CAMEROON: Moroccan company CIMAF ends Lafarge’s cement market monopoly

In Yaoundé, large billboards now encourage Cameroonian consumers to discover “Cimaf’s CPJ35 cement”, produced by Ciment de l’Afrique (Cimaf), a subsidiary of the Moroccan company, Addoha.

If you stroll through the hardware stores of the Cameroonian capital, you will notice the presence of new cement bags freshly delivered from the Bonabéri industrial zone in Douala where the Addoha Group has headquartered its Cameroonian subsidiary with an initial production capacity of 500,000 tonnes of cement per year.

Hardware stores indicate that Cimaf’s CPJ 35, which has been in distribution since February 2014, is priced at 4,500 FCfa. This was a slight let-down for consumers who hoped to see prices fall due to market competition as the price matches that of Cimenteries du Cameroon (Cimencam).

With the arrival of the first Cimaf bags on the market, the Lafarge subsidiary, Cimencam, has witnessed the end of its monopoly in Cameroon after 48 years of absolute power. It is noteworthy that, before putting the first bags manufactured in Cameroon, Cimaf was already selling Cimat cement imported from Morocco.

CHINA: Prices Down 0.7%

Cement prices fell 0.7% nationwide in the week through February 16 due to a 2.8% decline in eastern China. Prices in all other regions were largely flat. Nationwide cement inventory level rose to 71.6% of full from 67% due to weaker demand in the eastern and south-central regions.

China's State Council is expected to release specific measures to stimulate cement industry consolidation. HSBC anticipated that the measures would be focused on three problems. The first is the lack of financing channels; the government may strengthen financing support for the shakeup, including bank loans and equity placement or bond issuance from secondary market. The second is inefficient approval process which the government may simplify, especially for cross-region deals. The third is heavy tax burden; the government may offer tax breaks to mergers and acquisitions in the industry.

Higher selling prices (forecast to be up 10% in 2014 and 5% in 2015) and structurally lower coal costs will drive an accelerated improvement in China's cement industry profitability, despite higher environmental standards, HSBC said. HSBC forecast the earnings of China's cement sector to grow at a compound annual growth rate of 35% in 2014 and 2015.

ESPAÑA: El consumo de cemento inicia el año con una caída del 13,6%

El consumo nacional de cemento arrancó el 2014 con una caída del 13,6 %, y se situó en las 764.011 toneladas en enero, una cifra que sigue sin dar muestras de recuperación del sector y que ha sido aún más acusada que la prevista por la patronal de cemento Oficemen. Esta nueva caída se produce inmediatamente después de que el consumo de cemento encadenase en 2013 su sexto año consecutivo de caídas de doble dígito, en concreto un 20 %, una tendencia que la patronal cementera prevé que se mantenga también en 2014, para el que se estima un descenso de entre el 7-8 %.

Sin embargo, el porcentaje de caídas estimadas para este año ha llegado incluso a casi duplicarse con el descenso del consumo observado en el primer mes del año. Desde los máximos de 2007, el consumo de cemento en España se ha recortado en un 80 % hasta situarse por debajo de los 11 millones de toneladas a cierre de 2013.

De cara a 2014, la agrupación de fabricantes de cemento cree que la demanda doméstica se situará en torno a 10 millones de toneladas y el consumo per cápita a 220 kg por habitante, una cifra que se remonta a los datos de 1962 y sitúa a España por debajo de Marruecos y cerca de los valores de India.

En este sentido, la patronal cementera prevé que la demanda doméstica se sitúe este año en torno a 10 millones de toneladas y el consumo per cápita a 220 kg por habitante, una cifra que se remonta a los datos de 1962 y que sitúa a España por debajo de Marruecos y cerca de los valores de India. En este contexto, Oficemen reclama unos costes eléctricos competitivos que no limiten las exportaciones de la industria cementera, así como una retribución por el servicio de interrumpibilidad del entorno de los 15-20 millones para este año ya que el conjunto de las reformas energéticas han tenido para el sector un impacto aproximado de 50 millones de euros.

ZAMBIA: DANGOTE cement factory to be ready in July

CEMENT production in Zambia is expected to reach above 2.5 million tonnes per annum when Dangote Limited commissions its cement factory in Ndola at a cost of US$400 million this year.

The Dangote Cement plant is expected to produce between one million and 1.2 million tonnes of cement per annum.

This will add to the over 1.5 million tonnes of cement that the country is currently producing per annum from the Lafarge in Lusaka and Ndola plants as well as Zambezi Portland also in Ndola.

Senior general manager for Dangote Projects, Anand Kameshwar said during a recent tour of the cement factory in Ndola that, the facility would start operating by July this year.

Mr Kameshwar said installation of major equipment at the plant by Sinoma Engineering of China was nearly complete.

“Most of the major equipment has been installed and the project is on course and should be complete by July,” Mr Kameshwar said.

He added that, cement was an essential commodity in the construction industry hence the decision by one of Africa’s largest conglomerates to invest towards production of the same in Zambia.

Mr Kameshwar said Dangote would contribute significantly in mitigating cement shortages that have resulted from high demand of the commodity due to construction activities.

Dangote was also constructing a 30 Megawatt power substation that would start functioning in May this year.

“This facility will provide electricity to the cement plant which is expected to consume 25 Megawatts of power per day,” he said.

Mr Kameshwar said the cement factory will open up other avenues for Dangote to increase its investments in Zambia.

He said once operational, the cement factory would create 700 new jobs for Zambians.

“At the moment, our focus is to complete the project and supplement cement production in Zambia but we are certain that this project will definitely open up room for others to follow,” he added.

KENYA: BAMBURI signs partnership for solid waste

Bamburi Cement and the Mombasa County Government have entered into a 4.8 billion shillings partnership to develop a solid waste management system for the County. The deal will see Bamburi, finance a feasibility study and provide equipment to boost the county’s waste management capacity. Most of the waste will be used to generate alternative fuel for the manufacture of cement. -

SOUTH SUDAN: Cement sales hit by power struggle

The ongoing South Sudan conflict and high energy costs in the country has led to a decline in profits for cement manufacturers.

Savanna Cement managing director Ronald Ndegwa said the conflict has led to a decline in exports while rising power bills has pushed up production costs.

Ndegwa said South Sudan has been their key export market, accounting for 98 per cent of total cement sales for the financial year 2013, but they encountered a reduction in sales from mid December when the conflict rocked Juba.

“Our headroom was good throughout last year as we closed sales at 320, 000 metric tonnes and we are optimistic on doubling sales this year because the subsiding conflict in South Sudan resulted to an upsurge in exports at the end of January,” Ndegwa said during the signing of an agreement with Sperkejet East Africa and SAP Africa for the installation of SAP Hana Enterprise Resource Planning software in Nairobi.

He said that the software is aimed at enhancing efficiency in addressing customer needs and improving production, adding that their new cement plant in Athi River is employing green technology such as coal fuel in order to reduce the cost of manufacturing a tonne of cement and pollution.

The cement maker added that they are hoping to reap huge profits this financial year from the Kenyan market, as they have closed deals to provide cement for the construction of various multimillion projects like the Garden City Mall, Green Field Airport Terminal, 24 storey building for the University of Nairobi, and the Sh1 billion mall in Nyeri County.

GHANA: GHACEM cement loading workers demonstrate

Workers of Western Brothers Loaders’ Company (WBLC) contracted by Ghana Cement (GHACEM) company to distribute cement products from the manufacturing site to wholesalers on Monday demonstrated against management over low salaries and bad working conditions.

The workers, numbering over 100, wore red bands, chanted war songs and converged in front of the company’s premises.

Many of the aggrieved workers who spoke to the Ghana News Agency in Takoradi expressed concern about delay in paying their monthly salaries which they claimed had brought economic hardships to their families.

The workers expressed their displeasure over the manner in which management had been handling their concerns which have had adverse effects on the workforce.

Some of the workers alleged that for long time, they had not been able to openly express their displeasure about poor remunerations because they feared losing their jobs.

Nana Kwame, a loading worker, alleged that since the time he started working for the company there had not been any increment in his salary of GH¢300.00 and neither had he received any annual bonus.

He said cement loaders, most of whom are casual workers, were therefore calling on the management to increase their monthly salary from GH¢300.00 to GH¢500.00.

He said due to the dusty nature of the road leading to the cement factory, most of the workers contracted respiratory infections and, therefore, appealed to the management to consider instituting measures to take care of their health needs.

Meanwhile, none of the management members was around to react to the allegations by the workers.

GHANA: Morocco to assist housing deficit

A reputable construction company Addoha group of the Kingdom of Morocco is set to partner the government of Ghana fulfill its manifesto promise of constructing ten thousand affordable housing units for the people of Ghana.

The chief executive officer (CEO) of Addoha Construction Company Mr. Anas Sefrioui and his entourage will be in Ghana on Thursday to discuss with president Mahama and other senior members of government including public and private partners, the implementation of the affordable housing scheme, in fulfillment of governments promise to provide shelter to disadvantaged Ghanaians.

Undiluted information from the grapevine emanating from the office of the Moroccan embassy in Ghana points to the fact that Addoha construction company is coming to Ghana to create a practical presence by assisting government fulfill its in the housing sector, open a cement factory in the western region and also establish a bank (wafa Tijari)in Ghana.

Development in Africa

The Addoha group has consolidated its leadership in Africa by signing four agreements for the development of real estate projects an initial consistency over 6000 low cost housing in Cote d’voire, Cameroon, Guinea and Congo Brazzaville. The first land acquisitions were completed in 2012.

Development of new partnerships

Under the partnership with ALEM, four programs were allowed to Casablanca and Oudja, and another is under authorization Kenitra for a total consistency of 38, 000 social housing.

Presence in new markets

The group launched new projects in three new cities (Tetoun, Oudja and El Jadida), strengthening its market share. The Addoha currently operates in 17 major cities of the Kingdom.

Expansion of tax base

In order to ensure the sustainability of its business, the group has further expanded its tax base in 2012 through the acquisition of strategic land, including 200 hectares of the Casablanca- Rabat axis, corresponding to 40, 000 additional housing. In 2012, outflows related to the acquisition of land recorded in the amount of 2.1 billion dirhams.

Establishment of a strategic plan

The group initiated in 2012 a series of strategic actions to strengthen its financial structure, particularly through the optimization of working capital and financing of the property tax base, and master overhead.

The year 2012 was marked by significant achievements Addoha group. The group has demonstrated a high level of responsiveness to adapt to a difficult economic environment.

In terms of sale

The group has good performance trade resulting from an aggressive marketing policy that allowed the marketing of goods in 2012, with all the secure sales of the group at 16 billion dirhams.

In terms of production

The group produced 26, 861 property titled to land conservation in 2012, allowing it to maintain its leadership position in the market.

At the end of 2012, the final sales of Addoha group included 25 627 units, consisting of 94% low cost housing and mid range.

Among the itinerary of the visiting C.E.O of Addoha construction company Mr. Anas Sefriou will include a meeting with president Mahama at the flagstaff house, the minister of finance Mr. Seth Terkper, minister for water resources works and housing Hon. Collins Dauda and executives of Ghana real estate’s development association (GREDA).

KENYA: Government squabble over cement producer

Lafarge’s Kenyan unit said on Monday a dispute with the government over control of the cement company is hampering plans to more than double its production capacity in the next five years.

East African Portland Cement has been embroiled in a disagreement with the government for at least the past two years over ownership of the company, chairman Mark ole Karbolo said in an interview on Monday in Nairobi, the capital. That might stall plans to increase its output of clinker, the main ingredient in cement, to 5,000 metric tons a day from 2,000 tons.

The government is concerned that Lafarge may have a dominant position in Kenya’s cement industry.

"The core problem is political interference where the ministry of industrialisation wants to usurp and directly influence the role and power of the board," Mr Karbolo said. "Should the situation remain this way, it’s going to create difficulties in maintaining a united board."

Cement-production capacity in East Africa is forecast to surge 89% to 17-million tonnes per annum over the next four years, as growth in the construction industry outpaces economic expansion in the region, Cardinal Stone, a Lagos-based investment bank, has said in a research report.

Cement supplies in Kenya, Tanzania and Uganda are forecast to grow at a compound annual growth rate of 6.4% to 14.6-million tons by 2018, driven by infrastructure projects, according to a report published by Frost & Sullivan’s Cape Town office in November.

Lafarge owns 42% of the Kenya unit, while the Kenyan Treasury holds 25% and the state-controlled National Social Security Fund has 27%. A task force President Uhuru Kenyatta appointed last year found that the cement producer does not qualify to be labelled as a state-owned company because the National Social Security Fund shares belong to its members and not to the government.

Kenya’s government wants Lafarge to dilute its shareholding in East African Portland Cement. This was because the "government cannot allow a foreign company, or even a local (one), to hold a monopolistic stake in an industry because this will be detrimental to consumers," Wilson Songa, permanent secretary in the Industrialisation and Enterprise Development Ministry, said last week.

Lafarge, which is the world’s second-biggest cement producer and is based in Paris, also controls 59% of Bamburi Cement, the country’s largest cement producer by market volume, which in turn owns 12.5% of East African Portland Cement. The Competition Authority of Kenya was preparing a report on whether Lafarge had a monopoly in Kenya’s cement industry, Elizabeth Ntonjira, head of communications at the Nairobi-based agency, said in an interview yesterday.

"We will present a report on whether or not the cross directorship in Lafarge leads to unwarranted concentration of economic power."

Ms Ntonjira did not say when the report will be released.

Mr Kenyatta announced earlier this month that he had removed Mr Karbolo as chairman of East African Portland Cement and replaced him with Bill Lay, the former CEO of General Motors East Africa.

Kenya’s High Court reinstated Mr Karbolo three days later, finding in favour of the chairman’s assertion that the president had no mandate to fire him.

The High Court said neither Mr Karbolo nor Mr Lay can serve as chairman pending a further ruling tomorrow. Former president Mwai Kibaki tried to remove Mr Karbolo from office in February 2012, before that decision was overturned by the High Court two months later.

East African Portland Cement, founded in 1933, is East Africa’s third-biggest cement producer, after Bamburi and ARM Cement, which are both based in Nairobi.

"The company is worth a lot of money and it has the potential to become the leading cement manufacturer within the East African region," Mr Karbolo said. "That’s the reason they are interested in taking over the management."

Shares in East African Portland Cement rose 2.1% to 73 shillings in early Nairobi trading, bringing the stock’s gain so far this year to 5.8% and giving the company a market capitalization of 6.57-billion shillings ($76.2 million). Bamburi is valued at 75-billion shillings and ARM at 44-billion shillings, according to data compiled by Bloomberg.

Didier Tresarrieu, Lafarge’s representative on East African Portland Cement’s board, declined to comment on the dispute with the government.

Mr Songa said the state’s interest in the company was aimed at making East African Portland Cement more efficient. "There is no reason why East African Portland Cement should not be the leading cement company in the country and indeed within the East African region.

"We are only interested in making the company more robust and more efficient. And a change in management is certainly the panacea."

East African Portland Cement posted a profit of 1.7-billion shillings in the year through June 30, compared with a loss of 972.7-million shillings a year earlier, as sales grew 8.3% to 9.21-billion shillings, according to results posted in October.

URUGUAY: Renueva pacto para comprar petróleo venezolano

Uruguay renovará el próximo mes el contrato de compra de petróleo venezolano y se incrementará la participación de Venezuela en una empresa estatal de alcoholes.

Todo esto se concretará durante una visita a Montevideo del presidente Nicolás Maduro, según Efe. 

Además, se firmará un convenio para el asesoramiento de técnicos de la empresa estatal uruguaya de combustibles Ancap a Venezuela en la producción de biocombustible, informó la página digital de la Presidencia uruguaya. 

Los acuerdos, que serán firmados durante la estancia de Maduro en Uruguay, fueron definidos durante una visita que realizaron a Caracas hasta el pasado día 14 el presidente de Ancap, José Coya y el director Juan Gómez. 

"Establecimos las bases para renovar el contrato comercial de petróleo crudo que será firmado en la segunda semana de marzo en Montevideo durante la visita oficial del presidente Maduro", dijo Gómez. 

"La idea es mantener estos contratos porque son muy convenientes para ambas partes", agregó. 

En las reuniones conjuntas también se abordó la posibilidad de que Ancap adquiera a una firma subsidiaria de Pdvsa carbón mineral y de coque o petcoque destinados a dos nuevas plantas de cemento de le empresa uruguaya. 

Respecto a los llamados campos maduros de petróleo en Venezuela, Gómez indicó que ambas empresas están interesadas en "concretar una sociedad" para explotar pozos en el área, para lo cual aspiran a suscribir un memorándum de entendimiento el próximo mes. 

Además, se buscará avanzar en la compra de lubricantes por parte de Uruguay y de vender clinker, que es el principal componente del cemento.

VENEZUELA: Paralizada, la construcción en Venezuela; no hay cemento.

El sector de la construcción inició 2014 enfrentando problemas por falta de insumos, lo que provoca que muchos proyectos urbanísticos se encuentren paralizados, señaló hoy el empresario privado de la construcción Rafael Goeta.

“La menor producción de materiales y la restricción en el acceso a las divisas impactaron en esta actividad, la mayor empleadora del país”, precisó el gerente general de la empresa “Proyectos y Construcciones CA”, en diálogo con Notimex.

Goeta destacó que durante las últimas semanas la escasez de cemento se acentuó y no hay forma de conseguirlo, porque empresas estatales dejaron de producirlo, quizás con la intención de añadir este importante insumo a la extensa lista de las importaciones oficiales.

“Por otra parte la inflación, que a fines del 2013 se situó en 83.00 por ciento para el ramo de la construcción, elevó significativamente los costos de las obras de infraestructura y de vivienda tanto del sector privado como del público”, alertó el constructor.

Recalcó que los rubros que más se han encarecido son los materiales de plomería, productos de concreto, recubrimientos para pisos, paredes y techos, artefactos sanitarios y accesorios, sistemas hidroneumáticos y lubricantes.

“Asimismo la producción de cerámica ha caído estrepitosamente y ante la disminución de la oferta local, las empresas han tenido que importar modelos de cerámica, pero adquiriendo en dólares en el mercado paralelo dadas las restricciones de divisas oficiales”, lamentó.

Goeta resaltó que el caso de los productos de acero, la cabilla (varilla) sigue siendo la gran ausente, pues las siderúrgicas estatales trabajan a un tercio de su capacidad debido a los problemas operativos y laborales que confrontan.

Denunció que “la poca cabilla que sale de la estatal Siderúrgica del Orinoco, anteriormente la mayor suplidora del rubro, es reservada para los planes de vivienda del gobierno nacional, siendo el más importante de ellos el denominado Gran Misión Vivienda Venezuela”.

Respecto esa misión, dijo que “sin embargo tampoco el gobierno ha podido cumplirle a los venezolanos sin techo, ya que prometió entregarles 300 mil casas para finales de 2013 y sólo logró construir 36 mil viviendas, la mayoría de ellas defectuosas”.

Finalmente, Goeta responsabilizó de la falta de materiales de construcción al gobierno nacional al no autorizar divisas al sector privado de la construcción y mantener paralizadas las fabricas estatales de cemento y de cabillas.