poco de incertidumbre. Ahora, a finales de enero, estamos como a principios de diciembre. No sabemos más de lo que se dijo hace casi dos meses. Rumores hay, sí, y certezas también, como que la producción sigue dentro de la normalidad y que hay cuatro trabajadores a los que se les ha hecho fijos», comenta Toro.

Cifras

El comité de empresa de Cementos Balboa espera que al final del invierno o a principios de la primavera se aclara el panorama de la venta de la fábrica a CSN. Entre otras cosas, porque el convenio laboral está caducado desde el 31 de diciembre y hay que negociar un nuevo marco general de relaciones con la empresa.

«Este asunto será uno de los primeros a debatir porque es algo básico para los trabajadores. Esperamos que pronto se pueda cerrar esta situación de provisionalidad», concluye el dirigente sindical.

Cementos Balboa empezó a funcionar en mayo de 2005 tras una sobresaliente inversión de 120 millones de euros. Sus instalaciones tienen una capacidad para producir 1,4 millones de toneladas de cemento, comercializado a granel y ensacado, y 1,1 de clinker, que es uno de los principales componentes del cemento.

Aparte de los 118 trabajadores que tiene en plantilla, la cementera genera otros 170 puesto de trabajo de forma indirecta.

URUGUAY: Cementeras se afilan con Mundial y Juegos de Brasil

Habrá dos nuevas plantas y las existentes se ponen a punto; venderán al gigante del norte al menos 1,5 millones de toneladas del producto que se destaca por su calidad.

Con la construcción de dos nuevas cementeras, una de Ancap y otra de privados, y el aumento en 30% de la capacidad de una de las existentes, Cementos Artigas, Uruguay se prepara para abastecer la demanda que generarán las obras de Brasil de cara el Mundial de Fútbol en 2014 y los Juegos Olímpicos en 2016.

El gigante norteño gastará US$ 500.000 millones para construir desde cero o remozar estadios, hoteles y rutas, así como para mejorar los puertos y aeropuertos. Esto genera una gran oportunidad para Uruguay, ya que el cemento y la cal uruguayas son de mejor calidad que los de sus vecinos, al tiempo que la cercanía geográfica juega a favor en lo que refiere al costo de flete de este producto muy pesado, contó a El Empresario Ignacio Otegui, presidente de la Cámara de la Construcción del Uruguay.

Rodrigo Goñi, presidente de Deracor, una de las industrias productoras de cemento que se está construyendo, reafirmó la percepción de Otegui: "El primer paso es Rio Grande do Sul; desde esa zona ellos tienen medios de transportarlo más fácil, vía marítima o vía férrea", agregó.

Esa planta surge de la mano del empresario uruguayo de origen brasileño, Ernesto Correa, quien vendió el frigorífico PUL y que con US$ 100 millones construirá la empresa en Treinta y Tres en los próximos dos años. Cuando se inaugure empleará unas 150 personas.

Según datos de Uruguay XXI, el año pasado firmas locales vendieron unos US$ 6,8 millones de cemento a Brasil, unas 72.000 toneladas. Esa cifra quedará perdida ante el millón y medio de toneladas que se colocarán en los próximos años. Es que la producción de Deracor será 100% para ese destino: casi medio millón de toneladas que se sumarán al millón que se venderá desde la nueva planta de Ancap, que actualmente negocia su instalación con firmas brasileñas.

Ésta funcionará también en Treinta y Tres y costará unos US$ 200 millones. "Hay varias empresas interesadas", confirmó Germán Riet, vicepresidente de la estatal.

Las exportaciones son del llamado clínker; "un proceso previo al cemento, la piedrita; a veces piden esto para hacer un cemento más brasileño", explicó Goñi. Otegui agregó que el pórtland tiene una vida útil corta, unos 45 días, por lo que generalmente las ventas externas son de ese producto más básico.

Uruguay consume 800.000 toneladas de cemento al año en la actualidad, pero se prevé que este consumo siga en crecimiento, sobre todo previendo obras de porte como Aratirí y Montes del Plata. Además, Ancap está encarando trabajos de modernización en las cementeras que tiene en Minas y Paysandú.

"Se están poniendo a punto porque estaban dando pérdida hace diez años, hace medio siglo que no se invertía en ellas", admitió Riet.

Más inversiones

Las inversiones llegarán también para el rubro cal, que si bien se destina a la construcción (para hacer revoque, pintura y yeso, por ejemplo), su uso es más variado. Por ejemplo, la calera que Ancap instaló en Treinta y Tres, abastece a la estatal brasileña Electrobras y se usa para mitigar las emisiones gaseosas. "Estamos estudiando que esa fábrica tenga una capacidad de producción mayor, porque han aparecido otros brasileños interesados en la cal", comentó Riet.

Otegui apuntó que "para abastecer a Brasil y lo que el propio Uruguay va a demandar", privados están estudiando la instalación de otra calera más en el país.

UAE: Dumping by UAE firms hit Raysut's earnings

MUSCAT: Raysut Cement Company, which acquired United Arab Emirates' Pioneer Cement this month, yesterday announced a 27.7 per cent fall in net profit at RO20.72 million for last year, hit by dumping from neighbouring UAE producers coupled with slackness in unit price realisation in export markets. This is against RO28.68 million posted in the previous year.

The company's sales revenue also dipped by 27.3 per cent to RO64.98 million from RO89.35 million during the period under review.

"The full year profit is less than our estimate. Dumping of cement by United Arab Emirates producers in northern Oman continued in the fourth quarter. The company was not able to compete with UAE producers," said Kanaga Sunder, senior research analyst of Gulf Baader Capital Markets.

"The bottomline is below our expectations, but the top line is above our estimate. The company must have increased their sales volume in the fourth quarter," he noted.

The overall unit price realisation was under tremendous pressure. There has been a slowdown in export demand, especially in neighbouring Yemen due to pressure from Saudi companies. "Yemen is one of the major export markets for Raysut. Export market price realisation also came down." Raysut Cement has a joint venture in Yemen, which enables the company to become a supplier of cement in southern part of Yemen with terminal facilities in Mukulla and Aden.

Both Raysut Cement and Oman Cement brought down their selling price in the local market, in a move to effectively compete with its rivals selling their products in Sohar and Muscat.

Proximity to Sohar

Proximity to Sohar was one of the big advantages of UAE producers, and they were even meeting the bulk users' demand in Muscat. "Transport cost for UAE cement firms to sell their products in Muscat is only RO3-4 per tonne, while in Sohar, it is around RO2 per tonne. Bulk cement consumers depend on UAE companies."

Raysut Cement shares dipped 3.53 per cent to RO1.174 on the Muscat Securities Market, amid selling pressure of 66,180 shares.

Sunder noted that with the recent acquisition of United Arab Emirates's Pioneer Cement, Raysut will be in a better position to cater to the demand of customers in northern Oman.

"They can easily bring in cement from UAE to northern Oman, which will benefit the company this year," he added.

Total expenditure of the company came down to RO42.36 million in 2010 from RO61.58 million in the previous year.

The recent acquisition of Pioneer Cement Industries for $172 million has added another 1.7 million tonnes, stretchable to 1.8 million tonnes, to the existing capacity of Raysut CementRaysut group making it to about 4.7 million tonnes per annum. The entire amount has been financed by long-term borrowing from the consortium of bankers led by BankDhofar.

EUROPA: Novacem raises £1.6m in follow-on funding

Specialist investor the London Technology Fund (LTF) has made a follow-on investment into carbon negative cement company Novacem.

The funding, which was part of a syndicate including construction company Laing O’Rourke and existing investors Imperial Innovations and the Royal Society Enterprise Fund, totalled £1.6m.

Cranch Lamble, investor director at LTF told NewNet the investment will help the development programme of the company.

‘They are working alongside industry members who may be potential end-users, which was another thing that makes the investment an attractive proposition,’ Lamble said.

Total funds raised now come to more than £2.5m and Stuart Evans, chairman of Novacem, said the further investment will enable it to continue its technology development programme.

‘The cement industry is working hard to improve current Portland cement technology and to reduce emissions, but the limestone raw material is a fundamental barrier to how far they can go. It’s clear that revolution is needed, not just adaptation, and at Novacem we are taking that challenge on.’

Novacem said it will deploy the capital in expanding its commercial activities in the run up to an expected Series-A financing.

Ray O’Rourke, chairman and CEO of Laing O’Rourke, said he sees that clients are seeking increasingly more viable and sustainable construction solutions, and the industry can no longer drag its heels.

‘At Laing O’Rourke we know our clients are looking to us to collaborate with the cement industry to overcome this challenge. Good progress has been made over the last ten years, but much more needs to be done,’ he said.

In July, it announced the first closing of its Green Cement Bond, with building materials provider Lafarge as the first subscriber.

EEUU: Los Altos Council Approves Cement Plant Fact-Finding Committee

Is the Lehigh cement plant in Cupertino following the rules or not?

That's what the Los Altos City Council wants to know—and members said Tuesday they're not content to let Santa Clara County watch out for Los Altans' health and welfare.

“No agenda, just the facts, discerning what’s important in how we can preserve the well-being of our community from an operation that happens to be outside of our community,” Councilman David Casas said Tuesday night.

The City Council members voted unanimously to form a committee to study whether Lehigh Southwest Permanente Cement Plant, on the other side of Rancho San Antonio County Park, is negatively affecting the air and water of Los Altos.

Dozens of residents in the last few months have visited Los Altos, Los Altos Hills and Cupertino city councils to complain that the Lehigh cement plant and quarry–the only operation of its type in the country near a heavily populated urban area—are not being adequately regulated by the county and regulatory agencies such as the Bay Area Air Quality Management District (BAAQMD).

The vote gives city staff the go-ahead to collect data from the many regulatory agencies that have oversight of the plant. The city will request the installation of air- and water-monitoring stations within the city’s borders to track what’s coming from the plant.

In addition, the ad hoc committee of Mayor Ron Packard and Casas will share information with a similar committee organized recently by the Los Altos Hills City Council. It authorized a $25,000 account for the city attorney to pursue the matter.

“It’s important we go through a very balanced, very thorough understanding of what is and what is not being done, what has, and what hasn’t been accomplished,” Casas said of the committee. “Are they (Lehigh) following the rules, or are they not?”

The plant has several outstanding Notices of Violation from the county, the BAAQMD, the EPA and the Regional Water Quality Control Board. To date, no fines have been levied against the plant, which is being given time to correct the notices.

Residents say they worry that aside from the violations, the plant is emitting mercury and other toxins into the air and water through Permanente Creek. They question whether government regulations are enough to protect the 1.8 million residents of the county.

A handful of citizen watchdog groups have sprouted up to protest Lehigh’s operations, includingQuarry No, in Los Altos Hills and No Toxic Air in Cupertino. Leaders boast hundreds of members in the groups. Tuesday night Casas credited Quarry No founder Bill Almon with bringing the issue to the attention of the Los Altos City Council. 

Another concern raised, not only by residents but also by council members in both Los Altos and Los Altos Hills, is whether county officials are trying to protect Lehigh because of tax monies that flow from there into county coffers.

“I don’t believe in conspiracy, but I also don’t believe in stifling discussion," Casas said. "And I know for a fact that board members for the county have called elected officials in the adjoining communities to dissuade them from having this discussion. I find that offensive. I believe there is a financial obligation that we need to examine.”

Said Packard, “I am concerned about the financial benefit to the county and possible bias.”

Several residents from Los Altos, Los Altos Hills and Cupertino addressed council members Tuesday night in support of the investigative committee. 

Absent from the meeting were any representatives from Lehigh, who have been on hand at council meetings in Los Altos Hills and Cupertino in recent months.

AFRICA: NIGERIA: Dangote Cement gets SON’s certification

The Standard Organisa-tion of Nigeria (SON) has awarded Dangote Cement Plc with NIS BS OHSAS 18001: 2007 and NIS 9001: 2008 Quality Management System certificates.

Speaking at the ceremony in Lagos, SON’s outgoing Director-General, SON, Dr. John Ndanusa Akanya, praised Dangote Cement for its commitment to meeting quality standard, saying, " by this achievement, the company has joined the lofty class of Occupational Health and Safety /Quality Management System certified companies in Nigeria".

He hailed the company for becoming the first cement firm to achieve this certification, saying: "Dangote Cement has already dominated Africa and will continue to provide employment for not only Nigeria but Africa as a whole."

According to him, " the relevance of quality and continual improvement in the current competitive market environment, which focuses on customer satisfaction cannot be overemphasised, being extremely important in expanding the organisation’s local and export trade capabilities, raising the competitiveness of its services and goods in the market and thereby improving the organisation’s image."

He disclosed that SON has certified Dangote Cement’s three plants, which include: Dangote Cement in Apapa, Obajana Cement plant and Benue Cement plant in Gboko.

"The model of these systems, to which Dangote Cement Plc system is being certified shifted emphasis from conformity to rules and regulations to actual performance output and aims at the development of Occupational Health and Safety /Quality Management System that provides for continual improvement and customer focus with emphasis on reduction of waste in the supply chain. The ISO system certification is a mark of conformity of management systems to generic requirements and as we are all aware, quality is a moving target and as such does not have a finishing line."

The company unfolded plans to raise its production output to 45 million metric tonnes by the year 2015.

The planned increase in capacity, according to the Group President, Alhaji Aliko Dangote, is meant to support its pan African investment target of setting up plants in eight African countries before 2015.

Accordingly, the company has already concluded plans to invest about $100 million (N15.24 billion) to build a cement factory in Cameroun.

According to Dangote, the planned investment in Cameroun is coming on the heels of the Investment Promotion and Protection Agreement between Dangote Industries Limited and the Government of Zambia. The agreement marked a significant milestone in Dangote’s quest to establish a cement plant in that country. The value of the investment is estimated at $400 million (N60 billion).

The group has also formally increased its stake in South Africa’s Sephaku Cement (Pty) Limited, from 19.76 per cent to 64 per cent in October in a transaction estimated at R779 million (N17.35 billion), making it the largest ever foreign direct investment by an African company into South Africa.

THAILAND: Siam Cement looks past Asean

Siam Cement Group (SCG) may increase its five-year investment budget from 100 billion baht as the country's top industrial conglomerate is spreading its investments outside Southeast Asia with ongoing talks to acquire a petrochemical company in the US.

SCG projects total revenue will rise by about 10% this year. Yesterday, it reported a 26% jump in total revenue to 301.3 billion baht for 2010, well above the 10% forecast.

The industrial conglomerate also posted a record-high net profit of 37.38 billion baht last year, a rise of 54% year-on-year with earnings growth in most key businesses and dividends.

SCG Chemicals accounted for almost half of the group's revenue, with sales of 144 billion baht, up 43%. Its earnings surged 80% to 22.6 billion, thanks to an 8.8-billion-baht extraordinary profit from the divestment of its shares in PTT Chemical in the final quarter.

The paper business earned 51.7 billion baht in revenue, rising 21%, as net profit grew 53% to 3.49 billion.

The cement unit, meanwhile, reported a 3% drop of earnings to 6 billion despite the 5% increase in revenue to 48.95 billion.

In last year's fourth quarter, the group's earnings jumped by 213% to 16.67 billion baht on sales of 76.25 billion, an increase of 23% from the same period of 2009.

President and chief executive Kan Trakulhoon said rising interest rates and high oil prices might affect domestic consumption of industrial products by pushing up their prices. SCG consequently might be forced to export more with lower margins.

Export revenue amounted to 30% of the group's total sales last year, with another 7% earned from subsidiaries operating in Asean, he added.

Given revenue and profit growth, Mr Kan said the group now has extra cash of 70 billion baht with net debt reduced from 120 billion baht to below 84 billion.

"Our financial status is now the strongest historically, enabling us to be more proactive in overseas investments. There is a possibility that our five-year investment plan (2011-15) will be higher than 100 billion baht announced earlier," said Mr Kan.

"We have discussed mergers and acquisitions in high-value-added products in the US."

He said the group invested 150 billion from 2005-10.

In Asean, talks have been pursued to acquire companies in corrugated containers and building materials. Meanwhile, it is highly likely that SCG would invest in a new cement plant in Indonesia while its petrochemical joint venture in Vietnam is at the stage of finalising the financial arrangements.

"The company has looked at investment opportunities in Burma including in Dawei. We believe economic development in Burma will be fast now that the political situation is improving. After all, it has in abundance natural resources including natural gas," said Mr Kan.

Shares of Siam Cement (SCC) closed yesterday on the Stock Exchange of Thailand at 313 baht, up 2 baht, in trade worth 2.36 billion baht.

INDIA: Mangalam Cement drops on Q3 net loss

Mangalam Cement lost 2.81% to Rs. 117.40 at 12:37 IST on BSE, after the company reported net loss of Rs. 2.53 crore for Q3 December 2010 compared with a net profit ofRs. 26.77 crore in Q3 December 2009.

The company declared the results on Wednesday, 26 January 2011, when the stock market was closed on account of Republic day.

Meanwhile, the BSE Sensex was down 109.70 points, or 0.58%, to 18,859.75.

On BSE, 25,864 shares were traded in the counter compared with the average daily volume of 17,086 shares in the past one quarter.

The stock hit a high of Rs. 120 and a low of Rs. 115.05 so far during the day. The stock had hit a 52-week high of Rs. 218 on 23 April 2010 and a 52-week low of Rs. 105 on 10 December 2010.

The small-cap stock had underperformed the market over the past one month till 25 January 2011, declining 6.79% compared with the Sensex's 5.50% fall. It had also underperformed the market in past one quarter, falling 20.42% as against Sensex's decline of 6.57%.

The company has an equity capital of Rs. 28.03 crore. Face value per share is Rs. 10.

Mangalam Cement's net sales declined 25.6% to Rs. 109.75 crore in Q3 December 2010 over Q3 December 2009.

CHINA: Taiwan may levy anti-dumping duty on China cement: officials

Taiwan may impose an anti-dumping duty on cement products from China in the coming months if the government can confirm a negative impact on the local cement industry, officials said Wednesday.

It was the fifth anti-dumping investigation launched by Taiwan against China.

The Ministry of Economic Affairs' International Trade Commission determined in a meeting Wednesday that Portland cement Types I, II and their clinker have caused "material damage" to Taiwanese companies.

Type I and II cement are often used in construction projects involving reservoirs, roads, harbors and wharfs, said Juan Chuan-ho, deputy executive secretary of the commission.

The Taiwan government started the anti-dumping investigation on on Nov. 26 after eight major cement companies in Taiwan filed a joint complaint on Oct. 5.

Statistics show that cement demand in Taiwan had declined between 2007 and 2009, while the local market share of Chinese products continued to rise, Juan said.

China's share of Taiwan's total cement imports also rose to 90.3 percent during that period, he said. 

In addition, the commission found that the price of China cement remained lower than Taiwan products during the period, he said.

The findings of the latest investigation will be forwarded to the Ministry of Finance (MOF) before February, Juan said.

The MOF will then determine, by April, if the government should impose anti-dumping tariff on China cement, he added.

PARAGUAY: La INC no puede estar en manos de un inútil

El ministro de Industria y Comercio (MIC), Francisco Rivas, debería destituir al titular de la Industria Nacional del Cemento (INC), Optaciano Gómez Verlangieri, por inepto, debido a su incapacidad y por haber convertido a la proveedora del estratégico material de construcción en un lugar donde impera una casta de privilegiados.

Desde finales del año pasado y hasta ahora, la INC se ha convertido en un muro de lamentos para los que pretendiendo conseguir el material deben esperar días y días, mientras que los privilegiados -que no forman fila y retiran grandes cantidades de cemento- son los que sacan sus grandes tajadas.

Es vergonzoso lo que ocurre en esa institución pública caracterizada desde luego por su antigua ineficiencia. Después de las desastrosas administraciones coloradas, se esperaba que la gestión de un luguista pusiera orden y capacidad.

El remedio, sin embargo, resultó peor que la enfermedad. Los que lidiaban años atrás con la corrupción en la INC aseguran que ni en los peores momentos se llegó a tanta arbitrariedad y falta de respeto a los clientes. Las protestas de los “depositeros” -grandes y pequeños- son más que fundadas. Sus camiones forman largas colas en Villeta, mientras que otros llegan e inmediatamente pasan a cargar.

Evidentemente hay una rosca que obtene ventajas en perjuicio de los postergados. La que florece y va viento en popa es la especulación, no el comercio honesto.

El problema no es sólo de orden organizativo para retirar el material de construcción sino también por limitación de la producción. La crónica falta de clínker para responder a gran parte de la demanda es el obstáculo principal.

Y Optaciano Gómez Verlangieri es el responsable de esta situación lamentable.

Los indicadores económicos muestran que la industria de la construcción -junto a la soja y la carne vacuna- es uno de los factores más dinámicos de la economía local. Aventaja, incluso, en cuanto a ocupación, a los exportadores de granos, porque es una fuente de trabajo directa para miles de obreros e indirecta para un vasto universo de proveedores.

Aun así, el MIC se contenta con organizar reuniones con los afectados por el problema para que, acto seguido, la INC olvide lo acordado para la solución del inconveniente. Mientras tanto se paralizan las obras, los obreros -al no trabajar por la falta de cemento- no cobran, los constructores se retrasan en sus compromisos y continúa el largo vía crucis.

Así como urge la construcción de una línea de 500 kV para la transmisión de energía eléctrica, hay que hacer fuerza para que no falte cemento en el mercado ni se altere su precio por la especulación de los sinvergüenzas, apadrinados por funcionarios de la INC.

La industria de la construcción es demasiado importante como para que la INC quede en manos de un inútil que fomenta la especulación, genera tensión y descontento, se burla de los clientes tradicionales y retrasa las edificaciones a lo largo y ancho del país.

BRASIL: Dust reduction for Pecem

The first of a new design of dust-reducing mobile hoppers has been installed at the port of Pecem, Brazil, where it will be dealing with traditionally dusty bulk like coal and cement.

The Eco Hopper, so called because of its ability to carry out virtually dust-free unloading of bulk materials on the quayside, is ready to receive an initial 71,000 tonnes of imported material; this is made up of 50,000 tons of slag and 21,000 tons of clinker purchased from China.

The order was placed by Brazilian company Cimento Apodi as part of a project to build a 30,000 tonne per month cement milling facility located adjacent to the port. Apodi plans to initially invest $60 million during the first phase of the cement unit project.

The Eco Hopper, manufactured by B&W Mechanical Handling (part of the Aumund Group) is loaded from vessels via 20 cubic metre capacity crane grabs. The materials are then transported by truck to the new grinding plant. The unit has a working volume of approximately 70 cubic metres and is capable of discharging at rates up to 700 tonnes per hour.

The key to the design is the integration of purpose built dust filter units incorporated into the structural element of the hopper. This approach, says B&W, enables it to provide a higher filtration media surface area and therefore higher air throughputs at lower velocities. This improves operational efficiency and reduces the overall size of the hopper. The filter configuration is complemented by the B&W Flex Flaps system at the hopper mouth which eliminates fugitive dust release at the point of grab discharge.

MEXICO: Busca Hidalgo afianzarse como uno de los mayores productores de cemento

Con el inicio de la construcción de la planta de la empresa Trituradora y Procesadora de Materiales Santa Anita, el estado de Hidalgo busca afianzarse como uno de los mayores productores de cemento.

De acuerdo a lo anunciado durante el evento de colocación de la primera piedra encabezado por el gobernador Miguel Ángel Osorio Chong este 24 de enero, la nueva cementera producirá anualmente 600 mil toneladas de material.

Cifras de la Cámara Nacional del Cemento (Canacem) señalan que en Hidalgo se encuentran instaladas cinco cementeras en los municipios de Tula, Atotonilco y Huichapan, el nuevo complejo se localizará en Santiago de Anaya en la región del Valle del Mezquital.

El gobernador de la entidad, informó que para la construcción de las instalaciones se abrirán mil 200 fuentes de empelo, y cuando la planta entre en operación se abrirán 550 plazas más, directas e indirectas, para la operación.

También se dio a conocer que el municipio se beneficiará ya que con la llegada de esta planta se construirá una ruta de acceso de ocho y medio kilómetros así como una línea de alta tensión de 25 kilómetros que dará servicio a la población.

AFRICA: NIGERIA: Lamentations, frustration trail hike in cement price

LATEST upward surge in the market price of cement, a major product in construction activities has continued to frustrate efforts of developers, builders and other stakeholders in the housing development sector of the country.

The development, which crept into the sector late last year is already taking its toll on activities of the industry, as manufacturers of some of the cement-based products are already warming up to increase their prices in response to the price hike.

Already, real estate developers and building experts are lamenting the development, saying that it does not allow them to plan their work. Besides, they expressed disappointment over deliberate attempt of some people to frustrate the distribution channel of the product across the country, so as to force the price up.

As at the weekend, a 50 kilogramme of the product which was sold for N1,550 last year now sells for between N1,800 to N1,900, depending on the product and the location of purchase. Similarly, a 9 X 9 inches block sells for between N130 and N140, while the price of interlocking blocks, a by-product of cement has increased slightly.

Several reasons have been adduced for the price hike. The Nigerian Compass gathered that one of the major manufacturers of the product embarked on routine maintenance of the machines and equipment, which has reduced the supply. It was also gathered that another manufacturer is experiencing hiccups in its distribution channels that has hampered the process, while others claimed that it was due to the increase in construction activities because of the dry season that has set in.

Although no official explanation has been given for the development, attempts to speak to one of the officials of Lafarge Wapco Cement Plc, at the weekend, was not successful as several telephone calls to his number could not get through.

But the Managing Director of Amorit International Limited, the developer of Amorit Estates, Abere, Osun State, Mr. Kayode Oyewole, lamented that the price hike has impacted negatively on their projects. He added that the development did not allow them to plan ahead as the price of cement kept changing from time to time.

He said that the price hike had impacted on the projects under construction as the price of cement had gone above what they had budgeted for at the commencement of work.

His words: “The price hike does not allow us to plan well. It does not allow for accurate planning, because of the instability of price of cement.”

Oyewole disagreed with the notion that the scarcity was due to the routine maintenance of machines and equipment of one of the manufacturers as the reason for the scarcity. He asked why a company embarked on maintenance in January and how long does it take to do that.

Past president of the Nigerian Institute of Building (NIOB), Mr. Kunle Awobodu, said the development had affected activities in the sector because of the increase in price of the product.

According to him, some projects that they have started when cement was being sold for N1,550 will now be faced with the current price hike.

He said: “Some of the projects that were started when cement was being sold at N1,550 may likely be reviewed or wait till there is a reduction in price of the commodity.”

Awobodu added that the price hike might not be far fetched from the increase in construction activities as a result of the dry season that has set in.

A member, Block Industry Association, Ibafo, Chief Musa Alakire, said that the scarcity and hike in price of the product had negatively affected most block industry activities, adding that although they were yet to increase the price of their products, if the scarcity persists, they would be forced to raise their prices as well.

Alakire urged the cement manufacturers to upgrade their machines and equipment to be able to meet the huge demand for the product across the country and ensure stable price.

Chairman of Lafarge-Wapco Cement Plc, Chief Olusegun Oshunkeye, said at the annual general meeting of the organisation that pricing of the product in the country would be favourable with the new drive of government to improve on major infrastructural facilities and unconducive business environment in the country.

While appraising the projection of the company for the future, as its 50 years existence coincides with Nigeria’s Golden jubilee, Osunkeye, said: “The company is committed to supporting the government in strengthening the nation’s economy. Over the years, it has acquired strategic and visible presence in the business environment with competitive advantage in terms of product quality and consistency of our dear product, Elephant Cement. These and more are what we celebrate at 50. We will continue to create employment by expanding our production plants and adding value to people’s lives.”

He said that the company was aiming at ensuring that it modernised its plants, through the employment of state-of –the art equipment for operations.

The board disclosed that a new Parker was recently commissioned at the Sagamu plant, which will boost cement dispatches and enhance turn-around of dispatch lorries, adding that one of the numerous measures being put in place in terms of increasing capacity through use of modern machinery and equipment to attain 2.2 metric tons, which will eventually take the average company’s capacity to 4.2 million metric tons at the completion of its ultra modern “Erin Lakatabu” plant in 2012.

Similarly, Dangote Cement Plc, recently 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. He said that overall production of cement in the country was expected to peak at 8 million tonnes between now and 2012.

He added that the problem militating against slash in the price of cement “is energy”.

His words: “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.”

BRASIL: Votorantim, Holcim Vie for Brazil Cement Stake, Estado Says

Votorantim Cimentos SA and Holcim Ltd. are vying for a 40 percent stake in Brazilian cement-maker BRC Cimentos for 1.8 billion reais ($1.1 billion), O Estado de S. Paulo reported, without saying where it got the information.

Peter Gysel, a spokesman for Holcim in Zurich said the company won’t comment on market rumors in an e-mail response to Bloomberg News.

An outside firm representing Votorantim Cimentos in Sao Paulo, where it’s a holiday today, couldn’t immediately reach officials at the company for comment. BRC Cimentos couldn’t be reached for comment.

INDIA: Ultratech Cement

Profits crash

Ultratech's performance for the third quarter ended December 2010 reflects the financial results post the amalgamation of Samruddhi Cement Limited with the Company. The results include the performance of Samruddhi with effect from 1st July, 2010 which was the Appointed Date for the amalgamation. The results for the corresponding Quarter of FY10 have been re-casted to include Samruddhi's performance for like-for-like comparison.

Based on re-casted figures, for quarter ended December 2010, Net Sales grew to Rs.3715 crore compared to Rs. 3682 crore. PBIDT fell to Rs. 768 crore against Rs. 1019 crore, PBIT falling to Rs. 549 crore compared to Rs. 815 crore, similarly PAT fell to Rs. 319 crore against Rs.499 crore.

Based on re-casted figures, for the nine month period ended December 2010, Net Sales fell to Rs. 8720 crore against Rs. 9236 crore. PBIT also declined to Rs. 1160 crore compared to Rs. 2461 crore.

The Company produced 9.30MMT (8.99 MMT) of grey cement during the quarter. The combined domestic cement and clinker sales of grey cement was 9.16 MMT (9.05 MMT).

During the quarter the Company produced 1.47 LMT (1.38 LMT) of white cement. It sold 1.44 LMT (1.30 LMT) white cement and 0.81 LMT (0.60 LMT) wall care putty.

Capital Expenditure

The Company has a capital outlay of around Rs10000 crores to be spent over the next three years. These include setting up of additional clinkerisation plants at Chhattisgarh and Karnataka along with grinding units and bulk packaging terminals across various states. To take these projects forward, orders for major equipment have been placed. Consequent to these expansions, the total cement capacity addition will be 9.2 mtpa, which will be operational from early FY14.

The ESOS compensation committee has allotted 11,580 equity shares of Rs. 10 each of the Company to option grantees pursuant to the exercise of stock options under the Company's Employee Stock Option Scheme - 2006. As a result of such allotment, the paid-up Equity Share Capital of the Company increased from 274,021,468 equity shares of Rs. 10 each to 274,033,048 equity shares of Rs. 10/- each.

AFRICA: Tanzania blocks Kenyan goods in dispute over quality mark

Thousands of Kenyan processed goods valued at Sh30 billion could be blocked from Tanzania, which is demanding the Diamond Mark of Quality in favour of the standardisation symbol that most exporters use.

Only 200 of the nearly 10,000 products that Kenyan manufacturers sell across the southern border bear the diamond mark, which Tanzania says will be required of goods from Kenya starting in March.

The Tanzania Bureau of Standards said the standardisation mark does not capture enough quality benchmarks.

“The Tanzanian officials are rooting for the diamond mark, which is more vigorous as it captures more quality measurements as opposed to the standardisation mark,” said the director of economic affairs at the ministry of East African Community, Mr Richard Sindiga.

That leaves more than 9,000 items at the risk of being banned from Kenya’s largest regional market as Kenya Bureau of Standards and the Tanzania Bureau of Standards haggle over the accepted quality emblem for exports between the two countries.

Kenya’s exports to Tanzania include cement, maize and wheat flour, margarine, cooking oil, detergents, sugar, cement and others.

Key exporters into the country such as Bidco, Unilever, Unga, Mumias Sugar, East African Portland Cement among others have products that do not have the diamond mark.

Officials at the Kenya Bureau of Standards however disagreed with the demands from Tanzania, saying the standardisation mark was more widely recognised across the region.

Difficult

“The diamond mark of quality is a very high benchmark and the rest of the region cannot match it. The standardisation mark is what we have been using and remains in use,” said the Kebs director for quality assurance and inspection, Mr John Abongo.

He added that the diamond mark was only being used locally, adding that they had written to the Tanzania on the matter.

The Kenya Private Sector Alliance (Kepsa) said the mark would add to the expense of most small and medium enterprises, making it difficult for their products to move in the Tanzania market.

“This will make a number of our manufactured goods unable to compete in the Tanzanian market,” said the chairman Patrick Obath.

Goods manufactured in Kenya are charged Sh55,000 each per year for the diamond mark while imported ones pay Sh200,000 to Kebs.

In contrast, the standardisation mark costs Sh20,000 per product per year.

CAMEROUN : CONSTRUCTION PROCHAINE D'UNE CIMENTERIE ET ANNONCE D'UN AUTRE PROJET NIGÉRIAN

La construction d'une nouvelle cimenterie d'une production initiale de 1 million de tonnes par an au Cameroun, la deuxième après les installations des Cimenteries du Cameroun (Cimencam) depuis l'indépendance du pays en 1960, sera lancée le 6 mai à Limbe (Sud-ouest), a annoncé à Xinhua une source officielle.

"C'est un projet dont le portefeuille est d'environ 36 milliards de francs CFA (environ 72 millions de dollars). Il fait intervenir un ensemble de partenaires sud-coréens, singapouriens et camerounais. Les partenaires étrangers ont pu investir déjà 17 milliards (la moitié du financement) sur le site ", a expliqué Martin Yankwa, inspecteur des services et responsable du dossier au ministère des Mines, de l'Industrie et du Développement technologique.

Selon le responsable, le projet, objet d'une convention d'établissement conclue le 28 février 2008 entre le gouvernement camerounais et l'entreprise sud-coréenne Afco Cement Corporation, " a été un peu ralenti à cause de l'absence d'un quai minéralier pour importer du clinker ". Dans sa conception originelle, il était adossé sur un port en eaux profondes à Limbe, ville balnéaire du sud-ouest camerounais, d'un financement de 400 milliards FCFA (800 millions de dollars).

"C'est un financement lourd et la construction du port nécessite plusieurs années. Or, une usine ne peut pas attendre comme ça pour pouvoir fonctionner. Moi je cherche des raccourcis pour que l'usine soit créée. Et c'est comme ça qu'on en est arrivés à dire qu'on va faire un quai à usages multiples. Un chronogramme est établi. L'Etat est maintenant partenaire, donc le projet est crédible. Le ciment est un produit stratégique", a expliqué M. Yankwa.

Seule entreprise locale de production du ciment, Cimencam, à capitaux majoritairement français et dotée d'une usine principale à Douala, et d'une secondaire à Figuil dans le Nord, fournit pour l'heure une offre estimée à environ 1,6 million de tonnes par an, contre une capacité de production augmentée à 1,8 million de tonnes, soit 600.000 tonnes de plus qu'en 2007.

Egalement destinée à des pays voisins du Cameroun tels que la République centrafricaine (RCA) et le Tchad, cette production est jugée insuffisante pour répondre à une demande croissante du marché national évaluée à plus de 2 millions de tonnes par an.

Pour contenir une tension observée ces dernières années sur le marché et ayant failli provoquer une crise des nerfs au sein de la population, les autorités du pays se sont résolues à ouvrir les vannes aux importations.

A l'en croire, le gouvernement sud-coréen a mis à disposition un million de dollars pour les études techniques, confiées à un cabinet chinois qui devait remettre son rapport le 15 janvier. "C'est ce rapport qui nous permettra de savoir réellement ce qu'il faut comme argent pour lancer le projet. Nous entendons lancer la construction de l'usine le 6 mai. On a mis en place des configurations claires. Donc, le projet est plus visible maintenant qu'avant", affirme le responsable.

Parallèlement, l'homme d'affaires nigérian Aliko Dangote, cité parmi les grosses fortunes du continent, a débarqué le 7 janvier à Yaoundé pour une rencontre avec le ministre camerounais du Commerce, Luc Magloire Mbarga Atangana, pour faire part à ce dernier de son intention d'investir 50 milliards de francs CFA (100 millions de dollars) pour la mise en place d'une autre cimenterie dans un délai de 90 jours.

Déjà implanté, en dehors du Nigeria, dans d'autres pays étrangers comme l'Afrique du Sud, le groupe Dangote, également spécialisé dans l'agroalimentaire, se propose lui aussi de produire de 1 million de tonnes par an.

Pour M. Yankwa, c'est une aubaine eu égard aux grands chantiers d'infrastructures entrepris par le gouvernement et qui feront appel à une grande disponibilité du ciment. "Ils (l'investisseur nigérian et son groupe) sont venus les bienvenus, parce que dans le marché du ciment camerounais, Cimencam seule ne peut pas permettre de réaliser les grands projets en cours", a-t-il dit.

AFRICA: Nigeria: Dangote Targets N20 Million Metric Tones of Cement

Dangote Cement Plc has said that it is targeting an annual production capacity of 20 million metric tones of cement effective July this year.

Chairman of Dangote Group of companies, Alhaji Aliko Dangote made the revelation last week while speaking at the formal presentation of NIS BS OHSAS 18001:2007 and NIS ISO 9001:2008 certificate to Dangote Cement Plc by the Standards Organization of Nigeria (SON)

According to him, the company would surpass local demand and export the excess to neighbouring West African countries, where demand for cement is very high.

To this end, he said the company already has a plant in Ghana, emphasizing that there are good market opportunities in other neighbouring countries such as Liberia, Senegal, Sierra Leone and Cote D 'ivoire.

He said the company had alsoformally raised its stake in Sephaku Cement (Pty) Limited, which is based in South Africa, from 19.76 per cent to 64 per cent in October 2010, while it signed an investment pro protection agreement with the government of Zambia, in December 2010 to set up a cement plan that should be up and running by the year 2013.

In addition, Alhaji Aliko said the company had recently signed a deal with the Cameroon Government to enable it commence the production of that country.

The Chairman said on the long term measure, the company has plans to develop 46 million tones of production and terminal capacity in Africa by the year 2015.

He stressed that the company's is to become a truly African champion in the sector, capable of competing globally with the largest cement companies in the would, saying, the listing of the company on the Nigerian Stock exchange in October last year was part of the strategy.

He exercise the believe that quality certification of the company's processes such as was witnessed last Thursday would further enhance its drive towards becoming an African conglomerate.

"In Nigeria, where Dangote Cement accounts for more than 50 per cent of the market share, we are currently increasing the existing capacity of our plants and building new ones to take advantage of the proposed ban on imports by 2012", said.

Commenting on the award, the Chairman asserted that as a leader in the Nigerian cement business, Dangote Cement had always given priority to quality standards to maintain the value of its products for the customers , remarking that its cutting- edge technology gives it a competitive edge in the market.

Consequently, he said 13 of the company's subsidiaries could presently boast of quality management system ISO 9001 status.

This is even as the company had started the process for the implementation of the Occupational Health and Safety Management system OHSAS 18001 to enhance its leadership profile in the cement business not only in Nigeria but also in Africa.

He further disclosed that OHSAS 18001 is currently going on in three of is companies namely Dangote Agro Sacks/AD Star, Ikeja, Obajana Cement Plc and Dangote Sugar Refiner refinery Plc, while the process is completed at Dangote Cement Plc, Apapa plant..

Continuing, Alhaji Dangote said that certification to food safety management system ISO 22000 was also progressing in seven of the company's subsidiaries, assuring that Dangote Group is fully committed to the implementation of all the SON standards including environmental, to enable it retain its leadership position in the business.

The Chairman had earlier remarked that the quality management system is a standards that helps organizations to put in place processes that not only ensure consistent production quality but enhances customer satisfaction

He noted that the certificate is awarded to companies only after rigorous quality checks, explaining thus; "In our own case, the process of implementation of the standards started in 2000. The fact that Dangote Cement has won this prestigious award, therefore is an endorsement of our strict adherence to globally accepted quality standards in all our system and processes".

Speaking in a separate interview with Daily Champion, shortly after the award, the Director General of SON, Dr. John Nkanya said the major focus of the organization in 2011 would be on both quality of products produced in the country and imported.

He enjoined manufacturers to lay more emphasizes on improvement of standards of the quality of respective products, especially that 2011 election are drawing near.

Dr. Nkanya had earlier stated that the challenges of globalization were the driving forces for doing business and maintaining relevance at both national and international markets.

Considering the ever-changing customer requirements and the role of competitiveness in the global market, only organizations that have what it takes to remain afloat in the precarious market could survive the quality edge.

He explained that the model of these system to which Dangote Cement Plc was being certified shifted emphasizes to from conformity to rules and regulations to actual performance output and aims at the development of an Occupational Health and Safety Quality Management Systems to generic requirements .;

While asserting that quality is a moving target and as such does not have finishing line, he enjoined Dangote Cement Plc to note that the journey of excellence it is embarking upon does not have an end

He charged the company to keep the systems healthy and up-to-date in order to reap all the benefits of the standards.

According to him, the system having been certified would be placed on six monthly surveillance audits to ensure continuing suitability and effectiveness of its implementation /

In the course of audit exercise, where non-conformances are observed and are effectively corrected within the specified time frame, the systems would retained the certificates/

He however warned that the certificates would be withdrawn if the structures in place for certification break down and necessary corrective actions were not taken on observed non-conformamces.