VIETNAM: FLSmidth to supply largest cement plant

Company Announcement to the Danish Financial Supervisory Authority No. 10-2015, 23 May 2015

FLSmidth has received an order worth approximately EUR 100m (DKK 750m) from the Vietnamese cement producer Xuan Than Group for the supply of a complete cement plant with a capacity of 12,000 tonnes per day. The plant will be located approximately 100 km South of Hanoi, Vietnam.

Once completed, the plant will be the largest cement plant in South East Asia with the most energy efficient equipment, state-of-the-art emission control and leading process control systems. 

"The Vietnamese cement market is expected to grow over the coming years and it is a well-known market to FLSmidth as we have been present in the country for many years - also the construction of the largest cement plant in South East Asia proves our strong position in the area," President of the Cement Division Per Mejnert Kristensen comments.

The order will be booked by the Cement Division and contribute beneficially to FLSmidth's earnings until mid 2017.

KENYA: Manufacturer welcomes President’s 40pc local sourcing directive

Local manufacturer, Savannah Cement, has welcomed a presidential directive, seeking to ensure that public institutions source 40 percent of their requirements from local manufacturers.

The directive, issued as part of President Uhuru Kenyatta’s 52nd Madaraka Day national address is geared at fostering a buy Kenya build Kenya culture by all public sector institutions.

The Government, President Kenyatta, said, is, pursuing policies that ensure growth in consumption of locally produced goods and services to secure opportunity and productivity.

The Jubilee administration, he said, has set a target to ensure that 40 per cent of all services and goods procured by Government are locally produced.

Speaking when he welcomed the directive, Savannah Cement, Managing Director, Ronald Ndegwa, described the move as a much needed lifeline for local manufacturers.

The directive, he noted, will ultimately ignite a positive ripple effect on the economic front as increased purchases will also mean more jobs for Kenyans.

“The directive by President Uhuru Kenyatta is sweet music to our ears as it has a capacity to accelerate the growth of local industries,” Ndegwa said.

“It is no secret that local industries have been suffering from skewed competition from imported products purchased by public institutions at the expense of local manufacturers,” he added.

The directive, Ndegwa said, will also inspire many local companies to step up their product innovation efforts while benchmarking against global manufacturers.

At Savannah cement, the firm is investing more than US$200million in the installation of its second high efficiency milling plant to meet growing demand for its products.

The new milling plant to be installed at the firm’s manufacturing complex near Kitengela town features the latest cement manufacturing technology which allows for Eco-friendly, dust and related emissions free cement production.

The firm, will also be angling for public sector supplies for its latest innovation; the Savannah Hydraulic Road Binder (HRB) product as it awaits a commercial production approval from the government.

The recent development of the Savannah HRB Product is a major milestone for Savannah Cement which becomes the first Sub-Sahara Africa Cement manufacturer to produce such a specialized product.

The HRB cement blend product, is used in road construction works to stabilize road surfaces and has been developed in response to a request by the Ministry of Transport and Infrastructure.

Globally, HRB products are used in place of mainstream cement and lime products for soil stabilisation on loose road surfaces. [Soilstabilization, is a process that combines soil, cement and water to produce a hard, durable paving material that can be used for the foundation or base of road and airport pavements, parking and storage areas.

NAMIBIA: Ohorongo credits growth to infrastructure and exports

Namibia’s sole cement manufacturer, Ohorongo Cement, says 2015 has thus far seen tremendous results compared to the same time in all preceding years since the company started production in 2011.

Managing Director Hans-Wilhelm Schutte attributed the much improved performance to an increase in infrastructure projects by both the government and the private sector, as well as export inroads made in neighbouring countries.

During a visit by an Otjozondjupa regional delegation, led by Governor Otto Ipinge, on Thursday last week, Schutte admitted that initial sales were “extremely tough” but was quick to add that the factory, which constituted an initial investment of N$2.5 billion, has been running perfectly since day one and expects both local and regional sales to grow, going forward.

“Since 2011 we have improved significantly. Towards the second half of 2013 things really started picking up and 2014 saw us doing really well in terms of sales,” said Schutte.

He noted that massive cement-consuming infrastructure projects such as NamPort’s port expansion and the Neckartal dam have made notable contributions to Ohorongo’s performance of late.

Notable inroads have been made in countries such as Botswana, Zimbabwe, Democratic Republic of Congo and Zambia.

He, however, expressed disappointment at border control frustrations in exporting cement to Angola. “We have not made any inroads in Angola. The border control on the Angolan side is one of the biggest challenges. Sometimes the trucks have to wait at the border for four to six days and this is just unacceptable,” complained Schutte.

Also, regarding the outcome of the ongoing court case, for which judgement is being awaited, where infant industry protection (IIP) is being challenged by a cement importer, Schutte remarked that it is Ohorongo’s intention to remain competitive in the medium to long-term, both domestically and in the region. “I think it’s great that African countries are protecting their own markets,” said Schutte.

Government has granted IIP to the cement, chicken processing and dairy industries saying they add value to Namibian products and create jobs in the economy.

However, local consumers have argued that prices of these ‘protected’ products are not necessarily lower than those of imported products despite the protection measures. But government has strongly defended the IIP scheme, saying the protection measures promote local value addition, which grow the economy.

Meanwhile, Mwadina Muashekele-Sibiya, the special advisor to Otjozondjupa Governor Ipinge, said the governor’s office was very impressed with Ohorongo Cement, particularly with the company’s support to the local community in terms of both local procurement and corporate social responsibility.

“They are a company that supports sourcing everything from the local market, which is a strategy that can only uplift the region and the country at large. I advise all businesses operating in Namibia to take this approach,” said Muashekele-Sibiya.

She added that she was amazed at the cleanliness of the Ohorongo plant, especially considering that it is a cement factory.

The Germany-based Swenk Group, through Swenk Namibia (Pty) Ltd is the majority owner of Ohorongo Cement, with minority shares held by the Industrial Development Corporation, the Development Bank of Namibia and the Development Bank of South Africa.

CAMEROON: Le Minmidt évalue la Cimenterie Dangote

C’est dans le cadre de la 5e session du comité de suivi du projet de cimenterie Dangote, tenue mardi à Douala, que le ministre des Mines, de l’Industrie et du Développement technologique a visité l’usine située aux abords du pont sur le Wouri. Une visite au terme de laquelle Emmanuel Bonde s’est dit satisfait du niveau de réalisation et de la technologie utilisée.

Le Minmidt a toutefois recommandé à l’entreprise – dont la production journalière actuelle est de 3000 tonnes, selon son directeur général Baba Abdullahi – d’accélérer les travaux relatifs à la construction de la voie d’accès dans la zone portuaire. De même, il lui demande de poursuivre la construction du quai tout en renforçant les mesures de sécurité autour de l’usine et du second pont sur le Wouri.

Un peu plus tôt dans la journée, lors de travaux du comité tenus au Sawa, le point a été fait sur la situation présente du projet, par son Dg. Ainsi, d’après Baba Abdullahi, à ce jour, plus de 114 millions de dollars (soit environ 57 milliards F) y ont été investis, 300 emplois directs ont été créés et la production devrait être d’un million de tonnes de ciment par an – avec une prévision d’extension à 1,5 million de tonnes.

Cela dit, CT a appris du comité que « quelques contraintes » pourraient affecter le projet, « notamment les aspects énergétiques, infrastructurels et de distribution », sans plus de précision.