• Ekbatan Cement Co.
  • Neyzar Qom Cement Co.
  • Faraz Firouzkuh Cement Co.
  • Espandar Lime Complex Co. (Alborz)
  • Espandar Lime Complex Co. (Azarshahr)
  • Arta Ardebil Cement Co.
  • Transportation Company Of Amn Tarabar Almas Espandar

Cement News

»   » Sabanci Holding and Çimsa launch Cimsa Sabanci Cement
Thu, 01 Oct 2020 12:12:41 +0000

Sabanci Holding and Çimsa launch Cimsa Sabanci Cement

Netherlands: Turkey-based Sabanci Holding and subsidiary Çimsa have announced the launch of Cimsa Sabanci Cement, a 60:40 subsidiary of both companies, based in the Netherlands. Reuters News has reported that Sabanci Holding plans to use the new company “to reach its goal of becoming a leading player in the global white cement trade.”

Cimsa Sabanci Cement will buy 70% of shares in Cimsa Adriatico Cement, Cimsa Americas Cement, Cimsa Cementos España and Cimsa Cement Sales North. Other assets will be sold off, including its 1.5Mt/yr Alicante integrated grey cement plant to Cementos Molins, according to Alimarket-Construcción News.

»   » PPC further postpones 2020 financial year results
Thu, 01 Oct 2020 12:11:52 +0000

PPC further postpones 2020 financial year results

South Africa: PPC has announced the postponement of its full year results for the financial year that ended 31 March 2020 “as a result of required restatements and the finalisation of the year-end audit.” The company has twice delayed the results already, most recently to 18 August 2020 due to a “restructuring and refinancing project.”

In a notice to the Johannesburg Stock Exchange, PPC said, “The company wishes to advise shareholders that during the audit process for the year ended 31 March 2020, and subsequent to 18 August 2020, additional prior year errors were identified and corrected.”

»   » Value of eight-month Turkish cement exports to Iran falls by 34% in 2020
Thu, 01 Oct 2020 12:09:31 +0000

Value of eight-month Turkish cement exports to Iran falls by 34% in 2020

Turkey: Exports of cement to Iran have fallen by 34% year-on-year in value in the first eight months of 2020 to US$9.30m from US$14.1m. All Turkish cement exports over the period totalled US$2.30bn, down by 2.3% from US$2.35bn. Cement accounted for 2.6% of the country’s total exports (US$88.4bn).

»   » Cemex partners with Synhelion for solar-fuelled clinker production
Thu, 01 Oct 2020 12:05:57 +0000

Cemex partners with Synhelion for solar-fuelled clinker production

Mexico: Cemex has announced the signing of a collaboration agreement with Switzerland-based alternative fuel (AF) specialist Synhelion, through which the pair aim to develop the use of solar power as an alternative heat source to fuel in clinker production. Pilot testing of Synhelion products will begin at a Cemex plant in late 2022, at a total investment cost of up to US$10m.

Head of global research and development Davide Zampini said, "Thanks to the technology that Synhelion is developing, we can bring the solar heat up to 1500°C. In the process, we can also capture the carbon dioxide (CO2), and that fits perfectly into the process of the synthetic fuel."

»   » Update on Egypt: September 2020
Wed, 30 Sep 2020 12:17:17 +0000

The one thing that the Egyptian cement industry really didn’t need this year was any more jolts. Since the gargantuan 13Mt/yr government/army-run El-Arish Cement plant at Beni Suef opened in 2018, the sector has been stuck in production overcapacity and struggling to catch up. Yet, like the rest of us, they got one nasty surprise in the shape of the coronavirus pandemic. This has added stress to the whole situation and we can see some of this in various news stories that Global Cement has covered recently.

HeidelbergCement’s local subsidiary Suez Cement has been busy in recent days making changes to its corporate structure in the form of a tender offer to buy a 100% stake in Egyptian Tourah Portland Cement. Production stopped at Tourah Cement in June 2019 due to market conditions. This follows yet more lacklustre financial results earlier in September 2020 that show the pain that it and other cement producers have been enduring. Suez Cement’s loss nearly doubled year-on-year to Euro38m for the first half of 2020 and its sales fell by 18% to Euro145m. This was blamed on production overcapacity and a coronavirus-related lockdown. Other producers, both multinational and local, have experienced a similar situation.

Suez Cement also announced in mid-September 2020 that its Ready Mix Beton subsidiary had secured a contract for the supply of concrete for the construction of two new monorail lines connecting the country’s new city projects. Unfortunately, as Suez Cement’s chief executive officer (CEO) Jose Maria Magrina explained in an interview to Daily Egypt News in July 2020, “the New Administrative Capital (NAC) is a very big project, but in the end it has not offset the decrease in informal buildings that have been stopped.” Despite Suez Cement being a major supplier and the proximity of its plants to the site, overall sales have gone down.

Graph 1: Cement consumption in Egypt. Source: Cement Division of the Building Materials Chamber of the Federation of Egyptian Industries.

Graph 1: Cement consumption in Egypt. Source: Cement Division of the Building Materials Chamber of the Federation of Egyptian Industries.

Magrina’s gloom is shared by other industry figures with a general assumption that perhaps up to a quarter of the country’s 20-something cement plants may have to close in the next year or so. Coronavirus has only deepened this view as the government’s response was to cease issuing construction licences for private buildings in Greater Cairo, governorate capitals and major cities from late May 2020 for six months. Solomon Baumgartner Aviles, the CEO of Lafarge Egypt, said in July 2020 that local cement demand fell by 6.5% year-on-year in the first half of 2020. He added that coronavirus had ‘strongly’ impacted the building materials sector with a big effect on the individual market, and with the licence halting exacerbating the situation further. As data from the Cement Division of the Building Materials Chamber of the Federation of Egyptian Industries shows above in Graph 1 demand peaked at 56.5Mt in 2016 and has since declined to a low of 48Mt in 2019. By month the sector recovered in January and February 2020 respectively with growing cement sales on a year-on-year basis but this has since declined with losses in most months subsequently. This is set against a production capacity of 81.2Mt/yr in 2018, giving an excess of 30Mt/yr and a utilisation rate of 59%.

One story that was mentioned in the local press this week is that Arabian Cement Company (ACC) had started negotiations with the European Bank for Reconstruction and Development and the Commercial International Bank – Egypt to secure new loans worth over US$20m. The ACC has denied this publicly in a statement to the Egyptian Exchange but it’s a sign of the trouble that is expected in the sector given the current circumstances.

All of this leaves cement producers scrabbling to hold on until the market picks up again, takes action in other ways or the government intervenes. Some analysts expect the market to stabilise in the medium to longer term as work on large infrastructure projects like the NAC mounts. Suez Cement’s Jose Maria Magrina has said that, “the government must, within the law, dictate norms that will rationalise the market, while making sure that companies survive since current prices do not cover the costs of production.” Local press has since reported that the Ministry of Trade and Industry has started trying to help cement companies, including measures such as limiting production to balance supply and demand, and decrease the surplus in the market. Another option is a coordinated export subsidy programme in coordination with the government but nothing appears to have happened yet after several years of discussion. Unhelpfully for any export aspirations, Egypt finds itself in a very cement export-heavy part of the world, wedged as it is between North Africa, Turkey and Southern Europe.

Hope springs eternal though as, almost unbelievably, Egyptian Cement Group’s CEO Ahmed Abou Hashima surfaced last week to remind everyone that his company still plans to inaugurate its new integrated cement plant in 2021. The project to build a new 2Mt/yr unit in Sohag has been brewing since 2017 when it was announced with China-based Sinoma on board as the engineering partner. It was originally scheduled to open in the first half of 2020 but it was delayed by coronavirus. Let’s hope the picture looks better when it finally opens.

»   » Senan Murphy to retire as Group Finance Director of CRH in 2021
Wed, 30 Sep 2020 12:16:40 +0000

Ireland: Senan Murphy intends to retire as Group Finance Director of CRH in 2021. He will remain in post until the group’s board successor finds a successor to ensure a smooth transition. Murphy has been in the post since mid-2015.

»   » Salim Ahmed Alawi Al-Ibrahim appointed as acting deputy head of Raysut Cement
Wed, 30 Sep 2020 12:16:07 +0000

Oman: Raysut Cement has appointed Salim Ahmed Alawi Al-Ibrahim as Acting Deputy Group chief executive officer (CEO). He will support Raysut’s Group CEO Joey Ghose in the role. Salim has been with Raysut Group since 2014 and has been described as ‘contributing significantly’ to the company in the sales department.

Mohammed Ahmed Aideed has also been promoted as the Acting General Manager of Raysut Cement. Mohammed holds over a decade of experience in sales and marketing and has been working with Raysut Cement since 2009. He started his career as a sales representative and subsequently moved up to managerial positions. He has also held senior positions such as Head of Marketing and Business Intelligence, Acting CEO and Head of Business Support.

»   » Oswaldo Pereda appointed as director of LafargeHolcim España Villaluenga de la Sagra plant
Wed, 30 Sep 2020 12:15:16 +0000

Spain: LafargeHolcim España has appointed Oswaldo Pereda as the director of its integrated Villaluenga de la Sagra cement plant near Toledo. He was previously the director of the plant from 2010 to 2012. He succeeds Maruxa Suárez, who will work at the company’s Carboneras plant in Almería.

Pereda is a graduate in mechanical engineering from the Simón Bolívar University in Venezuela. He first worked for Venezolana de Cementos in 1987 before moving to Lafarge Venezuela in 1995. He has since worked in production and operation roles for Lafarge, Cementos Polpaico and LafargeHolcim in Spain, Brazil and Chile.

»   » Torxx Kinetic Pulverizer’s Nicolas Belanger dies
Wed, 30 Sep 2020 12:14:32 +0000

Canada: Torxx Kinetic Pulverizer has announced the death of vice president of sales Nicolas Belanger. He died unexpectedly a week before his 50th birthday. He was the former co-owner of Machinex Group, where he worked for over 20 years. He was also the co-founder and president of Waste Robotics.

“Our hearts are heavy, and we’re stunned by the untimely and devastating passing of our colleague, friend and industry icon,” said Peter Everson, the chairman of Torxx Kinetic Pulverizer. “Nicolas had been instrumental in moving our company - and the industry - forward over the past 25 years. He was a talented engineer and strong business leader, whose industry knowledge and experience were second to none. He is greatly missed, and we share the grief of his family, friends and colleagues.”

»   » Cimenterie de Côte Ouest-Africaine announces plans for 2.5Mt/yr cement plant in Togo
Wed, 30 Sep 2020 12:13:07 +0000

Cimenterie de Côte Ouest-Africaine announces plans for 2.5Mt/yr cement plant in Togo

Togo: Cimenterie de Côte Ouest-Africaine (CimCo) says that it has hired Germany-based Intercem Engineering and Gebr. Pfeiffer for the supply and installation of a 2.5Mt/yr-capacity integrated cement plant in Lomé, Maritime Region. Togo First News has reported that the company has secured a US$35.8m loan from Banque Ouest Africaine de Développement (BOAD) towards construction of the US$179m plant.

CimCo said, “The targeted goal is to contribute to the satisfaction of cement demand in Togo and the region by taking advantage of the geographic location of the port of Lomé, as well as to contribute to the country's economic growth by boosting the competitiveness of the industrial sector along with performances of the infrastructure sector.”