MALASYA: Lafarge confirms cement price hike

Lafarge Malayan Cement Bhd will raise the price of its cement from Aug 1, after taking into consideration rising costs of manufacturing and delivery of the building material, its executive director Chen Theng Aik said.

"The decision was made unilaterally and taking into consideration our increasing costs associated with manufacture and delivery of cement, which we have endeavoured to absorb over the years," Chen told SunBiz yesterday.

He dismissed claims that cement companies are colluding and creating an artificial shortage.

"Our plants had carried out major shutdowns for scheduled maintenance between February and June this year, which resulted in lower production during the first half of this year. We strongly refute the allegation of creating any artificial shortage of cement," said Chen.

Lafarge Malaysia's announcement follows claims by property developers, building materials distributors and builders last week that cement prices will be increased from Aug 1 by RM1 per bag of 50kg from RM16.75 to RM17.75 or RM20 per metric tonne from RM320 to RM340.

They warned that a price hike would increase construction costs which in turn would lead to higher property prices, as they pass on the additional costs to homebuyers.

However, CMS Cement Sdn Bhd, Sarawak's sole cement producer, had on Saturday said it had no intention of raising the price of the material.

There are six cement players in the country, the others being YTL Cement Bhd, Tasek Corp Bhd, Cement Industries of Malaysia Bhd (CIMA Group) and Holcim (Malaysia) Sdn Bhd.

PAKISTAN: Cement export up by 9.06% in FY 2011-12

ISLAMABAD: The export of cement during financial year 2011-12 has witnessed positive growth of 9.06 percent. The cement export from the country recorded at $498.909 million during the period under review as against the corresponding period of last year’s export of $457.448 million. On month on month basis, the cement export during the month of June 2012 was recorded $52.064 million against that of $56.41 million showing a decrease of 6.93 percent. The export of cement during June 2011 remained $42.67 million, revealed the data of Pakistan Bureau of Statistics (PBS)

AFRICA: Sephaku to start making cement in 2013

Sephaku Holdings says there will be a shortfall in capacity in the industry in five years because of a lack of investment with few quality limestone deposits in SA

RAW materials supplier Sephaku Holdings said yesterday it would start producing cement from late next year.

Funds from its Nigerian partner, Dangote Cement, would enable it to benefit from new technology and plant, while competitors had to replace older facilities. The company said it would embark on a road show this week to attract investors in a growth strategy.

Sephaku would be the first new entrant to the local cement production market to open its own new plant since 1934, the company said.

"Further to the company’s strategy of becoming a focused cement player in the South African market, Sephaku Holdings has been streamlining its business and has made significant progress on its 2,5-million tons-per-annum cement producing facilities near Delmas and Lichtenburg," the company said.

Sephaku would benefit from new investment in a depressed market. SA construction companies have taken a severe hit following the collapse of global markets and a slump in domestic demand after the 2010 Soccer World Cup.

Sephaku CEO Lelau Mohuba said the company wanted to challenge large local producers Lafarge, PPC and Afrimat , regardless of threats from imports.

Some buyers say imported cement is cheaper and of acceptable quality. But French company Lafarge’s South African arm said last week it was concerned some imports did not meet quality standards or were imported without a licence.

Sephaku said it had a cash-flush investor in Dangote Cement, which owned 64% of Sephaku Cement. Dangote Cement had projects and operations in Nigeria, Benin and Ghana, with production and import capacity of 14-million tons a year and projects in development which offered 11,1-million tons a year in additional capacity.

Sephaku raised R350m by issuing equity to Dangote Cement in 2008. Sephaku raised a further R779m from Dangote in 2009 when it listed on the JSE. In 2010, Sephaku began construction of its Aganang cement plant.

The plant was half complete and the balance would be funded through syndicated debt — its bill for the plant was R3,2bn.

Mr Mohuba said Sephaku had planned to produce cement from next year, to gain a foothold in the industry before the cement market reached capacity in 2016.

The company believed there would be a shortfall in capacity in the industry in five years, because of a lack of investment and a shortage of quality limestone deposits in SA.

AFRICA: NIGERIA: Tanzanian Govt Supports Dangote's Cement Expansion Drive

The government and people of Tanzania have pledged their readiness to give the necessary assistance to Dangote Cement Plc to ensure the timely completion of the cement project in the East African country.

Wife of the President of Tanzania, Salma Rashid Kikwete, who conveyed the message at Obajana Cement Plant during her tour of the factory at the weekend, expressed appreciation of her people to Dangote Group for extending its pan-Africa operations to her country.

In a statement from the Dangote Group, the Tanzanian First Lady said that the people of her country were happy that such a project was being undertaken on an African soil by an African, adding that the president of the group deserved all the encouragement to ensure continuous growth of his businesses.

A 1.5 metric ton per annum cement plant is currently being constructed by the Dangote Group in Tanzania and is expected to be completed next year.

After being conducted round the 10.25 metric ton per annum plant with her entourage which included the Tanzanian ambassador to Nigeria, Dr. Msuy Mangachi, the first lady expressed surprise at the gigantic nature of the plant, noting that it was commendable that an African country is hosting the single largest cement plant in Africa.

"The decision of Alhaji Dangote to build cement in African countries is commendable. We thank him for bringing cement plant to Tanzania which is producing below domestic demand," she said.

She said that by the time Dangote cement plant starts full operations it will bridge the shortfall arising from the inadequate local production capacity.

She enumerated the benefits her country would drive from the establishment of the cement plant there, saying that it will provide job opportunities and lead to economic development.

The Tanzania First lady assured that the government of her country would be ready to provide all the necessary support to enable the cement plant thrive well, assuring that there is peace and tranquility in her country, which is one of the advantages the country has over others.

She described Alhaji Dangote as a strong supporter of community development and then called on him to partner with her country's government to seek more areas of mutual co-operation.

Mrs. Kikwete used the occasion to introduce her pet project, Wama Foundation, which is dedicated to promotion of community development, access to quality education through provision of scholarship, improved health care facilities and other action plans for the locals.

She said it would be of immense help if the Foundation and Dangote Group could partner to lift the people of her country and by so doing lifti Africa which is one of the cardinal objectives of the pan-African expansion of the Dangote Group.

The Special Adviser to the group president, Engineer Joseph Makoju who conducted her round the plant and the mines said that Dangote Cement is fast expanding to lead in cement production worldwide, adding that the next logical step after achieving domestic dominance, is to capture demand in large commercial centres with high population and urbanization growth, as well as supply landlocked countries which pay very high price for imported cement.

INDIA: Cement plants ruining caves in Meghalaya

SHILLONG: Indian sub-continent's longest and deepest cave system, the Kotsati at Lumshnong in Janitia hills, is under threat from a cement plants that have come up in the area under questionable circumstances. A few years ago, the Meghalaya government had approved two cement plants under the North East Industrial Policy at Lumshnong, where some of India's natural and ancient cave systems are located. 

Kotsati, which measures 21.56 km, and other smaller caves - each a treasure trove of palaeontological, speleological, karstological, and environmental research - are said to be facing the threat of extinction owing to unmindful limestone quarrying. Environmentalists fear that the entire cave system could perish if things carried on as they are. 

Most of the 24 openings to the Kotsati-Umlawan cave system are said to have been adversely affected not just by pollutants, but also by quarry deposits that have blocked the entrances and destroyed breathtaking coral and stalactite formations along with a 'virgin river passage' that flows inside it. "The project costs of both the cement companies have been grossly undervalued on paper to get easy environment clearance certificate from the State Pollution Control Board," said an environmentalist. 

Experts claim that the destruction of some of "the unique and rare cave systems" of the world has already begun. Most have blamed the state government for allowing the cement plants to come up in these areas which are homes to historic natural biodiversity spots, including the Narpuh Reserve Forest. 

"Everything will be ruined... the history, the distinctive cave life, the beautiful stalagmites," said an ardent speleologist who did not want to be named. "Documentation of some of the caves in Meghalaya, like the Bhuban cave in Nongjri under the East Khasi hills district date back to the 1827 or a little earlier and it would suffice to say that the caves provide for a comprehensive study of the environment," he said. 

The cavers say they are not against development plans but emphasize that there should be some balance. "Do we have the right to destroy India's longest caves?" one of them asked.