SENEGAL: les Ciments du Sahel équipent des écoles

Dix salles de classes, deux blocs administratifs et des toilettes d’un coût global de 136.739.305 francs CFA supporté par les Ciments du Sahel ont été inaugurés jeudi dans le département de Mbour (ouest).

Ces équipements se trouvent dans les collèges d’enseignement moyen de Thicky, Kirène et Bandia Sessène, des villages situées dans la commune de Diass. 

La cérémonie d’inauguration des infrastructures s’est déroulée à Kirène, en présence du sous-préfet de l’arrondissement de Diass, Hamady Diongue, du conseiller aux questions environnementales de la cimenterie, Aliou Sarr, des responsables des trois collèges et des notables des localités bénéficiaires. 

Les Ciments du Sahel évaluent les dépenses à 136.739.305 francs CFA. Ils tenaient à soutenir "les efforts du conseil communal visant l'amélioration des apprentissages et le relèvement du taux de scolarisation de cette zone d’implantation de notre cimenterie", a déclaré M. Sarr.

ZAMBIA: Documents Reveal Illegal Deportations at Zambezi Portland Cement

At the height of their dispute with the multimillionaire Finance Bank Chairman Rajan Mahtani, two directors of the Zambezi Portland Cement (ZPC) company were illegally deported by the Zambian government, according to documents revealed by Zambia Reports.

In November 2012, the Luanshya-born residents Daniele Ventriglia and Valerio Ventriglia were served with deportation notices requiring them to depart Zambia within just four hours, allowing Mahtani’s company Finsbury Investments to take over physical control of ZPC and force the appointment of Andrew Kamanga as interim Chief Executive Officer.

The reason given by officials for the deportations were that the Ventriglias’ conduct represented “a danger to peace and good order of Zambia,” however in subsequent submissions before a Swiss Arbitral Tribunal, the family has alleged that the deportations were arranged by Mahtani in order to seize control of their company. According to court documents, they accuse Mahtani of using his political power over low-level PF officials to fast-track the expulsion of the two businessmen allegedly in order to seize ZPC as part of an illegal corporate raid.

Now there appears to be documentary evidence that immigration authorities acted illegally by deporting Daniele Ventriglia and Valerio Ventriglia. The officials rushed to carry out these deportations in open violation of a court order, released for the first time to the public by Zambia Reports, ignoring a standing injunction for judicial review that had been granted to the two businessmen.

In addition, the deportation paperwork shows some very unusual details. For example, instead of listing the minimum number of days that would be required to depart the country, the form declared only four hours before they would be required to leave their homes and birthplace, which appeared designed to prevent the businessmen from seeking assistance from higher ranking members of the PF government. At the time of the deportations, there were reports in the media that the late Minister of Information Kennedy Sakeni had commented that if he were still Minister of Home Affairs, he would not have allowed these deportations to take place for the private economic gain of a business opponent.

For several years the Ventriglias have been waging a hard-fought battle against Mr. Mahtani for control of ZPC, which they say was unlawfully taken over by the Finance Bank chairman through a conspiracy involving politics, forgeries, and controversial legal decisions.

Mahtani, who is widely acknowledged to have funded the 2011 Patriotic Front political campaign of President Michael Sata, has enjoyed many benefits since the new government came into power, including the restoration of his ownership of Finance Bank, which was taken over by Bank of Zambia when it was discovered that Mahtani individually owned more than 56% of the bank in violation of the law.

Zambia has experienced a number of politically and economically motivated deportations over the past two years. In 2012, a Catholic priest was deported to Rwanda for having criticised the government, and later the manager of the Taj Pamodzi Hotel was also deported allegedly over a personal dispute with an individual who had ties to the government. The government has also deported former executives of Zamtel, which was expropriated by the state shortly after taking power in 2011, as well as an executive of LaFarge Cement.

NIGERIA: DANGOTE’S 3X CEMENT 30 TIMES STRONGER

The Dangote’s new Cement tagged 3X is thirty times stronger than cement from other manufacturers in Nigeria, a statement from the Group has claimed.

The Dangote Cement Plc is the only cement manufacturer in the country producing the high quality 42.5MPA grade, the statement added.

Speaking at the just concluded Public Hearing on Cement Quality in Nigeria, Group Managing Director of the Dangote Cement Plc, D.V.G. Edwin, said the decision to embark on production of the high quality grade was made to help Nigeria stem the tide of collapse building.

He said: “After 28 days, the 32.5 grade gives strength of 32.5MPA, whereas the 42.5 grade gives a curing of 42.5MPA i.e., 30 per cent higher in strength.”

Edwin said in spite of the high quality grade of Dangote Cement, it has not increased price of the product.

“China, the number one producer of cement in the world is phasing out the entire 32.5 grade by July. India, the second largest producer of cement phased out 32.5 grade cement 12 years back,” he said.

He questioned why other manufacturers will be producing high grade cement in their Indian factories while producing low grade cement in Nigeria.

Director General of Standard Organisation of Nigeria (SON) Joseph Ikem Odumodu, said the restriction placed on the use of low grade cement was important to mitigate the problem of collapse building in the country.

Contributing, President of the Cement Manufacturers Association of Nigerian (CMAN) Engr. Joseph Makoju, said the 42.5 grade is superior cement over 32.5.

NIGERIA: Manufacturers express fears over new cement policy

Cement manufacturers in Nigeria have expressed displeasure over the new government policy on the product, saying it will lead to increase in the price and shortage of the production.

They are also claiming that the restriction placed on the usage of 32.5 grade of cement was an indirect ban on the product, which they say was not acceptable to them, arguing that the use of 32.5 grade of cement was not responsible for the incessant collapse of buildings as being witnessed in the country.

The Standards Organisation of Nigeria (SON), had recently announced a new policy on cement which restricted the use of the 32.5 and urged manufacturers to begin production of the high-grade 42.5MPA.

Director General of SON, Dr. Joseph Odumodu said his organisation intends to enforce restriction in the use of the 32.5 low-grade, stressing that the continued production of 32.5 low-grade was for profiteering.

Manufacturers’ arguments

Stakeholders in the cement sub sector have severally argued that incessant building collapse was not a result of the quality of cement used, saying the restriction was an indirect ban on the product, a situation they said is not acceptable to them.

According to the Managing Director/CEO, Lafarge WAPCO, Joe Hudson the 32.5 grade was not the cause of building collapse in Nigeria, adding that the grade is the best multipurpose cement used in many counties for many years.

“The new policy of the government to restrict the 32.5 grade will affect the investment on cement. There will be a big impact on the capacity because it will reduce the production of cement. The policy is capable of causing confusion.

“The 32.5 grade has served and still serving manufacturers, builders and corporate organisations well. The greatest buildings in Nigeria like the Cocoa House, the NITEL building and other skyscrapers were constructed using this particular brand of cement. They are still standing and being used,” he argued.

Coming to the grassroots level, this is the brand used in constructing most residential buildings which have stood the test of time, he added.

“A lot of Nigerians grew up to know Elephant Cement, our flagship product, which is 32.5 and has been used for several constructions.

“We are the first cement actor in the country to rally support for addressing the root causes of building collapse, starting in 2010 with the first building collapse national discourse.

“The second edition was held in April 2014, with all key stakeholders in attendance and the contributions at these sessions, which are key to achieving the zero building collapse objective, have been made public via a published communiqué,” he said. Continuing, he said “rather than laying the blame of building collapse at the doorstep of the so called inferior quality of 32.5 grade of cement, Hudson said Standard Organisation of Nigeria (SON), should focus on how to implement the building code of 2006, cement application, use of unqualified engineers among others.”

Claims by the SON that the 32.5 grade was being produced for profiteering, he regretted, were not only untrue, but unfair.

Managing Director, Ashaka Cement, Leonard Palka said the recent directive by the SON was unprofessional and capable of killing the industry.

He said the restriction on the 32.5 was not acceptable.

“We have been in this business for more than 40 years, and for someone to now come and tell us that 32.5 is of less grade is unprofessional. The claim that the grade is been ban in some countries or that it is the cause of cement collapse is absurd.

“We had engaged the regulatory authorities severally since the misinformation on cement quality in Nigeria began to be peddled because of our desire to present the facts that will ensure that informed decisions are taken in the overall interest of Nigerians,” he said.

Limiting the use of the 32.5 grade of cement, he continued, would eliminate consumers’ choices, producers’ capacities and ultimately lead to increase in cement price across the country.

Palka said there should be a level playing field for all stakeholders in the industry to operate freely in the country.

Arguing in the same vein, Managing Director, United Cement Company of Nigeria Limited, UNICEM, Olivier Lenoire, said it was not fair to say that cement was the cause of building collapse, because the issue on ground was more of competition and not technical.

He said 90 per cent of cement produced by his company for many years was 32.5 and there had never been an incident associated with the products.

“I have experience of more than 40 years in the cement industry and I find this claim to be unprofessional. There should be different cement grades for different applications,” he said.

Meanwhile, Group Managing Director and Chief Executive of Dangote Cement, Devakumar Edwin, said his company started producing the high-grade 42.5R cement since 2006, and pledged commitment to make every necessary investment to ensure product quality, consistent with the prevailing regulatory standards.

Causes of collapse

According to a report of an independent survey carried out by Renaissance Capital, a investment banking group, poor construction practices, the most common of which is the adding of water to improve workability of the concrete, results in increased settlement of the mix. It also causes an increase in the drying shrinkage, and reduced strength. This, the company added, “is the underlying cause of collapsing buildings: inappropriate mixes and/or excessive extension, both as a result of ignorance and possibly fraudulent intent on the part of builders.

“We do not believe that 32.5N cement in itself is the cause of collapsing buildings, and do not expect the restriction in its manufacture and use to address the underlying problem without creating further problems. Low strength rated cement is not of its own a cause of collapsing buildings and its elimination will not necessarily result in better quality buildings, in our view. The only impact we see is higher cost of cement production which will inevitably be passed onto the end user in the form of higher cement prices, and lower availability of cement,” the report stated.

Hudson said causes of building collapse as identified at a public discourse recently organised by his company included the use of unqualified workmen in building construction, non-adherence to building codes, sharp practices by some contractors, natural disasters and sabotage.

The Nigerian Society of Engineers, NSE, also dismissed as misleading, erroneous and fallacious the attribution of cement grade as the prime causative factor for the incessant collapse of buildings in the country.

According to the NSE, the misappropriation or inappropriate application of cement in the production of concrete can be a plausible cause of building collapse, but not the grade of the product.

President of NSE, Ademola Olorunfemi, while outlining what could be the general causes of building collapse said it could include design flaws, ageing, materials’ fatigue, extreme operational and environmental conditions, accidents, terrorist attacks and natural hazards.

“A cursory look at the array of causes of building collapse peculiar to Nigeria will reveal that only two of the 15 causes are overtly or covertly related to the usage of construction materials. Now, a visit to the scene of any collapsed building will reveal rubbles of concrete structural elements and not cement of whatever grade. We will like to state unequivocally that it is misleading, erroneous and fallacious to assert that cement grade is a prime causative factor in the incessant collapse of buildings in Nigeria when, in fact, there is no experimental basis for such an assertion,” he said.

SON’s review

SON Director General, Dr. Joseph Odumodu, while raising a technical committee to address the claims and counter claims of various stakeholders over the quality of cement in the market, said the move became necessary because the issues in contention were technical in nature and needed to be addressed by experts and stakeholders from various segments of the construction industry and the society. He said members of the committee were well-informed technical people from professional bodies, the academia, civil society organisations, trade unions, cement manufacturing companies and journalists, among others.

Odumodu explained that the approach was necessary to involve all stakeholders in ascertaining the quality of cement in the market as a step to guarding against the spate of building collapses in the country.

He said the challenge of building collapse was not what SON could tackle alone considering the multiple sectors involved in the construction industry.

New cement standard

The new standard for cement, which was announced by the DG of SON, Dr, Joseph Odumodu, based on the approval by its supervisor- the Minister of Industry, Trade and Investment, Olusegun Aganga, and which would soon be enforced after a short grace period to enable all manufacturers in the country comply is tagged: ‘NlS 444-1:2014.’

It automatically becomes the new composition and conformity criteria for cement in the country, and stipulates that: “The highest grade, CEM I 52.5R and 52.5N, which could be simply referred to as the 52.5 cement grade, would now be used for the construction of bridges.

“The second highest grade which is the CEM II 42.5R, 42.5N or simply called the 42.5 grade, would be used for casting of columns, beams, slabs and for block moulding.

“The last cement grade referred to as CEM I & II 32.5R, 32.5N or simply called the 32.5 cement grade would be used only for plastering of buildings.”

Implications of new rule

The report by Renaissance Capital noted that the key implication on manufacturers is that they will need to increase the amount of clinker in their product, and blend in a lot less additives. The purer clinker, it continued, would need to be milled even finer than before, implying higher fuel electricity costs than previously, which it said would clearly put those manufacturers close to full capacity utilisation at greater risk, as it would negatively impact on available volumes. Higher electricity tariffs become more relevant in this scenario as well.

On whether this measure would solve the problem of collapsing buildings, the report said, “Not really, in our view. Nothing stops builders from buying the 52.5N and blending/extending it on site. Remember as well that the larger construction companies already buy in OPC and batch blend to engineer specifications on the site. We also believe the bigger problem associated with collapsing buildings remains inaccurate or inappropriate mix, an education issue that cannot be resolved by eliminating 32.5N.”

NIGERIA: Dangote to increase cement output by August

In response to the increasing demand for cement in the country and the need to make the commodity available, Dangote Cement Plc has promised to increase its output from the present 20 million metric tons to 29 million by August this year.

A director in the company, Ekanem Etim, dropped the hint in an interactive session with the media.

He said the company was not unmindful of the massive demand for the commodity by end users hence the need to increase output.

His words: “Dangote cement which came to being in 2007 has striven over the years to make its impact felt in the construction industry.

“We are also not unmindful of the huge demand for cement in the country, hence, we have decided to add another nine million metric tons to the existing 20 million metric tons by August 2014.”

He frowned at a situation where some cement manufacturers were still producing 32.5 grade cement, adding that this development was against the policy of the Standards Organisation of Nigeria (SON).

According to him, Dangote was not prepared to lower the statndard, pointing out, that if other cement manufacturers decide to stay with 32.5 grade of cement, they were at liberty to do so.

Etim urged SON to ‘without further delay’ implement the 42.5 grade because all the existing cement producing companies have the capacity to switch over.

He pointed out, that hitherto, all companies that were importing cement, were bringing in 42.5 grade, wondering why now that thy were producing it locally, they have decided to stick to 32.5 grade of cement.

According to him, the 32.5 grade of cement, were mainly meant for plastering, while the 42.5 grade is meant for general; purpose, pointing out, that the 52.5 cement grade was essentially for the construction of bridges, dams.

He was quick to add that the company produces the 52.5 grade of cement but only on request.

He noted that Dangote cement was not at war with any other manufacturer of cement but was quick to add, that the SON’s decision was taken with all the manufacturers in attendance.

MYANMAR: SMGR looks to Myanmar, Bangladesh

After expanding its business to Vietnam, cement producer PT Semen Indonesia (SMGR) is planning to strengthen its regional grip by acquiring a cement company in Myanmar, the process of which is expected to be completed in July.

Semen Indonesia president director Dwi Soetjipto confirmed, saying the state run company was in the process of taking over a cement maker in Myanmar.

“It is a private company and the acquisition can be executed after the prospective partner finishes several legal documents,” Dwi said on the sidelines of the new Indarung VI cement factory groundbreaking ceremony in Padang, West Sumatra, on Monday.

Semen Indonesia has prepared a total fund of US$200 million to $300 million for the acquisition. The state company is targeting to finish the acquisition process in July, as reported by kontan.co.id.

Semen Indonesia, he said, is also eyeing a cement factory in Bangladesh that can produce around 600,000 to 1 million tons per year and is targeting to finish the factory’s acquisition process later this year or earlier next year. 

“I hope [the acquisition] can finish within the next six months,” he added.

Although Dwi is reluctant to disclose the total investment for the Bangladesh factory, he stated the acquisition of the Bangladesh factory was not as expensive as the takeover of Thang Long Cement Company (TLCC) in Vietnam.

On Nov. 14, 2012, Semen Indonesia acquired 70 percent of Thang Long’s shares from Geleximco with a total transaction value of $157 million.

In a bid to strengthen its position in Vietnam, Semen Indonesia has two options to pick, Dwi said. First, to acquire a new company with a total investment under Rp 1 trillion (US$86 million), far below Thang Long’s acquisition price. In this option, Semen Indonesia will target a small company with a production capacity of around 2.3 to 2.5 million tons.

“Semen Indonesia has met representatives from three companies,” he said, adding that Semen Indonesia would be the majority shareholder, if it picks this acquisition option.

Second, to establish a new factory under the supervision of TLCC. Semen Indonesia, however, will take the demographic factor of Vietnam into account, considering that the market in Vietnam is divided into North and South Vietnam. “The market in South Vietnam is better than in the North, but the supply is dominated by North Vietnam,” he said.

In addition, Semen Indonesia kicked off the construction of its new Indarung VI cement factory in Padang, West Sumatra, on Monday.

State-Owned Enterprises Minister Dahlan Iskan led the groundbreaking ceremony, witnessed by West Sumatra Governor Irwan Prayitno, Dwi Soetjipto of Semen Indonesia and Semen Padang president director Munadi Arifin.

Dwi said that the Rp 3.25 trillion project was targeted to finish in the second semester of 2016 and that the establishment of the factory was based on the increasing demand of cement in Sumatra and West Java areas

ETHIOPIA: Habesha Cement Granted 60-Year Mining License

When Habesha's 2.34 Billion Br factory is completed, it will have the capacity to produce 1.4 million tonnes of cement annually The Ministry of Mines (MoM) has granted a mining license to Habesha Cement S.C, for the excavation of minerals as an input for the company's cement production.

The agreement was inked on Monday May 19, 2014, between Tolosa Shagi, Minister of Mines and Mesfin Abi, CEO of Habesha.

The contract allows Habesha to produce limestone, gypsum, clay and sandstone from 112ha of land in the West Shoa Zone, Oromia Region, at four different locations - in the Meta Robe, Ejere and Ada'a Bergag woredas - with a capital of 27 million Br. The land Habesha requested for pumice is a site reserved for forestation and wildlife development, and it has asked for a replacement.

These plants will provide raw materials for the Habesha cement factory, which will have a yearly production capacity of 1.4 million tonnes of cement. The company is expected to begin production in November, 2015.

Habesha Cement S.C was established in September 2008 by 30 shareholders with an initial capital of 600,000 Br. Construction of the factory, which will cost 2.34 billion Br, is taking place in the Beketa & Koro Odo Kebele, near Holetta town, Oromia region (35kms away from Addis Abeba).

The contract will be valid for 60 years, until the minerals are fully excavated, and Habesha is expected to produce over 100 million tonnes of limestone over the next 60 years, according to Mesfin.

When the company starts production, it is expected to use 1.1 million tonnes of limestone, 70,000tns of gypsum, 288,000tns of clay, 72,000tns of sandstone and 450,000tns of pumice, annually.

"To get the approval, we conducted a feasibility study and environmental assessment on the areas and paid 30.4 million Br as compensation to the former owners of the land," said Mesfin.

The number of cement factories in Ethiopia is growing. Between 2007 and 2013, the number of factories to join the market reached 24, with two more joining soon, Dangote and Ethio, in 2014/15, and then Habesha in 2015. Messebo, Mugher Derba and National cement are the most prominent cement factories.

The Ministry had licensed over 140 local and foreign companies to conduct the exploration and production of minerals up until December 2013, when North Holdings Investment Inc was given license for limestone, gypsum, clay and sandstone in the Amhara Region on 24,513sqm of land.

In 2011/12, eight mineral extraction and 53 mineral exploration licenses were given, 12 of which are for limestone, clay and gypsum mining, and 11 for the exploration of the same minerals.

Ethiopia's limestone reserve is 171 million tonnes, mostly concentrated in Oromia, Tigray, Amhara, Harar and Dire Dawa.

INDIA: Reliance Cement takes control of West Bengal plant

Reliance Cement Co. Pvt. Ltd has taken indirect control of a small limestone grinding unit in West Bengal for an undisclosed price. The facility, located at Durgapur, 180km from Kolkata, can produce up to half-a-million tonnes (mt) of cement a year.

Reliance Cement, which is part of Anil Ambani’s Reliance group, proposes to raise the annual production capacity of the yet-to-be acquired unit—Ma Chandi Durga Cement Pvt. Ltd—to 1 mt. For now, it is to be used as a contract manufacturing facility, run by its founders—the Kolkata-based Kedia family.

The Kedias couldn’t immediately be contacted for comment.

The Reliance group has an irrevocable right to gain control of Ma Chandi Durga Cement whenever it wishes to exercise it, according to Atul Desai, a director and chief marketing officer at Reliance Cement. He, however, refused to specify when his company could take direct control of the limestone grinding unit.

Reliance Cement will supply limestone to the Durgapur factory from its mines in Madhya Pradesh.

The deal with the Kedias, concluded in February and announced at a press conference in Kolkata on Wednesday, is the first acquisition of sorts by Reliance Cement.

“It’s a one-year old plant built with inputs from Holtec, so it meets our quality standards,” Desai said, referring to one of the leading consultants to the cement industry—Holtec Consulting Pvt. Ltd. Reliance Cement will use the Durgapur factory to set foot in West Bengal, where, subject to clearances, it proposes to build a 2.1 mt plant in Purulia district. It has already got possession of a 100-acre plot for the proposed unit.

The enterprise value of the Durgapur unit is estimated at Rs.60-70 crore, according to an industry expert. To set up a half-a-million tonne unit will cost around Rs.100 crore, this person said, asking not to be named. There are bottlenecks and the Durgapur unit may not be running at its peak capacity as of now, he added.

There are many small units across the country willing to get into contract manufacturing arrangements because their owners do not have the resources to create their own brands, but very few meet Reliance Cement’s standards, Desai said. As a strategy, the company wants to cut distribution cost, so wants control of small grinding units across India.

NIGERIA: Dangote Demands Immediate Implementation of New Cement Quality Standard

Dangote Cement Plc, Monday, urged the Standards Organisation of Nigeria (SON) to urgently implement the new standard for cement in the country.

SON recently published the standards it set for grades of cement that should be manufactured for specific types of building and construction work.

The reviewed standard specifically restricted the use of the 32.5 cement grade to plastering of structures only while 42.5 grade is approved for the construction of buildings, beams, load bearing columns, pillars, block moulding and other structures. Also, the 52.5 grade is chosen for the construction of bigger projects like bridges, flyovers, and high rise buildings.

Dangote Cement Director, Ekanem Etim, said at the press briefing that the implementation of the standards for cement would improve safety in building and construction.

Thus, Dangote urged SON to immediately begin the enforcement of the new cement classification and its uses to rid the nation of substandard cement and the attendant incidence of structural failure.

Etim, who gave the position of Dangote on the issues surrounding the new standard review and the classification of cement type, said the enforcement of the new standards was imperative to prevent avoidable loss of lives and property.

According to him, only economic saboteurs and profiteers would kick against the new standard for cement, as other countries of the world have moved up beyond this level.

Etim said the new standard was set by the Technical Committee of the SON, which was made up of all stakeholders in the building and construction industry, including all the cement manufacturers.

He said the committee, at the end of the meeting, came up with a review of the standard and classified cement into three grades and stipulated their exclusive uses to guide against misapplication and adulteration.

Etim said a report on the reviewed standard was adopted and forwarded to the SON Governing Council by a technical committee, which looked at the reviewed standard and approved it before sending it to the Minister of Industry, Trade and Investment for final approval and implementation.

Etim argued that several countries had phased out the 32.5 MPA and that what Dangote cement has done is to set a minimum standard of 42.5 MPA in its production lines and also go ahead and educate the people on the uses of the different grades of cement.

He said, “If any manufacturer wants to continue to produce 32.5 cement grade or even below and, canvass it as being for multi-purpose use, that is their problem with the authorities. As for Dangote, we have already complied even before the authorities came out to set the new standard.

“We are committed to the SON standard, because their position is in line with global best practices and we call on the SON to begin enforcement immediately. We hold the lives of the people dearly; the more we delay, the more we endanger the lives of the people.

“We have the interest of the people at heart and we can’t open our eyes as an indigenous company to allow economic saboteurs to put the lives of our people at risk.”

He explained that SON had set 42.5 as the minimum standard, even at the time the nation depended on importation of cement, adding that every importer brought in 42.5 grade.

“Now that production has been domesticated, what SON has done is to extend the 42.5 to cover local production and we wonder why a company which has been operating in the country for decades would find it difficult to switch to 42.5.

“SON is not asking for anything out of this world; just switch, though it might cost the company a little more, it is necessary in the interest of the people and the country,” he said.

AUSTRALIA:Adelaide Brighton expects lower lime sales

Construction materials and lime producer Adelaide Brighton expects sales of lime by volume to fall in 2014.

"Lime sales volumes for this year are likely to be down by around five per cent on last year due to the temporary suspension of operations by a major lime customer in the Northern Territory, and the impact of gold mine closures that occurred in the second half of 2013," incoming Adelaide Brighton chief executive Martin Brydon said.

In February, at the release of its full-year financial results for 2013, Adelaide Brighton anticipated that lime sales volumes over 2014 would be similar to those in 2013.

In its latest guidance to shareholders at its annual general meeting in Adelaide on Wednesday, Mr Brydon said the company still expects demand for cement and clinker to be flat over 2014 due to weakness in the non-residential construction sector and a decline in major projects in South Australia.

But the residential sector is continuing to recover and projects in Western Australia and the Northern Territory are supporting demand.

Mr Brydon also said that following an annual planned shutdown in March, the company's Birkenhead kiln in South Australia suffered operational problems resulting in a loss of production expected to hit pre-tax profit in the current half-year by $4 million.

He said that excluding certain items - including the Birkenhead production issues - both first half net profit and full year net profit in 2014 would be similar to that of 2013.

He said management was renewing efforts to further cut costs across the group.

Shares in Adelaide Brighton were 17 cents lower at $3.58 at 1458 AEST.

INDIA: Cement Stocks Rebound As Bullish Bets Rise

Shares of cement companies UltraTech, ACC and Ambuja Cements gained over 4 per cent today as long positions were seen building up in these stocks ahead of expiry of May derivative contracts.

UltraTech Cement traded 5.65 per cent higher at Rs. 2,393 while ACC rose 4 per cent to Rs. 1,391.45 and Ambuja Cements advanced 4 per cent to Rs. 217.45. In comparison, the broader markets were mostly flat.

Aditya Agarwal, vice president of derivatives at Way2Wealth, said, "The cement stocks were subdued for last couple of sessions. We are seeing fresh long positions getting built up in most of cement stocks...we can expect another 4 to 5 per cent rally in ACC."

"UltraTech Cement has broken its immediate resistance and we may see another 8-10 per cent rally in this stock," he added.

At 12.30 p.m., NSE data shows that open interest (outstanding positions) in May futures of UltraTech Cement rising by 54,500 shares whereas open interest in ACC May futures surged by 12,500 shares.

Typically, if the price of a stock goes up following higher open interest it indicates a long build-up in that stock.

CANADA: Holcim-Lafarge’s cement mega deal could shake up Canada’s construction industry

Canada’s construction industry faces a major shakeup in the wake of the proposed merger of cement makers Holcim Ltd. and Lafarge SA as the country’s competition watchdog eyes forced asset sales that could attract significant interest from bidders.

Roughly half of the country’s cement market is now held by the two companies, a potentially unpalatable market concentration in the eyes of the federal Competition Bureau should the European building material producers succeed in their merger.

Industry officials expect that by year’s end, the regulator will order the combined company to divest a sizable number of assets in Canada — perhaps even Holcim or Lafarge’s entire operation in Eastern Canada.

“There is absolutely no way Ottawa is going to allow Lafarge and Holcim to keep those assets,” a person close to Lafarge said Monday, noting the companies have one cement plant each in Ontario and Quebec as well as separate construction aggregate and ready-mix operations.

Possible buyers include private equity firms such as New York-based Blackstone Group, which last month hired an Onex Corp. investment specialist to help it hunt for opportunities in Canada. Blackstone is already present in the sector through its Denver-based holding Summit Materials.

Existing industry players like Mexico-based Cemex and German-headquartered HeidlebergCement AG would also likely express interest, though it’s unclear how much current financial firepower they have to pull off a big transaction. Almost all the world’s cement players have been retrenching after the credit crisis and global recession peeled away demand for building materials, forcing some companies to run their operations at a loss and leaving others over-leveraged from previous acquisitions.

Lafarge and Holcim’s combined Canadian operations generate $750-million to $800-million in annual earnings before interest, taxes, depreciation and amortization, according to one industry insider who asked not to be named. “Cash generation of that magnitude is certain to attract long-term investors,” the person said.

Jona, Switzerland-based Holcim and Paris-based Lafarge announced last month plans to merge their operations in a mega deal that would create a new producer with annual revenue topping US$40-billion. Management of the two companies said at the time they believed they would be required to sell assets representing 18% of that revenue to satisfy competition regulators in various countries.

Together Holcim and Lafarge employ about 9,000 people in Canada.

Whoever buys the divested Canadian assets will likely keep the cement plants operating with existing staff, investing as needed to upgrade the facilities. The business represents a tremendous money-making opportunity in a market that nevertheless remains challenging.

A December 2013 study on the cement market by independent economist Colin Sutherland concluded that Quebec currently has about 1.2 million tons per year of unused capacity while eastern Pennsylvania and New York has about 0.6 million tons.

That means many plants are operating well below maximum output.

Plans by Quebec’s well-known Bombardier-Beaudoin family to launch a $1-billion cement plant in the chronically underemployed Gaspé region have thrown the industry for a loop, generating a swarm of criticism from competitors and lawmakers in both Canada and the United States.

The family’s McInnis Cement unveiled plans this year for a new factory in Port-Daniel-Gascons that would produce 2.2 million tons of cement per year, largely for export by ship to the United States.

The project, championed unequivocally by the opposition Parti Québécois, is being billed as a saviour for the region because it will support 1,500 construction jobs and work for 200 permanent plant employees.

“This is a historic project, a project that brings with it an extraordinary collective hope,” Sylvain Roy, the PQ National Assembly member for the Gaspé’s Bonaventure riding, told reporters last week.

Under former financial minister Nicolas Marceau, the PQ committed $350-million of public money to the plant and adjoining marine terminal, notably via a $100-million equity investment and $250-million loan.

Quebec’s newly elected Liberal government, facing a $3.1-billion budgetary deficit this fiscal year, is cool to the project. It is reviewing its spending commitments in the matter, knowing full well that there could be a political backlash if it decides to reneg on the previous government’s pledge.

At the same time, there is also uncertainty about efforts to raise the balance of the project cost through private financing.

National Bank is said to be leading an effort to find lenders for the project but is facing concern over market saturation.

Meanwhile, appeals for federal money appear to have fallen flat. According to sources, Business Development Bank of Canada has ended its earlier involvement while Export Development Canada was approached but declined to commit any funds.

SPAIN: Cemex España internacionaliza su planta de Zaragoza

Ante la situación del sector de la construcción en España y los bajos niveles de venta de cemento en el país, Cemex España inicia un nuevo rumbo en su planta de la localidad zaragozana de Morata de Jalón.

Una nueva orientación que pasa principalmente por la apertura a los mercados exteriores. Este proceso de internacionalización ya ha dado sus primeros frutos. En el año 2013 se exportaron alrededor de 30.000 toneladas con "cemento aragonés", que tuvieron con destino Italia con 8.000 toneladas de clinker, Camerún con 22.000 toneladas de clinker y Gabón con 400 toneladas de cemento ensacado, lo que supuso más de 1.200 camiones, saliendo de estas instalaciones cuatro camiones diarios con dirección a los mercados exteriores.

Y, ahora el objetivo, es seguir incidiendo en los mercados internacionales para que las ventas en otros países desde la planta zaragozana no sean transacciones de forma puntual para atender pedidos que no se han podido servir desde otras fábricas del grupo. "Fundamentalmente, exportamos a los países de la cuenca mediterránea como Marruecos, Túnez, Argelia, Libia, Grecia o Turquía".

Sin embargo, "dependiendo del volumen del pedido y la capacidad de almacenaje en el destino, también hemos exportado clínker y cemento a otros países más alejados del continente africano, del norte de Europa o Sudamérica", según explica Francisco Iniesta, director de Operaciones de Cemex Aragón y Cataluña, quien añade que también en las últimas semanas, se ha enviado clinker aragonés dentro de un cargamento enviado desde la fábrica de la compañía en Alcanzar con destino a Brasil.

Unos mercados exteriores en los que se va a seguir trabajando porque "estamos abiertos a cualquier posible exportación. Exploramos todos los mercados y no dejamos pasar ninguna oportunidad que nos permita seguir manteniendo la operación en España".

Esta nueva apuesta por la internacionalización en la planta de Morata de Jalón se añade a la actividad exterior que la compañía ya inició también en las fábricas del grupo que están situadas al lado de puertos como Alicante, Tarragona o Buñol y que se han convertido en una "máquina de exportar", ya que se ha conseguido que la exportación suponga un 37% y que se llegue a 70 países de todo el mundo, marcándose la empresa el objetivo para este año de alcanzar un 57% de exportación. Unos datos que contrastan con el hecho de que las ventas hasta el año 2007 y 2008 de la producción se produjeran dentro del mercado nacional.

Para esta actividad exportadora, la planta de Zaragoza tiene que competir no sólo con otras cementeras sino también con el resto de las fábricas de Cemex, ya que no es habitual que la exportación se realice desde factorías que están lejos de los puertos.

En esta línea, se han adoptado en las instalaciones zaragozanas medidas para controlar el gasto energético y reducirlo.

Durante el año 2013 "hemos realizado todos los ajustes posibles y tomamos todas las medidas a nuestro alcance para lograr que la planta de Cemex en Morata se mantuviera operativa a pesar de las dificultades del sector. Dos decisiones importantes han sido la utilización de combustibles alternativos y el control del gasto energético. Hemos hecho todo lo que estaba en nuestra mano para ajustarnos, adaptarnos y ser más eficientes. Esta política nos ha permitido ser más competitivos", añade Francisco Iniesta.

MOROCCO: Chute des ventes de ciment

Les ventes de ciment, indicateur clé du secteur du bâtiment et travaux publics, ont affiché une baisse de 3,1% à fin avril 2014, après un recul de 16,5% par rapport à la même période de l'année précédente, marquant une décélération continue du rythme baissier du secteur. C'est ce qu'estime la Direction des études et des prévisions financières (DEPF), relevant du ministère de l'Economie et des finances, dans sa note de conjoncture pour le mois de mai.

Cette évolution a été consolidée par le renforcement de l'encours des crédits à l'immobilier, au cours du premier trimestre 2014, de 3,5% à 232,2 milliards de dirhams (MMDH), en rapport avec la hausse des crédits alloués à l'habitat de 6,2%. Cette hausse est atténuée, toutefois, par le recul de l'encours des crédits accordés à la promotion immobilière de 3,5%, explique la DEPF.

Dans la même note de conjoncture, la DEPF indique que la production et la consommation de l'énergie électrique ont affiché, pour leur part, une orientation globalement favorable au terme du premier trimestre 2014, en confirmation de la reprise enregistrée durant le quatrième trimestre 2013.

La production d'électricité a progressé de 1,8%, en variation annuelle, après une hausse de 3,9% au quatrième trimestre 2013, précise la même source. Une hausse qui résulte de l'accroissement de la production privée de 25,9%, atténuée par le retrait de la production nette totale de l'Office national de l'électricité et de l'eau potable (ONEE) de 18,4%, après une hausse de 13,8% un an auparavant.

Consolidée à la production des projets développés dans le cadre de la loi 13-09 relative aux énergies renouvelables, qui s'est élevée à 162 GWh après 21,6 GWh un an auparavant, cette production s'est appréciée de 4,1% au premier trimestre 2014.

Pour sa part, la consommation d'électricité a progressé de 2,6% en glissement annuel au titre de la même période, après une hausse de 4,5% au 4e trimestre 2013, souligne la DEPF.

EGYPT: Le cartel du ciment en pleine offensive

Les cimenteries cher­chent par tous les moyens à accélérer l’importation du char­bon. Après avoir augmenté le prix de la tonne, les usines font désormais appel à la justice contre le gouvernement qui a diminué les subventions au gaz naturel qu’elles utilisent.

Le cartel des usines de ciment justifie sa hausse des prix par le manque d’énergie. Faute d’éner­gie suffisante, les producteurs ont dû réduire les quantités offertes sur le marché. Conséquence: les prix ont flam­bé la semaine dernière pour dépasser les 900 L.E., contre seulement 500 L.E. le mois der­nier.

Pour ces usines, les prix ne baisseront pas prochainement. « La hausse du prix de la tonne de ciment est le résultat des tur­bulences qu’affrontent ces entreprises. Le manque de gaz s’aggrave avec l’approche de l’été. Le charbon ajustera l’équation », espère Médhat Stephanos, président de la Chambre du ciment auprès de l’Union des industries.

Il ajoute: « Les cimenteries travaillent à moins de la moitié de leur capacité. Une fois la crise de l’énergie réglée, l’offre pourra à nouveau satisfaire la demande et les prix reviendront à leur niveau normal ».

Les cimenteries, comme toutes les usines fortement consomma­trices d’énergie, font face depuis deux ans à un manque de gaz naturel. Le gouvernement consacre la plus grande partie du gaz naturel disponible à la pro­duction de l’électricité. Cette der­nière absorbe, à elle seule, environ 60 % du total du gaz naturel en Egypte, pour une moyenne totale de 75 millions de m3 par jour, selon les chiffres du ministère du Pétrole.

Recours à la justice

Les cimenteries font aussi pres­sion sur le gouvernement en ayant recours à la justice. L’entreprise française Lafarge, un des plus grands producteurs de ciment en Egypte, a intenté il y a deux semaines un procès contre le gou­vernement égyptien. Un respon­sable de cette entreprise explique : « Notre contrat avec le gouverne­ment implique un prix fixe de 4 dollars l’unité de gaz. Nous pour­rions accepter de passer à 6 dol­lars si le gouvernement nous pro­curait tous nos besoins en gaz. Mais nous souffrons d’un manque sévère de quantités et la produc­tion a été réduite d’environ 30 % au cours des 3 derniers mois ».

Un responsable au ministère du pétrole, qui a requis l’anonymat, souligne cependant: « Nos contrats avec les usines de ciment sont ouverts. Le gouvernement a le droit de modifier le prix du gaz à n’importe quel moment, selon les fluctuations des cours mondiaux. Le procès de Lafargen’aboutira probablement pas ».

Plusieurs autres entreprises attendent l’issue du procès pour décider d’adopter ou non une démarche similaire.

Des entreprises bénéficiaires

De son côté, le gouvernement accuse les entreprises de ciment d’abuser de la crise du gaz pour obliger le gouvernement à accélé­rer les procédures d’importation du charbon. « Cela n’est pas acceptable. Le pays affronte une crise, et il est normal que toutes les parties en assument une part», lance Atef Yacoub, président de l’Organisme pour la protection du consommateur.

Pour lui, les entreprises de ciment, qui ont toutes réalisé des bénéfices en 2013, s’obsti­nent à préserver leur immense marge de profits.

Yacoub avance que le coût moyen de production d’une tonne du ciment ailleurs dans le monde ne dépasse pas les 250 L.E., soit presque quatre fois moins que le prix actuel en Egypte.

L’organisme affirme avoir déposé plainte contre les entre­prises de ciment auprès du régu­lateur contre le monopole et la protection de la concurrence.

Le charbon: industrie contre écologie

Par ailleurs, le dossier du charbon continue de provoquer des remous. Il y a quelques semaines, les cimenteries ont gagné le premier round. Le pre­mier ministre, Ibrahim Mahlab, a permis aux entreprises l’im­portation de charbon avant même que le ministère de l’En­vironnement ne précise les mesures nécessaires à adopter pour satisfaire les normes envi­ronnementales indispensables, notamment durant le transport de ce produit des ports vers les usines, et son utilisation dans les cimenteries.

Le porte-parole du ministère de l’Environnement accuse les usines d’importer du charbon avant d’avoir modifié leurs équipements antipollution. « Modifier les équipements des usines nécessite au moins 5 mois, alors que la première livraison de charbon arrivera d’ici un mois. Cela veut dire que les équipements ne seront pas ajustés pour répondre aux normes environnementales », indique-t-il.

Dettes

Par ailleurs, un responsable du ministère du Pétrole révèle que les cimenteries n’ont toujours pas payé leurs factures de gaz subven­tionné depuis juillet 2013. « Les entreprises de ciment exagèrent», dit furieusement le responsable qui a requis l’anonymat, « elles n’ont pas payé la différence de prix depuis l’augmentation de juillet ».

Les dettes de ces entreprises vis-à-vis du ministère ont atteint 1,2 milliard de dollars. Il s’agit d’un total de 15 cimenteries. La seule entreprise publique oeuvrant sur le marché, Al-Qawmiya pour le ciment, fait aussi partie de la liste. Elle doit au gouvernement 37 mil­lions de dollars.

Lafarge doit au gouvernement 164 millions de L.E., soit l’équiva­lent de la facture liée à la hausse du prix du gaz.

« Les entreprises du ciment ont choisi d’attaquer le gouvernement. Mais qu’elles payent leurs factures d’abord », se révolte cette même source.