KENYA: BAMBURI CEMENT´S NEW CEO

Cement manufacturer Bamburi Cement has announced the appointment of Bruno Pescheux as the Chief Executive Officer and a member of the Board of Directors with effect from July 21, 2014.

Mr Pescheux previously held the position of Chief Executive Officer at Lafarge Syria ( Lafarge is Bamburi’s parent company).

While making the announcement on Wednesday, the company’s Board re-affirmed that with a legacy of 60 years of cement manufacture and innovation in East Africa, the Company remains committed to excellence in the provision of construction solutions to the market.

The change will not have any effect on the company’s strategic orientation within East Africa, in particular its presence in Uganda or shareholding in any of its subsidiaries.

"We are poised to take full advantage as the construction trends continue to favour our Global commitment of Building Better Cities by delivering superior customer service, leveraging on the strong brand equity, industrial excellence, a committed work force and in a safe and healthy work place" said the Board in a statement.

Pescheux takes over from Hussein Mansi who has been Bamburi Cement’s CEO over the past five years.

NEW ZEALAND: Holcim progresses cement import plan, signals exit of lime business

Holcim New Zealand is moving ahead with plans to exit manufacturing in New Zealand and chief executive Jeremy Smith is losing his job as the business will be run from Australia in future.

The company's Westport cement plant will close by the second half of 2016 when new import facilities at Waitemata in Auckland and Timaru are fully operational.

Plans for a new cement manufacturing plant at Weston in North Otago remain on hold but the company is keeping the assets so it has the option of "eventually building a new cement plant". Cement for the rebuilding of Christchurch will be imported through Timaru's port.

The company is also trying to sell its lime business in New Zealand, which it no longer regards as core business.

McDonalds Lime Ltd is majority owned by Holcim NZ and part-owned by New Zealand Steel and it has the country's largest lime quarry at Oparure, north of Te Kuiti. The company also wholly owns Taylor's Lime at Dunback in North Otago.

The company announced in August 2013 that imported cement would replace local production at Westport.

"The company now has all the final approvals to go ahead with its investment of more than $100 million to build two 30,000 tonne import terminals, one in Timaru and one in Auckland," Smith said.

Construction will start at PrimePort Timaru during August and work will start in Auckland in December. Each site will employ 50 people during the construction phase and each terminal will have just six employees when operating.

"This confirmation of start dates can be taken as a sign of the global company's confidence in the strength of the New Zealand market and in particular opportunities with the rebuild of Christchurch post-earthquake," Smith said.

The changes in the business model reduce the scale of the New Zealand business so it will need fewer managers.

"The decision has been taken that it would be logical to now combine the New Zealand and Australian operations," Smith said.

The position of managing director held by Smith is being dis-established at the end of 2014 and he will remain with the company into 2015 to assist with the handover. A country manager will be appointed for New Zealand.

Smith said whilst his role was being dis-established he believed this was the right strategy for the industry and the New Zealand operation.

NIGERIA: Lafarge Group’s consolidation will create more jobs

Lafarge Cement Wapco Nigeria Plc on Saturday said the consolidation of its Nigeria and South Africa businesses would create more jobs for Nigerians and enhance return on investment.

The company’s Head, Corporate Affairs, Mr Ademola Ojowolo, told the News Agency of Nigeria (NAN) in Lagos that Lafarge Africa’s consolidation of share holding was not aimed at jobs reduction.

NAN reports that Lafarge had on June 3 announced plans to combine its Nigeria and South Africa businesses to create Lafarge Africa to become a leading sub-Sahara Africa building materials platform.

Ojowolo said the transaction would also create more opportunities for employees and communities in the various countries through expansion of projects.

He said the company would be renamed Lafarge Africa at the end of the transaction and would remain listed on the Nigerian Stock Exchange.

In his comment, the Chairman of Lafarge WAPCO, Chief Olusegun Osunkeye, said he was proud to be part of the creation of the leading African building materials platform.

Osunkeye said that the exercise would provide access to growth in two of the largest economies on the continent.

“It will mean that our shareholders are investing in a larger and more geographically diverse business and it will contribute significantly to the economic growth of both nations,” Osunkeye said.

Also, Mr Guillaume Roux, Lafarge Country Chief Executive Officer Nigeria, described the consolidation as a key milestone that would create value for shareholders.

Roux said that the decision would enable the company to be more innovative, increase and improve its product portfolio.

He said, “Our objective is to bring more housing and ever better solutions to contribute to building better cities that are more beautiful, more compact, more connected and more durable.”

NAN reports that under the proposed terms, Lafarge Group would transfer its direct and indirect share holdings in Lafarge South Africa Holdings (Pty) Ltd.

The transaction will be concluded through a cash consideration of 200 million dollars (over N32 billion) and the issuance of 1.4 million Lafarge Africa shares to Lafarge Group.

NAN reports that the transaction will be completed during the second half of 2014.

Lafarge Group also announced its intention to transfer all its shares and businesses in Nigeria and South Africa into Lafarge Cement Wapco Nigeria Plc.

The new entity, according to the company, will have nationwide coverage in both Nigeria and South Africa with cement capacity of about 12 million tonnes and operations in aggregates, ready-mix and fly ash. (NAN)

COLOMBIA: Nueva cementera llega a operar

Trinidad Cement Limited instalará su planta de transformación en Barrancabermeja.

Colombia tendrá un nuevo jugador en el mercado del cemento.

Se trata de la multinacional TCL (Trinidad Cement Limited) que acaba de importar, desde su centro de producción en Trinidad, la primera carga de cemento para procesarla en Barrancabermeja (Santander), donde se instalará la planta de transformación.

Son las primeras 300 toneladas de cemento tipo G, un producto que por sus condiciones de resistencia y durabilidad es el más apropiado para el procedimiento de sellado durante la perforación petrolera.

La compañía iniciará las ventas en nuestro país a partir del mes de Junio.

“Esta primera importación a Colombia de cemento petrolero marca TCL, es un paso importante en la estrategia de expandir nuestras fronteras. Para TCL el ingreso al mercado colombiano representa, además, poder ofrecer a nuestros clientes diferenciación de producto tanto en calidad como en precio”, enfatizó Andrés Peña Vieira, Gerente de Negocios Estratégicos de la compañía para Latinoamérica.

Agregó que la estrategia está soportada, también, en la ventaja de empezar a actuar como proveedor local desde Barrancabermeja, donde la inversión inicial alcanza los 600 millones de pesos, dentro de un paquete de inversiones que viene siendo ejecutado por la compañía desde el 2013 y que comprende un proyecto similar en los Llanos Orientales para el segundo semestre del presente año.

TCL, UNA COMPAÑÍA CONSOLIDADA EN EL MERCADO CARIBEÑO

TCL produce 3,3 millones de toneladas anuales de cemento desde sus tres plantas en el Caribe. 

Tiene 60 años de historia en el mercado caribeño, donde opera como líder. 

TCL comenzó la producción de cemento Tipo G hace 20 años, y cerró el año 2013 con una facturación de 301,3 millones de dólares. El grupo en su conjunto genera cerca de 1.200 empleos directos.

“Creemos firmemente en el crecimiento del sector petrolero en Colombia, razón por la cual confiamos en el crecimiento sostenible de las ventas y por ende de nuestra operación en el país”, puntualizó Peña Vieira.

La compañía es dueña de aproximadamente 120 hectáreas de reservas de piedra caliza que, basada en las actuales tasas de extracción anual, confirmó su duración por cientos de años.

INDIA: Cement firms declined to bring down prices

Cement firms have declined to bring down prices as proposed by the Telangana government.

The firms, which sought time to take a decision on the government proposal, held discussions among themselves for three days. However, all firms were unanimous in their decision to not decrease prices.

Cement industry representatives have decided to meet Chief Minister K. Chandrasekhar Rao to explain the reasons for increase in prices.

However, as a “goodwill gesture”, the firms are willing to offer cement at lower prices for the government to take up its housing programme for the poor.

Representatives of different cement firms on Thursday met Chief Secretary Dr Rajiv Sharma at the Secretariat in this regard

Sources said, the firms brought to the notice of the CS that cement prices were Rs 320 per bag in July 2013, but came down to Rs 230 later due to poor demand in the state and started increasing from May 2014. They pointed out that though the price fluctuated from Rs 300 to Rs 340 recently, it has stabilised between Rs 300 and Rs 320 now, which is at par with prices elsewhere in the country.

They told the CS that the production cost has increased significantly with the rise in power, coal and transport charges and cement firms will face a crisis if prices are kept low. 

When the CS asked how lower rates were possible until recently, they explained that they deliberately kept the production low due to poor demand and none of the cement plants in the state could produce cement to their full capacity.

“All plants have been utilising just 55 to 65 per cent of their total capacity for the last three years due to poor demand on account of the bifurcation. Now that a stable government is in place and taking up infrastructure and irrigation projects, the outlook for the cement industry has turned positive All plants will start operating at full capacity incurring huge production expenditure. Prices have to be aligned with national prices to save the cement industry here from a crisis,” they said.

Dr Sharma told them that he will convey their contention to the CM who will take a final decision.

IRAN: Cement exports increase by 20 percent

Iran has exported 3.4 million tonnes of cement during the first two months of the current Iranian fiscal year, which started on March 21.

The figure indicates an increase by 20 percent compared to the same period of 2013, Abdolreza Sheykhan, an official at Iran's Cement Producers Association said, IRIB News Agency reported on June 19.

The official went on to note that Azerbaijan, Russia, Ukraine, Uzbekistan, Turkmenistan, Tajikistan, Armenia, Iraq, Georgia, Kazakhstan, Kyrgyzstan and Gulf States are the main importers of the Iran's cement.

Sheykhan forecasted Iran's cement exports to hit 20.5 million tonnes during the 12-month period from March 2013 to March 2014(Iran's current fiscal year).

Iran's Industry, Mine, and Trade Ministry reported that the country produced 11.2 million tonnes of cement in the first two months of the current Iranian fiscal year (March 21 - May 20).

Some 12.71 million tonnes of clinker was also produced in Iran during the mentioned period.

Iran's cement output amounted to 69.68 million tonnes in the twelve-month period which ended on March 20.

Some 71.904 million tonnes of clinker was also produced in the mentioned period.

Iran exported 18.812 million tonnes of cement and clinker in the mentioned 12-month period, which shows 37.8 percent increase compared to its preceding year.

Cement accounted for 14.348 million tonnes of the mentioned amount.

TAJIKISTAN: China investors negotiate on construction of cement plant

Tajikistan is negotiating with the Chinese investors on construction of a large cement plant in the south of the country, Avesta.Tj reported on June 23 referring to an unnamed government source.

Production capacity of the plant, which will be constructed in Dangara, is expected to be one million tons, according to the source.

He also said that the negotiations are being held with Chinese company Huaxin.

Estimated cost of the project is $150 million. "If the parties agree on the terms of the project, the plant can be built in two and half years", the source said.

Currently, there are 11 enterprises on cement production in Tajikistan, with a total capacity of 2.5 million tons of cement per year. However, for various reasons, cement production has not reached this figure yet.

Tajikistan's need for cement is about three million tons per year. The cement deficit in the country is covered by imports from Pakistan, Iran and China.

PAKISTAN: 21.3m tonnes cement dispatched in last ten months

he first ten months of this fiscal year have witnessed 21.3 million tonnes of cement industry dispatches in local market, showing a growth of 2.7 per cent as compared to same period last year. The overall situation during the period showed a growth of 1.17 per cent as compared to the same period of the last fiscal year, as total dispatches increased to 27.986 million tonnes against 27.664 million tonnes from July 2012 to April 2013. Cement manufacturers sources on Sunday said the cement dispatched touched an all-time high of 3.21 million tonnes during April, raising the industry hoped of a long-awaited turnaround. 

The sector has achieved capacity utilization of 75.23 per cent during the first 10 months of the current fiscal year that is the highest level achieved during the last five years and it is expected that it will increased to 80 per cent by end of June 2014.

The sources said the exuberance in the sector is based on some encouraging revival in the construction sector and public sector development programmes and added the cement industry is playing a vital role in socio-economic development to promote the export and create employment opportunities to skilled and unskilled manpower.

PHILIPPINES: Iloilo construction slows down amid shortage in cement

Iloilo has been experiencing a shortage of cement amid massive ongoing public works and real estate projects.

The shortage has been felt by contractors and traders for several weeks now as demand peaked during the summer season. “There has been increased demand and apparently suppliers have not anticipated the volume needed,” according to a construction supply store owner in the city, who spoke to the Inquirer on condition of anonymity. “But this is in a way positive because the shortage is due to high demand related to various projects,”the store owner added.

‘Yolanda’ areas

The shortage has also been felt in northern Iloilo, one of the areas worst hit by Super Typhoon Yolandalast year. “I don’t have any stock left. We are still waiting for our supply to arrive next week,” a cement trader in northern Iloilo said.

Demand is especially high for the Portland type of cement which is commonly used for government projects and in major construction works. Prices have remained stable despite the low supply with a 40-kilo bag of Portland cement costing from P240 to P245, while regular cement costs about P230 per bag, according to the store owner.

But a contractor involved in constructing residential buildings said prices had risen from P238 to P250 per bag in the past two weeks. “Some stores limit the volume of cement one can purchase only up to 10 bags because a lot of buyers are also waiting for their orders,” the contractor, who also asked not to be identified, said.

Project delays

The contractor said the shortage of cement had led to delays in construction projects and also to higher expenses. Major government projects are being implemented in Iloilo including the construction of the P1-billion Iloilo Convention Center, widening of the Sen. Benigno Aquino Jr. Avenue into a 10-lane road including bicycle and pedestrian lanes, the 14-kilometer Iloilo circumferential road and the six-lane widening road from Jaro District to the entrance of the Iloilo International Airport in Cabatuan town in Iloilo.

Multibillion-peso commercial and real estate projects are also being implemented in the city including those of Megaworld Corp., Ayala Land Inc. and DoubleDragon Properties Corp.

UGANDA: Cement Market Jitters

In Uganda, a construction customer buys cement at about $124 per tonne. That is higher than the average global price for gray cement - which hovered between $76 - $77 per tonne in 2013 - and higher than the $100 average in Sub-Saharan Africa. In fact, Kenyans and Tanzanians buy cement more cheaply than Ugandans who buy a 50-Kg bag of cement at an average price of about Shs 28,000 in local retail shops around the country - quite high for a product whose main raw material - lime stone - is abundant locally. That explains why the per capita cement consumption of cement in Uganda stands at a miserable 35 kg way below the global average of 500 kg.

Cement producers in Uganda say it is inevitable that Ugandan cement should be expensive. Alok Kala, the Tororo Cement general manager, says Ugandan cement is comparatively more expensive because of a couple of factors. He says Ugandan cement is charged Excise duty tax, which for instance the Kenyan cement producers don't pay, and Ugandan power tariffs are also higher than the Kenyan tariffs. Also, Uganda imports clinker, a major raw material, from Kenya, and coupled with infrastructure bottlenecks, the high cost of business must translate into more expensive products.

Part of the problem has been attributed to the high demand, which outstripped supply several years ago - thanks to the booming construction and real estate sector and the lucrative markets in South Sudan and DR Congo. Uganda has two main cement manufacturers - Hima Cement - owned by Lafarge Group - and Tororo Cement - both of which have a combined capacity to produce 3.6 million tonnes - way below the rising Ugandan market demand. Consequently, Uganda does import a substantial amount of cement from countries such as Kenya, Egypt and Pakistan among others.

Two new companies; the Kuwait-based DAO Group, and China National Machinery Import & Export Corporation , are investing in new cement manufacturing plants worth $400 million with a combined production capacity of 1.6-million tons a year. The two new factories are being set up in Budaka District in eastern Uganda, and in Karamoja in the north-east. Those could offer a respite in the medium-long term but not in the short term when the demand is expected to spike thanks to the several large scale projects including dams, highways, bridges and buildings that are expected to kick off in the next few months. That means cement prices are expected to rise even higher in the short-term.