PHILIPPINES: Cement sales drop 6.7% in first quarter

MANILA, Philippines – Cement sales dropped 6.7 percent in the first quarter of the year after huge election spending fueled an abnormally high growth in cement sales in the same period in 2010.

Cement Manufacturers Association of the Philippines president Ernesto M. Ordoñez told reporters that sales dropped to 3.8 million metric tons in the January-March period this year from 4.076 MMT in the same period in 2010. Total sales in 2010 stood at 15.5 MMT.

Ordoñez explained that election spending in May 2010 has fueled growth in cement sales in the first quarter of that year.

“2010 was driven by elections spending and Ondoy repairs,” he said. Capacity utilization of cement plants is expected to remain at 60 to 65 percent while demand at 15 MMT to 16 MMT.

With the lower first quarter growth, Ordoñez said, the industry may revise its four percent growth projection for the year.

Meanwhile, an industry source said that CeMAP is planning to ask the Department of Trade and Industry to intervene as some companies are incurring losses due to the high cost of coal and fuel cost. Cement plants are using coal imported from Australia.

According to industry players, Australia has raised prices following the huge flooding.

On the other hand, cement manufacturers cannot increase prices because of low demand and stiff competition.

Some players have attempted tor raise prices early this year only to revert back to their old prices.

In fact, prices of cement have dropped from P215 to P220 per bag in November last year to below P200 now.

New player Eagle Cement has started selling last year but is using imported clinker. The firm hopes to start operating its kiln this year. (BCM)

REPUBLICA DOMINICANA: First Shipment Of Carib Cement Goes To Dom Rep

Caribbean Cement Company Limited (CCC), in a move to expand to markets in the region, has shipped its first batch of 2,500 tons of cement to the Dominican Republic and later signed an agreement to set up warehouse space and a distribution and packaging unit in Haiti to take advantage of the rebuilding of the country following the January 2010 earthquake in that nation.

It is seeking to consolidate its position in Haiti to which it had already been exporting cement since 2008.

Anthony Haynes, CCC general manager, said the company's foray into the Dominican Republic market was being made in a context where the search for new markets outside of Jamaica became more urgent with the completion, in August 2009, of the US$170 million Rockfort, Kingston plant upgrading and modernisation project, which boosted CCC's capacity to a million tons of cement.

The shipment was sent off from the Rockfort pier on Monday.

Haynes said the Dominican Republic, which has the capacity to absorb three million tons of cement annually, is considered to be among the most lucrative in the region and Caribbean Cement's intention is to gain 10 per cent of that market. This would result in a 78 per cent improvement in total exports for the cement manufacturer, which exported 192,500 ton last year, doubling the amount shipped in 2009.

Haynes, in an interview on Wednesday, said the addition of the Dominican Republic was crucial in Caribbean Cement Company's quest to increase its presence in the region.

The country, he told Financial Gleaner, has been a target market for CCC given the "very attractive prices and only two shipping days away from Jamaica."

"We can see ourselves easily putting in 100,000 tons into Dom Rep per year for a start," said Haynes, adding, "I think very soon we should be doing eight to 10,000 tons per month. This market is the real game-changer."

The company started exports after a one-year certification process by the Dominican Republic's standards agency General Management Standards and Quality Systems.

CCC has no plans for infrastructure build out in the Dominican Republic at this time, but has partnered with Docemca, a local company, to sell its products.

"We sell FOB (freight on board), so the risk passes to them. They own the ships and have the logistical capabilities in Dominican Republic and also in Haiti," said the general manager.

According to Haynes, "We have established our brand throughout the market. We are now looking for markets where we feel that we can have a significant quantity of cement going into a destination."

Caribbean Cement has not yet penetrated the Venezuelan and Colombian markets, but it has moved to establish partnerships in those countries, said Haynes.

"Haiti is a very volatile market, but we have a very good understanding of that country, and it is part of a long-term strategic goal," the general manager said.

"That goal can change if the donor countries that promised some US$16 billion in aid following the earthquake (in January 2010) do not provide the money, but we intend to be there."

UK: Lafarge and Anglo American to create a leading UK construction materials company

Lafarge SA and Anglo American plc announce their agreement to combine their cement, aggregates, ready-mixed concrete, asphalt and contracting businesses in the United Kingdom, comprising Lafarge Cement UK, Lafarge Aggregates and Concrete UK, ("Lafarge UK") and Tarmac Limited ("Tarmac UK").

The transaction will form a 50:50 joint-venture and will create a leading UK construction materials company with a portfolio of high quality assets drawing on the complementary geographical distribution of operations and assets, the skills of two experienced teams and a portfolio of well-known & innovative brands. The 2010 combined sales of these two businesses amount to £1.8 billion with combined EBITDA of £210 million.

This combination is expected to deliver substantial recurring synergies of at least £60 million per annum. Such synergies are expected to be generated by increased operational efficiencies, improved logistics, and the introduction of value-added products across a wider geographic reach.

The joint-venture's complementary geographical and product portfolios are also expected to create a business optimally positioned to benefit from the economic recovery.

Bruno Lafont, Chairman and Chief Executive of Lafarge, said: "This new leading construction materials company, built on the strengths and proud histories of two great teams, will create more value to customers, with an enhanced and larger offer of products and services. For Lafarge this deal is cash neutral, is accretive to Lafarge's shareholders and illustrates our strong commitment to the UK market."

Cynthia Carroll, Chief Executive of Anglo American, said: "We are excited to be bringing together two high quality and complementary UK businesses to create a compelling new industry proposition through which we expect to unlock significant value. While Anglo American's objective remains to divest its interests in the joint venture over time, this transaction positions us well to maximise value."

The joint-venture will operate with its own Board of Directors led by an independent Chairman and executive management teams drawn from both businesses.

Completion of the transaction is conditional upon regulatory approvals. Both Lafarge UK and Tarmac UK operations will continue to operate independently until obtaining such approvals.

ESPAÑA: Las cementeras piden penalizar los vertederos

El sector reclama la creación de un canon disuasorio que evite la pérdida del 52% de residuos útiles para combustible

En el peor año para la industria del cemento por la caída en picado de las ventas, todo ahorro de costes es bienvenido, especialmente el derivado del gasto energético, que representa el 37% de los costes de producción del sector, entre energía térmica y eléctrica. Los enormes hornos de las 36 fábricas que operan en España para la producción de clinker generan el 16% del gasto en combustible, por el uso de energía térmica. En el actual contexto de crisis y con el precio del petróleo rozando de nuevo máximos históricos, las cementeras quieren acelerar su apuesta tecnológica y productiva por el uso de residuos como combustible alternativo al petróleo y al carbón, en la que llevan más de una década.

En ese camino, dichas compañías se han topado con un obstáculo insalvable: el uso masivo de vertederos en España, que siguen almacenando el 52% de residuos municipales, según cifras de la agencia estadística de la Unión Europea (Eurostat). "Somos el parque cementero que menos energía consume en Europa tras 12 años de inversión en mejora tecnológica y, sin embargo, nuestro coste en combustible sigue siendo mucho más elevado que en la UE", explica Pedro Mora, director de tecnología y medio ambiente de Oficemen, la patronal de la industria.

Las empresas achacan este diferencial a la imposibilidad de atraer más residuos para transformarlos en nuevo combustible. En Holanda, la tasa de reutilización de residuos para combustible alcanza hasta el 80%, en Alemania es del 55%, mientras en España se reduce al 15%. "Esa diferencia nos resta competitividad", añade Mora. Por ello, Oficemen pide que la Ley de Residuos que ha entrado esta semana en el Congreso para sustituir la norma de 1998 imponga un canon para aquellos desechos que terminan en los vertederos.

La medida figura entre 11 enmiendas al texto que la patronal ha presentado, y pretende empujar a la creación de nuevos instrumentos que penalicen con más contundencia la eliminación de residuos valorizables, lo que en la jerga del sector significa que puedan tener una segunda vida como fuente energética.

"Limitar el uso de vertederos supondría elevar notablemente los porcentajes de reciclado y aprovechar después la energía contenida en los residuos", explican desde Oficemen. En solo un año, los residuos que sustituyeron a combustibles fósiles tradicionales crecieron del 6,5% al 11,9% en las instalaciones cementeras como fuente de calor alternativo al coque de petróleo. El objetivo del sector en España es alcanzar el 20% de sustitución al petróleo en 2012.

En España existen hasta 76 tipos de desechos autorizados para ser transformados en energía para combustible. A las 28 instalaciones que tienen luz verde para valorizar llegan aceites usados, plásticos, neumáticos, lodos de depuradora, disolventes y barnices, serrín, madera o grasas animales. En 2002, el Gobierno recurrió a las cementeras para deshacerse de las harinas cárnicas afectadas por la crisis de las vacas locas.

La apuesta del sector le ha valido salir de la lista de actividades industriales más contaminantes para abrazar un modelo productivo que emite menos dióxido de carbono y de paso ahorra energía y costes. Evitar el uso de vertederos significa limitar las emisiones de metano, gas muy tóxico, que se producen al fermentar las basuras orgánicas. El uso de residuos que se consideran biomasa, como harinas animales, madera o serrín, contribuyen a reducir las emisiones de CO2.

El viaje del sector hacia un modelo más sostenible es un desafío sin vuelta atrás, en un contexto de mayor restricción regulatoria ambiental, caída de la demanda de cemento y búsqueda de precios energéticos más competitivos.

Las cifras

80% tipos de desechos están autorizados en España para ser transformados en 'ecofuel' para la industria del cemento.

76 de residuos para nuevo combustible se reutilizan en el sector cementero en Holanda, mientras que en España esta cifra se reduce al 15%.

37% de los costes de la producción del sector son energéticos, entre energía térmica (que sirve para calentar los hornos a muy alta temperatura) y electricidad.

Grabar el argot en el texto de la ley

Hasta 11 enmiendas ha presentado la patronal de las cementeras al texto de la Ley de Residuos que prevé actualizar el actual marco normativo para el tratamiento y gestión de desechos en España, que data de 1998. La primera y más importante para el sector es que reconozca lo que en la jerga del reciclaje se conoce como valorización energética. Sin esa premisa pierde fuelle cualquier intento de grabar en el mármol legislativo la necesidad de transformar los residuos en nueva fuente energética.

El texto que se está tramitando en el Congreso reconoce la transformación de residuos en nueva materia prima, sin especificar que esta pueda ser energética. El resto de enmiendas sigue la línea de apuntalar la transformación de los residuos sólidos urbanos en recurso económico.

ITALIA: Cemento dall'amianto dismesso. Cava sperimentale a Varese

Trasformare l'amianto in cemento, è questa la sfida che potrebbe essere accolta dalla Regione Lombardia se darà corso al progetto sperimetale della provincia di Varese. Miliardi di metriquadri di amianto che oggi sono sui tetti delle città, dei capannoni industriali e delle stalle potrebbero essere smatellati e riconvertiti in materiali per la costruzione di edifici, una pratica che comporterebbe un vantaggio sia in terminieconomici che ecologici.

Si aggira infatti intorno ai 120 euro a tonnellata il costo per lo smaltimento tradizionale del pericoloso materiale. Di contro, il prezzo massimo stimato per l'attivazione di un ciclo di riconversione dell'amianto nell'impianto progettato, è di 70 euro. Un risparmio di 140 miliardi di euro per il nostro paese che si sommerebbe alla riduzione del rischio di dispersione di fibre, un problema tuttora irrisolto nella dismissione tradizionale.

Un progetto degli industriali di Varese

Le proposte di abbracciare un progetto di ricerca riguardante un trattamento innovativo che trasforma le lastre di eternit in materia prima da inserire nel calcestruzzo, andando ad integrare il cemento, è nata in seno al Gruppo merceologico “Materiali da Costruzione, Estrattive e Cave” dell’Unione degli Industriali della Provincia di Varese, tenutasi lo scorso 11 aprile a Busto Arsizio.

Si tratta di un progetto dalla significativa valenza economica ed ambiantale. La presenza di amianto sul territorio nazionale è a tutt'oggi ancora massiccia, si stimano circa 2,5 miliardi di m2 di coperture in cemento-amianto e circa 300 milioni di m2 in matrice friabile. Problema di enorme portata che richiede soluzioni immediate. L'idea di istallare un impianto di trasformazione dell'amianto nel luogo estrattivo dove è già presente un'attività di preconfezionamento del calcestruzzo, potrebbe rivelarsi una di queste.

“Di norma – ha spiegato Giovanni Rossetti, presidente del gruppo merceologico – nella filiera del calcestruzzo, visti i bassi valori delle materie prime, i costi di trasporto incidono pesantemente. In questa maniera, invece, otterremmo una materia prima a chilometri zero.” Da considerare, inoltre, la possibilità di creare qualche prospettiva occupazionale: per il funzionamento di ciscun impianto occorrono 30 addetti.

La tecnologia in dettaglio

Il progetto di ricerca, supportato dal dipartimento di Scienze della Terra dell'Università di Modena e Reggio Emilia, in collaborazione con la società di stoccaggio Zetadi di Ferno, prevede una conversione cristallochimica dell'amianto.

Trattato a temperature maggiori di 900 °C, attraverso l'utilizzo di un forno continuo, l'amianto si trasforma in fasi cristalline innocue, con completa distruzione delle fasi fibrose.

Il prodotto ricristallizzato che si ottiene da questa lavorazione è denominato Kry.As, una sorta di clinker, componente base per la produzione del cemento. Sulla salubrità del prodotto e sul rischio di dispersione prima e durante il processo, i ricercatori garantiscono perché al termine del trattamento termico il materiale è completamente trasformato e innocuo e prima del ciclo è interamenre sigillato.

La tecnologia è già stata testata, ma si tratterebbe di passare da esperimenti su piccola scala alla fase industriale. La cava di Lonate Pozzolo, in provincia di Varese, è il sito proposto per la sperimentazione.

VENEZUELA: Cemex aseguró que cubrirá meta productiva en el 2011

El equipo de transición de la empresa Cemex aseveró este martes que cumplirán la meta productiva planteada para este año, la cual se ubica en las 3.400.000 toneladas de cemento. 

Durante el 2010 la producción estuvo por el orden de las 3.200.000 toneladas. Julio Millán, representante de la industria cementera, ofreció estas declaraciones en respuesta a una serie de informaciones lanzadas por sindicalistas opositores y que a su juicio, no se ajustan a la realidad porque Cemex ha mantenido su producción desde que fue nacionalizada. "Varios trabajadores integrantes de sindicatos ilegales son los que vienen desprestigiando a la empresa y desconociendo las mejoras laborales que allí se han implementado a través del contrato colectivo. 

También desmintió que el saco de cemento tipo 3 sea comercializado en planta a 40 bolívares, ya que el mismo tiene un costo de 20.

PARAGUAY: Disponen de cemento argentino para hacer frente a crisis de la INC

La presidenta de la Cámara Paraguaya de la Construcción (Capaco) anunció que ya están disponibles en el país unas 200.000 bolsas de cemento importado para amortiguar el impacto de la crisis de provisión del producto por parte de la Industria Nacional del Cemento (INC).

Ana Lucy Porro, titular de la Cámara Paraguaya de la Construcción (Capaco), comentó a la 780 AM que el producto es traído desde Argentina por un sector privado.

La empresaria manifestó su satisfacción debido a la carga importada y anunció que las bolsas se están vendiendo a G. 48.000, cifra que ya incluye el Impuesto al Valor Agregado (IVA).

“Ya han comprado nuestros asociados, es perfecto el cemento”, refirió al comentar que la calidad está garantizada.

Se prevé la llegada de otras barcazas con cemento, adelantó.

Estimó que estas cargas posibilitarán dinamizar nuevamente el sector de la construcción, que se vio fuertemente afectado por la crisis de cemento generado por la INC.

INDIA: Cement sector to grow in double-digits from next fiscal: E&Y

The 197-million tonne domestic cement industry is set to clock double-digit growth from next fiscal with demand outstripping even the 57-mt capacity addition expected by FY14, says an industry report by Ernst & Young India. 

The Rs 77,800-crore (as of March '10) domestic cement market -- already one of the fastest growing ones globally and the second largest among the emerging markets after China -- is on course to a double-digit growth path, it says. 

"From FY13, the domestic demand is expected to exceed supply... From FY12 through FY14, the domestic cement industry will add at least 54 mt new capacity," says Ernst & Young India partner Nitin Gupta in a report titled 'Cementing India.' 

But he notes that this additional 57 mt capacity is unlikely to be absorbed by domestic demand this fiscal and it sees capacity utilisation level remaining at around 80 per cent during this fiscal. 

However, the report adds that from FY13 onwards demand will outstrip supply and this higher demand is expected to continue in the medium to long-term. 

The report places its optimism on two factors mainly: the very low per capita intake and the massive USD 1-trillion infrastructure push being given by the government over the next five years. 

"Although India is one of the largest cement markets in the world, per capita consumption is still low compared to the global average as well as that of other large markets like China and the US. 

"Moreover, the country lags significantly behind China on the infrastructure front and can register an unprecedented growth in infrastructure in future. This is a clear indicator that the industry has huge growth potential and is on course to witness double-digit growth in the coming years," he says.

VIETNAM: Cement production costs rise by up to 30%

HA NOI — Recent increases in the price of electricity, coal and fuel have forced the Viet Nam Cement Industry Corporation (VINCEM) to increase cement prices by VND120,000 (US$5.8) per tonne to avoid losses, the corporation announced.

Cement production costs have increased from 22 to 30 per cent for a number of reasons, including a 15.3 per cent increase in electricity and fuel prices, the devaluation of the Vietnamese dong against the US dollar, high lending interest rates and a 40 per cent increase in coal prices which became effective at the beginning of this month.

Chairman of the Viet Nam Cement Association Nguyen Van Thien said power costs made up from 45 to 50 per cent of cement production costs.

Since the end of last year, the cement sector has been struggling with these challenging factors. This year, VINCEM would have to pay back VND3.2 trillion (US$154.6 million) in debts and Cam Pha Cement Plant, VND800 billion ($38.64 million), said Le Van Chung, VINCEM's management board chairman.

"Therefore, cement manufacturers were forced to adjust their cement prices in order to survive and pay back their debts," he said.

Chung said during the past 10 years, prices for cement made in Viet Nam were $50 per tonne which was much lower than average prices in ASEAN countries which ranged from $65 to $75 per tonne.

In the past three years, cement prices have risen by 13 -15 per cent while coal prices have doubled and fuel and electricity prices have been increased constantly.

However, one of the most serious problems was that electricity and coal sectors raised their prices while also reducing supply to only 70 per cent of the cement sector's need, causing a shortage of around 10 million tonnes of cement.

Power cuts will also lead to standstills on the cement assembly lines.

To minimise the difficulties, Chung said the corporation had instructed its members to cut production costs by saving energy.

Accordingly, cement plants had to reschedule operation of their assembly lines to take advantage of non-peak hour power costs.

VINCEM is also developing a project to use extra heat from clinker kilns to generate power at Hoang Thach and Tam Diep cement plants.

All plants under the corporation were aiming to set up this new equipment to generate more than 18 to 20 per cent of power needed for production, Chung added. — VNS

AFRICA: TANZANIA: Cement firm introduces new bags as part of anniversary

Dar es Salaam. Tanga Cement has launched new bags for its Simba Cement brand to improve packaging. 

The managing director of Tanga Cement Company Erik Westerberg said in a statement yesterday that by improving the packaging, Simba cement seeks to extend further our dedication to customer requirement, ensuring the renowned cement reaches the customer fresh and intact.

The new bags are also part of commemorating the 30th year of the company’s founding. The new red and white coloured bags have been improved to ensure dust reduction and the sealing system is reinforced to avoid leaks and make it difficult for unscrupulous traders to siphon cement out.

TURKEY: Turkish cement group scans region for acquisition

The Sabancı Cement Group, which includes two leading cement producers in Turkey, is eyeing chances to acquire factories abroad. ‘Crazy growth’ before the global crisis and the shrinking that followed are today offering strong investors with opportunities to buy stagnant plants, says Mehmet Göçmen, the group’s chairman. The company is also looking for domestic acquisition chances, he says

The Sabancı Cement Group, a Sabancı Holding subsidiary, is searching for acquisitions in production facilities both in Turkey and abroad, Mehmet Göçmen, the group president said Thursday.

The world experienced “crazy growth” between 2003 and 2008, which increased capacity by 850 million tons annually. But the industry hit rock bottom during after the global recession, the president said.

The sector in Turkey did not grow in 2009 but expanded 17 percent last year, he said.

Significant global players fell into debt during the crisis and while they are reconfiguring their networks they are trying to sell cement plants, said the president.

"The international investment environment provides the companies that have strong balance sheets like ours with the chance to invest,” he said. “We hold the advantage of having a strong cash-inflow during a period when markets across the world are in bad shape.”

Sabancı Cement Group consists of two separate companies: Akçansa, a Sabancı Holding and Heidelberg Cement joint venture, and Çimsa, a Sabancı firm that has been in business since 1975.

"The annual activities of our two companies come to between 300 million and 400 million Turkish Liras. Sabancı has a borrowing capacity of up to 1.2 billion liras from the companies’ balance sheets, without adding any additional capital. This means we can invest between 1 billion and 1.2 billion liras without doing anything extra. We can raise our annual capacity of 15 million tons to 25 million tons depending on our internal dynamics.”

Göçmen said they would choose a country with low risk, suitable demographical structure and easy geographical access for their new investments.

Anti-trust regulations

Göçmen spoke about the anti-trust laws and regulations for the market in relation to many cement factories in bad financial condition. “Isn’t it a pity? Capacity is there but someone says: You cannot buy that firm. Some rules need flexibility for the sake of the country’s benefit,” he said, calling on economists and top business organizations to intervene in the issue.

World market

A total of 3 billion tons of cement is produced across the world, Göçmen said, adding that only a small portion, between 170 million and 200 million tons, is traded internationally. Generally, countries can produce the amount of cement they need to meet their domestic demands, said the president.

Growth in the cement industry is directly related to the development level of a country, said Göçmen. The amount of cement consumption in developing countries is much higher than developed countries. The highest consumption figures across the world stand between 800 and 1,000 kilograms per capita annually, he said.

INDIA: Shree Cement revives Raipur cement plan, to invest Rs 1,000 crore

Shree Cement, the biggest in the northern region, with market capitalisation of Rs 5,920 crore, is set to put up a two-million tonne clinkerisation unit near Raipur, Chhattisgarh, with an investment of Rs 1,000 crore.

This is the first time the company is setting foot outside Rajasthan. H M Bangur, managing director, said, “We have been acquiring the land for the last two years and have got partial success. We have acquired 75 per cent of the area and once completed, we will first put up the clinker plant.”

The Rs 1,000 crore would be funded through internal accrual, Bangur added. He did not specify any schedule for commissioning but said the order for equipment would be placed soon. Adding: “Once the entire land purchase is complete and we are sure about the time frame of the clinker unit, three-six months from thereon, we will look at the grinding unit.”

In April 2007, nine cement companies had each signed a memorandum of understanding (MoU) with the Chhattisgarh government for new cement plants and expansion of existing ones, with a total investment of Rs 6,800 crore. A year later, the MoU’s were put on a back burner due to the government’s inability. Now, after four years, Shree Cement has revived its plan.

Shree was expected to add 1.5 million tonnes per annum (mtpa) of grinding capacity by April 2011 to its existing 12 mtpa, taking the total to 13.5 mtpa. Apart from the northern region, where cement prices have reached a record high, it has been supplying to the central region, too. The price there last month was around Rs 240 per 50-kg bag; North India showed Rs 260 per bag for grade-A companies.

Jinesh Gandhi, research analyst with Motilal Oswal Securities, wrote in a note to clients last month, “Shree Cement has been gradually diversifying into the central region and now derives 72 per cent of its volumes from North India and 28 per cent from Central India.”

ARGENTINA: Crecieron las ventas de cemento en marzo

Tras la baja de febrero, las fábricas de cemento portland despacharon 924.684 toneladas en marzo -incluyendo exportaciones-, lo que representó una mejora mensual de 10,9 por ciento y una suba interanual de 3,1 por ciento.

Según datos provisorios de la Asociación de Fabricantes de Cemento Portland (AFCP), con destino al consumo interno los despachos totalizaron 911.933 toneladas, 11,3 por ciento más que en febrero y 4,6 por ciento arriba de las colocaciones de marzo de 2010.

De esta manera, en el primer trimestre del año los despachos de cemento sumaron 2.627.786 toneladas, 10,75 por ciento más que en el mismo lapso de 2010, mientras el consumo doméstico evidenció una suba de 11,9 por ciento hasta 2.582.671 toneladas.

A lo largo del año pasado los despachos totales de cemento alcanzaron el récord de 10.461.624 toneladas, lo que además implicó una recuperación de 10,7 por ciento frente a 2009.

Para este año, AFCP proyecta colocar 11,008 millones de toneladas.

ESPAÑA: El consumo de cemento cae un 2,18% en el primer trimestre

El consumo de cemento se situó en los 5,2 millones de toneladas en el primer trimestre, lo que representa un descenso del 2,18% en comparación con el mismo periodo del año anterior.

Según informó este miércoles la patronal cementara Oficemen, estos datos "no implican que el consumo de cemento esté recuperándose", y explican que "las condiciones meteorológicas están sesgando la trayectoria de las previsiones del ejercicio".

En cuanto a las exportaciones de cemento y clínker, éstas mantienen la trayectoria al alza, al crecer un 17,7% en el primer trimestre, mientras que las importaciones bajan un 45,19%.

MEXICO: Cemex sees $400 mln in savings - report

Mexican company Cemex (CX.N) (CMXCPO.MX), the world's No. 3 cement maker, expects a reorganization to save some $400 million annually after 18 months, Chief Executive Lorenzo Zambrano told Reforma newspaper.

The expected savings come after Monterrey-based Cemex announced a management reshuffle earlier this week.

"With this new structure, with fewer (management) levels, we think we'll have savings of close to $400 million on top of other savings previously announced," Zambrano said in an interview published on Wednesday.

Cemex was not immediately available for further comment.

The company said on Monday that senior executive Fernando Gonzalez will take on the role of chief financial officer.

The executive, who as Cemex's vice president of planning and finance already handled top financial decisions in the company, would also take on the tasks of the CFO, although he would not take that title.

Long-serving CFO Rodrigo Trevino, who had spearheaded the company's efforts to refinance Cemex's debt load after buying Australian rival Rinker in 2007, took early retirement. (Reporting by Cyntia Barrera Diaz, editing by Gerald E. McCormick)

INDONESIA: Exports may decline this year

Indonesia’s cement exports will likely decline this year, as most of the country’s major cement producers are focusing on the domestic market, an industry leader says.

“Cement exports are likely to decrease to one million or two million tons this year from three million tons last year as producers will allocate a larger part of their production to meet the surging demand in the domestic market,” Urip Timuryono, the chairman of the Indonesian Cement Association (ASI), told The Jakarta Post on Monday.

Indonesia has eight cement companies with a total capacity of 53 million tons per annum. Three of them — PT Semen Padang, PT Indocement Tunggal Prakarsa Tbk. (“Indocement”) and PT Semen Cibinong (Holchim) — were the major contributors to last year’s exports, destined mostly for Asian countries such as Bangladesh, Sri Lanka and Brunei.

Urip said that to meet domestic and export demands, cement companies plan to increase their total production to 45 million tons this year from 41.5 million tons in 2010. 

He added that Indonesia imported 1.5 million tons of cement from Malaysia last year in order to meet the growing domestic demand.

The increase in house construction, partly due to relatively low interest rates, has contributed to the surge in cement demand in the domestic market, he said.

“The government’s program to develop infrastructure such as toll roads and bridges is also contributing to the high demand,” he added.

When asked whether the increasing domestic demand would prop up prices, Urip said that the ASI did not have the authority to determine prices because the authority belonged to each company.

He said a sack of 50 kilogram cement currently cost about Rp 50,000 (US$5.80).

PT Semen Gresik president director Dwi Soetjipto said the high demand for cement would not necessarily boost the price. “The price depends on production costs and market buying ability,” he said.

According to Dwi, PT Semen Gresik will produce 20 million tons of cement in 2011.

EEUU: Phoenix Cement seeks tax reduction

CLARKDALE - Protesting the assessed valuation of your home is one of the few legal avenues taxpayers have to reduce their tax burden, even if it does place a burden on their neighbors.

Typically, though, the total amount of all the adjustments made each year is minimal as far as their impact on other taxpayers.

That, however, will not be the case if Salt River Materials Group, owners of the Phoenix Cement Plant in Clarkdale, prevails in a suit recently filed in Yavapai County Superior Court.

SRMG is seeking a $60 million reduction in the assessed value of the company's personal property at the Clarkdale plant -- that is to say the value of the plant itself, not the land on which it sits.

The plant is currently valued at approximately $111 million. The county assessor's office says it's worth closer to $128 million. SRMG says it is worth exactly $56,944,903.

Bad timing

In a statement sent to Verde Valley Newspapers, SRMG President and CEO Roger Smith stated that the company's appeal is based on provisions in state law that allow for "temporary valuation relief when economic conditions adversely reduce the value of an asset." 

The request is for a one-year reduction only.

SRMG began upgrading the plant in 2002, spending about $115 million for a hi-tech, high-capacity kiln and other ancillary equipment. 

According to Smith's statement, the plant operated at 29 percent of capacity last year and is projected to drop an additional 5 percent this year.

"We are currently experiencing the worst economic conditions the cement industry has faced in the last 50 years," Smith states, "We must do everything we can to minimize our costs. Essentially there is no expense item which we can avoid."

Previous reductions

This is not the first time SRMG has protested the plant's value in recent years.

In 2009, they were granted a $2.4 million reduction by the board of supervisors, acting as the board of equalization. 

The board agreed to the reduction because they felt a state tax guideline, which requires that interest paid for personal property be included in the value of that property, was unfair and amounted to "double taxation." 

In July 2010, the board of supervisors reduced SRMG's assessed value by an additional $5.7 million, based again on the board's aversion to including capital interest in the plant's assessed value.

In both instances County Assessor Pam Pearsall's office argued that given state law, it is unfair to eliminate SRMG's assessment for capital interest while others are still being assessed. 

Reduction realities

The board of supervisors' two previous decisions to reduce the plant's value has reduced the property taxes on the Clarkdale plant by $253,384 according to Pearsall. 

They translate to a reduction of $71,000 of the company's Mingus Union taxes, $64,000 for Clarkdale-Jerome School District, $52,000 for Yavapai County and $51,000 of its taxes paid to the Yavapai Community College District. 

By SRMG's own estimates, the $60 million reduction requested in the lawsuit would lessen the company's tax burden by an additional $761,000.

It is a figure Pearsall calls "huge" and the largest ever requested in county history. And one, she says, that will have a significant impact on taxpayers who pay taxes in the same taxing districts as the cement plant. 

"The reductions to Phoenix Cement's valuation do not affect the budgets for the various taxing districts. They will have to shift the tax burden to someone else," Pearsall said.

Off to court

The board of supervisors has since decided that appeals regarding the value of personal property should go before a state-appointed hearing officer because of their technical nature.

When Phoenix Cement went before the hearing officer earlier this year they received less than the valuation they were seeking.

SRMG subsequently filed an appeal in Superior Court. On April 7, the board of supervisors voted to hire a firm that specializes in defending tax appeals, for an estimated $80,000. 

According to Pearsall, by filing in court, SRMG has opened the entire assessment to scrutiny, including the two previous reductions given by the board of supervisors.

"Now that they have filed with the court, we will be able to argue for what we believe the value should be, with the capitalized interest in there," Pearsall said.

In his statement to Verde Valley Newspapers, Smith stated that the company is only seeking the opportunity to pay their fair share.

"The facts are uncontroverted that we have experienced massive economic impact from the current market conditions," he stated. 

"We filed our appeal in order to make sure we did everything we could, under Arizona law, to pay the correct property tax amount. No more, no less."

A court date has not been set.

AFRICA: NIGERIA: Dangote Group to Invest $3.9 Billion on Cement Production

Dangote Cement Plc, Africa biggest producer of the building material, plans to invest $3.9 billion constructing plants in countries including Ethiopia, Tanzania, Republic of Congo and Gabon.

Each facility will have capacity to produce 1.5 million metric tons a year, with construction work taking off "within the next three months," the company said in an e-mailed statement today. The company signed an agreement to build the plants with Sinoma International Engineering Co., a unit of China National Materials Co., the world's largest producer of cement-making equipment.

Separately, "the group plans to construct a 3 million metric ton per annum plant in South Africa and one grinding plant in Cameroon with a capacity of 1.5 million tons per annum," the company said. Dangote is planning a new cement line at its Obajana plant in Nigeria with capacity of 3 million tons a year and two additional lines at Ibese in Ogun state, increasing capacity by 6 million tons a year.

Dangote Cement is the biggest company traded on the Nigerian Stock Exchange with a market value of 1.9 trillion naira ($12.3 billion). The company's parent, Dangote Industries Ltd., has a 64 percent stake in Sephaku Holdings Ltd., a South African mineral exploration and development company that also produces cement. Dangote Cement expects production capacity across its operations to advance to 50 million metric tons a year in the next five years.

Dangote chose Sinoma as it "understands the peculiarities of doing business in Africa and offers cheaper cost of construction when compared to its European counterparts," Devakumar Edwin, group executive director of business development at Dangote, said in the statement.

Dangote Cement shares retreated for the first time in 13 days, losing 2.5 naira, or 2 percent to 123 naira by 1:38 p.m. in Lagos.

UK: Hanson Cement, Padeswood, could face action over dust

The Environment Agency is considering whether to take further action against a Flintshire cement plant after residents reported being affected by dust.

An agency spokesperson said it had identified the cause at the Padeswood factory and Hanson Cement had taken action to rectify the problem.

It said it was now investigating whether the company had breached its environmental permits.

Hanson has been asked to comment.

The Environment Agency said it received complaints last month.

A spokesperson added: "We have received complaints of dust in Padeswood and have investigated and identified what has caused it.

"Action has been taken by Hanson Cement to rectify the problem.

"Our officers are now collecting evidence to see if there have been any breaches of the conditions in their environmental permit. We will then consider what further action needs to be taken.

"Environmental permits are there to protect local people and the environment. Any breaches are a serious matter which will not be tolerated."

In 2009, the Environment Agency investigated after a dust cloud leaked from the plant and more than 30 members of the public complained.

The company arranged for villagers affected by the dust cloud to have their cars cleaned.

In 2007, the cement works' previous owners, Castle Cement, paid for professional car valets to clean the vehicles of nearby residents caught in two separate outpourings of dust from its chimney.

AFRICA: BOTSWANA: MPC produces quality cement

FRANCISTOWN: Matsiloje Portland Cement (MPC) was last week awarded the Botswana Bureau of Standards (BOBS) certificate for producing quality cement that meets set requirements.

The company, which started manufacturing cement in 2009, began with production of 65 tons of cement per day and currently produces 100 tons per day.

Speaking before certification, the Quality Manager of MPC, Janette Maredza, said the quest for quality began last year and it took almost 18 months to get the quality system running.

“In order to achieve this we started running quality training programs that specified each and every process in the factory. We wrote work instructions that explained how to operate each and every machine here.”

She said when they set up, many people were skeptical saying that they will not succeed because Botswana relies mostly on imported goods.

Handing over the certificate, Managing Director of BOBS, Masego Marobela, said it was a departure from the BOS 9001: 2008 quality management systems requirements certificate that was awarded to other companies in the recent past.

“We welcome MPC into our family of 15 BOBS standards mark licensed companies that hold 34 licenses relating to 34 product lines, mainly in the construction and building industry,” she said.

Marobela said commitment and ownership from top management made the company to get accreditation quickly. “MPC has joined organizations that have demonstrated full commitment to providing quality products that consistently conform to requirements specified in products standards,” she said. It was also proof that the company did not accidentally achieve quality, “for quality isn’t achieved by accident, but planned into an organization’s processes,” she said.

Marobela said MPC would have the privilege of marking its certified products with the standards mark, as well as using it for publicity and advertising it as indicated in the BOBS standard mark scheme.

She urged the company to ensure compliance with the licensing agreement to maintain its status.

“We are going to make sure that you do that by monitoring and market surveillance at all times,” said Marobela.

The Minister of Trade and Industry, Dorcus Makgatho-Malesu, applauded MPC saying that such progress results in the recognition of local companies.

“MPC together with its shareholders comprised a mixture of both private and institutional investors, notably the Botswana Development Corporation; it will start to fully enjoy all the benefits in the construction industry.” MPC will provide a major raw material in the construction industry and will serve as a major stimulant of economic growth for the country as a whole, the Minister said.

Determination and perseverance achieved this, because getting accreditation is demanding and can sometimes be discouraging when tensions arise from failure to instantly comply with requirements, Makgatho-Malesu said...

SWITZERLAND: Swiss Stocks Increase as Holcim, Actelion Advance in Zurich

Swiss stocks climbed, rebounding from the biggest selloff in four weeks, as banks advanced and Holcim Ltd. rallied in Zurich.

UBS AG and Credit Suisse Group AG advance at least 1 percent as JPMorgan Chase & Co. reported record profit. Holcim rallied 4.5 percent after analysts recommended the cement maker. Actelion Ltd. climbed 1.2 percent on a report that the company may consider a sale.

The Swiss Market Index of the biggest and most actively traded companies gained 0.7 percent to 6,397.86 at 3:00 p.m. in Zurich. The broader Swiss Performance Index also increased 0.7 percent to 5,835.10.

The benchmark Swiss gauge tumbled 1.4 percent yesterday, led by exporters, after Tokyo Electric Power Co. said its earthquake-hit Fukushima Dai-Ichi nuclear power plant may release more radiation than Chernobyl.

UBS, Switzerland's largest bank, gained 1.6 percent to 16.98 francs. Credit Suisse, the second-biggest, rose 1 percent to 40.5 pence.

JPMorgan, the second-largest U.S. bank by assets, posted a 67 percent increase in first-quarter profit, beating analysts' estimates. The bank also reported a decline in provisions for bad mortgages and credit-card loans.

Holcim jumped 4.5 percent to 74 Swiss francs after Sanford C. Bernstein & Co. named the cement maker its "top pick" in the European buildings materials industry. Exane BNP Paribas today raised its recommendation for the sector to "outperform" and lifted its rating on Holcim to "neutral" from "underperform."

'Positioned to Benefit'

"We believe the company is positioned to benefit from the recovery themes we expect will surprise in 2011-12," wrote Phil Roseberg, a senior analyst at Bernstein in a report to clients. "Specifically high-margin growth from operating leverage as well as exposure to the faster pace of recovery in CEE and Mexico."

Actelion jumped 1.2 percent to 51.8 francs. Reuters reported that the company will consider a sale if a suitor makes an offer "even close" to what the Swiss biotechnology company considers its value. The news agency cited Chairman Robert Cawthorn.

Actelion's chairman said it's a bad time to sell, though he will recommend any appropriate bid, according to Reuters. Actelion has yet to receive any offers, Cawthorn said.

Lonza Group AG dropped 4.7 percent to 73.55 francs after the world's biggest supplier of chemicals to drug companies predicted that its first-half performance will be weaker than last year because of the strong franc and rising raw-material prices.

PAKISTAN: Pak to lift ban on cement export to India

ISLAMABAD: Pakistan is very likely to lift ban off cement export to India latest by next month, which will follow transportation of cement to neighbour through land route, Geo News reported on Monday. 

Federal government sources told Geo News, a summary seeking ratification on export of cement to India through Wagha route has been sent to cabinet by ministry of Trade and Production.

He informed that a notification was likely to be issued after prime minister’s approval.

It is pertinent to mention here that the ban on cement export to India was put in place after the Mumbai mayhem. India is facing acute shortage of cement at this point of time.

India would allow Pakistan to import many goods and material in exchange of cement, sources hoped.

Meanwhile, the trade community has hailed promotion of trade with India, adding that trade ties after coming back on track would serve masses and industries here alike.

COLOMBIA: Megaproyectos atraen empresas

Representantes de 33 empresas de la construcción colombiana se reunieron con empresarios panameños inmersos en las construcciones.

 

Colombia posee cemento para abastecer a Panamá en caso de que las minas panameñas presenten alguna dificultad. Foto: Archivo | La Estrella

PANAMÁ. Los empresarios colombianos se sumaron a la lista de las corporaciones internacionales inspiradas en la estabilidad económica de Panamá y los proyectos millonarios que en el país se levantan. 

La ampliación del Canal de Panamá, la primera línea del metro, el plan de reordenamiento vial y los proyectos de interés sociales que se están ejecutan han provocado que grandes, medianas y pequeñas empresas de la región fijen sus ojos en el país. 

Álvaro Gómez Escalante, director de la Oficina del Gobierno de Colombia para Costa Rica, Nicaragua y Panamá, lideró la comisión de empresarios del área de la construcción colombiana que mediante diversas estrategias de negocio buscan incorporarse y formar parte de las compañias que en Panamá están desarrollando proyectos de infraestructura para el sector gubernamental y privado. 

ABRIENDO PUERTAS 

Fueron 33 las empresas colombianas que con apoyo de Proexport Colombia - entidad encargada de promover las exportaciones colombianas- entablaron conversaciones comerciales durante una ronda de negociaciones efectuadas la semana pasada con 47 representantes panameños que están desarrollando proyectos de construcción en el país. 

La delegación colombiana estuvo conformada por líderes en el mercado de la distribución de materiales, ferreteros y constructoras interesadas en ingresar al auge que está teniendo la construcción panameña. 

VENTA DE CEMENTO 

Pese a que se ha dicho que las empresas cementeras panameñas serán las que suministren el cemento que se empleará en la ampliación del Canal de Panamá, Colombia se ha preparado y tienen material disponible en caso de que las locales sufran algún percance y no puedan cumplir con el cometido. 

‘Nosotros le hemos ofrecido el cemento colombiano al Grupo Unidos por el Canal, pero es asunto de esa agrupación determinar a quién le comprará ’, aseguró González Escalante. 

El cemento ofrecido por Colombia para las labores de ampliación del Canal, posee características muy peculiares de resistencia a la erosión y posee especificaciones muy precisas. 

INTERÉS EN PROYECTOS 

González Escalante, reiteró que las empresas colombianas ya han participado y se están preparando para participar en las futuras licitaciones de proyectos que se desarrollen en el país. 

‘De plano ya hay empresas que han licitado y que están participando en los proyectos’ acotó González Escalante. 

Por ejemplo, dijo el representantes de los empresarios colombianos, ‘ya hay buses operando en el sistema de transporte. También se ha suministrado información de empresas colombianas interesadas en colaborar con el Grupo Unidos por el Canal, en la ampliación del Canal de Panamá; hemos logrado vender materiales de importancia para esta obra’. 

Durante el 2010 Colombia vendió a Panamá, a través de las empresas privadas, $44 millones en materiales de construcción, hecho que coloca a Panamá como un jugador importante en el mercado colombiano. 

OTRAS DELEGACIONES 

Adicional a la delegación colombiana, este año han llegado a Panamá inversionistas de Argentina, Estados Unidos, España, India, Francia, entre otras naciones, motivados por la actividad comercial y el desarrollo de proyectos. El sector de construcción es el que más atrae a los inversionistas. 

COSTA RICA: Cementos David tras el 15% del sector

Marco Méndez, gerente general de Cementos David, no oculta emoción alguna cuando cuenta que hace dos semanas la empresa que maneja rompió su propio récord y produjo 2.000 toneladas de cemento en siete días.

Eso suma un total de 27.500 toneladas a tan solo seis meses de haber entrado al difícil mercado cementero.

“Venimos a dinamizarlo todo. No queremos hacer nicho solo en ciertos lugares”, comenta Méndez cuando se refiere al papel que la compañía quiere tener en un sector dominado por dos grandes transnacionales: Cementos Mexicanos (Cemex) y Holcim.

A pesar de lo retador que pueda resultar, Cementos David está luchando por acaparar el 15% del mercado.

Su meta para el primer año es generar al menos 150.000 toneladas, es decir, 3 millones de sacos de cemento, que es el segmento en el que se está enfocando.

Aunque todavía no se acerca ni a la mitad de lo que generó Cemex en el 2010 (500.000 toneladas), la cantidad no es nada despreciable para una nueva compañía.

Por lo pronto, Cementos David cuenta con un portafolio de 100 clientes formales y un total de 300 atendidos hasta el momento.

La cadena de ferreterías EPA, América Concretos, Pedregal y Concreto Industrial destacan entre sus clientes externos.

Empero, la competencia no será nada fácil.

Cemex acaba de anunciar una inversión de $5 millones en nuevo equipo y un crecimiento en la producción para este año.

Además, esa compañía cuenta con la cadena de ventas de productos de construcción Construrama desde agosto del 2010, y Holcim hace lo propio con Construred.

EF envió un cuestionario a funcionarios de Holcim, pero no lo contestaron al cierre de edición.

Camino de concreto

La entrada al mercado de Cementos David no se caracterizó por ser un recorrido llano.

Clausuras de la construcción, acusaciones por contaminación ambiental y enfrentamientos públicos con la entonces alcadesa de Alajuela, Joyce Zurcher, eran el pan de cada día.

Las sospechas de que la obstrucción a su funcionamiento formaba parte de una campaña contra la empresa se avivaron cuando se supo que un hermano de Zurcher era miembro de la junta directiva de una de las cementeras competidoras, según publicó en agosto del 2010 el diario La Nación .

A pesar de todo, la inversión de $20 millones hecha en un 50% por capital tico (el resto es de socios brasileños y europeos) se cristalizó el 1º de octubre del 2010.

De acuerdo con Méndez, desde la llegada de la marca a varios puntos de comercialización, el precio por saco de cemento ha bajado entre el 10% y el 15%.

Si la dinámica competitiva sigue así, el costo del cemento en el país –el más alto de Centroamérica, según la Cámara de Construcción– podría atenuarse.

De acuerdo con datos de esa entidad, el precio por saco de 42 kilos se ha mantenido en ¢4.954 entre diciembre de 2010 y febrero de 2011, después de registrar un aumento de 2,11% en noviembre del año pasado.

Por otro lado, una de las mayores críticas que ha enfrentado la empresa parece debilitarse.

El Ministerio de Salud ratificó mediante un informe de octubre pasado que la planta no genera contaminación ambiental.

Esto porque se evita la extracción, cocción y procesos químicos relacionados con la obtención de las materias primas.

Justamente la semana pasada, la Sala IV rechazó un recurso de amparo interpuesto por Sergio Ávila, presidente de la Asociación Comunal de San Rafael de Alajuela, que denunció ilegalidades en el funcionamiento de la cementera.

En manos de dos

Tradicionalmente Holcim y Cemex se han divido el mercado tico por regiones.

Holcim, con plantas en zonas como Cartago, Alajuela y Limón, atiende la Zona Sur y el Caribe, y Cemex, con producción en Guanacaste, vende allí y en la Zona Norte.

Cemex reportó una producción de 500.000 toneladas para el 2010, nivel bajo si se compara con otros periodos en los que no había crisis en el sector construcción.

Adriana Dahik, gerenta de Relaciones Corporativas de Cemex, dijo que este año la compañía invertirá $5 millones en renovación de flotilla y equipo de trituración de agregados.

Además, seguirán trabajando en sus negocios alternos de agregados, morteros y otros productos a través de su cadena de venta al detalle Construrama.