WORLD: Big emitters in cement sector join forces to decarbonize production

Sixteen of the world’s largest cement companies –an industry notorious for its high carbon emissions – backed a plan at the climate summit Wednesday that would see their industry shift toward the use of de-carbonization technologies.

The announcement represents something of a coup in a climate summit that has lacked a focused discussion on de-carbonizing industry, despite warnings from the UN’s Intergovernmental Panel on Climate Change that deploying technologies to achieve this are critical to limiting global warming to 2 degrees Celsius.

“The IPCC has indicated and we believe that keeping down emissions in the future will be far more expensive without carbon capture and storage technologies,” said Bellona President Frederic Hauge. “This makes cement companies real movers in employing capture technologies.”

Cement, as earth’s second most frequently used commodity after water, accounts for 5 to 8 percent of anthropogenic CO2 emitted worldwide, according to various estimates, making the industry a major source of global warming comparable in climactic impact to steel.

That puts emissions from cement production at 3.9 gigtatons annually, according to International Energy Agency, or IEA, figures.

Rob van der Meer, public affairs director on global environmental sustainability for Germany’s giant Heidelberg Cement, told Bellona that his industry had “no choice” but to use carbon-capture technology “if the world is to stay within the 2C temperature rise.”

“We have a carbon problem, yes,” van der Meer said in an interview with Bellona at the Le Bourget negotiations center. “There is simply now way to produce cement without carbon release.”

But he said that, according to objectives laid out by the IEA in its Cement Technology Roadmap of 2009, the worldwide cement industry would work to decarbonize its emissions to the tune of 17 million tons per year.

Though the plan envisions such measures on every continent where cement is produced, van der Meer said IEA studies indicate that most of those reductions would first have to occur in Europe.

The conundrum for the industry, he said, is that you can’t simply demand that cement production simply wind down – it’s too necessary for too much.

Indeed, the demand for cement is so pervasive that by 2050, van der Meer said each person on earth would “consume” about 500 kilograms of cement, equivalent to 2 cubic meters of concrete per year.

Further, cement and steel alike are crucial for the infrastructure that will support the shift to renewable energies such as solar and wind that the Paris Climate Summit is pushing to power the world by the end of the century.

“Cement is important for building wind farms, especially those that are offshore,” said van der Meer.

It also plays an enormous role in building dams for hydro-electric power.

“There’s a certain buffer of carbon emissions that will always occur with cement production that you can’t go below,” said Keith Whiriskey, Climate Technologies Project Manager for Bellona Europa. “The process for making cement produces a lot of CO2, so the best thing to do is trap it.”

Whiriskey said that making cement involves breaking up limestone with acid at temperatures of 1000 degree Celsius releasing calcium, oxygen and carbon.

Van der Meer said sticking points to moving the de-carbonization project forward in Europe center around low carbon prices in the European Union’s Emissions Trading System, or EU ETS, and that, by turn, threatens the commercial viability of using pricey carbon capture technology – and van der Meer insists it’s pointless to move on such projects unless there’s a profit to be had.

“The reality is that industry doesn’t invest in something just because it’s an interesting new technology,” he said. “So the EU needs to create the proper business conditions for it.”

For the moment, the real innovations in capturing and trading carbon are happening elsewhere. Jonas Helseth, director of Bellona Europe, said the EU has so far failed at this, and risk losing de-carbonizing technologies to other parts of the world.

Boundary Dam, the one-year-old carbon capture and storage unit in Saskatchewan, Canada, cost €1 billion, just as a first blush of how costly up front investments in such projects can be. But the price of a second unit slated for construction at the coal-fired power station is estimated to cost at least a third less.

Texas oil drillers have long known the worth of using CO2 for enhanced oil recovery, or EOR, which involves pumping the greenhouse gas at high pressure into nearly depleted oil wells to bring hidden hydrocarbons to the surface.

And China’s pilot carbon trading programs are second only to EU ETS, according to a World Bank analysis. China’s anticipated national market, however, would regulate 40 percent of the country’s economy, surpassing EU ETS and covering 3 to 4 billion tons of CO2 worth up to $65 billion by 2020.

And van der Meer says Heidelburg will be all to happy to operated in that lucrative market.

“If there is not a business case for [trading CO2] in Europe, then we will move where there is a business case for it,” he said.

Hauge pointed out that would be a loss for Europe, but that it would still end up netting the planet 17 million fewer tons of CO2 per year, which jibes with IPCC recommendations to deploy decarbonizing technology.

One place in Europe where cement production with carbon capture for which Heidelburg has high hopes is the company’s NORCEM production unit in Brevik, Norway. The Norwegian government has provided €50 million in investment toward the NORCEM project, which will act as a blue print for Heidelburg’s future production plants with carbon capture.

Combining the use of biofuels at the plant with carbon capture is expected to significantly reduce the facility’s CO2 emissions, with the end goal being complete carbon neutrality.

“We have a vision that our product in a life-cycle perspective will be carbon neutral by 2030, and we believe that carbon capture from cement production is an important part of and long step toward achieving this vision,”Gunnar Syvertsen, CEO for Heidelberg Cement Northern Europe said in a 2013 statement.

What’s gotten stickier here in Paris than the notion of carbon capture is transportation and storage of CO2 after it’s caught.

Whiriskey said geologic storage of CO2 has faced opposition from many environmental groups, and has barely been mentioned in high-level discussions at all.

Van der Meer said Heidelburg will do the catching, but someone else has to keep what they pull down – such as oil companies.

But Whiriskey said this is a natural division of labor: Heidelburg can make the investment to catch the CO2 before it fouls the atmosphere, but the oil industry is the one that possesses the geological know-how to safely store carbon and keep it from seeping back into the atmosphere.

Bellona will therefore continue tracking a course for carbon storage.

“We have to take the IPCC recommendations for CCS seriously,” said Hauge. “We may end up standing alone in this, but we’re not going to back away from a problem just because it’s difficult.”

PAKISTAN: CEMENT INDUSTRY – GRAVE ISSUES NEED TO BE ADDRESSED

During July to November 2015, cement industry has posted a growth of 15.64 percent in domestic sales compared with sales during same period of last fiscal year. Domestic despatches rose to 12.2 million tons during this period against 10.56 million tons during same period of last fiscal. Exports during July to November 2015 recorded a massive decline to 2.56 million tons from 3.45 million tons during last year i.e. by 25.73 percent. The overall situation during first five months of current fiscal year showed a growth of 5.46% compared to the same period of last fiscal year. Quantitatively the total despatches by cement industry were 14.77 million tons from July 15 to Nov. 15 against 14 million tons during corresponding period of last fiscal year.

Analyzing zone wise despatches, the north based cement mills despatched 10.17 million tons to domestic markets during July to November 2015 that was 14.6 percent higher than the despatches during same period of last fiscal. Exports from north however declined during this period to 1.63 million tons i.e. by 25.24 percent over last fiscal that were 2.18 million tons. In southern region, the cement mills experienced even more growth in domestic markets as against despatches of 1.69 million tons during July to November 2014, the domestic dispatches increased by 21.09 percent to 2.04 million tons. However there was a definite slump in exports that declined by 26.58 percent to 0.93 million tons from 1.26 million tons during the corresponding period last year.

The upward trend in domestic consumption of cement this fiscal continued in 5th straight month; at the same time exportscontinued to lose global markets. Cement dispatches to domestic markets during the month of November 2015 were 2.843 million tons compared with 2.369 million tons during same month last year showing an increase of 20%. Exports during November 2015 were 0.533 million tons against 0.66 million tons during November 2014 showing decline of 19%. Total despatches during November, 2015 were 3.376 million tons compared to 3.028 million tons during same month last year showing increase of 11.49 percent. The despatches in November were the highest in past five months.

APCMA spokesperson regretted that government planners are still lacking to check unregulated import of Iranian cement in the country at under invoiced rates. The same cement, he added, is finding its ways in the Afghan markets in which our share has been reduced by 20.63% during the first five months of current fiscal year. He said that we are still facing the dilemma of Iranian cement despite reaching to various decision makers to suspend imports of Iranian cement into Pakistan from Balochistan by road and railway due to under invoicing and the connivance of custom authorities. The locally producedcement is fast losing its market in the areas adjacent to the Iranian border and the coastal areas of Balochistan. The industry has suggested that a strategy should be in place to protect the local cement industry against smuggling of Iraniancement coming into the country. Government should also make it mandatory to get the quality certification of Irani cementby PSQCA otherwise it should not be allowed to enter in the country.

He added that due to high cost of doing business in Pakistan, Pakistani cement industry is losing competitiveness to other countries such as Iran, UAE and India and has appealed for reduction in energy costs, removal of GIDC imposed on gas,abolition of custom duty on coal and additional incentive of 5% on export of cement.

VIETNAM: Major change anticipated for VN cement industry

The merger of Lafarge Vietnam and Holcim Vietnam, the two big cement manufacturers, is expected to be wrapped up by December 2015. 

Lafarge has advantages in technology research and Holcim has achievements in developing brands. The merger will present a strong rival to other manufacturers. 

Nguyen Cong Minh Bao, a senior executive of Holcim Vietnam, at a meeting with the local press, stated that the two manufacturers would strive to become the leading enterprise in the building material industry.

In July 2015, Swiss Holcim and French Lafarge announced the merger to become LafargeHolcim, present in 90 countries with 2,500 cement plants. 

It is still unclear if the ‘marriage’ of the two manufacturers would give birth to a new cement brand in Vietnam. However, an analyst commented that the two ‘tigers’ j will be even stronger, like ‘tigers with wings’.

He said the merger will force other cement manufacturers to strengthen their competitiveness and undergo restructuring to become stronger as competition will increase because cement productivity is on the rise.

According to Nguyen Van Thien, former chair of the Vietnam Cement Association, Lafarge’s cement plant in Vietnam has the capacity of 500,000 tons a year, but it make the right move when merging with Holcim because it will be able to cut production costs.

Thien noted that existing cement plants, which are numerous and small, should also merge in order to become bigger and more powerful. In Thailand, Malaysia and Indonesia, for example, there are only about 10 manufacturers in each country. Vietnam has up to 60 cement plants, big and small, and they have to compete fiercely with each other.

In 2014, as the domestic real estate market froze, the cement oversupply became even more serious. This forced cement manufacturers to boost exports to reduce inventory volumes. 

A report showed that Vietnam put out 71 million tons of cement products last year, but only 50 million tons were sold in the domestic market. Cement manufacturers hope 71-73 million tons would be consumed this year, a modest increase of 4-7 percent compared with 2014.

Nguyen Quang Cung, chair of the Vietnam Cement Association, also thinks that cement manufacturers should undergo a restructuring process, and merger and acquisition should be encouraged.

Cung said some cement manufacturers are merging and creating the Vietnam Cement Corporation (Vicem). These include Ha Long, Song Da and Song Thao Companies.

CHINA: Government work group steps in Shanshui Cement offices

A government work group has stepped into the offices of Shandong ShanshuiCement Group Co Ltd., whose Hong Kong-listed parent declared default on 2 billion yuan($312.5 million) debt last month, amid an intensifying boardroom battle.

The work group led by a deputy mayor of Jinan, capital of eastern Shandong province whereShandong Shanshui is based, aims to ensure stability at the cement manufacturer, which isone of China's largest and employs more than 22,000 people across various provinces,Xinhua learned from a government source.

Shandong Shanshui is the operating unit and a wholly-owned subsidiary of Hong Kong-listedChina Shanshui Cement Group Ltd, whose entire board was thrown out a week ago.

In a Dec 3 disclosure on the Hong Kong stock exchange, the new board of China Shanshuisacked the board of Shandong Shanshui, appointed new directors and changed articles ofassociation of Shandong Shanshui.

The new directors then released a statement via a law firm that they should be the legalmanagement of Shandong Shanshui.

But in a Tuesday disclosure on the Shanghai Clearing House, Shandong Shanshui,apparently still led by its original board, said the Dec 3 decision was illegal and, therefore,ineffective.

Article 17 of the Rules for the Implementation of the Law on Foreign-Capital Enterprisesstates that the articles of association of a foreign-capital enterprise shall become effectiveafter the approval by the examining and approving government organ.

The original board-led Shandong Shanshui cited the article, saying that China Shanshui's Dec3 decision violated the rules, since the change of articles of association had not beenapproved by a government organ.

The original board-led Shandong Shanshui said it was suing China Shanshui for spreading"false information," including the change of board and articles of association of ShandongShanshui, in a court of Jinan. It added that the court has agreed to hear the case.

Sources close to the original board said the government work group had instructed ShandongShanshui to maintain the status quo, and will guide major decision-making, implement worksafety measures, and prevent violent incidents.

INDONESIA: Cement Sales Indonesia Climb 4.7% (y/y) in November 2015

Cement sales in Indonesia climbed 4.7 percent (y/y) to 6.1 million tons in November 2015 supported by rising cement sales in all regions apart from the Moluccas and Papua. Widodo Santoso, Chairman of the Indonesian Cement Association (ASI), said domestic cement demand rose sharply in November despite seeing some rainfall (which usually leads to delays in development of infrastructure and other construction projects). Santoso says this rise is due to improved government spending on infrastructure projects.

Growth in cement sales were highest on Sulawesi, Bali & Nusa Tenggara and Sumatra as demand rose due to the start of power plant and smelter construction in these regions.

Year to date, Indonesian cement sales stand at 55.6 million tons in the January-November 2015 period, up 1.9 percent from the same period last year. Santoso expects cement sales to remain strong in the last month of the year, hence full-year cement sales may reach 61.5 million tons, up 2.5 percent (y/y) from 60 million tons in 2014.

Optimism about the cement industry also stems from the start of two new cement factories: Semen Jawa (with an annual cement production capacity of 1.7 million tons) and Semen Merah Putih (annual production capacity of 3.6 million tons). Furthermore, Semen Bosowa and Semen Bima are also expected to expand production capacity before the year-end. In the first quarter of 2015, many domestic cement producers curtailed output as demand had weakened. In the first half of the year cement demand mostly originated from the property sector, not from major infrastructure projects.

Indonesian brokerage Danareksa Sekuritas expects cement sales to grow further in 2016 due to the government's push for infrastructure development. However, the country's property market is expected to remain sluggish and therefore growth of cement sales will most likely not see double-digit growth.

JAPAN: Japan's cement makers boost Asia-bound exports

Japanese cement producers are turning to exports to compensate for sluggish domestic demand. The latest numbers suggest their strategy is paying off.

"Japan's cement exports are growing," Akira Fujisue, a senior official of the Japan Cement Association and senior managing executive officer of Sumitomo Osaka Cement, told reporters in November. He pointed to good business prospects in Singapore and other Asian markets.

Indeed, cement exports in October surged 58% on the year to 871,000 tons -- partly due to a decrease in production a year earlier while factories were being refurbished. Exports also registered year-on-year growth from November 2014 through July 2015. 

Thanks to increased demand in Asia, the Japan Cement Association estimates exports in fiscal 2015 -- through this coming March -- will rise 6% to 10 million tons. 

Cement sales in Japan are on the decline amid a slowdown in public works projects. The association now estimates domestic demand at 44 million to 45 million tons for fiscal 2015, down from a previous estimate of 46 million tons. This would mark the second straight year with a fall in demand.

Construction companies have also been shifting to building methods that require less cement, shrinking the market further. The bleak outlook at home is spurring cement makers, which have been exporting around 15% of their output, to try to ramp up shipments abroad. 

Port, road and other infrastructure projects are underway around the region. Shipments to Singapore, in particular, have risen because of highway construction there. Demand in Hong Kong is robust as subways and highways are being built.

Against this backdrop, Taiheiyo Cement has boosted its storage capacity in Singapore by 50%, to 74,000 tons. The company is pushing a high-end product in the city-state -- a mixture of regular cement and coal ash. A hit in Asian and other emerging markets, it does not crack easily when turned into concrete.

Mitsubishi Materials, meanwhile, aims to raise its supply capacity in the U.S.

Strong demand is keeping export prices high. Major Japanese cement producers and Asian buyers have negotiated export prices of $40 to $45 per ton for fiscal 2015, in free-on-board terms. That price level is roughly the same as last year's; prices had been rising since 2010.

VIETNAM: Cement export target misses mark this year

While the cement industry was struggling with an excess of supply over demand, exports, which were considered a solution to boost consumption, failed to meet expectations.

Cement and clinker exports in 11 months of this year dropped by 27 per cent over the same period last year to roughly 15 million tonnes, far below the target of 20 million tonnes for the full year.

The cement industry faced harsh competition from China, the world's biggest cement producer, which accounted for 60 per cent of the world's total output and selling at lower prices.

Luong Quang Khai, chairman of Viet Nam Cement Industry Corporation (Vicem), which held a 35 per cent share of the domestic market, said that Vicem's cement export could only meet 60 per cent of the full year's target. Vicem set goal of exporting 3.5 million tonnes cement and clinker this year, the same as last year.

Khai said that Vicem did not want to lower prices to boost exports as doing this would affect other procedures and the entire industry.

A representative of The Vissai, the country's leading cement exporters, said it would be difficult to achieve the same cement export results as the previous year.

Previously, the Ministry of Construction estimated that total cement sales would reach between 72 million and 74 million tonnes this year, up 4 per cent over 2014, in which exports would be at around 20 million tonnes.

The ministry forecast that cement exports would fall to around 16 million to 17 million tonnes next year and the total cement sales would be between 75 million and 77 million tonnes.

To date, there were 76 cement production lines in the country with a total design capacity of 81.56 million tonnes per year which would then increase to more than 98 million tonnes in the next five years. As a result, the industry was anticipated to continue facing an excess of supply over demand in the domestic market.

The ministry urged cement producers to reduce production costs and improve its distribution network to lower prices.

MALAYSIA: CMS Cement to raise cement prices by 4.6% on average

CMS Cement Sdn Bhd, a subsidiary of Cahya Mata Sarawak Bhd, announced that it will adjust its cement prices upwards by an average of 4.6% effective Jan 1, 2016, due to the depreciation of the ringgit. 

In a statement issued on Tuesday, CMS said it will increase the prices to maintain the quality of its cement manufacturing and supply businesses, among others. 

It added that the sustained depreciation of the ringgit since January 2015 had created an unprecedented increase in the cost of cement production, as over 60% of the key raw materials used to make cement namely clinker and gypsum are bought in US dollars. 

In addition, the equipment and spare parts for machinery and all shipping costs are paid for in US dollars. 

As at mid-November 2015, the ringgit recorded a 24.8% year-to-date loss, and a 30.9% deprecation over the same period last year. 

CMS said the steep decline resulted in major increases in raw material prices since early 2015.

“Our commitment is to the state’s growth and in order for us to achieve this vision, tough but essential measures need to be implemented. At group level, we have absorbed the significant impact of the unfavourable foreign exchange rate since the beginning of the year. Various strategic measures have been implemented to control our production costs, however the increase in costs due to the major decline in the Ringgit has seriously impacted the cement division and the group’s profitability. If continued, this will not allow us to fulfil our long term commitment to the growth of the state,” said Cahya Mata Sarawak group managing director Datuk Richard Curtis.

NEW ZEALAND: Holcim dome: 22,000 tonne of cement arrives in Timaru

Holcim's $50 million cement dome at Timaru's port is set to be fired up.

The company's first Timaru-bound order, 22,000 tonnes of cement, was being unloaded from the Esperance Bay ship on PrimePort Timaru's specially-constructed No 2 wharf on Wednesday.

Holcim capital projects manager Ken Cowie said the cement order, from Kanda port in Tokyo, was the first in-bound shipment for the company in Timaru.

Cowie said the Holcim-owned Milburn Carrier II, which will ship out-bound orders from Timaru, was scheduled to arrive in port for the first time later in December.

The Milburn Carrier II's home will be Timaru and it will be berthed on the south side of the No 2 wharf.

The 30,000 tonne cement silo facility was now in its completed form and no radical changes would be made to it, Cowie said.

The bright white would not be painted with a Holcim logo and would not be allowed to be painted in any way by the community either.

But if the council or members of the public were interested in shining light displays onto it, Holcim could be open to that, Cowie said.

When the pipes installed to the top of the dome were flushed for the first time, some rusty water had stained a part of the top of the dome.

This was not likely to happen again and Holcim hoped to have it cleaned soon, Cowie said.

PrimePort chief executive Phil Melhopt said the No 2 wharf was almost completed and ownership of it had been handed over to the port by Downer.

The only main part of the project that had yet to be completed was a widening of the land end of the wharf, which would allow trucks to drive onto it, Melhopt said.

"It's good to see the vessel arriving without incident and to see it safely secured on the wharf," Melhopt said. "We're pleased to have the project 99 per cent done."

Melhopt said he understood Holcim were aiming for 18 in-bound vessels a year to Timaru.

INDIA: Southern cement players better placed

Despite the Chennai flood and cement price corrections in South India, the stocks of south-based cement players have not seen a deep correction. Ramco Cements, Dalmia Bharat and India Cements, which have significant exposure to Tamil Nadu, are trading at Rs 371, Rs 782 and Rs 83, slightly lower than levels seen in November end. While the demand and realisation in the current December’15 quarter have remained soft in South India leading to correction in cement prices (estimated Rs 10-20 a bag), recent unexpected rains have led to some dip in sales volumes. This may result in cement companies reporting a much softer December quarter performance feel analysts, but cement demand is likely to get a major push thereafter.

The damage done by excessive rains will lead to a pickup in construction activities and there will be a push from government side too. While analysts had been anticipating a turnaround and boost from March’16 quarter, the recent events may add to upsurge in demand leading to an increase in capacity utilisations. The capacity utilisations have been at close to 60 per cent levels in the South compared to all India average of more than 70 per cent. The South India players thereby are once again in a sweet spot, feel analysts.

Cement prices in South India had gained about Rs 5-10 a 50 kg bag in October’15, but could not sustain and fell by Rs 3-5 a bag in November mainly on account of moderate correction in Bangalore and Kerala markets. Average cement price were ruling at Rs 350-355 a bag (down a per cent over previous month and up 14 per cent year-on-year) as per Reliance Securities channel checks at the end of November. With torrential rains impacting Tamil Nadu and adjoining states too, further pressure is likely to have come now. Analysts at Karvy say that heavy rainfall in Tamil Nadu and coastal Andhra Pradesh are playing a key role in sluggish demand in near-term. Nevertheless, cement prices in South India will bounce back sharply, feel analysts, adding that now the state government will also allocate more for developing Chennai infrastructure and other parts of Tamil Nadu. This coupled with expected boost in infrastructure spending in Andhra Pradesh and Telangana, which are working hard to boost investments in the states, should lead to revival in cement demand.

Analysts at Reliance Securities say that at the current market price, they have Buy recommendation on UltraTech Cement in the large cap space while in mid-cap space Ramco Cements is their pick from south centric players. UltraTech being a pan-India player will also benefit from a recovery in South, while Ramco is likely to be a major beneficiary. India Cements, too, would benefit from this boost in demand. Analysts at Angel Broking like both Ramco Cements and India Cements. However, the stress on the balance sheet is what keeps the street sentiments under check.

Analysts at Nomura in their note a few days back had said, “As we adjust our target price for India Cements with CSK (Chennai Super Kings) valuations and incorporate our changes in earnings estimates to reflect better pricing in south India, the stock appears fairly valued”. They had target price of Rs 87. Amongst others to be looked at is Dalmia Bharat Cement that has adequate capacities in Tami Nadu and Andhra Pradesh. The company should benefit from growing cement demand. Analysts are positive on the stock even as it has seen sharp run up and almost doubled in a year.

COLOMBIA: Gerente saliente de EPM presidirá a Cementos Argos

El llamado Grupo Empresarial Antioqueño (GEA) rompió su marcada tradición de los últimos años de elegir de su “cantera” a los líderes para sus negocios más representativos.

Y eso pasó ayer al conocerse que el gerente saliente de Empresas Públicas de Medellín,Juan Esteban Calle Restrepo, quien deja el cargo el 31 de diciembre, fue elegido como nuevo presidente de Cementos Argos, a partir del primero de abril de 2016.

Incluso ayer Calle estuvo de paso por las oficinas principales de Cementos Argos, en El Poblado, y estrechó las manos de los directivos que acompañarán su gestión.

También se reunió con Jorge Mario Velásquez Jaramillo, quien sucederá a su mentor José Alberto Vélez Cadavid en la presidencia de Grupo Argos, matriz del conglomerado de infraestructura y, en términos prácticos, será el nuevo jefe de Calle.

Cabe anotar que su designación estuvo a cargo de la Junta Directiva de la cementera, en su mayoría miembros independientes, y que el proceso tuvo en cuenta una amplia baraja de candidatos internos y externos.

De hecho, entre el sonajero del hermético proceso se oyeron nombres como el de Mauricio Ossa Echeverri, vicepresidente de la Regional Caribe y Centroamérica de la cementera, cargo que justamente ocupó Velásquez Jaramillo, antes de llegar a la Presidencia en 212. También surgió el nombre de Tomás Restrepo Pérez, vicepresidente de la Regional Colombia e hijo de Nicanor Restrepo, quien también ha hecho una exitosa carrera al interior de Argos.

Ahora Calle Restrepo tendrá que ponerse a estudiar del mundo técnico del cemento, pero no tanto de estrategia y de internacionalización, dos de los aspectos que más sobresalen de su destacada gestión en EPM.

Así que en sus manos, desde 2016, y con una hoja de ruta muy clara de Argos, será quien lidere la expansión a más geografías y profundización de mercados del principal negocio de Grupo Argos.

La cementera líder de Colombia ya tiene presencia en 13 países, exportaciones a más de 30 y un equipo de 9.600 empleados que reman para el mismo lado: crecer con sostenibilidad.

IRELAND: Used tyres to reduce costs at Irish Cement 's Limerick plant

Irish Cement will burn used tyres at temperatures higher than those in a volcano in a bid to cut costs and secure jobs at its Limerick plant.

The company plans to switch to dry waste material such as rubber from used tyres and plastic to heat the kiln at the Castlemungret plant which employs 80 on the outskirts of the city.

The switch will cut costs, make the plant cleaner and more competitive, according to the company.

A spokesman for Irish Cement said they will shortly be lodging a planning application with Limerick City and County Council for the replacement of fossil fuel with alternative fuels and raw materials to improve the sustainability of their operations.

The company will also be seeking a revision of its licence from the Environmental Protection Agency.

“Limerick is Ireland’s oldest cement plant, having commenced operations 77 years ago.

"Its continuous operation has been sustained by continuous investment in new technologies and processes.

"After the recent period of reduced demand, production is once again on the increase at home and abroad for cement.

"This fuel replacement programme will be key to sustaining this growth,” said Castlemungret plant manager, Pat Robinson.

“Based on exerience in other cement plants in Ireland and throughout Europe, the opportunity to reduce our dependence on imported fossil fuels will prove critical to our ability to operate competitively and sustain jobs at Irish Cement Limerick into the future.”

Councillors from the Limerick City West metropolitan district were briefed on the plan earlier this week when they met senior executives from the company.

In making cement, the kiln has to be heated to over 1,400 degrees, higher than the 1,100 degrees a volcano reaches.

Thousands of tons of used tyres will be ferried to the plant along with shredded plastics which waste disposal companies cannot process.

Used tyres now piling up around the country pose a major problem with regards to their proper disposal.

The making of cement involves the mixing of materials including limestone, slate, ore, ash and heating them to nearly 1,500 degrees.

The ash used at the Limerick cement plant is brought from the ESB Money Point Power station in west Clare.

MÉXICO: Cementos de Chihuahua recibe orden de embargo

El grupo cementero de Chihuahua (GCC), con operaciones en México y Estados Unidos, anunció que su filial GCC of América recibió una notificación de embargo emitida por una corte estadounidense. 

La nota fue enviada por la disputa que sostiene con la empresa Compañía de Inversiones Mercantiles (Cimsa), en torno a la venta hace cuatro años de su participación con la Sociedad Boliviana de Cemento (Soboce).

Desde entonces Cimsa, que en ese entonces tenía el control de Soboce, ha demandado a la compañía cementera mexicana por la forma en que vendió su interés de 47.02% en esa empresa a la compañía peruana Consorcio Cementero del Sur (CCS).

Para Cimsa, con esa venta Cementos Chihuahua incumplió el acuerdo por el que debió ofrecerle la opción de adquirir las acciones de Soboce en primera instancia. No es claro si la compañía mexicana incumplió con eso antes de la venta de su participación en Soboce a CCS.

Hasta ahora, sin embargo, Cimsa parece ir arriba en la disputa, pues ya ganó un fallo al respecto proveniente de la Comisión Interamericana de Arbitraje Comercial. 

Ese fallo fue el que de hecho provocó que la corte del Distrito de Colorado, en Estados Unidos, emitiera la mencionada notificación de embargo.

ZAMBIA: Zambezi Portland Cement Doesn’t Owe Dangote

A new legal dispute has come before the Lusaka courts as two of the top cement producers clash over a purchase deal.

Dangote Industries Zambia Ltd., a newcomer to Zambia owned by the Nigerian billionaire Aliko Dangote, has filed suit against Zambezi Portland Cement Ltd. (ZPC) seeking to back out of a paid transaction for the construction of their plant. ZPC has conversely filed a counter suit against Dangote Industries disputing their claim and pointing to the rights of the contract.

One year ago, as Dangote Industries was building its cement plant, the company entered into an agreement to purchase 990 tonnes of cement from ZPC – although this deal had been made under the previous illegal management of Rajan Mahtani, who has since been removed from the management. Now, according to the suit, the Nigerians want more than 800 ,000 kwacha to be returned to them instead of taking the cement they already bought.

According to the counter-suit, Zambezi Portland has nevertheless fully honoured its past contractual commitments and supplied all the cement to Dangote Industries that was paid for, and are awaiting collection of the product.

Zambezi Portland is in the business of selling cement, not investment banking, said one source at the courts with knowledge of the dispute. Dangote Industries must come collect the product they have paid for, he said, otherwise they don’t have a case to stand on.

NIGERIA: Infrastructure, housing to drive cement demand, says BUA chief

Demand for cement will be driven by building of infrastructure and housing development, Executive Director, BUA Group, Kabiru Rabiu has said.

He said the firm’s target is to increase its capacity to 10 million metric tonnes per year by 2018.

He said the company acquired a controlling stake at the Cement Company of Northern Nigeria Plc, as well as Edo Cement.This is in addition to being one of the 13 companies given licences to bring in bulk cement into the local market.

On how the plant is powered, he said the company established 30 kilometres of gas pipeline to power their cement plant in Edo State.

He predicted that cement price will remain stable in the short term and gradually drop in the medium term.

Speaking at an investor conference, Rabiu said though BUA started as a trading company, importing rice, cement and flour, it later turned to a major integrated manufacturer of these products locally thereby creating thousands of jobs for in the country.

“The company started as a trading entity importing rice, edible oil, cement as well as flour into the Nigerian market. Over the years, it began the production of what it previously imported like edible oil as well as rice and flour milling,” he said.

He said by 2005, the firm established its first flour mill in Lagos, followed by another in Kano with 5.5 million tonnes milling capacity per day.

Also, in 2008, BUA Group set up the second-largest sugar refinery in sub-Saharan Africa, which is situated in Lagos with installed capacity of 720,000 metric tones, he added.

“At the moment, companies within the group are separate entities within different divisions. We have the Infrastructure division and then we have the foods division. In the infrastructure segment, we have cement, real estate, steel and port operations,” Rabiu said.

He explained that massive infrastructure projects, commercial and residential housing development will drive cement demand in Nigeria. The BUA boss said he learnt from informed sources that President Muhammdu Buhari’s administration planned to spend about $20 billion starting from next year on infrastructure.

CHINA: Anhui Conch to Double West China Cement Stake in Consolidation

Anhui Conch Cement Co. agreed to more than double its stake in smaller rival West China Cement Ltd. for HK$4.59 billion ($592 million) amid consolidation in an industry suffering from overcapacity.

Conch International Holdings (HK) Ltd., a wholly owned unit of Anhui Conch, plans to increase its holding in Shaanxi-based West China to 51.57 percent from the current 21.17 percent, the companies said in a filing to the Hong Kong exchange Friday. If the transaction goes through, Anhui Conch will have to make a mandatory cash offer for all shares of West China it doesn’t own, the filing showed.

China’s cement producers, already hurting from falling property construction, will face new challenges under the country’s next Five-Year development plan starting 2016. Demand probably will be constrained by slower economic growth and a broader shift to a consumption model from one that’s investment-driven, Bloomberg Intelligence analyst Michelle Leung wrote in a note Nov 6. 

Shares of West China will resume trading Monday after being suspended Nov. 19, according to the filing.

Cement Units

West China agreed to buy four units of Anhui Conch and will issue shares in itself to pay for the purchase, the companies said in the filing. West China will issue 3.403 billion shares at HK$1.35 each -- a 6.9 percent discount to its last traded price of HK$1.45 -- for a total of HK$4.59 billion. The issuance will raise Anhui Conch’s stake in West China.

Should Anhui Conch be required to make an offer for the rest of West China, it will pay HK$1.69 in cash for each share, according to the filing. That’s the same as the subscription price of shares West China last sold to Anhui Conch in June.

Bloomberg Intelligence identified West China as one of 17 possible merger and acquisition targets among China cement producers, according to another note from Leung. The most likely candidates show losses and carry substantial debt, she wrote.

New-home building starts in China, a leading indicator of real estate construction, fell 24 percent in October from a year earlier, according to the nation’s statistics bureau.

AUSTRALIA: LafargeHolcim says Australian business not up for sale

LafargeHolcim, the world's largest cement producer, said its Australian and New Zealand operations are not on the sale block. 

Speculation has emerged that the newly created Swiss-French building materials company may exit from the region. LafargeHolcim announced a plan last week to divest almost $5 billion of assets in 2016 after posting weaker-than-expected third-quarter results.

That has left the door open to a possible $3 billion spin-off after the completion of a $60 billion global merger.

But in an internal email sent to staff on Monday, Holcim Australia chief executive Mark Campbell said the company was "not currently being sold" but could not rule out an exit in the long term.

"I have checked whether the LafargeHolcim group had made a decision to sell the businesses in Australia and New Zealand and started a sale process without my knowledge, and the answer I have received is no," Mr Campbell said.

"That said, as we know, organisations change focus over time and it is impossible to say that we will always be part of the LafargeHolcim group."

Australian-listed rivals, including Boral, Fletcher Building and Adelaide Brighton, are seen as potential acquirers should the multinational giant choose to sell off its local arm, and Ireland's CRH may also be interested if a sale proceeds.

However, Morgan Stanley said many of LafargeHolcim's local competitors may run into competition issues given the market is concentrated among several large players.

"Should Adelaide Brighton fully participate, we cannot rule out that the 50 per cent share in Cement Australia would be divested due to Australian regulations, given Adelaide Brighton's already-strong share in cement," Morgan Stanley analyst James Rutledge said.

Other players such as Fletcher and Boral may also face acquisition issues.

"While we think Fletcher Building is unlikely to be in a position to participate in industry consolidation, a change in owner that was less integrated into the region may be a positive for Fletcher Building at the margin," Mr Rutledge said. "Given Boral's strong share in aggregates and the concrete market, we believe it will be difficult to participate in industry consolidation. Any transaction in the space, however, could focus the market on the sum-of-the-parts value for Boral."

LafargeHolcim chief executive Eric Olsen last week acknowledged weakness in Australia during an investor conference call, where its third-quarter earnings fell 1.1 per cent to 7.83 billion francs ($10.6 billion), missing a consensus forecast.

"What's happening in Australia is you've got a lot of infrastructure projects, which are slowing down, and its overall economic effect in the economy," said Mr Olsen. "And we've seen [aggregates] price declines going down – prices going down in Australia and ... we all see the mining sector in Australia which has been strongly impacted."

Expansion 

Mr Campbell said he has been surprised by speculation the Australian and New Zealand division could be sold but told the company's 3000 staff not to be distracted by the rumours. 

"I was not aware of any such speculation until the story was printed and I, like many of you no doubt, was caught a bit by surprise," he said. "As you know our priority is keeping people safe, meeting our customers' needs and meeting our financial targets. That's what we all need to stay focused on."

While Lafarge has a limited local presence in Australia and New Zealand, Holcim has beefed up its operations after buying a string of Australian assets from Mexico's Cemex in 2009 for $2 billion, and now boasts more than 350 sites nationwide. .

Cemex paid $16 billion to buy Australia's United States-focused Rinker Group – a former subsidiary of CSR – in 2007 in a hostile takeover battle but struggled to repay debts on the transaction after the 2008 financial crisis crimped borrowing and construction activity.

Holcim swooped in to buy the local Australian assets from Cemex, establishing the Swiss-based company as one of the country's biggest cement makers.

Holcim made the decision last year to close its New Zealand manufacturing plants, with cement to instead be imported to its Auckland and Timaru plants from a Mitsubishi-owned plant in Japan.

LafargeHolcim will host a capital-markets day for investors on Tuesday when it may directly comment on the possible divestments, according to Morgan Stanley.

REP. DOMINICANA: Minas dice Industria y Comercio certifica no hay concesión de explotación para cementera de los Abinader

El Ministerio de Energía y Minas informó que el Ministerio de Industria y Comercio le ha certificado que en sus archivos mineros no hay evidencias de que se haya dictado una resolución otorgando concesión alguna para la explotación de rocas calizas denominada “Hatillo” a las sociedades Michel Philipe Lulo Collado, ABCO o Cemento Santo Domingo.

Conforme a un comunicado de Energía y Minas, la certificación número 253/15, entregada el viernes 27 de noviembre a esa dependencia a las 3:00 de la tarde y dirigida a la directora legal de esa cartera, María Susana Gautreau De Windt, está suscrita por Israel González Ortiz, consultor jurídico de Industria y Comercio.

En la víspera, Gautreu De Windt había solicitado al Ministerio de Industria y Comercio –por la vía de su consultoría jurídica – confirmar si esa dependencia estatal había emitido una resolución de explotación para rocas calizas, en la ubicación señalada, con una extensión de 6,197.50 hectáreas mineras, a favor de las sociedades supra indicadas.

“Yo, licenciado Israel González Ortiz, en mi calidad de Consultor Jurídico del Ministerio de Industria y Comercio, certifico que en los archivos mineros correspondientes a esta Consultoría, no tenemos evidencia de que el Ministerio de Industria y Comercio haya dictado una resolución otorgando alguna concesión para la explotación de rocas calizas denominada “Hatillo” en los municipios de Estebanía y Las Charchas, provincia Azua”, dice la comunicación oficial.

La pasada semana, el Ministerio de Medio Ambiente y Recursos Naturales –a través de su titular Bautista Rojas Gómez- había desmentido que Cemento Santo Domingo tuviese concesión para explotación de rocas calizas, en respuesta a la exsecretaria de Industria y Comercio, Sonia Guzmán, quien dijo que había tramitado una licencia cuando ocupó el cargo.

“Desmiento a Sonia; Sonia le pidió a Hipólito (el ex presidente Hipólito Mejía) que le concediera la concesión de explotación minera a la compañía Cemento Santo Domingo e Hipólito no se la concedió. Luego se la solicitaron nuevamente al presidente Leonel Fernández y no se la concedió, esta es la tercera vez que solicitan y ahora no se la han concedido, o sea, no se la van a conceder porque está dentro de un área protegida y eso viola la ley”, dijo Rojas Gómez.

El 25 de septiembre de este año, Medio Ambiente emitió una certificación al Ministerio de Energía y Minas en la que señala que de los 59.80 km² del área de la solicitud de concesión de explotación denominada HATILLO, “aproximadamente el 92.78% se encuentra dentro de los límites de las áreas protegidas y sus zonas de amortiguamiento, incluyendo el Parque Nacional Francisco Alberto Caamaño Deñó, establecido mediante Decreto 571-09, y zona de amortiguamiento, así como la Reserva Forestal Hatillo, establecida mediante la Ley Sectorial de Áreas Protegidas”.

El Ministerio de Energía y Minas ha señalado que la cementera –propiedad de la familia Abinader Corona- no está impedida de seguir operando con su modelo de negocio de adquirir Clinker, de fuentes locales o internacionales para fabricar cemento, pero que no es posible otorgar una concesión para extraerlo del parque Francisco Alberto Caamaño Deñó so pena de violar las leyes de Medio Ambiente y Sectorial de Áreas Protegidas.

“Hay tres salidas: Que el Congreso Nacional modifique la Ley Sectorial de Áreas Protegidas –excluyendo del parque los terrenos en los que la cementera ha solicitado la concesión de explotación de rocas calizas-, que esta empresa ubique otro lugar donde sea posible extra la materia prima sin violar la ley o que siga adquiriendo el clinker de suplidores locales o internacionales”, apuntó el ministro Antonio Isa Conde.

El Ministerio de Energía y Minas reiteró que su desaprobación a la solicitud de concesión minera para explotación de rocas calizas en terrenos del área protegida, obedeció a una solicitud formalmente hecha y publicada en un periódico de circulación nacional por la misma empresa cementera de los Abinader.

SAUDI ARABIA: Saudi considering lifting export curbs on cement, steel

Nov 29 Saudi Arabia is considering lifting partial export bans on cement and steel to relieve oversupply in the local market, economic news website al-Eqtisadiah quoted a customs department official as saying on Sunday.

Saudi government bodies are studying whether to ease restrictions on cement and steel exports after local production doubled, exceeding the storage capacity of the kingdom's largest companies, customs department spokesman Essa al-Essa told Eqtisadiah without giving any timeframe for the decision.

Steel stocks have risen above 1.8 million tonnes, causing some factories to cut production by 50 percent and shut some smelters entirely, said the report, citing the chairman of the National Committee for the Steel Industry.

The Saudi government originally imposed a ban on cement exports in 2008 to push prices down and accommodate demand from large government-funded infrastructure projects, although some companies were allowed to export at prices lower than those in the local market. Steel exports have been similarly restricted.

New activity in the Saudi construction sector has slowed in recent months as a slump in oil prices has pushed the government to cut spending on non-essential projects; the industry may slow further if, as economists expect, more austerity measures are imposed next year.

TURKMENISTAN: Turkmenistan produces over 3 million tons of cement

Turkmenistan has produced around 3.3 million tons of cement since early 2015, said the message from the country’s government.

“The country has established its own cement industry meeting the demands of the domestic market in large-scale construction,” said the message. “Rich raw material resources for cement production open up export opportunities for the country as well.”

A plant with the capacity of 1.4 million tons of cement per year was put into operation by Turkish Polimeks in Turkmenistan’s Lebap province, said the message.

The plant produces portland cement, oil-well cement required for the oil and gas industry, and sulfate-resistant cement used in hydraulic units.

Polimeks also put into operation a similar plant in Turkmenistan’s west - in the Balkan province. Such large enterprises operate in the Ahal province as well.

To cover the demand, the country has opened 35 specialized outlets for selling cement at single price – 175 Turkmen manats per ton, said the government message.

The official exchange rate has remained at 3.5 manats/$1 in Turkmenistan since January 2015.