Friday, January 17, 2014

NIGERIA: ASHAKA CEMENT EARMARKS N80BN FOR EXPANSION

Ashaka Cement Company yesterday announced plans to inject N80 billion to raise its production capacity to 2.5 million tonnes annually.

Alhaji Umaru Kwairanga, the chairman of the company’s Board of Directors disclosed this in an interview with newsmen in Gombe.

The chairman said since the inception of the company about 30 years ago, its installed production capacity had remained about one million tonnes and needed to expand in line with the potentials in the market.
“Some of our equipment are obsolete and we feel that there is the need for us to create a new line for 2.5 million tonnes annually.

“This is the minimum we intend to do, so that the cement we produce would be enough for the entire North-east and some parts of the country,’’ he said.
Kwairanga assured that the expansion work would commence in earnest before the end of the first quarter of the year.

He also disclosed plans by the company to utilise the coal potentials in the area to generate power.
“We want to have a power plant, and luckily for us, we have coal which is like the backbone of the company now.

“We plan to establish a coal power plant to generate electricity for the company’s use and its host community, so that at the end of the day, the people of the community will feel more impact of the company,’’ he said.

Thursday, January 16, 2014

TUNISIA: Libéralisation des prix du ciment

La libéralisation des prix du ciment gris et son impact sur la concurrence entre les cimenteries et les promoteurs immobiliers qui ont exprimé vivement leurs appréhensions quant à une possible hausse des prix des matériaux de construction émanant de cette décision. Les responsables du ministère de l’Industrie prévoient au contraire une baisse des prix étant donné que la libéralisation va contribuer au développement de la concurrence entre les cimenteries dans le cadre de « transactions transparentes » et que l’Etat s’est engagé à rester le seul régulateur des prix du ciment et qu’il interviendra en cas de monopoles, de spéculations ou encore de perturbations du rythme d’approvisionnement du marché. Entrée en vigueur à partir du 1er janvier 2014, la décision de la libéralisation des prix du ciment gris ne cesse de susciter l’inquiétude aussi bien du citoyen que des promoteurs immobiliers, sachant que ladite décision prise vient à point nommé concrétiser les recommandations de la réunion ministérielle du 25 septembre 2013, portant sur la lutte contre la contrebande des produits du ciment, le contrôle des circuits de distribution et la garantie de la transparence des transactions et de la concurrence loyale, ce qui permettra à l’évidence la garantie de l’approvisionnement régulier et la stabilité des prix. 
Ce problème d’actualité brûlante qui, pour certains, pourra générer une crise où le citoyen se retrouvera devant le fait accompli, obligé d’acheter un sac de ciment avec le prix que les vendeurs considèrent le plus approprié, et, selon les estimations, sera plus élevé. 
M.Ibrahim Chbili, directeur général des industries manufacturières, explique à cet effet, que le ministère de l’Industrie a opté en premier lieu pour la levée progressive de la subvention des produits énergétiques des usines de cimenteries, qui consomment plus de 7% du volume de consommation globale de l’électricité. Il est opportun de rappeler que le volume de la subvention des hydrocarbures dont profitaient les usines a atteint en 2013, 270 MD, ce qui a exigé la levée de la subvention dans le cadre du plan de maîtrise de la subvention au profit de ses ayant droits.

Le prix du sac du ciment 
ne dépassera pas 7d.500
Aux dires de M. Chbili, la décision de libérer les prix du ciment provient essentiellement de la demande accrue des professionnels d’augmenter les prix qui n’a pas changé depuis 2012. Une augmentation qu’ils considèrent légitime selon la loi, dont la valeur est estimée à 6% par an. La Chambre nationale du ciment a demandé une augmentation des prix de l’ordre de 25%, outre l’augmentation annuelle dont les professionnels n’ont pas profité, la levée de la subvention des produits énergétiques, la flambée des prix des carburants, des salaires, des matières premières, des sacs d’emballage, etc.
« On s’est mis d’accord pour que l’augmentation ne dépasse pas 15%, moyennant 7.500 millimes à la vente pour le sac du ciment, qui était dès l’annonce de la décision, entre 8 et 10 dinars. La Chambre nationale du ciment et le ministère de tutelle, après les négociations, sont arrivés à un accord ». 
La décision de libéralisation des prix du ciment n’est pas fortuite en se référant aux indicateurs qui montrent une baisse de la consommation allant jusqu’à 22 millions de tonnes contre une production quotidienne de l’ordre de 30 mille tonnes.
M. Chbili a dû préciser que les prix peuvent être contrôlés, et des garanties seront fournies pour les stabiliser. Ainsi, la croissance de production permettra aux producteurs de respecter les prix fixés. Avec la cimenterie de Carthage, récemment opérationnelle, première usine en Afrique qui produit entre 6 et 7 mille tonnes par jour, avec l’extension de l’usine de Bizerte dont la production accroitra de 700 mille tonnes par an à un million et demi de tonnes, le mois de mars 2014 verra un excès de la production moyennant 3 millions de tonnes par an, dont une partie sera destinée à l’exportation et le reste en tant que réserves. 
Il est à noter que la consommation nationale du ciment s’élève à 8 millions de tonnes par an, avec 550 mille tonnes destinées à l’exportation. Des quantités assurées par les huit usines produisant 12,2 millions de tonnes par an. En effet, l’abondance de la production « contribuera à la promotion de la concurrence et obligera les commerçants de gros à ne pas augmenter les prix afin de garantir la vente des grandes quantités du produits, sachant que les industriels sont inquiets de cet excès de l’offre et optent pour l’exportation qui sera contrôlée afin d’éviter une éventuelle pénurie ».
A l’évidence, l’excès de la production est le seul garant du prix fixé, qui pourrait, d’après M. Chbili, contribuer à une baisse des prix et mettre fin à la spéculation. « Cette libéralisation des prix du ciment n’aura aucun impact sur le pouvoir d’achat du citoyen, ni sur les prix du bien immobilier. Quant aux promoteurs immobiliers, on ne prévoit pas également une répercussion d’envergure sur la valeur de l’immobilier puisque le ciment ne contribue qu’ à raison de 7% dans la construction ».

ZAMBIA: DANGOTE CEMENT FACTORY TO STRENGTHEN ZAMBIA, NIGERIA ECONOMIC TIES

NIGERIAN High Commissioner to Zambia Sifawu Momoh has said the Dangote Group’s establishment of the cement factory in Zambia will strengthen economic ties between the two countries.

Dangote Group, one of Nigeria’s foremost investors, will this year complete the establishment of a cement factory estimated at US$400 million on the Copperbelt.

Ms Momoh said making the factory operational was part of a strategy by the Federal Government of Nigeria to strengthen economic ties with Zambia.

In a statement released in Abuja, Ms Momoh explained that the Dangote cement firm, when fully operational in Zambia would give direct employment to many people and boost the existing economic ties between the two countries.

She said Nigeria had a lot to learn from Zambia in areas of agriculture and tourism, adding that the West African economic powerhouse would supplement efforts to grow Africa’s leading copper producer.

”The Governments of both Zambia and Nigeria have been discussing ways of sustaining and increasing direct investments to both countries.

”Investors from both countries will soon meet to share ideas on how to bring development into the country,” Ms Momoh stated.

In a related development, Dangote Group president and chief executive officer Aliko Dangote has said the cement factory in Ndola is among five such facilities that the firm would operationalise across Africa in 2014.

The firm aims to operationalise other cement factories in Tanzania, South Africa, Gabon, and the Democratic Republic of Congo (DRC) by the end of this year.

Speaking when he addressed a group of African business executives in Nigeria, Mr Dangote said the five plants which were currently at various stages of construction, will add 13.5 million tonnes to the annual existing production capacity of cement by Dangote.

Mr Dangote said the Group’s core focus is to provide value-added products and services that meet the basic needs of the populace through construction and operation of large-scale manufacturing facilities in Africa.

”The Group is focused on building local manufacturing to generate employment, prevent capital flight and provide locally produced goods for the people,” Mr Dangote said.

This is contained in a statement posted on the Dangote Group website.

The factory in Ndola would produce 1.5 miilion tonnes.

Wednesday, January 15, 2014

INDIA: Cement firms to raise capacity by 20 million tonnes in 2014

The cement industry may continue to see testing times for the better half of the year with fresh capacity of 20 million tonnes (mt) going on stream, taking the industry capacity to 370 mt.

Among major additions, UltraTech Cement is expected to add 8-10 mt, while Shree Cement and JK Lakshmi Cement will put up 6 mt and 4 mt over the next fiscal. Though cement demand is expected to recover, companies may lose pricing power as competition intensifies to push additional capacity into the market. Profitability may remain stressed with rising input costs. The rupee depreciation against the dollar may make coal imports costlier. A. Srinivas, research analyst at Angel Broking, expects the cement industry to remain in the woods next year.

Contrary to market expectation, there was no major revival in demand in the December quarter. The profitability of cement companies had deteriorated as sales in the quarter rose 6 per cent year-on-year (down 8 per cent quarter-on-quarter), while prices dipped 7 per cent (down 3 per cent quarter-on-quarter).

Rajesh Kumar Ravi, research analyst at Karvy Stock Broking, said infrastructure project execution has been declining continuously and projects are being shelved at an alarming rate in the last two years. Cement demand may pick up in the second half of 2014 which may again depend on timely and good South-West monsoon, said Ravi. “We expect overall cement sales to be driven by higher demand from rural regions and tier-II and tier-III cities. This along-with an expected recovery in infrastructure project execution should boost demand.”The average all-India cement prices declined 5 per cent across regions to Rs 289 for a 50-kg bag in the December quarter against Rs 304 a bag in November. Prices in the western region (Maharashtra, Gujarat and Goa), considered the biggest market for cement, declined the most by Rs 20 a bag to Rs 293, while it was down by Rs 9 to Rs 274 a bag in the central region (Uttar Pradesh and Madhya Pradesh).

In the southern region, prices were down by Rs 17 to Rs 316 a bag. In the northern and eastern zones, cement prices declined by Rs 13 and Rs 15 to Rs 269 and Rs 295 a bag, respectively.

Cement demand in the eastern and northern regions was hit by the ongoing sand mining problems, which are expected to be resolved soon. However, prices are expected to be revised higher in the second half of January as demand revives from a few Government projects, which are expected to be rolled out before the code of conduct for next general election kicks in.

UK: Cement firms to face more competition after inquiry

The UK's cement market is set to see greater competition following changes ordered by the Competition Commission.

The Commission spent two years studying the market amid fears existing firms were concentrating on preserving their market share and failing to compete.

It said the lack of competition was costing cement users £30m a year.

The Commission has told one of the existing firms, Lafarge Tarmac, to sell one of its cement plants to enable a new firm to compete in the industry.

The dominant cement firms are Lafarge Tarmac, Cemex, and Hanson. These three were joined a year ago by new entrant, HCM. These, and another company, Aggregate Industries, which does not produce cement, make up the five main suppliers of heavy building materials in the UK, which include aggregates, cement and ready-mix concrete.

Lafarge Tarmac will be required to choose between selling either its Cauldon, Staffordshire or its Tunstead, Derbyshire cement plants.

Lafarge's chief executive, Cyrille Ragoucy, said he was "disappointed" by the decision, adding it was "not reasonable or proportionate".

"The Commission has based its remedies on a partial and historic picture of the market. Its analysis of industry profitability... is flawed, grossly overestimating the returns made," he said.

"It has also failed to take into account the new business environment that has been established by our divestments - only 12 months ago - to create a new competitor, and the entry of new importers into the market."

'Essential product'

The Commission also ordered changes in the supply of another heavy building material, ground granulated blast furnace slag (GGBS), which is a partial substitute for and input into cement.

It has ordered Hanson to sell one of its GGBS production facilities.

It says the inefficient market for this material has led to losses for buyers of a further £15m-£20m a year.

Professor Martin Cave, the chairman of the inquiry, said: "Cement is an essential product for the construction and building sectors and the amount of such work that is funded by the public purse only underlines the importance of ensuring that customers get better value for money."