INDIA: Prism Cement counter clocks high volumes

Zandu Realty, Tree House Education & Accessories, Strides Arcolab, and eClerx Services are among the other stocks to see a surge in volumes on BSE today, 22 September 2011.

Prism Cement clocked volume of 44.45 lakh shares by 13:17 IST on BSE, a 100-times surge over two-week average daily volume of 44,000 shares. The stock tumbled 5.72% to Rs. 44.50.

Zandu Realty reported volume of 36,000 shares, a 7.45-fold surge over two-week average daily volume of 5,000 shares. The stock rose 0.52% to Rs. 2,082.00.

Tree House Education & Accessories clocked volume of 32.05 lakh shares, a 5.37-fold surge over two-week average daily volume of 5.98 lakh shares. The stock jumped 6.19% to Rs. 178.50. The stock hit a high of Rs. 183.65 so far during the day, which is a record high for the counter.

Strides Arcolab saw volume of 6.56 lakh shares, a 4.87-fold surge over two-week average daily volume of 1.35 lakh shares. The stock rose 0.31% to Rs. 340.35.

eClerx Services reported volume of 71,000 shares, a 4.35-fold surge over two-week average daily volume of 16,000 shares. The stock was down 0.79% to Rs. 732.00.

AFRICA: NIGERIA: Wapco Cement to issue 50 bln naira bond

Lafarge Cement Wapco , the Nigerian unit of the world's biggest cement maker Lafarge , plans to issue a 50 billion naira ($318 million) bond to refinance loans it took to construct a factory aimed at doubling it capacity.

Finance director Fred Amobi said on Wednesday it was targeting a yield of 10-11 percent for the planned three-year bond and it would issue the paper through a book-building process which will end on Sept. 27.

He said the plan was to list the bonds on the Nigerian Stock Exchange on Oct. 3.

"It is a 50 billion naira bond (but) we will take a minimum of 20 billion naira. We are looking at a maximum benchmark price of 11 percent and that will determine how much we are going to take. If the pricing is within our expectation then we will take more," Amobi told Reuters in an interview.

PAKISTAN: Cement bag price soars to record Rs415

ISLAMABAD: Cement in northern parts of the country is selling at record high price of Rs415 registering an increase of Rs30 in one month, while the analysts suspect profit-making in the garb of inflationary impact by the cement manufacturers.

The cement manufacturers have increased the prices by 31 and 20 per cent against prices of September 2010 for both the North and the South zones, respectively, and a bag of 50-kg is selling at Rs385 in the South Zone which includes Sindh and Balochistan.

Analysts think the higher prices will have inflationary impact on the economy as more than 70 per cent of country’s cement production is in the north zone, as out of 24 cement plants 19 are in Punjab and Khyber-Pakhtunkhwa.

“The key reason for establishing cement plants in these two provinces and especially in the Rawalpindi division is availability of key raw material lime stone,” said Asad Siddiqui, analyst at InvestCap.

“Cement units in North zone pay higher freight for importing coal and furnace oil and same way their transportation cost for exporting cement is also high compared to the units in Sindh,” he said.

According to the official figures the total cement exports during July–August 2011 stood at 1.54 million tons, which included 886,282 tons to Afghanistan but the export to India had been limited to 122,335 tons whereas 536,992 tons exported via sea

to various locations.

“The export to India is cost-effective due to low transportation compared to freight charges from Rawalpindi to Karachi,” Mr Siddiqui said.

Meanwhile, the industry players said that sluggish demand and rising cost of energy was the main reason for increasing cement prices.

“Cement sector has installed capacity of 44 million tons per annum but due to economic slump the demand has been low and the cement plants are operating at around 50 per cent of their capacity,” said a senior official of a cement plant.

On the other hand, some analysts said that despite increase in the electricity tariff, furnace oil rates and diesel prices in the past six months, the hike in the cement prices was unreasonable.

“Cement sector got the relief in budget 2011-12 when the FED was lowered from Rs700 per ton to Rs500 per ton, GST was reduced by one per cent and the Special Excise Duty was abolished,” said an analyst.

“The net impact of these measures amount to Rs25-Rs30 per bag but it was not passed on to the consumers,” he added.

Talking to Dawn, Competition Commission of Pakistan Chairperson Rahat Kaunain Hassan said that there were evidences of collusive pricing by the cement manufacturers. However she declined to take any action or initiate an enquiry over the rising cement prices.

ECUADOR: Cementera Holcim subirá su capacidad de producción en más del 50%

Desde inicios del próximo año, Holcim estará en capacidad de producir un 54% más de cemento. La compañía, que ahora produce 3,5 millones de toneladas, alista nueva maquinaria con la que pretende estar en capacidad de producir 5,4 millones de toneladas de cemento anuales.

Con una inversión de $ 120 millones, la cementera ha instalado en su planta de Guayaquil un nuevo molino que está en capacidad de fabricar alrededor de 250 toneladas por hora (120 mil sacos de cemento al día). Además, construye dos silos: uno para almacenar clinker y otro para cemento.

La infraestructura está avanzada en un 85%. Y se espera que a inicios del próximo año arranque la molienda de cemento.

Giancarlo Muñoz, gerente administrativo de Holcim, explicó que se decidió realizar la ampliación debido al aumento de obra de infraestructura pública y privada que se ha dado en los últimos años y que registra un crecimiento sostenido.

Datos de la firma indican que la demanda en Ecuador se sitúa en más de 5 millones de toneladas anuales que es abastecida por Holcim, Lafarge, Guapán y Cementos Chimborazo.

El mes pasado, los fabricantes registraron un récord al producir 532 mil toneladas de cemento (en sacos y al granel), un rubro que supera el promedio mensual. 

Muñoz indicó que con la ampliación, la planta de Guayaquil pasa a estar entre las 20 plantas más eficientes de entre las 100 que tiene el grupo Holcim en el mundo.

PARAGUAY: Ofrecen cemento “Titan”

La empresa Intermix, en alianza con Chacoré, de Sergio Ferreira, está trayendo a Paraguay 260.000 bolsas de cemento de la industria mexicana Cemex. El producto se comercializará con la marca “Titan”.

De acuerdo a lo implicado por Ferreira, el producto está viniendo por vía fluvial y llegará en varias cargas, ya sean de 20.000 o de 40.000 bolsas de cemento cada una.

El primer cargamento ya está en puerto paraguayo, por lo que los compradores interesados ya pueden adquirir el producto.

“Nuestro cemento Titan CPC 32R “fragua rápido” con desarrollo de mayor resistencia a los 3 días, que permite desmoldar o desencofrar en menor tiempo que otros cementos”, destacó. 

En cuanto a su composición, el material está elaborado principalmente con clínker gris, yeso natural, y otros materiales naturales estrictamente seleccionados. 

Este cemento corresponde a la clasificación de CPC (Cemento Pórtland Compuesto) de la actual norma mexicana para cementos en México (NMX-C-414-ONNCCE). 

Según lo explicado, sus beneficios son la mayor manejabilidad, facilidad de aplicación y moldeo para lograr mejores acabados, menores desperdicios y mayor durabilidad.

El objetivo de las empresas Chacoré e Intermix es atender parte de las demandas del mercado que no pueden ser satisfechas por la Industria Nacional del Cemento (INC).

El sector de la construcción requiere diariamente entre 70.000 y 80.000 bolsas de cemento, pero la estatal puede proveer hasta 55.000, trabajando al máximo de su capacidad.

Además, la idea es tener alternativas de ofertas en los últimos meses del año, cuando hay mayor movimiento en el sector construcción al aumentar la cantidad de obras.

Más datos de la composición del cemento Titan y de su comercialización se pueden encontrar llamando al teléfono 021-600-057, de la empresa Chacoré.

BRAZIL: Latin America CemenTrade Summit in Rio de Janeiro Will Explore Market Prospect in Latin America, Demand and Supply Outlook Plus More

RIO DE JANEIRO--Construction markets in Latin America present a positive outlook with growth in infrastructural projects and increase in cement demand. CMT’s Latin America CemenTrade conference, to be held in Rio de Janeiro, on the 27 and 28 October 2011, will spotlight on the optimistic cement market outlook in Latin America and touch upon the challenges faced by the industry.

Latin America CemenTrade will have investors, raw material suppliers and traders from cement companies explore the cement demand in Peru, residential and commercial projects in Colombia and the upbeat market growth in Brazil, which will host the World Cup in 2014 and Olympic Games in 2016.

The Mayor of Rio de Janeiro, Mr. Eduardo Paes, will open the event with a keynote address, entitled, “Transforming Rio De Janeiro in Preparation for World Cup 2014 & Olympic Games 2016,” in which he is expected to share infrastructural developments and plans for Brazil. Meanwhile, Mr. Armando Gumucio Karstulovic, General Manager ofSOBOCE, will deliver a paper on “Meeting Cement Demand in Bolivia” and Mr. Armand Nahmiache, President & CEO of Cemcorp Cement, will share a case study on the cement investment in Jamaica.

Besides above, participants will also hear opportunities in markets potential in Peru, Colombia and Mexico. Plus, panelists from Davy, TBS do Brasil and Rodolatina Logística S.A. will offer insights into the global market outlook, freight rates projection and logistical challenges faced by the cement industry in Latin America.

Presenting their perspectives on energy savings solution, cost efficient plant implementation experience, carbon initiatives & trade opportunities in Brazil are PEG SA, IMSACOL - Ingenieria y Mantenimiento S.A.S and WayCarbon Brazil. While Banco BBM SA and Excend Capital Group will look into the economic performance in Latin America, as well as financing options available for investment.

This event is expected to be attended by executives from international/regional cement companies, ready-mix concrete companies, building materials companies, construction analysts, project financiers, shipping companies, technology providers and many more.

CAMEROON: Dangote signs $115m cement deal in Douala

THE Republic of Cameroon and Dangote Group, yesterday, signed a $115 million investment agreement for the construction of a composite cement production plant, expected to produce 1.5 million tonnes of cement yearly in Douala, Cameroon.

The agreement, which the company described as the first tranche of a $700 million long-term investment projection in Cameroon’s real sector arms, was signed by President of Dangote Group, Alhaji Aliko Dangote and the Prime Minister and Head of Government of Cameroun, Philémon Yang, at a colourful ceremony in the East African country.

Other Camerounian government officials who signed parts of the agreement included the Minister of Commerce, Mbarga Atangana, Minister of States for Transport, Bello Bouba Maigari, Governor of Douala, Francis Fai Yengo and the Director-General of the Cameroon Ports Authority, Dayas Monoume Jean Marcel.

Speaking after the endorsement, Yang praised the Nigerian investment drive in her neighbouring country, saying the action would go a long way to improve economic and political cooperation between the two countries.

“I extend my congratulations to Dangote Group and its president, Alhaji Aliko Dangote, for this massive investment initiative in cameroun. It will certainly change the industrial landscape of Cameroon,” he said.

The Prime Minister commended Dangote for his belief in his country, even as he described him as an inspiration to other African investors.

According to him, “we salute the determination of Dangote, who believed so much in this project, did so much for the African community, and stopped at nothing to make it happen.”

While stating the country’s commitment to its responsibilities and obligations in the agreement, he said the achievement represented an endorsement of the industrial policy thrust of President Paul Biya.

“This is indeed a welcome development and in line with the renewed government policy of encouraging private sector growth and employment generation”| he said.

He expressed the hope that the project will be completed within the scheduled time frame of 14 to 18 months.

Referring to Dangote, he said: “We are familiar with your slogan, which is ‘nothing is impossible’ and we are happy to state that it is not very far from our own slogan in Cameroun, which is ‘nothing is impossible for Camerounians’”

At the foundation laying ceremony of the cement factory, within the premises of the country’s largest sea port, in the North Eastern city of Douala, Dangote said the project would be financed 100 per cent with funds raised outside Cameroun and therefore, would not put any pressure on the nation’s financial system.

He said the signing of the investment agreement for the development and operation of a quarry and cement grinding unit between Dangote Industries Limited and Cameroon, was a step forward in the mutually beneficial business relationship.

“From our projections, this $115 million project with an installed capacity of 1.5 million tonnes per annum, will take between 14 and 18 months to complete. We project that we will import one million tonnes of clinker per year. We hope to use up to 30 per cent of local raw material in line with our business philosophy of adding value to the economy, everywhere we operate.”

INDIA: Seasonal increase in prices

IFL Institutional Equities, a part of the IIFL Group, one of the leading players in the Indian financial services space, in a recent report on the Cement sector said that prices had witnessed an increase of Rs. 5-50 per bag across the country, except in the south and Gujarat, as the monsoon was drawing to a close.

Sharp price increases were seen in the institutional segments in Ludhiana, Lucknow, New Delhi and Kolkata, and according to producers, further price increases were expected in the coming weeks, the report said.

According to dealers, demand was improving in the infrastructure segment in Uttar Pradesh due to pre-election spending, and in the housing segment in the National Capital Regions, the report said.

Despatch growth is likely to be strong for the current month owing to re-stocking demand post monsoon, the report stated.

“We expect demand growth to improve from the second half on likely revival in rural housing and infrastructure segments,” IIFL said.

ETHIOPIA: Gov’t Imports More to Cement Need

The first shipment of 150,000tns of Ordinary Portland Cement (OPC), out of 400,000tns bought for 34.6 million dollars by the Public Procurement and Disposal Agency (PPDA), is to arrive in two weeks time.

Two companies, D.G Khan Company Limited (DGKCC) of Pakistan and Global Africa of Israel, offered the lowest priced purchase bid floated on June 25, 2011. A total of twenty companie submitted their offers, of which five were found to have fulfilled the technical and operational evaluation. They scored above 85pc on the evaluation, the cut-off point, and this allowed them to continue on to the financial evaluation.

D.G Khan Company Limited (DGKCC) of Pakistan offered the lowest price of 86.65 dollars per tonne. However, since its offer was only for to supply 250,000tns, the PPDA approached Global Africa, which had submitted the second lowest offer of 86.90 dollars per tonne to supply the rest.

The cement is to be used for Addis Abeba housing projects, construction of new sugar factories and road construction, according to Yigezu Daba, Director General of the Public Procurement & Property Disposal Service at the agency.

“We chose to purchase the cement from abroad because the local supply can’t meet the demand,” he told Fortune.

While the national demand is estimated to be around 11 million tonnes, the combined total capacity of the 11 companies producing Ethiopia’s cement can only supply 2.3 million tonnes to the market annually, according to research conducted by the Ministry of Industry (MoI) last year.

The state owned Mugher Cement and Messebo, owned by the Endowment Fund for the Rehabilitation of Tigray (EFFORT), which are in the final stages of expansion, are the largest producers in the nation. Their combined production constitutes 57.5pc of the 2.3 million tonnes currently produced.

There is a gap of 7.8 million tonnes between the estimated demands for cement this year and the actual supply of 2.3 million tonnes.

The government’s GTP has planned major infrastructure projects which all require cement, but whose demand cannot be met by local supply alone. Just three months ago, it purchased the same amount of cement as now from Pakistan for housing, road, and sugar plant projects.

The Ethiopian Sugar Corporation (ESC) is undertaking expansion projects on the Wenji, Fincha and Metehara sugar factories and plans to construct nine new factories over the next five years. Close to 150,000 houses are also planned for construction in Addis Abeba within the same time frame, by the Government Housing Agency (GHA), established in 2004.

“The cement is to be distributed based on the respective demand of the sector,” Yigezu told Fortune. “Although the expansion of Mugher and Messebo is not completed, we will continue to import cement if they can’t meet the demand.”

The PPDA has also procured 150,000tns of slag cement mixed with fly ash for the foundation work of the Gibe III dam, at the cost of the 12.3million dollars, from Cementir Holdings Company based in Italy, which will arrive at the end of this month.

VENEZUELA: Cemento Andino produce apenas al 3,2% de su capacidad instalada

El profesor titular de la Universidad de Los Andes (ULA), y ex trabajador de Cemento Andino, Gustavo Zambrano, desmintió categóricamente que la empresa Cemento Andino, tal y como lo dijo su presidente, Crisanto Silva, en la prensa regional, esté produciendo en un 92 por ciento de su capacidad instalada, porque la realidad, es que apenas lo está haciendo en un 3,2 por ciento.

Al profundizar sobre el tema, Zambrano recordó que Silva dijo entre otras cosas lo siguiente: "Se ha evidenciado en las ferreterías y comercios que hay exceso (de cemento) y los silos están llenos de producción (¿?), estamos en capacidad de producir 80 (ochenta) toneladas diarias, y que con eso se cubre la demanda del mercado y las necesidades del Estado".

Y luego agregó que "a través de un convenio con la Corporación Socialista del Cemento, a la cual pertenecen, destina 2.500 millones de toneladas a la Misión Vivienda de los 7500 millones de toneladas que se producen al año, con la intención de colaborar en el cumplimiento de la meta de de viviendas y que la próxima meta, es elevar la planta a su máxima capacidad este año, y a largo plazo, duplicar la capacidad con un nuevo horno, verificando las reservas de caliza disponibles".

-¿Qué opinión le merecen los criterios del presidente de Cemento Andino sobre el particular?

Es impresionante la ignorancia demostrada por este funcionario al afirmar que produciendo 80 toneladas métricas (TM) diarias, la planta está al 92% de su capacidad de producción.

Para aclarar la situación, es preciso señalar que si tomamos en cuenta que, una TM de cemento tiene 23.5 sacos de 42,50 kg/saco, la conclusión es que la planta está produciendo 1880 sacos diarios (80 TM/día x 23.5 sacos = 1880 sacos/día).

Como la capacidad de la planta es de 750.000 TM/año, su producción diaria debería ser de 750.000 x 23.5 = 17.625.000 sacos/año. En 300 días neto de producción por año, la producción diaria sería de 58.750 sacos diarios (17.625.000 sacos dividido por 300 días de producción = 58.750 sacos/día).

Apenas el 3,2%

De tal modo que, produciendo 1880 sacos diarios en vez de 58.750/día, la planta está al 3.2 % de su capacidad diaria de producción y no al 92 % como lo afirma el declarante (1880x100/58750 =3.2%).

Con tal nivel productivo (3.2 %) -asegura el declarante- es imposible creer que las ferreterías estén abarrotadas de cemento y los silos de la planta llenos, y si eso es así, cómo se explica que el precio del cemento en la zona este por las nubes.

Será que hay acaparamiento protegido por el propio gobierno? O que toda esa información de triunfalismo es una manera de ocultar la verdadera situación de la planta, poniendo en el público una información tergiversada.

Información tergiversada

Con esta información tergiversada se está diciendo que la gestión del administrador Carlos Pacheco, recientemente sustituido -advierte Zambrano- fue un éxito, cuando todos sabemos del desastre en que sumió a la planta después de haberla recibido de la administración del Dr. Simón Ramos Farías, al 100 % de su capacidad.

COLOMBIA: La construcción ha impulsado producción de cemento en el país

De acuerdo con el Gobierno Nacional, la locomotora de vivienda sigue impulsando la producción de cemento gris en Colombia, según lo confirma el último reporte DANE, que señala que en los últimos doce meses, a julio de 2011, se registró un crecimiento de 11,5 por ciento, con un total de 10 millones 276 mil toneladas.

Los despachos, por su parte, incrementaron en 11 por ciento y alcanzaron un registro histórico con más de 9,5 millones de toneladas.

“Seguimos superando la barrera de los 10 millones de toneladas de producción y los 9 millones para despachos nacionales, lo cual es muy importante para el Gobierno Nacional, pues son cifras que muestran la dinámica de la locomotora”, dijo la ministra de Vivienda, Beatriz Uribe Botero.

Entre tanto, la producción de cemento gris en julio de 2011 ascendió a 927 mil 700 toneladas, cifra superior en 14 por ciento a la del mismo mes del año anterior, en la cual se registró una producción de 815 mil 300 toneladas.

En el mismo mes se despacharon 851 mil 700 toneladas de cemento gris al mercado nacional, lo que significó un incremento del 13 por ciento frente a julio del año pasado.

Las cifras en lo que va corrido del año también son positivas, ya que la producción fue de aproximadamente 6 millones 96 mil toneladas y los despachos superaron los 5 millones 660 mil toneladas.

“La construcción de edificaciones es un subsector que sigue jalonando la industria cementera en el país y éstas estadísticas son muestra clara de ello”, puntualizó la Ministra.

PERU: Despachos de cemento en mercado peruano aumentaron 1.12% entre enero y agosto

Los despachos de cemento en el mercado peruano sumaron cinco millones 219,828 toneladas métricas (TM) entre enero y agosto del 2011, 1.12 por ciento más respecto a lo registrado en el mismo período del 2010, cuando sumaron cinco millones 161,945 TM, informó hoy la Asociación de Productores de Cemento (Asocem).

Durante el mencionado período la producción de cemento fue de cinco millones 356,112 TM, lo que representó un alza de 1.23 por ciento en relación con el mismo período del 2010, cuando sumó cinco millones 291,243 TM.

En los primeros ochos meses del año las exportaciones llegaron a 33,066 TM de cemento, reportándose un incremento de 2,655.43 por ciento respecto al mismo período del 2010, cuando fueron de 1,200 TM.

En ese sentido, los despachos totales de cemento (mercado nacional más exportación) sumaron entre enero y agosto pasado cinco millones 252,894 TM, cifra que muestra un aumento de 1.74 por ciento respecto a similar período del 2010, cuando sumaron cinco millones 163,145 TM.

La información recogida por Asocem es proporcionada por las empresas Cemento Andino, Cementos Lima, Cementos Pacasmayo, Cementos Yura, Cementos Selva y Cementos Sur.

El analista de Maximixe, José Rázuri, señaló que en agosto se registró una ligera recuperación en el despacho de cemento nacional respecto al mes de julio, cuado hubo una caída.

Mencionó que es el sector privado el que logró la recuperación en agosto pues el gasto en proyectos de inversión pública descendió 24 por ciento sólo en dicho mes.

Destacó que la aceleración del gasto fiscal de parte del gobierno, anunciada por el Ministerio de Economía y Finanzas (MEF), daría cierto dinamismo al sector construcción y aseguraría un crecimiento de este segmento en los próximos meses.

“Es posible que se mantenga esta tendencia positiva de los despachos de cemento, aunque a tasas pequeñas pues aún se mantiene lenta la ejecución de obras a niveles de los gobiernos regionales, locales y nacional”, declaró a la agencia Andina.

INDIA: Cement major Lafarge plans to set up R&D facility in India

French cement major, Lafarge, is mulling over to set up a research and development (R&D) facility in India for developing solutions and products to suit the growing demand of 'green' infrastructure and affordable housing, a senior company official said.

"Demand for new infrastructure and housing in India is increasing rapidly. This growth, however, must be met through new, innovative approaches to construction that take into account social, economic and environmental imperatives. We are mulling setting up a complete R&D facility in India," Lafarge Director (R&D), Pascal Casanova, told reporters today.

The company, which has four cement plants in India, has, however, not yet finalised any plan on setting up a facility in India, he said, adding "we are currently studying the demand pattern of India."

Lafarge has already tied-up with IIT Madras, IIT New Delhi, IIT Bombay, Indian Institute of Science (IISc) at Bangalore for carrying out research in concrete quality, life and durability, Casanova said.

"Developing solutions to meet the specific needs of the Indian market requires close partnerships with local actors in the construction chain. We will continue to collaborate with more institutes for conducting scientific researches to address sustainable construction and global warming challenges in the country," he said.

Casanova also announced the launch of 'Lafarge Invention Awards 2011' to reward innovative projects for sustainable construction in the country.

"We are seeking to strengthen our collaboration with Indian construction innovators, through the awards," he added.

AFRICA: Nigeria to establish World class Cement Plant next year

Nigeria will next year establish a world class cement plant, Minister of Trade and Investment, Olusegun Aganga has said. Aganga told journalists in Abuja weekend during an interactive session with Commissioners of Commerce and Industry in the country that the establishment of the cement plant would not only create job opportunity for the Nigeria teeming youths, but would as well strengthen the nation’s economy.

The minister though emphasized on closer collaboration with other ministries and relevant agencies, said this will fast track the transformational agenda of Mr. President on the nation’s development.

In his words: “I want to emphasis here that rather than being jack of all trade, we must focus on areas where we have comparative advantage and develop them to world’s level. About 95 per cent limestone is used in cement production and this we have in abundance in this country. That is why the Federal Government is doing everything possible to ensure that come next year, Nigeria will establish the largest cement plant in the whole world.”

He also said Nigeria has comparative advantage in the area of iron ore for mining, coal, gold, oil and gas, and of course, agricultural and agro allied products.

While emphasizing the need for collaboration among the three tiers of the government, Aganga enjoined relevant agencies and parastatals to work together with the ministry to achieve this feat.

“Mining is one area the world economic leaders are making it big right now. My ministry is already collaborating with Japan and other countries abroad in ensuring that our iron ore minerals are adequately explored. We are working with the ministry of agriculture, mineral resources and others in ensuring that within the shortest time, Nigeria will be great producers of all these resources.

“I have said this before and I can make bold to say it again that we can not achieve this great feat alone. That is the essence of this meeting where we will put heads together to ensure that things work out.

AZERBAIJAN: Azerbaijan raises cement production

Cement production in Azerbaijan made up 895,500 tonnes in January-August.

Compared to January-August 2010, production has increased by 6%. As at 1 September 20-11, the reservoirs stored 18,000 tonnes of unsold production.

In 2010 cement production in Azerbaijan made up 1,278,000 tonnes, a drop by 0.6% over 2009.

Garadagh Cement is the main cement producer in Azerbaijan. Its producing capacities will allow producing 1-1.4m tonnes of cement a year (50% of the country’s demand). The rest demand is covered through import.

In 2007, cement production in Azerbaijan made up 1,778,000. Today, it is the highest cement production in Azerbaijan.

The Azerbaijani government views the opportunities of building new plants on cement production in the country.

INDIA: SCG: Cement sales on track for year

Siam Cement Group (SCG), Thailand's top industrial conglomerate, says its cement sales volumes this year remain on track to grow 5% over 2010 despite severe flooding but margins will be squeezed due to price reductions and rising fuel costs.

Pramote Techasupatkul, president of SCG Cement, said cement consumption had softened in the third quarter after falling short of the expected 5% growth in the first six months.

However, demand could pick up after floodwaters subside, especially in the final quarter when the government is expected to start some large-scale infrastructure projects.

But the recent price reduction of cement by 5-10 baht per 50-kilogramme bag as requested by the government will put pressure on the company's margin. Meanwhile, energy costs, pushed mainly by strong coal prices, are increasing.

"The reduction in gasoline and diesel prices (following cuts in Oil Fund levies) has barely benefited us because we use the petrol very little, just for transport," said Mr Pramote, who is also the chairman of the Thai Cement Manufacturers Association.

KGI Securities said 13.9 million tonnes were consumed in the first six months, up 3.4% year-on-year.

"But after moderate growth in cement use during the political transition, quick spending from the public side could increase cement demand in the second half," the brokerage said in a report.

This should result in full-year cement demand growth of at least 5% from 26.7 million tonnes in 2010 to 28 million this year, it said.

SCG Cement, the country's largest cement maker, yesterday joined with second-ranked Siam City Cement Plc (SCCC) in launching the Cement Partnership Initiative through a project called Rong Poon Ruk Chum Chon (Cement Factory Loves the Community).

The initiative, which started late April, comprise three environmental activities involving the alliance's cement factories in Saraburi including green mining, production process and transport.

The production process, for example, focuses on reducing greenhouse gas emissions, and lower consumption of fuel and water.

"Saraburi is our second home since it has hosted the cement industry alongside local people in surrounding communities for a long time," Mr Pramote said.

This landmark cooperation should be expanded to other areas where cement factories are located and with other cement manufacturers to promote sustainable development for the industry, the two companies said.

Chumpon Lertchuwongsa, an SCCC vice-president, said the partnership would also focus on improving the economy of local communities as well as better living standards for children and young people in the province.