INDIA: Cement prices set to rise in Gujarat

Cement is likely to get dearer by Rs 6-8 in Gujarat market within this month thanks to input cost pressure. Prices have already gone up in the range of Rs 10-12 per bag in the beginning of March after restructuring of duties on the commodity in the Union Budget of 2011-12.

Prices in Ahmedabad market is around Rs 260-265 for a 50 kg bag now for retail and around Rs 240-245 a bag in the wholesale market. "Prices in Gujarat and also adjoining Rajasthan (Jaipur) are at a three year high now", said an Ahmedabad based stockist and dealer of a leading cement brand.

Dealers in the region also noted that cement off-take in the region is picking up. "There is healthy demand for the commodity in Gujarat market, but along with it there is also a supply side control from major players. Together with this, the excise duty restructuring had also pushed players to raise prices earlier this month. We do not see prices going down till June, they are likely to remain firm.", said an Ultra Tech Cement dealer in Ahmedabad.

Cement consumption in Gujarat has approximately increased by around 12-15 per cent during 2010, compared to the year before. According to market data, the demand is pegged at 20-23 million tonnes during last calendar year. Major players in the region include Sanghi Cement, Binani Cement, L&T, Ultratech along with Ambuja Cement.

All India average price of cement has also gone up from Rs 220-225 a bag in December to Rs 265 a bag now. In Mumbai region prices are hovering around Rs 275-280 now, and analysts feel that they can further go up in the near-term.

Rise in input costs, especially that of coal has hit the cement manufacturers' margins. While coal prices have gone up by around 35 per cent on a year-on-year basis to $130 a tonne now, prices of gypsum and fly ash are also up by around 20 per cent. Freight costs too have increased by around 12 per cent. On top of this, cement makers feel that the excise restructuring in this year's budget would put an additional burden of Rs 3-4 per bag.

PARAGUAY: Repudian corrupción en cementera

La corrupción en la Industria Nacional de Cemento (INC), que afecta incluso los despachos de la estatal, fue cuestionada por gremios relacionados con el rubro de la construcción, que soportan los perjuicios de las entregas irregulares realizadas por INC a los amigos, políticos y hasta parientes de las autoridades.

“Es una vergüenza todo lo que estamos viviendo”, dijo uno de los directivos de la Cámara de Vendedores de Materiales de Construcción (Cavemaco), Conrado Valenzuela, al referirse a los despachos irregulares de la INC. 

“Cemento hay mucho, pero en el mercado negro, y en la cantidad que uno quiera en el día que desee”, destacó el distribuidor, que desde hace tres décadas es cliente de la estatal y ahora no puede conseguir cargas. 

“Hace 30 años estoy en este trabajo y nunca se tuvo tanto problema”, aseguró. Dijo también que “no se puede trabajar en este país”, ya que el Gobierno ampara a corruptos como Optaciano Gómez Verlangieri. “El Poder Ejecutivo le da su voto de confianza para que siga en INC”, lamentó. 

Para Valenzuela todas las denuncias que hicieron ante las autoridades nacionales “quedaron en la nada”.

“Nos cansamos de reclamar y no encontrar eco en el Ejecutivo y tampoco el Legislativo”, haciendo referencia a las veces que el Congreso trabó el pedido de Patria Querida de intervenir la cementera estatal.

Reuniones no sirvieron

En ese sentido, la presidenta de la Asociación de Distribuidores de Alto Paraná (ADAP), Nelly Vázquez, coincidió en que “de nada sirvieron las reuniones que hicimos en el MIC (Ministerio de Industria y Comercio)”, pidiendo una distribución más justa, ni la Audiencia Pública. 

“Una se siente impotente porque ellos (por las autoridades de INC) están seguros de seguir igual como hasta ahora. Ya no sabemos a quién recurrir”, resaltó. 

Se quejó de uno de los mecanismos que usan en la estatal para entregar cemento de forma irregular: Se les saca a los distribuidores legales para darles a los “maletineros”. Por ejemplo, hace 15 días se le había sacado a ADAP en una semana alrededor de 15.000 bolsas que le corresponden a la zona de Alto Paraná. 

En cuanto a los “depositeros mau” de la INC, dijo que “ya no se sabe quién es distribuidor y quién no, porque hay tantos nombres desconocidos en la lista de entrega (del cemento)”. 

Se crea la necesidad para poder especular 

Para la presidenta de la Cámara Paraguaya de la Construcción (Capaco), Ana Luci Porro, es claro que la INC crea la necesidad del cemento para poder especular. 

Subrayó que, “como cámara, tantas veces hemos reclamado (una solución a la problemática del cemento) y todo cayó en saco roto. El Estado no tomó las medidas correctivas y entonces nosotros buscamos en otro lado, estamos inundando el mercado con importación, para atender las necesidades”. 

“Ni siquiera la provisión de 1.500 bolsas de cemento que le corresponde a Capaco se regulariza. Entonces, ya que el Estado no dio respuesta, lastimosamente tenemos que recurrir al producto de afuera”, explicó Porro y anunció que entre siete y ocho barcazas del material importado están en descarga, con aproximadamente 200.000 bolsas cada una. 

Según el análisis de Porro, el problema de fondo en la INC no es la producción, sino que por un lado una “cuestión organizacional” y por el otro, “la especulación”. 

Lamentó finalmente que “tanta gente pasó por la INC y no hemos visto resultados hasta hoy” y, además, sigue habiendo “tanta gente inoperante” en la institución.

SOUTH AFRICA: Cement sales down 12.4% in February

Cement sales in SA moved 12.4% lower year-on-year in February to 736,691 tons from 840,586 tons at the same time in 2010, data from the Cement and Concrete Institute showed today.

Cement sales had declined 4.6% lower year-on-year (y/y) in January.

Domestic sales on a year-to-date basis declined 9.1% to 1.375 million tons, from 1.513 million tons for the same period in 2010.

The moving annual total in SA was down 6.8% y/y in February 2011 to 10.732 million tons from 11.521 million tons in February 2010.

MEXICO: Holcim abre nueva planta en Sonora y se afianza en el país

Markus Akermann, CEO de Holcim aseguró que la caída de la demanda de cemento en el mercado estadounidense entre 2007 y 2010 (46%) obligó al grupo a emigrar a mercados emergentes como la India, China y América Latina, incluido México.

Esta es, añadió, una de las razones por la cual se decidió construir la planta en esta localidad.

Indicó que la crisis impactó al mercado de Estados Unidos, que dejó de consumir casi 60 millones de toneladas en los últimos tres años, al pasar de 130 millones a 70 millones.

En contraste, la India aumentó su demanda entre 8% y 10% y el mercado latinoamericano en 4%, lo que incentivó la estrategia para instalarse en esas regiones, subrayó.

Akermann dijo que la inauguración de la séptima planta cementera de su filial Holcim Apasco en México no es casualidad. Explicó que ante la crisis financiera mundial, “no eran pocos los que hubieran pensado que era mejor cancelar o posponer el proyecto —que se inició en 2008—, en vista de las dificultades de los mercados y la drástica caída de la construcción”.

Indicó que en los últimos años la demanda de cemento en México cayó más de 10% y al cierre de 2010 el consumo en se ubicó en los niveles de 2005. No obstante, “en Holcim decidimos proseguir con esta inversión de 400 millones de dólares como muestra de la importancia que tiene México en nuestros planes y la confianza que tenemos en su futuro crecimiento”.

La planta de Holcim en Hermosillo tiene una capacidad instalada para producir un millón 600 mil toneladas anuales de cemento de alta calidad.

Con ello, el grupo Holcim Apasco aumenta su capacidad total instalada a 12.6 millones de toneladas anuales, lo que ayuda a garantizar el suministro de cemento para obras de infraestructura y vivienda al noreste del país.

Eduardo Kretschmer señaló que el grupo se consolida como el segundo productor de cemento de México.

Comentó que la inversión total fue superior a 400 millones de dólares. Holcim cuenta con plantas productoras en Estado de México, Guerrero, Veracruz, Colima, Tabasco y Coahuila, así como 23 centros de distribución.

También opera cinco plantas de grava y arena, y más de 120 plantas de concreto premezclado.

ESPAÑA: ASTURIAS: El Musel aplaca la caída de graneles sólidos con un récord de contenedores

El puerto gijonés alcanzó en febrero un importante incremento del tráfico de cemento y clínker 

El movimiento de mercancías en El Musel cerró el mes de febrero con datos dispares. Por una parte, el puerto gijonés experimentó un notable retroceso en los tráficos de graneles líquidos y sólidos en relación al mismo período del año 2010. Pero, por otra, consiguió una franca mejoría en el tránsito de mercancía general, al mover 3.418 Teus, un 31,51% más que el año pasado, lo que en el acumulado de este ejercicio se traduce en un ascenso del 21,74% más que en el precedente, un récord histórico para la terminal. 

Los graneles líquidos cayeron un 11,84% en la comparativa mensual al alcanzar las 115.427 toneladas. El acumulado se sitúa en 200.089 toneladas, un 29,44% menos que en 2010. También los graneles sólidos sufrieron una caída significativa del 10,99%, con 1.040.513 toneladas. Aun así, se produjo un importante incremento en el tráfico de cemento y clínker, con un ascenso de casi el 50%. 

Estos datos quedan compensados, en parte, por la mercancía contenerizada, que fue de 37.929 toneladas, un 18,57% más que en febrero del año pasado. En el acumulado, la cifra se elevó hasta las 188.251 toneladas, un 28,82% superior. Especialmente significativa fue la mejoría en los productos siderúrgicos, un 23,32% más gracias a las 36.701 toneladas registradas. La mercancía general subió en total hasta las 108.390 toneladas, un incremento del 66,63%.

CHINA: Taiwan Cement Augurs Well for 2011 Sales

With annual sales breaking the NT$100 billion mark last year, Taiwan Cement Corp., Taiwan`s leading cement producer, predicted its sales to hit a historic high record with improved earnings in 2011. 

Taiwan Cement chairman Leslie Koo said his company saw conspicuous sales growth in the first two months of this year and the cement industry in China is the most promising ever seen in history. 

Koo noted Taiwan Cement Group will see annual cement production capacity exceed 60 million tons in both Taiwan and China by the end of this year. The group has aimed to rank among China`s top-three cement producers in the medium term. 

As China government has placed energy saving and carbon reduction on the list of industries for rapid development, leading cement producers will go larger as less-efficient cement plants will be forced to shut down. 

At present, Taiwan Cement ranked sixth in China`s cement industry. The group will continually expand production capacity and boost its presence in China by means of mergers and acquisitions. 

The group`s Taiwan Prosperity Chemical Corp. and Hoping Plant are enjoying steady growth in earnings. In addition, another affiliate—China Synthetic Rubber Corp. has extended sales of medicines to adults from children and expand sales to Europe from the U.S. market.

By the end of this year, Taiwan Cement will increase three cement production lines, each in Sichuan province, Chongqing City and Guizhou province. With the additional production from the above-mentioned new production lines, the group will see annual production capacity reach over 47 million tons of cement in China this year. 

The group`s annual production capacity in China is expected to surge further to 52 million tons by the end of 2012 as it has resolved to expand capacity in Guizhou, Sichuan and Liaoning provinces. Plus Taiwan`s annual production capacity of eight million tons, the group`s aggregate production capacity across the Taiwan Strait will exceed 60 million tons by the end of next year. 

Taiwan Cement scored NT$8.1 billion in after-tax earnings, or NT$2.4 per share, last year. As the cement prices are spiraling up, Taiwan Cement predicted its gross profit margin will rise by 10 percentage points this year from last year`s level.

AFRICA: TANZANIA: Mbeya Cement launches new brand with Lafarge logo

In a bid to improve their products and services, Mbeya Cement Company Limited (MCC), who are manufacturers and distributors of Tembo Cement yesterday launched a new bag for their products.

The new improved bag with green and brown colours hit the local market for the first time this week, according to a statement issued by the firm’s Marketing and Communications Manager Harriette Mutayoba-Msale.

MCC General Manager Mbuvi Ngunze said in the statement that the new Tembo Cement look was part of the firm’s celebration to commemorate Lafarge’s 10 years in Tanzania.

Lafarge, the world’s leading manufacturer of building materials, specialising in production of cement, aggregates, concrete and gypsum owns 65 per cent stakes in the company, while the government and National Social Security Fund (NSSF) own 25 per cent and 10 percent respectively.

The French company came to Tanzania in 2001 by investing in Mbeya Cement Company Limited.

“Our new bag has mainly been designed to overcome cement leakage problems during loading and unloading being part of the processes involved in the movement of our product from one point to another,” said Ngunze emphasising that the quality and quantity of Tembo Cement remains the same that customers have known and experienced over the years.

“Lafarge company, the majority shareholders in Mbeya Cement, has been in Tanzania for 10 years now and we think it is an opportune moment to refresh our look and customer promise by commemorating this milestone with a new look bag,” he said.

He added: “We are particularly proud that Mbeya Cement has leveraged being part of the Lafarge group by drawing on expertise to expand our facilities and improve product and services.”

The company was wholly owned by the Tanzania government until on December 1, 1998 when it was privatised to the British company known as CDC (Commonwealth Development Corporation) that bought 51 per cent of the shares. Others were held as follows: NSSF 10 per cent, Chilanga cement (Zambia) 14 per cent and Government of Tanzania 25 per cent.

In 2001 CDC sold majority of its shares to the French company.

PAKISTAN: Pakistan to establish first cement plant in Tajikistan

A Pakistani enterprise plans to establish first cement plant in Tajikistan as a joint venture project. This was stated by Chairman Board of Investment (BoI), Saleem Mandviwalla, in his address to the Business Forum of entrepreneurs of Pakistan and Tajikistan here on Wednesday. The President of Republic of Tajikistan, Emomali Rahmon, was also present. 

He said the bilateral trade was already underway, however, there was need for industrial cooperation between the two countries and the cement factory was one step in that direction. 

“President Asif Ali Zardari is willing to extend his cooperation towards Tajikistan for the promotion of trade and investment between the two countries,” he added.

He said that the Tajik entrepreneurs could also utilize Pakistan’s capabilities through various industrial and allied sectors.

Mandviwalla said that Pakistan wants to strengthen relations and cooperation in diverse fields including trade, communication and energy with particular focus to tap potential markets of Central and Southern Asia. 

Addressing the Forum, the Chairman and CEO of Trade Development Authority of Pakistan (TDAP), Tariq Puri, said that interaction between the private sector entrepreneurs will help promote bilateral trade and business relations. 

He said the TDAP will soon visit Tajikistan with a big business delegation and look into options to open marketing office there, besides, participating in an exhibition.

On the occasion, the Tajik Minister for Economic & Trade Affairs, Farrukh Hamraliev, said that his country was a growing economy and has achieved macro-economic stability after gaining independence in 1991. 

He said the external trade and currency operations have been liberalised. Small and medium business enterprises are fully privatized while restructuring and corporatisation of big state enterprises are underway. 

The Minister hoped that investments will lead to growing outputs in real sectors of economy. “This will enable diversification of Tajikistan’s export potential, which at present heavily depends on aluminum and cotton industries,” he maintained. 

He said the estimated hydro potential of Tajikistan is 527 billion KW per annum. Less than 6 percent of this capacity is being used at present. 

The Deputy Chairman of State Committee on Investment, Eshonkulov A. also spoke and dwelt at length on the investment potential in Tajikistan. 

He said there was great scope of foreign investment in hydro-resources, mineral wealth of gold and silver deposits, processing of agriculture, wool and leather, cotton farming, vegetable farming and cattle breeding. 

About the trade volume between the two countries, the head of WTO Cell of TDAP, Mujeeb Ahmed, said that it was around 35 million dollars which was very low and needs to be enhanced. 

However, he said that unregistered trade was also going on through Afghan border and presently Pakistan’s major exports to Tajikistan include paper products, tents, textile material, medicines, butter and milk cream. 

The entrepreneurs of both the countries were later given an opportunity of interaction.

CHINA: Conch Cement To Invest 10B Yuan For Expansion

Anhui Conch Cement (600585), the largest cement producer in China, plans to invest 10 billion yuan this year to upgrade technology, undertake mergers and acquisitions and reduce emissions, reports China Business News, citing company chairman Guo Wensan.

Conch Cement achieved market leadership through capacity expansion in the Yangtze River Delta and the Pearl River Delta regions, the two most important markets in China, during the period of the 11th Five-Year Plan. During the same period, the company sought to enter into the markets of west China.

According to the report, the recent growth of China National Building Material Group Corporation in the cement sector through mergers and acquisitions is threatening the market leadership position of Conch Cement. This has led to Conch Cement pursuing mergers and acquisitions. 

Liu Zuoyi, C.E.O. of Digital Cement, said that Conch Cement had in the past relied on capacity expansion to expand its business.

The Chinese government released regulations in September 2009 aimed at curbing excessive capacity in a number of industries. One of the industries targeted was the cement industry.

According to the regulations, cement projects that were not operative before the end of September 2009 were directed to suspend production.

Guo said that Conch Cement will expand capacity by more than 10 percent in 2011.

At present, the company has annual production capacity of 140 million tons of cement and has affiliates in about 20 provinces and cities.

The report added that though the pace of mergers and acquisitions in the cement industry stepped up over the past two years, the concentration rate in the cement industry is still below 30 percent.

Among the major cement producers, Conch Cement has the lowest leverage ratio while having the highest operating cash flows.

The cost of mergers and acquisitions may increase due to the rise in cement prices resulting from the restrictions imposed by the government on power usage. 

Guo added that Conch Cement would consider the profitability, geographic location and mine resources of the target companies in its assessment. 

The price of cement increased 13 percent in 2010, and is expected to continue to rise in 2011, said Guo.

Anhui Conch Cement predicts that 2010 net profit could increase by more than 50 percent. It posted 2009 net profit of 3.54 billion yuan.

MEXICO: Cemex Boosts Bond Sale by More Than $200 Million, Price at 30% Premium

Cemex SAB, the largest cement maker in the Americas, increased its convertible bond sale by more than $200 million and set the conversion price at a 30 percent premium to yesterday’s close of its American depositary shares.

Cemex will sell $800 million of 3.25 percent convertible notes due in 2016 and $600 million of 3.75 percent bonds that mature in 2018, the Monterrey, Mexico-based company said today in a statement. The notes will have an initial conversion price equivalent to $11.28 per ADS. The U.S. shares closed at $8.68 yesterday.

Cemex said earlier this week it would sell $600 million in each issue. An overallotment option granted to the managers of the sales may increase the amount of 2016 notes by $177.5 million and the 2018 bonds by $90 million, according to the statement. That option had earlier been set at $90 million each.

The cement maker said it expects the offerings to close on March 15. The company plans to pay about $187 million for a cap on the share-price conversion rate. The cap for the 2016 notes is at a 90 percent premium to the closing share price on March 9 and 110 percent for the 2018 bonds.

AFRICA: NIGERIA: Dangote Building N100 Billion Cement Plant

Sitting on 2000 hectares of Land in Ibese, Yewa South Local government of Ogun State, Dangote Group's Dangote Cement Works Limited, Ibese would by July start churning out some 7,200 metric tonnes of cement per day or 6 million metric tonnes per annum from two production lines of 3 million metric tonnes each. More concretely, the plant is expected to produce some 240,000 (50kg) bags of cement per day. Also some 800 trucks of 600 bags would be lifted from the plant per day.

The massive plant, mainly being handled by Sinoma International Engineering Company, a Chinese firm, is worth $680 million about N102 billion. A breakdown of the figure shows that while the infrastructure, equipment and construction is billed to cost $400 million, the remaining $280 million is being invested in a 105-mega watts power plant, which would be run on bio-fuel(natural gas and coal). The power plant will soon be completed and the 22km long gas pipeline will also be completed soon, says the deputy director project Ved Prakash Sarkari.

Dangote Industries Cement division earlier signed a $95 million contract with Siemens International Turbomachinery for the production and supply of three gas turbines to power the Ibese Cement plant. Alhaji Aliko Dangote, the Chairman Dangote Group had explained that the contract was to enable him deliver the plant in record time.

Dangote had said at the signing ceremony: "We are pleased to partner with Siemens, a globally recognised company in power plant construction. This contract is a signpost to our desire and determination to meet our target of completing the Ibese plant in record time, and achieving the 20 million metric tonnes annual production target our cement division has set this year. But the ultimate goal in a few years is to achieve a 26million metric tonnes annual production capacity in Nigeria, whilst also expanding its presence on the continent by acquiring and developing several cement producing assets where it sees opportunities."

Sarkari who conducted journalists round the factory also said the plant should be completed between June and July, 2011 as the Klinker is ready and the major installations are ready, adding that 95 percent of the raw materials are sourced locally.

The plant would directly employ 600 people comprising at least 70 percent Nigerians after six months of handing over the plant to Dangote he noted.

A trip to the mining sites located some three kilometers from the plant and about 1000 meters to the crusher shows some huge excavation work as mining sites are already been developed. For now, one is completed and covers 1.5 kilometers and it is expected to deliver limestone to the factory for three years. Geological survey shows the factory environment has a deposit of some 240 million metric tonnes of Limestone and would last the next 90 years if exploited daily. The developers say the mines are being done to meet the concerns of the environment.

Also the conveyor belt, running through over 2.5 kilometer distance from the crusher to the storage tank is almost complete. The storage capacity of the tank is 300,000 metric tonnes.

The plant also has six cement silos, roto packers that can pack 2,400 (50kg) bags per hour and about 18 trucks at a time says Sarkari.

"The plant is expected to achieve low fuel consumption, while dust emission control is taken very seriously. A total of 30mg/Nm3 maximum is the target, representing just 10 per cent of the Federal Government's 300mg/Nm3 benchmark for dust emissions" Sarkari explained.

The Ibese factory capacity is also expected to add to the current production levels of the other cement production facilities in the Dangote Group.

The project, when fully operational will provide direct employment for about 200 Nigeria.

There is a very cordial relationship between the company and the host community. Besides bringing development to the community, the company plans to provide two boreholes for the community, as well as schools and hospitals to cater for the welfare of residence of the community, as is being done in Obajana and Gboko (BCC).

Beyond dust emission control using ultra-modern equipments, there are also plans to ensure that there is no waste as all materials will be recycled and reused.

Dangote said his commitment to building the Ibese plant is defined by his resolved to crash cement prices in Nigeria. Currently, cement prices hover been a band of N1850 to N2200 in the open market. But in Dangote plants; in Lagos plant, the price of a bag of cement is still N1,450, in BCC Gboko it is N1,250 and in Obajana a bag goes for N1,330.

"We have made a pledge to ensure that the price of cement in Nigeria comes down, but that can only be possible if the product is available in the market through increased supply. We intend to keep this pledge. Our cement division is expanding in various countries within Africa," he noted.

Just last week, Dangote told journalists in an interactive session that in order to ensure that the price of cement is within reach, Dangote group has acquired 1,500 new trucks for distribution purposes, adding that consumption is on the increase hence urgent need to meet the demand must be taken.

Industry watchers have lauded Dangote's investment in the Ibese plant. For isnatnce, speaking to Daily Trust in Lagos, the Director General Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) Mr. John Isemede said "Dangote is doing a good job else, you and I can't live in good houses. He has invested so much, putting Obajana in place. If Ibese comes on stream, prices of cement will surely reduce."

He also said when Obajana gets to the second and third phases, we would have good supply of cement locally and the prices will go down further.

But beyond all of these he however noted that for the prices of cement to be less than N1,000 per bag, government must take deliberate steps to reduce the cost of doing business by providing power and other infrastructure so the importation of cement can stop.

AFRICA: TANZANIA: Mbeya Cement Relaunches Tembo Cement

MBEYA Cement Company (MCC), producers and distributors of Tembo Cement have launched a new package for their product in a bid to improve services to its clients.

MCC General Manager Mbuvi Ngunze said in a statement on Tuesday the Tembo Cement new look was part of the firm's celebrations to mark 10 years of Lafarge in Tanzania.

Lafarge is the world's leading manufacturer of building materials, specializing in production of cement, aggregates, concrete and gypsum.

The French company came to Tanzania in 2001 through investing in Mbeya Cement Company Limited.

"Our new bag has mainly been designed to overcome cement leakage during loading and offloading, which are part of the processes involved in the movement of our product from one point to another," said Ngunze.

He emphasized that the quality and quantity of Tembo Cement would remain the same that customers have known over the years. Lafarge owns 65 per cent shares in MCC, while the government and NSSF own 25 per cent and 10 per cent of shares, respectively.

MCC operations include a head office in Dar es Salaam and a fully integrated plant located at Songwe Industrial area along the Tunduma Zambia highway in Mbeya Region.

It also maintains eight depots across the country - Dar es Salaam, Dodoma, Iringa, Makambako, Mbeya, Songea, Sumbawanga and Kigoma.

AFRICA: NIGERIA: Check Rising Cost of Cement

The sudden hike in the price of cement has worsened an already delicate situation for Nigerians groaning under harsh economic conditions. In the last few weeks, the price of a bag of cement has gone up from N1, 6000 to over N2, 000 while a truck load of the product now costs N1.2m, up from N950, 000. Transportation problem caused by a hike in the cost of diesel, and huge demand by contractors in a hurry to complete ongoing projects before the end of the financial year are some of the reasons given for this increase.

Members of the Cement Manufacturers Association of Nigeria attributed the exorbitant hike to scarcity of diesel and other lubricants, forcing factories to operate below capacity. Others blame importers bent on sabotaging government's effort in encouraging investors in the sector by controlling the importation of the product. Whatever the reasons may be, the hike is not in the interest of the government and the citizens because of the multiplier effect it can have on other sectors of the economy. The building and construction sector will slow down, those who plan to build their own houses would be hard-put to make up for the increase; landlords would cash in to hike rents, and tenants, mostly government workers, would ask for pay reliefs to cushion the effects.

That is why the government should empower the appropriate regulatory agencies to see that the hike is reversed as quickly as possible. A short-term solution, like massive importation, has to be adopted so that ongoing building projects are not grounded. There is the need to flood the market with the product to address the current shortfall and force the price down. While this temporary measure is taking place, government must consider long-term solution to the persistent problems cement consumers frequently encounter.

For several years running the exorbitant prices of building product have discouraged many Nigerians from building their homes while the option of owning government built ones are impossible for many because they are either priced beyond the reach of ordinary Nigerians or the conditions are so steep that only the rich and powerful can meet them. If the government is desirous of enhancing the wellbeing of Nigerians through a liberal housing policy, basic building materials like cement should be priced within the reach of those earning the minimum wage.

A step towards resolving the cement matter is to identify why most of the several cement factories in the country are not operating, despite government incentives. The price of the commodity has remained high because the few that are functional do not produce at installed capacity. Existing cement manufacturing companies should be supported to enable them attain the required capacity while efforts are being made to revive ailing and comatose ones. It would be very difficult for the country to be self-sufficient in cement production when the industries that produce it fold up daily due to lack of enabling environment. For instance the trucks that ferry the products nationwide are subjected to several and multiple levies, some of them illegal, along the highway, extra costs that are passed on to the consumer.

The operators require more incentives and concessions to function properly, like providing stable electricity. To boost production, government must facilitate the access of cement manufacturers to uninterrupted supply of gas and other energy requirement for energy generation. To solve the problem of transportation, there should be availability of diesel for the trucks taking them to various parts of the country; sadly though such trips take longer than necessary because of our bad roads. A factor that could make a big difference is the revival of the nation's railway network for bulk transportation at considerably lower cost.

While government considers easing the burden on consumers, and steps up effort to attain its objective of attaining self-sufficiency by 2013, cement manufacturers also have to be more proactive in the use of more locally available input and to open up more depots, especially in rural areas, so that the commodity can be readily accessible to more people. After all it does not make a lot of sense for the price of cement to be increasing so dramatically, when over 70% of its component raw materials are available locally.

PERU: Cementos Lima está en contra de arancel cero para importaciones de cemento

Cementos Lima S.A. se pronunció hoy contra el Decreto Supremo que fija arancel cero para las importaciones de cemento, mediante una declaración oficial, contra la sentencia del Tribunal Constitucional que había declarado inaplicable una anterior norma que reduce la tasa arancelaria de 12% a 0% a la importación de cemento.

En su comunicado, Cementos Lima dice que no pretende ir contra la libre competencia y que una rebaja arancelaria debía ser gradual, con mecanismos de amortiguamiento y preferentemente a través de Tratados de Libre Comercio, pero que no se cumplió con estas premisas, además que las razones esgrimidas: que fueron escasez de producto, sobreprecio en el cemento y existencia de un acuerdo con la OMC, se ha demostrado que no eran correctas. Este comunicado es para responder a las críticas que le han hecho a Cementos Lima a raíz de que ha interpuesto una acción judicial, denominada represión de actos homogéneos, ante el 33 Juzgado Civil de Lima, para contrarrestar el arancel cero a la importación de cemento. Cabe mencionar que la medida del Ejecutivo ha sido respaldada por la CONFIEP.

Como asesor legal de Cementos Lima está el Estudio Rodrigo, Elías y Medrano.

El principal accionista de Cementos Lima S.A. es Sindicato de Inversiones y Administración, con el 68.025 % del capital social, holding que agrupa a los descendientes de los fundadores, las familias Rizo Patrón, Berckemeyer, Ramos, De La Torre y De La Piedra. Como grupo económico controla 19 empresas en Perú y Estados Unidos. Como Presidente del Directorio está Jaime Rizo Patrón Remy desde hace 20 años, mientras el Gerente General es Carlos Alfonso Ugas Delgado. Es miembro del Directorio, desde el año pasado, Roque Benavides Ganoza, Gerente General de Compañía de Minas Buenaventura, primo del actual Ministro de Economía y Finanzas, Ismael Benavides Ferreyros, quien es uno de los impulsores de la reducción del arancel.

REPUBLICA DOMINICANA: Materiales construcción suben por alza petróleo

Ante las alzas de los precios del petróleo, que ayer cerró en US$105.02 el barril, los materiales de construcción tampoco se quedan atrás. Para los constructores y promotores de viviendas, la situación es preocupante.

A saber, el cemento aumentó de RD$235 la funda a RD$275 y RD$280, lo que representa un incremento absoluto de RD$45, igual a un 22 por ciento de variación relativa.

Mientras que la varilla, que en diciembre costaba RD$36,000 el atado, ahora se vende a RD$45,000, para un incremento absoluto de RD$9,000 y una variación relativa de un 25%.

Cemento y varilla son los dos insumos que más afectan al sector construcción. Otros insumos que han aumentado son alambres, pinturas, cables eléctricos, la grava, arena, lo que implica un incremento en la construcción de vivienda de entre un 15 a 20%.

José Rodríguez Cáceres, fundador y pasado presidente de la Asociación de Promotores y Constructores de Vivienda (Acoprovi) dijo que una casa que cuesta alrededor de un RD$1,0 millón ahora cuesta RD$1.2 millones.

Mientras que la casa que valía RD$2.0 millones, ahora está a 2.4 millones.

Expuso que el alza en los materiales de construcción, productos del incremento en el precio del petróleo y de la tasa de interés, tiene una incidencia mayor en las viviendas de tipo económico que en la de lujo.

Señaló que la proporción del uso de concreto en una vivienda de lujo es menor que en una vivienda básica.

Manifestó que ésa es una situación preocupante ya que traerá nuevas alzas en los precios de las viviendas de entre un 15 a 20% en los próximos seis meses, si se mantienen los actuales precios del petróleo.

Refirió que los precios de las viviendas no se ajustan de inmediato, sino que las viejas se van vendiendo y la gente se va ajustando a la nueva, que es la que va subiendo.

Explicó, entonces, que éste es el mejor momento para que la gente compre e invierta en una vivienda, pues en tres o cuatro meses el costo será mayor.

En los actuales momentos, dijo Rodríguez Cáceres, las ventas de viviendas se mantienen reducidas en el mercado, producto del incremento en las tasas de interés que está entre el 11 a 14%, desde inicio de año, pero antes se conseguían entre 8 y hasta 9%.

AFRICA: TANZANIA: Mbeya Cement changes look of product bags

Mbeya. The manufacturers and distributors of Tembo Cement, Mbeya Cement Company limited (MCC), has changed the look of its cement bags by adding the Lafarge logo.

The new bag with green and brown colours has hits the local market for the first time this week. The MCC general manager Mbuvi Ngunze said in a statement yesterday that the new Tembo Cement bag is also improved to reduce leakages.

Lafarge Company is the world’s leading manufacturer of building materials, specializing in production of cement, aggregates, concrete and gypsum. The French company came to Tanzania in 2001 by investing in Mbeya Cement Company Ltd.

“Our new bag has mainly been designed to overcome cement leakage problems during loading and unloading being part of the processes involved in the movement of our product from one point to another”, said Ngunze.

CHINA: Cementrade takes stock of the current and future cement investment landscape in China, Russia and CIS markets

A new wave of government housing projects in China this year will likely boost the demand for cement, helping to absorb the country’s additional capacities. Additionally, major upcoming construction projects in Russia and CIS may signal a return to growth for cement markets in these regions. 

The 13th Asia Cementrade takes stock of the current and future world cement investment landscape. Experts outline the cement outlook in the rapidly developing economies of BRICs, as well as examine the opportunities and challenges in China’s booming construction sector. And with cement demand rebounding in Russia and CIS markets, the industry is contemplating if growth is here to stay in these regions. 

The 13th Asia Cementrade, scheduled on 31 March to 1 April 2011 in Shanghai, is designed specifically to provide insights into how Asia’s cement sector is expected to unfold this year and the key markets influencing global trade movement.

Among the key speakers sharing first-hand perspective on cement investments in rapidly growing economies (specifically BRICs) and future for the sector is Mr. Goran L Seifert, Zone Director for Asia, Ciments Francais (Italcimenti Group). Mr. Seifert will zoom in on the aspects of possible changing composition and prospects of the BRICs. There’s also Mr. Alexander Romanenko, CEO, at Indexbox Marketing & Consulting, invited to answer a pertinent question in the industry: Is cement growth returning to Russia & CIS markets? Mr. Romanenko’s presentation will offer a snapshot of the current state in the Russian economy, its construction sector, on new infrastructure projects and cement consumption, including outlook to 2018.

The conference will also turn the spotlight on latest developments in China’s cement industry. Key highlights include a paper by Mr. Sun Kefang, Director, Ministry of Housing and Urban – Rural Development of China, who will providing an overview into the expected outlook for China’s construction sector. Addressing the challenges and opportunities for Chinese cement producers in the coming year is China Union Cement Company, with details on the rebounding East China market, export capacity & trade issues, as well as future industry trends.

Rounding up the focus on China will be China Development Strategy Institute for Building Materials Industry, analyzing the shifts in policy for China’s cement & building materials industry and plans to develop an inland cement industry.

The 13th Asia Cementrade is currently welcoming registrations.

VENEZUELA: Trabajadores del cemento crean alianza nacional

PUERTO LA CRUZ.- Sindicatos, consejos de trabajadores y delegados de prevención de las empresas cementeras Holcim, Lafarge, Cemento Andino y Cemex acordaron la conformación de la Alianza Nacional de Trabajadores de la Industria del Cemento (Antracem).

Así lo informó José Sabino, secretario de Organización del Sindicato de Trabajadores del Cemento en Anzoátegui (Sintracea), en compañía de Waldemar Crawther (Cemex Lara), Juan Martínez (Caracas) y Enrique Figuera (Aragua).

Destacó que esta alianza, integrada por 16 sindicatos, tiene como objeto, solicitar al Estado la aplicación de los planes de inversión, justicia social y dignificación del trabajo, distribución socialista del producto y producción socialista, para garantizar las operaciones.

Aseguraron que estas fueron las cuatro propuestas que acompañaron el proceso de nacionalización de la industria cementera. "No se ha cumplido. Los trabajadores no tienen participación en la toma de decisiones, hay una crisis operacional por falta de inversiones y las normas de seguridad y salud tampoco se cumplen".

Estiman que los contratos colectivos que amparan a unos 5.000 trabajadores de las empresas estatizadas tienen dos años vencidos.

Posición

Argumentaron que antes de crear la alianza, agotaron todas las instancias gubernamentales. "Desde el vicepresidente de la República hasta el alcalde de Guanta tienen información de nuestra posición. Ahora tenemos más fuerza para poder actuar".

ITALIA: Con la fine dei disordini in Egitto Italcementi può festeggiare in Borsa

Capita nei momenti di crisi: una società può salire in Borsa nonostante abbia presentato un bilancio in calo rispetto all'anno scorso. E' quello che è accaduto a Italcementi, uno dei leader europei del calcestruzzo e del clinker (l'elemento base per la produzione del cemento), controllato dalla famiglia Pesenti. La nota dei conti 2010, in realtà, è stata presentata venerdì a mercati chiusi. Quindi soltanto questa mattina gli analisti hanno potuto confrontare i numeri con le tabelle delle previsioni e con quanto accaduto l'anno precedente: anche nel 2009, Italcementi aveva visto i fondamentali in calo rispetto alla stagione precedente, ma in misura maggiore di quanto accaduto negli ultimi dodici mesi. E se a questo si aggiunge il fatto che la situazione politica in Egitto, dove Italcementi possiede alcuni degli impianti più importanti del Paese africano, si capisce il balzo del titolo a Piazza Affari: l'azione ha chiuso in rialzo del 4,6% (ben al di sopra del dato complessivo di Piazza Affari, il cui indice principale ha guadagnato la miseria dello 0,03%).

Ma andiamo con ordine. Il bilancio 2010 di Italcementi si è chiuso con ricavi in calo del 4,3% a 4,7 miliardi (ma l'anno prima il calo era stato del 13,3%). L'utile è sceso a 197 milioni, con una riduzione dell'8,5%, ma molto meno marcata del -22% con cui si era concluso il 2009. Il dividendo rimane invariato a 0,12 euro per azione.

Ma cosa si prevede per l'anno in corso? Continuerà la corsa dei Paesi emergenti in cui la società è presente (Egitto e Marocco e l'area asiatica) e per l'Italia "si profila un mercato in lieve recupero con una favorevole dinamica dei prezzi". 

Quanto all'Egitto, lo stop degli impianti dovuto alla situazione politica, avrà per Italcementi un impatto negativo stimato a livello di ebitda in 15 milioni di euro. Quindi limitato, e ciò è piaciuto alla Borsa.

Ma in una situazione come questa, è inevitabile mantenere sotto controllo il debito, per evitare un peggioramento delle condizioni con le banche. E se il dividendo non può salire, è inevitabile ricorrere alla vendita di qualche partecipazione. Oltre a quella annunciata due settimana fa della controllata turca. Cessioni che riguarderanno, come ha specificato il consigliere delegato del gruppo Carlo Pesenti "asset per noi marginali, ma molto richiesti da altri operatori, sia per il business sia per il posizionamento geografico. Si tratta per lo più di società in cui siamo minoritari".

AFRICA: ZAMBIA: Lafarge forecasts increased sales

LAFARGE Cement Plc says increasing local and regional construction activity is likely to improve the company’s performance after lower cement volumes slowed its profits by 23 per cent last year.

Company secretary Harriet Kapekele said there was moderate growth in domestic demand, with a decline in the first six months reversed in the second half of the year under review.

Kapekele said regional demand continued to be strong and the Democratic Republic of Congo remained the dominant market but that there was also a significant increase in Burundi.

“Clinker was exported to Malawi, as was cement,” Kapekele said. “Operating profits declined 23 per cent to K222 billion due to lower cement volumes, a change in the sales mix and higher input costs. A limited set of facilities from Chilanga I continued to be used to manufacture special cement.”

She said the fluctuation of the kwacha against other major currencies and its weakening mid-year resulted in net foreign exchange losses.

However, Kapekele said the relative stability of the kwacha’s performance during the last quarter enabled some of the costs to be reversed.

“Working capital and cash management remained key priorities,” she said. “The cash flow and balance sheet were sound. The Citibank loan, for the new plant was repaid before the year end, 17 months before contractual maturity, as was the Danish Development Assistance loan to the government.”

Kapekele said the expected increase in local and regional demand for cement should boost the performance of Lafarge Cement Zambia Plc.

“Domestic demand has remained fairly steady and the commencement of various infrastructure projects will sustain demand at current levels,” Kapekele said.

“New projects which will increase demand for cement are anticipated to commence mid-year. Regional demand is expected to remain strong.”

CHINA: China Cement Association Predicts 12% Growth in 2011 for Cement Industry

With the world’s second largest and fastest growing economy, it can be expected that construction and development in China will continue to skyrocket this year. Reports from the China Cement Association confirm this, predicting strong cement demand for the remainder of the year.

CCA, in a mid-February report, said the country’s demand for cement may climb 12% year on year to nearly 2.1 billion metric tons in 2011. CCA pointed to the Chinese government's heightened financial investment in water projects as a new and powerful impetus for the cement consumption. Earlier this year, the Chinese government announced intentions to double its annual investment in water projects to 4 trillion Yuan over the next decade. 

Though not mentioned by the CCA, cement is also rising as a result of the construction born of the shift toward metropolitan areas. China is experiencing unprecedented urbanization with hundreds of millions of people migrating to their major cities. To cope with the colossal population influx, a city like Beijing may need to invest as much as $3.6 trillion in urban infrastructure by 2020, according to state media. With that, comes demand for cement and other raw materials.

China produced 1.87 billion metric tons of cement in 2010, up 15.5% compared from 2009. The output of cement clinker grew 10.4% year on year to 1.15 billion metric tons. 

Seven provinces noted annual cement output of over 100 million metric tons. From an investor standpoint, the water investments and overall Chinese economic growth and urbanization may make cement and other raw materials worth exploring. China is already the number one consumer of cement globally, and the margin by which that is true can be expected to widen as they continue to thrive, while many other economies shrink or experience low-growth as a result of the recession.

This is a factor that lends itself well to China Shuangji Cement Ltd. (OTCBB: CSGJ), a leading producer of high-quality Portland cement in Shandong and Hainan Provinces. The company recently began expanding their facility to ramp up production in order to meet the rising demands expected from the new government funded projects and the population shift into metropolitan areas.

PUERTO RICO: Piden investigar industria del cemento

La Asociación Puertorriqueña de Concreto (APC), urgió hoy al Estado a que ejerza sus funciones de fiscalización, ante las alegadas prácticas monopolísticas por parte de los productores de cemento, a la vez que favoreció una investigación en torno a esas compañías.

En audiencia de la Comisión de Desarrollo Económico, Comercio, Industria y Telecomunicaciones, presidida por José Chico Vega, el vicepresidente de la APC, Antonio Joglar, manifestó que la Oficina de Asuntos Monopolísticos del Departamento de Justicia debe procurar que se cumplan las leyes aplicables relacionadas a la libre competencia.

Sostuvo que no es posible que la industria del concreto subsista, si las prácticas predatorias que alegan los socios de la APC, continúan llevándose a cabo de manera impune. Entre las empresas señaladas por los socios se encuentran CEMEX, Antilles Cement y Concreteras Puerto Rico.

“De ello continuar, seguirán desapareciendo las pequeñas y medianas compañías de hormigón premezclado. Ese capital puertorriqueño desaparecerá y muchos de nuestros conciudadanos se unirán a las ya abultadas filas de desempleados”, agregó el ingeniero.

Sin embargo, Joglar consignó en más de una ocasión, que no tienen pruebas específicas de todo lo que planteó durante la vista.

“Como Asociación, quizás no podemos proveer la evidencia legal ni podemos dar por sentado las acusaciones, rumores o acontecimientos… No lo hacemos como acusaciones directas, sino como base para atender los reclamos investigativos de esta resolución”, señaló.

El ponente solicitó que se indague si los contratos, combinaciones o la conspiración para restringir irrazonablemente los negocios o el comercio existe.

Además, pidió que se investigue cómo esa práctica afecta a los presupuestos estatal y municipal; y si aumentará el costo de la obra pública. Incluso, que se conozca si incrementará el costo de la vivienda pública.

“Hay muchas interrogantes en el tintero, que más allá de afectar la industria, salpican la vida, la salud y la seguridad de nuestros conciudadanos”, concluyó Joglar.

La comisión investiga las alegadas prácticas monopolísticas por parte de los productores de cemento, como resultado de las adquisiciones de hormigoneras en Puerto Rico.

De acuerdo a la resolución radicada por Chico Vega, esa práctica ha afectado a las pequeñas empresas que han tenido que cerrar sus negocios ante una inminente quiebra, por no poder competir en precios con su suplidor de materia prima.

El Presidente de la comisión recordó que las industria del cemento y las hormigoneras revisten una gran importancia para el desarrollo económico y la calidad de vida de los residentes de la Isla. Esto, por su impacto sobre la infraestructura pública y privada, el desarrollo de proyectos de viviendas, escuelas, edificios públicos y hoteles, entre otros.

Indicó que existen grandes preocupaciones entre los integrantes y relacionados a la industria de la construcción, respecto a recientes adquisiciones y fusiones de hormigoneras y productoras de cemento y el impacto de ello en el costo del cemento. 

“Éstos mencionan a productores de cemento que adquirieron los activos de varias hormigoneras en Puerto Rico, convirtiéndose en productores de cemento y hormigoneras, creando la posibilidad de que se controle el mercado del cemento en saco y del hormigón premezclado en la Isla”, expresó Chico Vega.

Para el representante es apremiante conocer las acciones realizadas, si alguna, por la División de Asuntos Monopolísticos del Departamento de Justicia u otras agencias gubernamentales, para atender las denuncias.

CHINA: Far Eastern Group to Buy Cement Suppliers in China Expansion

Taiwan’s Far Eastern Group may buy as many as three cement companies in China as it expands into the retailing, materials and chemicals industries in the world’s second-largest economy, Chairman Douglas Hsu said.

Far Eastern Department Stores Co., the group’s retail unit, plans to add two to three stores per year in China, and textiles armFar Eastern New Century Corp. (1402) will double capacity to make materials used in plastic bottles and fabrics, said Hsu, 68, who is chairman of both companies.

Far Eastern, which says it’s Taiwan’s third-largest industrial group, has $500 million of investments planned for China as it seeks to tap the mainland’s growing domestic demand. Cooperation with China Mobile Ltd. (CHL) and an economic accord between Taiwan and China will help the company gain access to consumers in the world’s most populous country, he said.

“The Chinese government right now is pushing for internal consumption, so exports may be playing second,” Hsu said in an interview yesterday. “In retailing, if you take China today at $5,000 to $10,000 per capita, they have a long way to go.”

The addition of one department store this year will take Far Eastern’s China retail presence to 14 outlets, Hsu said. Its floor space in China will expand 40 percent this year, he said.

Acquisitions in China’s cement industry, where the company is ranked 13th, will help Far Eastern achieve its goal of being among the top 10 suppliers within five years, Hsu said without identifying the targets.

Acquisition Targets

Taipei-based unit Asia Cement Corp. (1102) and Hong Kong-listed affiliate Asia Cement China Holdings Corp. have identified “quite a few” possible targets, with as many as three being likely acquisitions, he said.

Asia Cement climbed 3.3 percent to NT$31 at the 1:30 p.m. close of trade in Taipei, the biggest jump in more than a year. Taiwan’s seven-member Taiex Cement Index gained 3.6 percent, while the broader benchmark Taiex rose 1.4 percent.

“It’s very important for them to buy cement makers in order to grab the growth opportunity,” said Kevin Lin, who rates Asia Cement “neutral” at Fubon Financial Holding Co. in Taipei. “In the next three to five years, retail and banking will provide Far Eastern Group larger growth opportunities.”

Far Eastern Department Stores will also increase its Taiwan floor space 84 percent, Hsu said. New locations will include entertainment and lifestyle outlets besides retail stores.

Pure Big Stores

“We are evolving. Pure big stores are now being revised to include larger areas, for the simple reason that I think the single pure-store type of thing needs to be reconsidered,” Hsu said. “Because people, with their wealth, want entertainment and more besides just a store.”

The group, which operates Pacific SOGO and Far Eastern- branded department stores as well as Geant hypermarkets, plans to become Taiwan’s largest department-store operator by turnover in 2012, overtaking privately held Shin Kong Mitsukoshi, Hsu said.

Separately, Far Eastern International Bank (2845) has held talks with Japanese, South Korean and North American investors seeking to buy a stake in the Taipei-based bank as a stepping stone into China, President Eli Hong said in a separate interview yesterday, without identifying the companies.

Far Eastern, which is not willing to sell the whole bank, may allow an acquirer to take as much as a 15 percent stake, which would include a board seat, Hong said.

China Mobile

“We do not need to go in for a nationwide arrangement, all we need is probably to hit one of the so-called big cities and be able to operate in a 10 or 20 million sector,” Hsu said of its Chinaplans. Hsu is vice chairman of the bank.

Far EasTone Telecommunications Co., Taiwan’s third-largest phone operator, of which Hsu is chairman, hopes to proceed with a NT$17.8 billion ($600 million) investment by China Mobile, the world’s biggest phone carrier by market value.

The deal will give the Chinese operator a 12 percent stake, Hsu said. Taiwan regulations currently prohibit investment in local phone operators by mainland Chinese investors.

The two companies have already agreed to cooperate on mobile content, including games and Chinese-language music, Hsu said.

MEXICO: Mexican scientists develop eco-friendly cement

Mexico City, March 5 (IANS/EFE) Scientists in Mexico are developing a new type of cement that will reduce carbon-dioxide emission by up to 80 percent while the amount of energy consumed in the production process will be lowered by as much as 50 percent.

Scientists at the Research and Advanced Studies Centre - or Cinvestav - have been developing several types of cement alternatives for the past 13 years, including one with greater resistance and durability and with less environmental and economic impact, a statement said.

'Cement is the second most consumed product in the world after water due to population growth that in many cities requires the development of infrastructure, buildings and homes,' it said.

The intensive use of cement was detrimental to the environment, which is being bombarded with large quantities of carbon dioxide produced in making the construction material, the statement said.

Project head Jose Ivan Escalante Garcia said the idea was to develop a replacement for Portland cement, which is most widely used by the global construction industry.

'For every kilogram of this type of cement that is produced, exactly the same amount of carbon dioxide is released,' he said.

Around 2.5 billion tonnes of cement is manufactured worldwide each year and that production accounts for more than eight percent of the planet's human-caused, greenhouse-gas emission.

He said that in the traditional cement-making process, large amounts of carbon dioxide is emitted due to the use of coal or coke to heat limestone, clay and shale at temperatures as high as 1,450 degrees Celsius to obtain a compound called clinker, which is mixed with gypsum and milled into powder to produce cement.

By contrast, geopolymer-based cement is processed at temperatures of just 750 degrees Celsius.

Escalante's team plans to start field tests soon and obtain even better results than they have from laboratory research.

JAPAN: Russia to cement control of disputed islands with defense buildup

TOKYO (Kyodo) -- Russia intends to cement its control of Japanese-claimed islands off Hokkaido by deploying sophisticated weapons, such as antiship cruise missiles and an air defense system, defense experts said.

On Tuesday, Russia's Interfax news agency quoted a senior Russian defense official as saying that Russia will deploy Yakhont antiship cruise missiles and the Tor-M2 missile shield in the Kuril island chain that includes the Japanese-claimed islands of Etorofu, Kunashiri, Shikotan and the Habomai group of islets.

Russia calls those islands the Southern Kurils while Japan calls them its Northern Territories. Soviet troops seized them shortly after Japan's surrender in World War II.

Since the 1991 collapse of the Soviet Union, Russia has scaled down its military capabilities in the Southern Kurils, but the latest moves apparently indicate a change in its defense policy there and may exacerbate the territorial dispute between Japan and Russia, the experts said.

Russo-Japanese ties have deteriorated since Russian President Dmitry Medvedev made a one-day trip to Kunashiri Island in November.

During the Cold War era, the Soviet Union deployed around 10,000 troops in the Southern Kurils, but the number is currently around 3,500.

Russia deploys battle tanks there but no fighter jets, and its air and maritime defense capabilities are regarded as relatively weak, they said.

Russia's Yakhont antiship cruise missile is capable of carrying a 200-kilogram warhead over a firing range of about 300 kilometers. It flies above the sea surface at supersonic speed and is difficult to detect by radar.

The United States and Israel have strongly opposed Russia's plan to supply the Yakhont cruise missile, which is called a ship buster due to its destructive capabilities, to Syria.

The Tor-M2 surface-to-air missile system is mounted on a self-propelled launcher and is capable of firing missiles at four targets simultaneously.

Russia also plans to deploy Mi-28 attack helicopters, which are capable of operating at night and are armed with antitank and air-to-air missiles, on Etorofu Island.

Russian Army Gen. Nikolay Makarov, chief of the General Staff of the Russian armed forces, has said that at least one of the four Mistral-class amphibious assault ships currently under joint construction with France will be deployed in the Russian Far East.

Russia's Pacific fleet, headquartered in Vladivostok, could significantly boost its defense capabilities around the disputed islands if the assault ship is deployed.

A popular Russian radio presenter, Sergey Stillavin, recently wrote on his weblog that he has heard that Japan's ambassador to Russia called in representatives of Japanese business corporations in Moscow and urged them to prepare to return to Japan sometime soon.

Stillavin also wrote that Japan is considering war against Russia in order to get back the disputed islands, a groundless comment that indicates the extent to which bilateral relations have deteriorated.

Igor Korotchenko, chief editor of the Russian magazine "National Defense," said he does not believe Japan would resort to force to get back the disputed islands, adding that the defense buildup there is necessary partly to dampen the fervor of the Japanese people.

But Pavel Felgengauer, a military affairs commentator at the independent Novaya Gazeta newspaper, was critical of the plan. He said he does not think any militant political forces would capture power in Japan, and that Russia's military buildup on the islands does not make sense.

AFRICA: ANGOLA: Cement import to respect law

Luanda - Importing cement from Angola, in the coming days, shall be subject to limits enshrined in the law, on Friday here said the secretary of state for Industry, Kiala Gabriel, ANGOP learnt.

Speaking to the press at the end of a visit to "Nova Cimangola" cement factory, he said the government has created a cement comission that has been drafting a diploma that will regulate importing quotas.

Kiala Gabriel visited the factory in the company of the secretary of state for Geology and Mining, Makenda Amrboise, at the invitation of the "Nova Cimangola" board of directors.

He said that there has been competition in the cement market, something that is unfavourable to the domestic production.

Nova Cimangola produces about 1.2 tonnes of cement per year.

AFRICA: KENYA: Cement share prices firm on rising demand in Kenya

Rising prospects for cement manufacturers and increased demand for the commodity in the region have pushed stocks of listed cement firms in Kenya to a new high.

Athi River Mining’s (ARM) shares are trading at an all time high of $2.4 per share at the Nairobi Stock Exchange, signalling an expansion in the region’s construction sector which has triggered fresh demand.

Since the beginning of the year, East Africa Portland Cement share price has gone up 36 per cent, trading at $1.47 per share on thin volumes.

Likewise, Bamburi Cement’s shares are trading at $2.48 per share reflecting a 5.7 per cent growth since the beginning of the year.

East and Central African countries are pumping billions of dollars into upgrading their infrastructure, raising the demand for building material which could still edge higher as the continent’s newest nation South Sudan begins reconstruction following a successful secession referendum.

The total cement capacity which also includes imported clinker is set to reach 11.6 million tonnes per annum in East Africa by the end of the year, from eight million tonnes per annum at the beginning of the year.

But the question analysts are asking is what investors are seeing in the cement makers to price their stocks so highly.

Take ARM for example. At a price of $2.4, the stock is trading at a price-to-earnings (P/E) ratio of 27, which simply means investors are paying 27 times for every shilling ARM earns to acquire the shares.

Value investors would keep off this stock in belief that a stock trading above 25 times its earnings is grossly overvalued.

But using P/E alone would be taking a one dimensional view of the stock.

“It would be difficult to say whether ARM is overvalued based on the P/E alone although there are indications that it could be, compared with the Bamburi stock which has a P/E of 11.11 and much superior dividend yield,” says Renaldo D’souza an analyst with Genghis Capital. 

“On the other hand one could argue that they have strong upside earning upon completion of their plants in Tanzania which are due to happen this year and next year,” Mr D’souza adds.

The completion of ARM’s Tanzanian plant in Maweni, Tanga, is set for January 2012, according to the company, which would see it add 1.5 million metric tonnes in capacity.

This would take the total capacity to 2.5 million tonnes.

“We will be the biggest player in the market in the next 18 months,” says Pradeep Paurana, managing director of ARM. “There is no capacity in Tanzania hence ARM is putting up such a huge plant.”

INDIA: Budget impact on sectors| Cement

The cement industry is hoping that there may be some abatement provided on non-production related elements, such as freight, which would mitigate the impact of increase in excise duty

Cement

With the cement sector struggling because of oversupply, the increase in excise duty would harm it in the near term. The industry is, however, hoping that there may be some abatement provided on non-production related elements, such as freight, which would mitigate the impact.

Yet, firms may face additional excise duty of at least Rs. 4-8/bag. The reduction in customs duty from 5% to 2.5% on pet coke and gypsum may help some importers.

Meanwhile, rising material and power costs are estimated to hit margins by at least 200 basis points from the present levels. One basis point is one-hundredth of a percentage point.

Not surprising then that share prices of big cement firms such as ACC Ltd, Ambuja Cement Ltd and India Cements Ltd fell sharply.

Other factors affecting the sector: oversupply due to high capacity build-up; demand-supply mismatch has led to weak cement prices; rising freight and power costs are affecting profits.

INDIA: Cement companies up price in Mumbai by about 6 rupees

Cement manufacturers on Tuesday increased prices by an average 6 rupees per 50-kg bag in Mumbai, following a proposal in the budget to restructure the present excise duty, dealers and analysts said.

Cement Stockists and Dealers' Association of Bombay President Sanjay Ladiwala confirmed the development, adding, all the companies have increased the prices.

At present, the hike has been affected only in Mumbai, he said.

India's Finance Minister Pranab Mukherjee, in his budget announcements for 2011/12, has proposed to replace existing excise duty rates with composite rates having "an ad valorem and specific component with some rationalisation".

"The budget proposal has resulted in a 2.50-3 rupee increase per bag, and with effect from today cement manufacturers are increasing the prices, passing on the excise duty to customers," said Ravi Sodha, analyst with Elara Capital.

The average cement prices are in the range of around 260-265 rupees a bag in Mumbai, he added.

The industry had termed the budget as "slightly negative" for the sector, and feared a rise of 8 rupees in cement prices.

The only relief for the sector was a reduction in basic customs duty on petcoke and gypsum, both used in cement production, to 2.5 per cent.

"Apart from the budget proposals, an increase in coal prices of around 30 percent is another reason (for the cement price increase)," said Rupesh Sankhe, sector anlayst with Angel Broking.

The companies will have to raise the prices in the northern and southern regions too, Sankhe said, adding, "Otherwise they would start reporting losses."

INDIA: February cement dispatches show mixed bag

Top three domestic cement players ACC, Ambuja Cements and UltraTech Cement posted a mixed performance in their cement dispatches for the month of February 2011. 

ACC registered an impressive performance with a strong 17% growth in its dispatches whereas Ultra tech and Ambuja Cements dispatches grew in the range of 4% to 5%. The increase in cement off take is on account of a pickup in the infrastructure activity (though by a lower magnitude compared to previous year). On a sequential basis the cumulative dispatches of top players have declined by 1.8% mainly on account of a lesser number of operational days in the month of February.

In terms of demand, dealers have confirmed that the cement off take is picking up except in the southern region. In Maharashtra the key concern of poor availability of river sand has been resolved to a great extent with supply of river sand coming in from Karnataka, Gujarat and Maharashtra itself.

Cement prices during the month have increased in most parts of the country by INR 10 to INR 15 per 50kg bag in February 2011. The price hike during the month was largely supported by supply control and a pick up in the volume. Further with the announcement of the change in the excise duty structure for cement in the Union Budget 2011-2012, the cement manufacturers have increased prices by INR 6 to INR 8 per bag from March 1st 2011 across the country. The price hike announced post budget is higher than the incremental duty burden.