RUSSIA: Arkhangelsk cement producer survives layoffs

The destiny of the only on the White Sea coast cement plant is of public concern in the settlement Savinskiy (Arkhangelsk Region).

Savinskiy Cement Plant is the largest cement producer in northern Russia. The plant was built in 1966 to supply the region with best quality cement used for monolithic and precast concrete manufacturing in residential and industrial construction business. Now it is on the verge of closing. The main production was stopped in early September. Of more than 500 workers, half have been dismissed, and those left are transferred to a shorter working day.

The company's management explain their actions by the need for a general reconstruction, but local residents fear that the plant will be simply disassembled and junked. They sent an open letter to the federal and regional authorities, in which they expressed their concern about the fate of Savinskiy Cement Plant. The appeal to President Vladimir Putin, Prime Minister Dmitry Medvedev, Minister of Emergency Situations Vladimir Puchkov, Governor Igor Orlov, Speaker of the Regional Assembly Victor Novozhilov, as well as the heads of district administration and the municipality Savinskiy, reads partly as follows.

"The residents ask for your help in resolving this situation: to prevent the elimination of the only cement plant in the Arkhangelsk region, to save the municipality Savinskiy and ensure the livelihoods of its people. Savinskiy is the place of residence for about 10,000 people. In the settlement there are two kindergartens for 500 children, a comprehensive school for 845 children, a correctional school of regional importance, a professional school for 134 people, the hospital of district significance, the house of temporary stay for 40 elderly persons, and other objects of social and cultural needs.

We, the residents of the settlement Savinskiy, are well aware that the closing of the plant will lead to problems of life support for the settlement and its very existence. At a meeting with civil society organizations of Savinskiy, the factory management did not inform the public about the future of the plant: whether it would be the upgrading or the liquidation. […] Judging from the current situation, the plant is being prepared not to modernization, but to elimination, which will result in massive unemployment, impoverishment of the population, and an increase in crime."

Ernest Belokorovin, the Chairman of the Arkhangelsk Oblast Deputy Council's Committee on the Industrial Policy, Transport, Communications and Environment, says. "I believe it is necessary as soon as possible to begin negotiations between the regional authorities and the owner of the plant. Now the company dismantles the equipment ant takes it somewhere, carries out the staff reduction — all this is very disturbing and may lead to losing another enterprise important for the region, and, accordingly, to the reduction in jobs and tax revenues to the budget."

The local administration reports no acute social tensions over the workforce layoffs in the settlement. So far.

RUSSIA: Lafarge sells one Cement Plant in Russia for a total enterprise value of €104 Million

Lafarge has announced the sale of its cement operations in the Urals region (Russia) to Buzzi Unicem for an enterprise value of 104 million euros.

Lafarge UralCement operates one cement plant located in Korkino, 40km in the south of Chelyabinsk.

This divestment will contribute to Lafarge's objective to reduce net debt.

This transaction is subject to the authorization of relevant authorities and customary closing conditions.

After this divestment, Lafarge will remain present in Russia in the dynamic Central region (Moscow), with notably its Ferzikovo plant inaugurated in May 2014.

RUSSIA: Large cement factory to be built in Karachay-Cherkessia

Rashid Temrezov, the head of Karachay-Cherkessia, and Filaret Galchev, a member of the board of directors of Eurocement Group, met in Moscow and discussed construction of a cement factory in Karachay-Cherkessia. The company will have invested 8 billion rubles into the facility by the end of 2016.

The factory will product 4 million tons of products a year (10,000 tons of clinker a day). The company got benefits in Karachay-Cherkessia as a large investor. The holding is also completing construction of the largest multi-functional sports and recreation center.

The sides expressed readiness to continue supporting partner relations for more efficient cooperation of the region and the company.

UZBEKISTAN: Cement-Maker Faces Loss Of Assets In Uzbekistan

Russia's cement-producing giant Eurocement is facing the loss of its facility in Uzbekistan in a nationalization drive by the Central Asian country.

An Uzbek economic court in Tashkent has annuled Eurocement's 2006 acquisition of Uzbekistan's biggest cement producer, Akhangarancement, which could lead to the cement-making facility's nationalization.

Uzbek media reports on July 22 said the Uzbek State Competition Committee filed a lawsuit last week against Eurocement's purchase of Akhangarancement.

The Tashkent court ruling on July 21 paves the way for the plant that Eurocement bought 75 percent of eight years ago to be nationalized.

Sources close to Eurocement told RIA Novosti News Agency in Russia on July 22 that the court ruling will be appealed.

RUSSIA: Le français Lafarge lance une cimenterie en Russie

Le groupe français Lafarge a inauguré lundi une cimenterie dans la région russe de Kalouga, au sud de Moscou, a annoncé lundi le service de presse du gouvernement russe diffusant un message de félicitations du premier ministre russe Dmitri Medvedev.

"Je vous félicite à l'occasion de l'ouverture d'une usine de Lafarge Tsement (filiale russe de Lafarge-ndlr). Cet événement est un bon exemple de la coopération entre la Russie et la France. Une usine moderne a été construite dans la région de Kalouga en un peu de temps. Les constructeurs ont utilisé des technologies innovantes", a indiqué le premier ministre russe Dmitri Medvedev dans un message adressé aux participants à la cérémonie de lancement de l'usine.

"Le lancement de l'usine permettra de créer plus de 550 emplois et de construire des logements confortables et bon marché en Russie", a ajouté le premier ministre.

Lafarge, leader mondial du ciment, possédait jusque-là deux cimenteries en Russie, à Korkino, dans la région de Tcheliabinsk (depuis 2003) et à Voskressensk, dans la région de Moscou (depuis 1996).

Au cours de ces dernières années, la région de Kalouga est devenue très attractive pour sociétés étrangères. Des usines d'assemblage des constructeurs automobiles Volvo, Volkswagen, PSA Peugeot-Citroën, Mitsubishi, de l'équipementier allemand Continental, du groupe espagnol Gestamp, leader de la fabrication de composants métalliques pour l'industrie automobile, se trouvent dans cette région.

BELARUS: Belarus considering cement holding company with Russian Eurocement

Belarus is considering establishing a cement holding company together with the Russian company Eurocement, BelTA learned from Belarusian Architecture and Construction Minister Anatoly Chernyi at the international science to practice seminar held on 11 April to discuss foreign and domestic engineering practices in civil engineering.

Asked about prospects for establishing a cement holding company on the basis of three Belarusian cement enterprises, the official said: “There is no relevant news still. Besides, taking into account the agreement reached with Eurocement the role of the holding company would be insignificant today because it was supposed to be created for centralized cement sales while the ministry takes care of the pricing unity of our enterprises”.

Speaking about the establishment of the holding company together with Russian Eurocement, the Minister remarked: “It would be a massive merger. We could operate as a single team on foreign markets, markets of Russia, Belarus, Ukraine, and the Baltic states. However, these are just preliminary talks, we have only discussed the possibility. It is not a project for 2014 but a longer term. Now we have to transfer the Belarusian enterprises to the dry cement manufacturing technology to reduce the prime costs. Later on we will consider uniting efforts on domestic and foreign markets”.

Eurocement is ready to invest up to $80 million in the modernization of Belarusian cement factories. At present the three Belarusian cement factories can make 9.5 million tonnes of cement per annum, with 5.4 million tonnes manufactured using new equipment and the dry mixture technology.

BELARUS: Exports 65% more cement to Russia in 2014

Belarus plans to ship 65% more cement to Russia in 2014 in comparison with 2013, BelTA learned from Belarusian Architecture and Construction Minister Anatoly Chernyi during the conference held on 26 March to discuss the development of cement markets and markets for other construction materials in the Customs Union, the Commonwealth of Independent States, and Eastern Europe.

In line with the agreement with the Russian company ZAO Eurocement Group cement shipment will be increased by 0.5 million tonnes in 2014 in comparison with 2014. The next year cement shipment will increase by 0.5 million tonnes, said the Minister. “The markets will be expanded to the full once all our factories have finished modernization and make cement using the dry method,” said the official. Belarus has guaranteed the delivery of 1.5 million tonnes of cement to Eurocement in 2014, with another 500,000 tonnes to be available on the market. If the plans come true, the Belarusian cement industry will secure a 65% increase in export to Russia from 2013.

Anatoly Chernyi explained that there is a certain roadmap that guides cooperation with Eurocement. In line with the roadmap the modernization of Belarusian factories is supposed to be finished by 2017. “The roadmap for the project has been agreed with the government and has been backed by the prime minister. We will still have to hold negotiations today and then we will get down to implementation,” he specified. The reduction of energy consumption is the key benefit of the transition from the wet method to the dry method in cement manufacturing. It will allow reducing the prime cost of cement manufacturing from $89 to $60 per tonne.

ZAO Eurocement Group President Mikhail Skorokhod remarked that the presence of Belarusian cement on the Russian market was rising fast.

BelTA reported earlier that Eurocement is ready to invest up to $80 million in the modernization of Belarusian cement factories. At present three Belarusian cement factories can make 9.5 million tonnes of cement per annum, including 5.4 million tonnes made using new lines and the dry method.

RUSSIA: Cement production in Russia to reach record 61 million tonnes in 2012 - September 2012

The construction industry has been one of the major catalysts for economic growth in Russia over the past few years. This role is expected to intensify in the coming years, largely supported by multi-billion rouble investments by public authorities in construction projects planned for the near future. 

During the first half of the year, construction output managed to maintain a growth pace above that of the GDP, recording a 5.4% expansion in year on year terms while GDP managed to expand by only 4.5% for the same period. At the same time, the production of cement in Russia totalled nearly 27.8 million tonnes in H1 2012, representing a 14.1% annual increase. However, the high base set during the summer of 2011 contributed partly to a deceleration in annual growth rates to 12.7% for the first seven months of the year and to 11.5% for the January-August period.

RUSIA: Large cement production to be arranged in Dagestan

Makhachkala, June 30, 2011. On Wednesday, June 29, the Head of the Republic of Dagestan Magomedsalam Magomedov met with the Chairman of the Board of Directors of the Inter-regional production resource company "GRAS" Sergey Lipatov.

The meeting was also attended by the Prime Minister RD Magomed Abdullaev, the Deputy Prime Minister RD Mukhtar Majidov, the Minister of Construction and Housing Abakar Akayev, the top manager of Dagestan branch of the JSC "Eurocement Trade" and the Director General of the "Cement-grinding manufacturing plant” in Makhachkala Ali Aliyev. Sergey Lipatov was accompanied by the Director General of the JSC "Region Cement" Pavel Bystrov, the Head of the Construction Industry Department of the Vnesheconombank Anton Grigorov and the adviser to the president of the JSC "GRAS" Sergey Shcherbina.

"Attraction of large-scale investments to the republic - is one of the main directions of our activity, and therefore we welcome all initiatives to open business in Dagestan. The Group of Companies "GRAS" has a good reputation - this is a serious production and financial structure with a large experience in cooperation with Russia’s regions. Certainly we are interested you started working in Dagestan as soon as possible. For our part we will try to create all the necessary conditions” - the Head of the Republic said opening the meeting.

Speaking about the upcoming signing of the Cooperation Agreement on construction of cement plant in the republic, Magomedsalam Magomedov outlined the great importance of cement industry for Dagestan. In three years, when the plant is put into operation, Dagestan consumers will get cement at the lowest prices and the republican budget will receive additional taxes. The plant will meet all environmental safety standards.

The meeting participants discussed the estimated cost of the investment project totaling to 500 million dollars. The part of the sum will be loaned by Vnesheconombank.

Then the Government of the Republic of Dagestan in the person of the Deputy Prime Minister RD Mukhtar Medjidov and the JSC Interregional resource company "GRAS" in the person of Sergey Lipatov signed a Cooperation Agreement.

RUSIA: The construction of Lafarge's new cement plant in Kaluga started

Lafarge Russia invests 300 millions of Rubles into environment protection in the Uralcement plant of Korkino, Chelyabinsk region. In order to decrease the dust emissions of its Korkino plant in the Chelyabinsk region, Lafarge replaces the electro filters of its two most important rotary kilns. The new dust filters allow decreasing the dust emissions at the stack by more than 10 times and reach at least current European regulations.

The construction of Lafarge's new project, a cement plant at Ferzikovo in Kaluga Region has started. This is the first project of Lafarge Russia and its business partner EBRD (the European Bank for Reconstruction and Development) which supports Lafarge's growth in Russia.

The construction of Lafarge's new project, a cement plant at Ferzikovo in Kaluga Region has started. This is the first project of Lafarge Russia and its business partner EBRD (the European Bank for Reconstruction and Development) which supports Lafarge's growth in Russia.

The new plant will have a production capacity of two million tons a year. This greenfield project will represent a breakthrough in Russia in terms of energy efficiency, safety performance and minimised environmental impact. The carbon footprint per ton of cement produced will as a result be cut by 31 per cent and energy consumption will be halved from current levels. Lafarge also plans to make use of renewable energy sources at this plant.

The cement production will start in 2014

The leveling, plant site roads works and temporary infrastructure on the field will be completed before end of 2010. The concrete & steel construction is expected to be completed before end of 2011. Also the mechanical erection will start in last quarter of 2011. The plant is expected to start producing cement in the first half of 2014.

Alex de Valukhoff, GM of Lafarge Cement Russia stated: "Russia is an important country in the Group's agenda. This new greenfield project shows our strong confidence in the potential and future of the country. We are glad to contribute to the development of the cement sector and to the economical development of the regions where we are present. The Kaluga region has been selected for its proximity to the market, but also in reason of the significant involvement of its Governor, Anatoly Artamonov, and his administration.

For our new projects a pool of Russian speaking technical managers is being trained in the different dry technology plants the Group operates in the European Union. We already have a Kaluga team in our head office."

Investments in current plants ongoing

Lafarge and EBRD will subsequently work on the next steps in the investment program, as well as on further enhancement of existing plants in Voskresensk, 120 km southeast of Moscow, and Korkino, 40 km south of Chelyabinsk in the Urals industrial heartland of Russia. (EBRD has since 2006 invested €190 million Euros in the equity of Lafarge Vostok SAS, the company which owns 100 percent of Lafarge Cement Russia.)

A program aimed at achieving an annual reduction in greenhouse gas emissions at the Voskresensk and Korkino plants equivalent to up to 200,000 tons of CO2, as measured in terms of constant cement output (2008), has already been launched. This involves, amongst others, the commissioning of new filters at both plants to improve their environmental performance.

RUSIA: BaselCement to invest $7m expanding in Krasnoyarsk region

Cement manufacturer BaselCement has announced plans to invest $5-$7m growing its share in cement market of Krasnoyarsk region.

The funds are reportedly to be invested into reorganizations of retail chain, logistics development, purchase of equipment and transport.

According to the company, its share in the region’s cement market is about 20%. Under plans, in the next 1.5 years the company is to expand its share at the market to 50%.

BaselCement is a part of Oleg Deripaska’s Basic Element holding.