NEW ZELAND: Cement plant plan moves step closer

A new $400 million cement plant near Weston, which will bring more than 300 new jobs to North Otago, has moved a step closer.

But Holcim (New Zealand) Ltd still needs approval from the board of directors of its parent, Holcim Ltd, in Switzerland, for the project to proceed. That decision is expected by the end of this year.

Last month, the proposed plant cleared a major hurdle when Holcim's international executive committee, made up of regional managers and key head office executive staff, recommended the project proceed to the board for its consideration.

That has made Waitaki Mayor Alex Familton "very optimistic" that it will go ahead.

Holcim NZ capital projects manager Keith Cowie was delighted yesterday the project had gone a step further.

The New Zealand project team made a presentation to the committee last month providing further information requested about the plant.

Expressions of interest from potential contractors would also be called within the next few weeks.

Construction could start next year year if approval is received this year.

Mr Familton described the committee's decision as a "very significant step", but urged caution.

"The chances of the project going ahead are obviously very good, but we still require that final tick-off from the board.

"Until then, we can't be certain," Mr Familton said.

If approved, construction of the plant at its peak would employ almost 500 people, about half from outside North Otago because of its limited labour market.

Once in full production, 116 workers and up to 25 management and technical staff would be required. Some would transfer from Holcim's Westport plant, which would close.

A further 180 indirect jobs would be created in North Otago's goods and services sector.

INDIA: Cement prices show steady fall, to remain weak till Sept

Cement prices are on a downward spiral with the onset of monsoon. Prices in the southern states have started to peel off, with Chennai witnessing a drop of Rs 10 per 50-kg bag from June 1 for the trade segment and a drop of Rs 15 per bag for the non-trade.

A member of the stockist association says, “The price at which we are selling to builders is at Rs 250-265 per bag. Trade prices have fallen from their peak of Rs 290-295 per bag to Rs 280-285 per bag. We are expecting further reduction beyond July, as sand supply has been bad for a month, which has put construction under pressure. In Andhra Pradesh, prices have fallen by Rs 20-25 to Rs 235-240 per bag from the earlier Rs 260-265.”

In the eastern part of the country, cement prices have fallen by Rs 5 per 50-kg bag. A dealer based out of Kolkata says, “Cement prices for retail buyers have come down to Rs 280-285 per bag and wholesale prices have fallen to Rs 275 per bag for Grade-A cement buyers. At present, sales have fallen and prices have been falling by Rs 5 per bag every week since the first week of June.”

A report released by Alchemy Share and Stock Brokers said, “Prices in Maharashtra remain at high levels due to supply issues. Demand remains weak owing to slow clearance of projects and onset of early monsoons, which affected repair work in Mumbai. Prices in Gujarat have gone down due to the high level of supplies. Cement markets are expected to remain weak until September. The cement price in Mumbai is at Rs 260-288 per bag in June, a drop of Rs 6-15.”

Cement stockists and dealers and analysts alike attribute the fall after a good pricing streak for the past four months to the inability of governments to announce new projects, while old ones are on hold. In TN, payments for contractors from the previous government are pending and contractors are unwilling to go ahead.

They expect payment clearance in another six months. Kerala has also witnessed a change in government and there has not been any new announcements. Analysts say no additional growth can be expected in the southern region for the next four months.

SAUDI ARABIA: SABB and HSBC cement alliance with new partnership

The Saudi British Bank (SABB) and HSBC, its international joint venture partner, have concluded a transaction that cements their long-standing and successful partnership. HSBC Saudi Arabia, the wholesale and investment banking business majority-owned by HSBC, is to be merged with SABB Securities Limited, SABB's wholly-owned brokerage and custody business.

Together the two companies, to be known as HSBC Saudi Arabia, will be a market-leading player in Saudi investment banking. SABB will have a 51% share of the new entity, and HSBC 49%, although HSBC will retain full management control. 

The new partnership will be a full service investment bank, undertaking activities in Asset Management, Brokerage, Investment Banking Advisory, Debt Capital Markets, Equity Capital Markets, Project Export Finance, Custody, and Investment Advisory Services)

Sheikh Khaled Suliman Olayan, Chairman of SABB said: "This transaction brings together the complementary businesses of SABB and HSBC, and unites them in an extremely strong venture. We look forward to extending the long and successful partnership we enjoy with HSBC and of maintaining for our customers the unrivalled service and international best practice that they are used to." 

Simon Cooper, CEO of HSBC Middle East and North Africa added: "This announcement underscores HSBC's commitment to its business in the Kingdom of Saudi Arabia, and to its joint venture partnership with SABB. Saudi is the largest market in the Middle East, and we are delighted to be able to cement our partnership with SABB and our presence in the Kingdom with this transaction."

INDIA: Shree Cement is a good trade for a few hundred bucks: Ashwani Gujral

Ashwani Gujral , Chief Market Strategist, ashwanigujral.com in an interview with ET Now talks about Shree Cement. 

What do you make of this big move in Shree Cement yesterday? 

Cement does not seem to be a leading space. Shree Cement has done a range over many years probably and each time it gets to about 1700, it tends to find some sort of support but broadly between say about 1600 to about 2100 and the rally would be suspect given that the monsoons have just started. So maybe it is a good trade for a couple of hundred bucks but not really much more than that.

RUSIA: Large cement production to be arranged in Dagestan

Makhachkala, June 30, 2011. On Wednesday, June 29, the Head of the Republic of Dagestan Magomedsalam Magomedov met with the Chairman of the Board of Directors of the Inter-regional production resource company "GRAS" Sergey Lipatov.

The meeting was also attended by the Prime Minister RD Magomed Abdullaev, the Deputy Prime Minister RD Mukhtar Majidov, the Minister of Construction and Housing Abakar Akayev, the top manager of Dagestan branch of the JSC "Eurocement Trade" and the Director General of the "Cement-grinding manufacturing plant” in Makhachkala Ali Aliyev. Sergey Lipatov was accompanied by the Director General of the JSC "Region Cement" Pavel Bystrov, the Head of the Construction Industry Department of the Vnesheconombank Anton Grigorov and the adviser to the president of the JSC "GRAS" Sergey Shcherbina.

"Attraction of large-scale investments to the republic - is one of the main directions of our activity, and therefore we welcome all initiatives to open business in Dagestan. The Group of Companies "GRAS" has a good reputation - this is a serious production and financial structure with a large experience in cooperation with Russia’s regions. Certainly we are interested you started working in Dagestan as soon as possible. For our part we will try to create all the necessary conditions” - the Head of the Republic said opening the meeting.

Speaking about the upcoming signing of the Cooperation Agreement on construction of cement plant in the republic, Magomedsalam Magomedov outlined the great importance of cement industry for Dagestan. In three years, when the plant is put into operation, Dagestan consumers will get cement at the lowest prices and the republican budget will receive additional taxes. The plant will meet all environmental safety standards.

The meeting participants discussed the estimated cost of the investment project totaling to 500 million dollars. The part of the sum will be loaned by Vnesheconombank.

Then the Government of the Republic of Dagestan in the person of the Deputy Prime Minister RD Mukhtar Medjidov and the JSC Interregional resource company "GRAS" in the person of Sergey Lipatov signed a Cooperation Agreement.

TAIWAN: Taiwan Cement to set up production base in Guangdong

Taipei, June 30 (CNA) Taiwan Cement Corp., one of the island's leading cement providers, said Thursday its subsidiary TCC International Holdings Ltd. is planning to set up a production base in Shaoguan in China's Guangdong province. 

TCC International has signed an agreement with the Shaoguan authorities for the investment which is expected to total 1.85 billion Chinese yuan (NT$8.33 billion), Taiwan Cement said. 

The investment project is pending approval from the Chinese central government. 

Under the agreement, TCC will build four production lines at Shaoguan with an annual production capacity of 10 million metric tons. In the first stage, the production capacity is expected to reach 5 million metric tons. 

China is phasing out its out-of-date cement production facilities and building new ones to meet demand, boost efficiency, and improve the environment under the on-going 12th five-year economic development plan, Taiwan Cement said. 

Taiwan Cement said as Shaoguan is located along the border between Guangdong province and Guangxi Zhuang Autonomous Region, the new investment is expected to help TCC International secure business from southern China. 

In addition to the two provinces, Taiwan Cement said the product from the Shaoguan base will be shipped to southern Yunnan province to meet infrastructure needs. 

Taiwan Cement currently owns a 40 percent stake in TCC International, which has been listed on the Hong Kong Stock Exchange since October 1997. 

Among the large-cap cement stocks that have set up strong footholds in China, Taiwan Cement has been supported significantly by institutional buying on the Taiwan Stock Exchange as cement prices on the mainland are on the rise amid tight supply caused by an electricity shortage.

VIETNAM: Extienden inversiones tailandesas en Viet Nam

Las empresas tailandesas miran a Viet Nam como un mercado de estabilidad política y con un gran potencial para el desarrollo económico. 

Esa evaluación se conoció por Surasith Bungbhisand, subdirector del Departamento tailandés de Promoción Industrial, en el seminario “Encuentro de contrapartes Viet Nam- Thai Lan”, celebrado hoy aquí. 

Al coloquio asistieron las empresas en los sectores de plástica, equipos y aparatos auxiliadores, automóviles y motocicletas, hotelería y productos de consumo, comunicó y subrayó el deseo tailandés de que ambas partes cooperen en nuevos campos. 

En la actualidad, Tailandia cuenta con 250 proyectos valorados en cinco mil 800 millones de dólares en este país y las mayores corporaciones inversoras son Tipco, Amata y Siam Cement Group. 

El valor del comercio bilateral logró en el año pasado siete mil 500 millones de dólares, un repunte del 21 por ciento, de ellos mil 200 millones de dólares fueron de las exportaciones vietnamitas. /.

PERU: Cementos Lima siempre ha apostado por el desarrollo del Perú

Por medio de un Hecho de Importancia enviado a la CONASEV, Cementos Lima ha publicado una entrevista realizada a Carlos Ugas Delgado, Gerente General de la camentera, que debía ser publicada en el suplemento Día 1 del diario El Comercio, pero que fue publciada como una nota informativa. La entrevista es la siguiente:

Cementos Lima está en plena ampliación de su planta ¿los resultados electorales afectan el cronograma de las inversiones en curso? ¿por qué?

En absoluto. Cementos Lima seguirá con la ampliación de su planta, de acuerdo con el cronograma previsto; los resultados electorales no modificarán las inversiones en curso. Con esta ampliación se incorporarán sistemas de última tecnología para un mejor control y mitigación de los efectos medio ambientales de nuestra operación. 

¿Qué avance tienen de su ampliación?

La obra civil está terminada, todos los equipos importados ya están en la planta y las fabricaciones mecánicas y el montaje están a un 50%, hemos avanzando tal y como estaba previsto en nuestro plan.

Por otro lado, es importante destacar que tenemos en stock más de 600,000 toneladas de clinker, lo que nos permitirá parar el Horno # 1 por unos 6 meses para su ampliación de capacidad en 1.2 millones de TM/año, operando durante ese período el Horno # 2. Parte de la ampliación entrará en operación en marzo de 2012 -como se había previsto-, y el horno en octubre del 2012.

Se asume que la coyuntura va a afectar más a los proyectos cementeros que están en camino ¿eso implica un fortalecimiento paralelo de Cementos Lima en su mercado? ¿por qué?

Cementos Lima tiene sus cronogramas de modernizaciones, ampliaciones e inversiones bien definidas y las mantendrá como están presupuestadas y dentro de los cronogramas previstos.

Cementos Lima es consciente que para mantener su liderazgo debe adelantarse al crecimiento del mercado con la expansión de su capacidad productiva, sea que se concreten los nuevos proyectos o no. Así lo hemos hecho siempre, desde hace más de 16 años cuando realizamos nuestra primera ampliación.

También por la coyuntura la demanda de cemento se ralentizó entre abril y mayo. ¿Qué expectativas tienen para el resto del año?

Tradicionalmente, el segundo semestre del año suele ser mejor que el primero, pensamos que una vez superada la coyuntura política reanudaremos nuestro crecimiento y estimamos que debemos llegar a fin de año con un crecimiento entre 3% y 4%.

¿Esas expectativas estaban dentro de lo que asumieron como un año electoral? ¿por qué?

Así es. Durante los últimos cuarenta años el volumen de venta de cemento disminuye en épocas electorales algunos años más que otros, en este caso la disminución no ha sido muy grande.

Cementos Lima SAA siempre ha apostado por el desarrollo del Perú, hemos invertido en una planta de generación hidroeléctrica, en concreto premezclado, en la fabricación de ladrillos de concreto, en la fabricación de estructuras de concreto, y no vemos razón para pensar que nuestro desarrollo se paralice, la coyuntura política actual es pasajera y estamos seguros que el sector pronto reanudará su crecimiento y ahí seguiremos para contribuir con ello.

Si se mantiene la caída de la demanda ¿tiene Cementos Lima un plan B? ¿exportaciones, por ejemplo?

Cementos Lima siempre está buscando alternativas de negocio, como en efecto lo pueden serla exportación de clinker y/o cemento. Actualmente, estamos acumulando stocks para poder realizar la interconexión de la ampliación del Horno # 1, cuando ésta se realice -en el 2012- se necesitarán más de 500,000 t de existencias para hacer esa interconexión y ya tenemos más de 600,000 t.

La ampliación de nuestra planta será de 1.2 millones de toneladas al año, y toda esa mayor producción no podrá ser absorbida por el mercado local en los primeros años, por lo que siempre tuvimos en nuestros planes exportar las diferencias hasta que el mercado interno absorba esa mayor producción.

La ejecución del segundo capítulo del que habló en la entrevista que nos otorgó ¿se afecta por la coyuntura? ¿por qué?

En el tema comercial, seguimos trabajando para llevar a la práctica el “capitulo 2.0” de nuestra estrategia, definitivamente ésta no es afectada por la coyuntura.

El año pasado dijo que la planta de Arizona debería estar en operación en el primer trimestre de este año ¿esto ya se ha dado? 

El día 17 de junio de 2011 estuvimos presentes en la inauguración de la planta de 600,000 t de Drake Cement en Arizona. Esta planta ya está produciendo al 70% aproximadamente. La inauguración contó con la asistencia de gran cantidad de personalidades del Estado de Arizona, proveedores, clientes y autoridades locales.

De ser positiva: ¿qué previsiones tienen para su operación en EE.UU. en su primer año?

Drake Materials, el brazo comercial de concreto pre mezclado en EE. UU., ya está operando en el mercado de Arizona desde hace algunos años. Con la puesta en operación de la planta de Drake Cement, el cemento producido será utilizado por Drake Materials para su fabricación de concreto pre mezclado con los ahorros que esto significa.

INDIA: Huge overcapacity in cement worries Birla Corp

Faced with huge overcapacity of cement due to lack of demand, Birla Corporation is worried over the possible pressure on margins, as the cement business is the maximum revenue generator for the company.

Chairman of the MP Birla group flagship Harsh Lodha said although the company's cement manufacturing capacity stood at 7.5 million tonne per annum, production was lower due to lack of demand.

"We were shocked to see last year's demand growth, even though the economy grew by seven to eight per cent," he said.

The cement industry is expected to grow by 8-10 per cent, Lodha told reporters after the company's 91th AGM here today.

He further said that by 2011-12, the company's production capacity would increase to 9.3 mtpa.

The company would also set up a cement plant in Assam with one mtpa capacity in joint venture with the Assam government and has also proposed a three mtpa cement plant in Tripura.

To a query, he said the company has planned an immediate investment of Rs 1,050 crore in cement, power and jute.

Additionally, the company is trying to secure coal assets for use, Lodha said.

NEW ZELAND: Cement plant future little firmer after Swiss move

A proposed $400 million cement plant at Weston, near Oamaru, is a step closer to going ahead.

The executive committee of Swiss-based company Holcim has recommended the Weston proposal proceed to its board for a decision.

Holcim New Zealand capital projects manager Ken Cowie said he was "delighted".

"A key step remains however; gaining approval from the Holcim Ltd board."

In a newsletter distributed recently to 8000 Oamaru residents and other interested parties, Holcim New Zealand said it was hopeful a decision would be made this year.

Waitaki Mayor Alex Familton said yesterday that it was an important step in the process.

"It's encouraging to see that progress, and we are hopeful that the board will follow through with a positive decision."

He was cautious not to pre-empt a decision. "Until the board says go, nothing will happen."

Waitaki District Council chief executive Michael Ross told a meeting earlier this month that the board was expected to consider the proposal when it met in late August.

A decision had been hoped for at the end of last year.

However, the executive committee asked Holcim New Zealand to provide further details on some aspects of the project.

The project was given approval in the Environment Court in August 2009.

If built, the plant would create 100 to 125 jobs, worth about $8m a year, and a further $5m from downstream jobs, the company has said.

However, the Waiareka Valley Preservation Society the project's main opponent said the site was in front of a significant natural landscape in a valley full of Maori and Pakeha heritage.

INDONESIA: China to build four cement factories in Indonesia

Jakarta (ANTARA News) - China is planning to construct four cement factories in Kalimantan and Papua with a total investment of 2.35 billion US dollars.

A memorandum of understanding (MoU) on the cement factories development plan was signed by the industry ministry`s Director General for Manufacturing Industry Base Panggah Susanto and a Chinese consortium here Thursday.

The Chinese consortium consists of Anhui Province`s State Enterprise Administration and Supervision Commission Director General Xu Chong Xin, Chairman of Prosperity Group Huang Bing Jun, and Guo Wen San of Anhui Conch Cement Company LTd.

The MoU signing was witnessed by among others Industry Minister Hidayat, Chairman of the Investment Coordinating Board (BKPM) Gita Wirjawan, and East Kalimantan Governor Awang Farouk.

Several projects included in the MoU are among other things a cement factory to be built at Tanjung, South Kalimantan, Toeti Rahajoe, the industry ministry`s downstream chemical industry director, said.

The planned total investment would reach 400 million US dollars, with an initial investment amounting to 250 million US dollar, she added.

The second factory will be constructed at Tanah Grogot (Paser), Sepinang, East Kalimantan, with a total production capacity of 10,000 klinker tons per day. Its investment will reach around 600 million US dollars.

Two other cement factories will respectively be built in Pontianak, West Kalimantan Province, and Papua Proivnce, with investments amounting 600 million US dollars and 750 million US dollars.

Industry Minister MS Hidayat welcomed China`s plan to build the four cement factories in Indonesia as the domestic demand for cement is expected to increase 7-10 percent.

He estimated the cement demand in Indonesia in 2015 will reach 55 million ton, while the total cement productions from the existing nine cement producers are recorded at 53 million tons. The factories are located at Java, Sumatra, Kalimantan, Sulawesi and Nusa Tenggara islands.

"The cement demand in 2010 in Indonesia was 40.7 million tons while production totaled 37.8 million tons. Demand for cement in the future is expected to increase 7-10 percent," he said.

PHILIPPINES: Apo Cement assures keeping air quality

A CEMENT company based in Barangay Tina-an, Naga City assured it conducts regular air quality monitoring in its plant and the 193-hectare quarry area.

The company also said it has implemented the efficient utilization of resources, the use of alternative fuel, and regular information dissemination to stakeholders.

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Engr. Jenevey Patalinjug, Apo Cement Corp. environment, health and safety officer, said the company has installed 10 ambient air quality monitoring equipment in various sites within the quarry area.

Air emission tests are also done regularly, aside from measuring levels of nitrogen oxide, sulfuric oxide, carbon dioxide and dust particles.

The tests are conducted quarterly by the multi-partite monitoring team, the company and the Environmental Management Bureau (EMB) 7 office.

Patalinjug did not comment on the finding of EMB 7 on air quality tests conducted last month at the Kepco-Salcon Power Corp. (KSPC) compound, including the raw coal stockyard last month.

The environment agency reported that the level of ambient air quality at the compound was within government standards but there could be other sources of dust pollution aside from the stockyard.

The distance between the cement company and the power producing company is only from 2.5 kilometers to three kilometers.

A KSPC official also said in a previous interview that a cement company near their plant could also be responsible for dust pollution in the area.

Patalinjug said the environment team of Apo Cement is doing a study on air pollution in the area, noting that “there are many factors that may contribute (to the pollution)."

“Our focus is on the stocks (of klinker inside the) plant. We have air pollution (control devices) installed,” she added.

Klinker is also called “cooked limestone” and is one of the components of cement.

There are three electrostatic precipitators installed at the kiln or area where the limestone undergoes extreme heat or “cooking.”

Other environment conservation efforts implemented by the company include a wastewater treatment plant connected to five deep wells, while the kiln is operated using alternative fuel composed of a mix of old tires, coal and paper.

Patalinjug said it also pays to listen to the community living around the quarry area.

EEUU: EPA regulations could cost cement companies billions, force U.S. plant closures

New federal environmental regulations will cost the U.S. cement industry billions in plant upgrades, which could lead to job outsourcing, higher prices and ultimately plant closures, according to one industry group.

The Portland Cement Association fears U.S. Environmental Protection Agency standards set to go into effect by 2013 could cripple the industry.

"It's predicted 20 percent of the U.S. plants will go out of business and will not be able to meet the new standards," said Keith E. Williams, who serves as a managing environmental process engineer for Buzzi Unicem USA in Stockertown, former chairman of the Lehigh Valley Berks Air Quality Partnership and a Hercules Cement employee.

Representatives at Hercules in Stockertown, Essroc Cement in Nazareth, and Keystone Cementin Allen Township all said they are equipped to meet the stricter standards.

The regulations, marking the first time the federal government has restricted emissions from existing cement kilns, target more than 100 cement companies nationwide.

The EPA says the regulations will benefit children, whose brains can be damaged by mercury when it makes its way through the air to the water, then to fish, which children and pregnant woman eat.

EPA representatives also say the rules will prevent thousands of serious health risks, including aggravated asthma, irregular heartbeat, heart attacks, and premature death in people with heart and lung disease, as well as thousands of premature heart and lung deaths each year attributed to particulate pollution.

Keystone Cement Plant Manager Stephen Hayden believes the regulations also could lead to the U.S. relying more heavily on Portland cement imported from developing nations. That in turn could lead to an increase in the amount of mercury pollution from other countries, he said.

"Globally, the rules could lead to increased emissions," Hayden said. "It's a possibility."

Hayden said his plant doesn’t have a choice but to comply.

"Once the rules take effect, we must ensure we are in compliance and not take issue with EPA's findings," Hayden said.

In 1993 and 1994, Hercules spent $42 million to modernize its plant, Williams said. Williams expects it will cost $15 million at Hercules to pay for equipment to monitor and control particulate matter.

While Hercules is well below the EPA’s new regulated levels, running anywhere from two times to five times below the standards, Williams doesn’t believe it makes sense to drive the whole U.S. industry out of business.

"The industry is only shipping 50 percent of what it's capable of making," Williams said. "It will be economically a severe hardship."

Essroc Cement representatives remain optimistic, saying the plant already is prepared to meet the new standards. Sites in Nazareth and Martinsburg have emission control systems that can be modified to meet the new regulations.

However, such modifications will be costly and will increase operating costs, according to Gary Molchan, vice president of environmental affairs for Essroc. Housing, infrastructure and new commercial buildings will be more expensive as a result of these changes as this cost is passed along to the consumer, he said.

"We will have no choice but to pass that onto the customer and as a result, housing and infrastructure costs will increase," Hayden said.

Williams said other countries, such as China, Indonesia, India, Brazil and Africa, do not have strict environmental regulations and they make up 98 percent of the total worldwide production of cement.

"If all cement is gone from the U.S., it will be made by high polluting countries and then shipped in boats across the seas causing even more greenhouse gas emissions," Williams said. Some countries, even in the European Union, have higher emissions than in the U.S., Williams said.

Spokesman Brendan Gilfillan said in an e-mail the EPA continues to weigh the concerns of cement makers and is considering potential changes to cement standards that would further clarify and simplify the rules, or provide flexibility without sacrificing health protections the rules provide from emissions of mercury, soot and other air pollutants.

"To ensure these important health protections are not delayed, the rules will remain in place while the agency reconsiders certain technical aspects of the rules," he said.

AFRICA: TANZANIA: Mbeya Cement Tames Accidents to Improve Performance

SAFETY at work place is a priority which has assisted Mbeya Cement Company Limited maintain its lead in the local market, the company's General Manager Mbuvi Ngunze has said.

Mr Ngunze was speaking in Dar es Salaam over the weekend during the climax of a month-long safety focused activities which were introduced by its holding conglomerate Lafarge based in Paris, France.

He said that last year, the company had a single fatal accident which involved its truck shipping coal from Malawi to its Mbeya manufacturing plant.

He said MCC actively involves its transport partners in road safety training provided by Traffic Police in Mbeya which has helped to check against accidents which cause loss of life and property.

"We regularly work with Regional Traffic Officer in Mbeya to assist with training our drivers and transport partners who distribute our products in the neighbouring countries including Burundi, Malawi, Congo and Rwanda," Ngunze pointed out.

The MCC which was privatized in 2001 with Lafarge taking a controlling 65 per cent of the stake while the government and National Social Security Fund (NSSF) retain 25 and 10 per cent respectively.

The company has a capacity to produce over 350,000 metric tons of cement per annum from its Mbeya plant. The GM said the company has also introduced new packaging in an effort to stop leakages which occurred during transportation of the product from the factory to the markets.

"We have just improved the packaging but the product remains of high quality as usual," Ngunze stressed during the launch which also marked a decade since Lafarge's take over.

With a workforce of over 75,000 employees from 78 countries worldwide, Lafarge posted a whopping 16.2 billion Euros profit (about 24.3trn/-).