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GLOBAL CEMENT INDUSTRY. KNOWLEDGE.

DECEMBER - JANUARY 2014

FEATURE

CONFERENCE HIGHLIGHTS:

SEMEN INDONESIA

CW Summit

A view from the East

Dusk or dawn in the Middle East?

FEATURE

PRICES IN US

New price hikes in 2014

News

Analysis

18

Market Coverage

Interviews

People Moves


CBI Africa 2014 brings together stakeholders from African and international cement producers, equipment vendors, strategy and M&A, financial, sales and marketing and trading as well as delegates from the technical and operations, engineering, environmental, logistics, maintenance, production & operations side.

A GMI GLOBAL CEMENT AND LIME INDUSTRY CONFERENCE AND EXHIBITION

CEMENT BUSINESS & INDUSTRY

2014

JUNE 12-13, 2014 • HYATT REGENCY • JOHANNESBURG, SOUTH AFRICA

This conference will gather industry experts and market participants to discuss the major topics, including: Market perspective, forecast and competitive outlook Alternative fuels, new business models Environmental performance management Finance and capital markets Efficiency, innovation, new developments Technology, operations and best practices

Register on-line at www.gmiforum.com or email sales@gmiforum.com. You may also call us in the US at +1-203-516-7424

Fuel prices and outlook Organized by GMI Global LLC To learn more visit the GMI website www.gmiforum.com


CONTENTS FEATURES

3

3 semen indonesia A view from the East 9 Price increases stick in the United States Cement companies prepare for new price hikes in 2014 13 most read stories of 2013 in the cement business

FEA

9 DEPARTMENTS LETTER FROM THE PUBLISHER regional reports 1 Highlights from the CW Summit 31 Europe, Middle East & Africa in Dubai 34 Central & South-East Asia 35 Asia Pacific numbers in brief 36 Americas 2 Africa hits a new milestone in cement capacity From our industry partner 38 Construction and building research materials update 21 Cement Volumes 24 Cement Energy Markets equipment 41 Equipment and notable projects people 29 People on the move cw group meeting agenda 43 Group’s upcoming events EVENTS 19 CW Summit Highlights: BUZZ Dusk or dawn in the Middle 44 Top 15 CemWeek and BM Week East? stories

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EDITOR’S NOTE Letter from the publisher and editor

CW Summit Highlights: Dusk or dawn in the Middle East? n the 10th and 11th of December 2013, CW Group hosted the second edition of the Middle East Cement Finance, Strategy and Trade Summit in Dubai. The CW Group was represented on site by Robert Madeira, Managing Director and Head of Research, and Claudia Stefanoiu, Senior Analyst, and joined by a dozen senior executives of the industry to explore the most relevant themes for the region. This exclusive event offered an opportunity for the leaders of the industry to gain access to senior CW advisors, partners and analysts, while meeting with key decision makers and investors in the Middle East. The dynamic workshop focused on topics such as trading outlook and opportunities, fly ash as viable solutions for the Middle East and management and construction activity. More details on the Summit can be read in the Event section of this edition of CemWeek Magazine. Furthermore, this first issue of 2014 gathers in one special feature article the most read stories in the cement business on the CemWeek website during 2013. Last year was without a doubt a dynamic year in terms of mergers and acquisition, new investments, but also divestments. In addition, the magazine also presents an analysis of the cement price dynamics in the United States as well as a view of Semen Indonesia and its rapid growth, which has led the company to become one of the market leaders in South East Asia. As we welcome 2014 and the exciting possibilities that lie ahead for the industry, we invite our readers to stay in touch and share with us suggestions on the magazine’s content and to submit contributing articles. We would love to hear from you at editor@cemweek.com.

The CemWeek Magazine is published by the CW Group LLC 132 Larchmont Ave, Suite 12, Larchmont, NY 10538, USA T: +1-702-430-1748 F: +1-928-832-4762 www.cwgrp.com www.cemweek.com

STAFFBOX ROBERT MADEIRA CEMWEEK PUBLISHER HEAD OF CW GROUP RESEARCH

CRISTIAN DUMITRU DESIGNER

RALUCA NEAGU ADVERTISING PROJECT MANAGER

CLARE ASLAN ROXANA CHISCOP LAURA GOLDNER CLAUDIA STEFANOIU CONTRIBUTING WRITERS & RESEARCHERS

To subscribe or advertise, please contact us at T: +1-702-430-1748 F: +1-928-832-4762 E: sales@cwgrp.com ©2013 CemWeek LLC. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher. Any submissions or contributions from readers shall be subject to and governed by CemWeek’s Terms and Conditions, which are available upon request.

Robert Madeira

PUBLISHER AND HEAD OF RES EARCH

Raluca Neagu

PROJECT MANAGER

The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of its contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

CW Group

TO SUBSCRIBE please visit www.cemweek.com/subscribe

CW Group CW Analytics


numbers IN BRIEF AFRICA HITS A NEW MILESTONE IN CEMENT CAPACITY

Distribution of total production capacity by country Top 20, in million tons

EGYPT

NIGERIA MOROCCO

frica ended 2013 with a total of 250 million tons of annual cement capacity, an expansion of 40 million tons compared to the end of 2010 – a 19 percent increase. But the expansion is uneven and cement capacity disparities between North Africa and Sub-Saharan Africa are still prevalent. The Northern part of the continent continues to overall be well supplied with around 725 kg per inhabitant in cement capacity. On the other end, the equivalent is still only at 162 kg for Sub-Saharan Africa, with many countries still experiencing shortages.

COTE

TANZANIA D'IVOIRE

BENIN

ALGERIA

GHANA UGANDA

ANGOLA

MOZAMBIQUE

SOUTH AFRICA

MAURITANIA

SENEGAL

ZAMBIA

ETHIOPIA

KENYA

Integrated versus grinding facilities (%)

SUDAN

TUNISIA

LIBYA

GRINDING

From a structural perspective, over 85 percent of the African cement capacity is in the form of integrated cement production processes. Grinding units still occupy an important role in Southern Africa (35.1 percent), West Africa (29.7 percent) and East Africa (21 percent). In this regard, countries such as Burkina Faso, Cote d’Ivoire, Guinea, Liberia, Mauritania or Sierra Leone are fully dependent on clinker imports for running their cement operations given that they are lacking domestic raw materials reserves.

INTEGRATED

Major Group Relationship (million tons)

Facility types by sub-region East Africa

Middle Africa

North Africa

Southern Africa

West Africa

Lafarge Dangote Italcementi PPC

Integrated

Holcim HeidelbergCement InterCement Vicat ASEC Cement Afrisam

Grinding

Other

0%

20%

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40%

60%

80%

DECEMBER / JANUARY 2014

100%

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Semen Indonesia - a view from the East -

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emen Indonesia, formerly known as Semen Gresik, is the largest producer of cement in Indonesia. The company was established on 25th March, 1953 and officially inaugurated on August 7th, 1957, by the first President of the Republic of Indonesia. The first operational plant had an installed capacity of 250,000 tons of cement per year. Today, Semen Indonesia is capable of producing 27.7 million tons of cement in 6 facilities located across the region.

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feature

Results from the drilling uncover sufficient deposits to build a cement plant with a capacity 250,000 tons per year, with a life-time span of 60 years. The Indonesian government collected the funds for the construction of the factory and in March of 1953 NV Semen Gresik was born. Gresik was the first cement facility in the island of Java. In 1960, three years after the inauguration of the Gresik plant in Java, Semen Gresik launched its first expansion project to increase the plant’s production

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capacity from 250,000 tons to 375,000 tons. The company later expanded by building facilities in Gresik (Gresik II) and Tuban (Tuban I). Semen Gresik became the first state– owned cement company that got publicly listed on the Jakarta Stock Exchange and on the Surabaya Stock Exchange in 1991, issuing 40 million shares to the public.

The company’s rapid expansion started in 1995, when Semen Gresik acquired PT Semen Padang and PT Semen Tonasa, increasing its capacity to 8.5 million tons per year and becoming the largest Indonesian cement producer. Between 1996 and 1998 Semen Gresik build up four new facilities and increased its capacity to more than 17 million tons

Semen Indonesia Cement Production Capacity million tons 30 25 20 15 10 5

0 1957

1995

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2008

2009

2010

2011

2012

2013

Source: Semen Indonesia

Semen Indonesia Rapid Expansion Efforts to build a cement plant in Indonesia began in the early 1930’s. A study prepared by Dutch engineers in 1935, revealed high quality limestone reserves located in the Gresik hills. The report recommended the installation of a cement plant at the site, but the project was not carried out due to the initiation of World War II. After the end of the war the Indonesian government retook the project and conducted geological drillings at the site.


of cement. Tuban II and Tuban III plants, with a total combined capacity of 4.7 million tons of cement, were built in Java. Tonasa IV, in Sulawesi, tripled Gresik’s capacity in the region to 3.5 million tons of cement per year and Indatung V 2.3 million tons cement plant started operations in Sumatra in 1998. In order to remain competitive versus the rest of the market players in Indonesia, the company has invested heavily new cement plants in Rembang (Central Java) and Padang (West Sumatra). Both these plants will have a production capacity of approximately 3 million tons. The plant in Padang will become operational in late 2015, while the plant in Rembang will start operations in 2016. The company is also scheduled to establish four new cement mills – two in Tuban (East Java) and another two in Dumai (Sumatra). Early in 2013, Semen Indonesia entered the Vietnamese market by acquiring a stake in Vietnamese cement company Thang Long Cement. Total investment was around US$ 157 million for 70 percent of the company shares. The total production

capacity of the cement factories in Thang Long, one in North and the other in the South, reaches 1.3 million tons per year. They mainly meet the domestic demands in Vietnam. The acquisition of Thang Long Cement made Semen Indonesia the first state-owned multi-national corporation and has established its position as the largest cement producer in Southeast Asia with a capacity of over 28 million tons per year.

Semen Indonesia Cement Plants Map

The company has also announced an investment of US$ 200 million in a cement plant in Myanmar. The plant will be built in early 2014, as part of the company’s expansion strategy into the Southeast Asian Market. Operations are expected to begin in 2017. As per the firm’s plan, this plant will be serving the mainly the Myanmar, Thailand and Bangladesh markets. All Semen Indonesia plants and the respective distribution centers are well connected through a robust distribution network. It is so well designed that it reaches each & every territory of the entire country. The company is also exporting its products to Bangladesh, Sri Lanka, Maldives, and countries in East Africa. 2013 Financial Performance During 2013 Semen Indonesia showed an outstanding performance. Early estimates indicate that the company sold 28 million tons of cement during the year, up 27 percent from 2012. Revenue reached US$ 2.2 billion and EBITDA increased to US$ 0.8 billion. The company was also able to control the domestic market with a market share of 43.8 percent. A new US$ 32 million 250-tons per hour vertical cement mill was unveiled in Tuban at the end of the year. This project is one

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A packing plant inaugurated in Banjarmasin during 2013 will bring the company’s products closer to the customer. The one silo packing plant has a capacity of 600 thousand tons of cement per year, is equipped with two line rotary cement packer bag with a capacity of 2,200 bags/ hour and one line output with a capacity of 120 tons/hour. Cement Market in Indonesia The cement market in Indonesia is dominated by three major producers: Semen Indonesia, Indocement, established in 1985 and formed as a merger of six cement companies, and Holcim Indonesia. The three companies account for almost 90 percent of the market. Cement demand in Indonesia is mostly driven by property and infrastructure developments. Major infrastructure pro-

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Semen Indonesia Market Share

5% Semen Indonesia

15% 44%

Indocement Holcim Bosowa Other

30%

jects are located in Jakarta and some other big cities. The most important projects are the construction of the MRT system in Jakarta funded by Japan; expanding of the Jakarta’s airport and following eventually a city rail link. Indonesia is becoming the world’s third largest housing market on a global scale by number of new homes. The focus is altering geographically from the West to the Eastern provinces. In 2013 domestic consumption reached

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Source: Semen Indonesia

of Semen Indonesia’s strategic moved to increase the production capacity of the company to maintain the availability of supply. Construction of the 1.5 million tons cement mill started in February 2012 and was completed in November 2013. With this addition the total cement production capacity in the Tuban plant rises to 14.5 million tons of cement per year the production capacity of PT Semen Indonesia (Persero) Tbk is now up to 31.8 million tons in 2014.

58 million tons, an increase of 5.5 percent from the 55 million tons consumed in 2012. Even though volumes are on the rise, growth of cement sales showed a slowing trend last year. During the first six months of 2013, sales grew 7.5 percent year-over-year and from January to September the variance fell to 5.3 percent. Last year’s increase was the slowest since 2010 when the country was affected by the weakening global economy. However, the Indonesian economy got through the global financial crisis in fairly good


The World Bank projects Indonesia’s gross domestic product (GDP) growth will slow to 5.3 percent in 2014, from 5.6 percent in 2013, but domestic cement sales are expected to remain strong. shape and the country remains largely selfsufficient in cement production. The key issue affecting current demand is a declining property sector, which accounts for approximately 70 percent of total cement consumption. The central bank of Indonesia (Bank Indonesia) has been concerned about the emergence of a property bubble and recently introduced measures to cut back credit growth in the nation’s property sector. The bank has also raised interest rates to help reduce high inflation. Industry Outlook Indonesia offers considerable opportunities for infrastructure investment and

private investors. The World Bank projects Indonesia’s gross domestic product (GDP) growth will slow to 5.3 percent in 2014, from 5.6 percent in 2013, but domestic cement sales are expected to remain strong. In the medium and long term the cement sector is expecting a boost in consumption mainly backed by the execution of sustainable infrastructure projects under the Master Plan for Acceleration and Expansion of Indonesia’s Economic Development (MP3EI) and the National Medium Term Development Plan (RPJM). The Government’s development plans include the construction of ports, airports

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and other projects, the development of the real estate segment, but perhaps most importantly – the rise of the middle class, which, according to World Bank figures, is growing by seven million people each year – some of them most surely in Indonesia. Certainly, there are also issues which need to be addressed. Among them are the weak legal system and the lack of public & private funds to support infrastructure development, the international financial situation which may impact the entire economy and the low borrowing costs, which together with high property prices have the potential to lead to a new real estate bubble in the area.

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increases rice es P t a t S ted

Uni he t in t compa Cemen

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its reached ps e t a t nsum ited S the Un n cement co recef o t e ark 6 whe An unp nd ment m a 005-200 s per year. 2 The ce in n led dem so me t d lu n n o a v o li t u il e peak 130 m t mark The ind 3 n . d e 9 e 0 r m 0 a e 2 e c the d of e 201 tion n risis hit ons by the en ected to clos tion. c d e t n p p t de was ex million consum d 0 t n 7 n a e w e m sinc belo in ce revived n tons o li il m try has nd 80 at arou

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feature he unfavourable market conditions generated a similar evolution for cement prices, even though both cement price decline and recovery lagged behind. The national-wide average cement price at plant level started to plummet in 2007 from US$104 per ton only to reach its bottom in 2011 at US$89.5.

US Retail Portland Cement Price (US$/ton)

MoM (%) 1.2%

112.0

111.0

1.0%

110.0 0.8% 109.0 0.6%

108.0

0.4%

107.0

At the level of cement companies, 2013 brought an overall increase in cement prices. At the end of 3Q, all major U.S. based cement companies reported higher prices. Cementos Argos noted the largest cement price increase for the first nine months of 2013 versus the corresponding period of 2012 – 7 percent. Cementos Argos also reported an increase in cement sales volume from 1.2 million tons in 9M 2012 to 1.3 million tons in 9M 2013. The company is projected to improve significantly its U.S. cement sales in 2014 after recently closing the acquisition of Florida based cement and concrete operations of Vulcan Materials in the exchange of US$720 million. The acquisition includes Vulcan’s  Newberry, Florida  cement plant,  Tampa  and  Port Manatee  cement terminals and grinding

11 DECEMBER / JANUARY 2014

106.0

0.2%

105.0 0.0% 104.0 -0.2%

103.0 102.0

facilities, 69 ready-mixed concrete sites and 13 concrete block and building material sites. Holcim increased cement prices by 6 percent in the first nine months of 2013 and acknowledged a gradual recovery of the residential construction activity in several regions. However, the company draws attention on public investments, which continue to subdue the infrastructure segment. Even though in terms of volumes, U.S. cement sales declined in 9M 2013,

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Dec-13

Oct-13

Nov-13

Sep-13

Jul-13

Aug-13

Jun-13

May-13

Apr-13

Mar-13

Jan-13

Feb-13

Dec-12

Oct-12

Nov-12

Sep-12

Jul-12

Aug-12

Jun-12

Apr-12

May-12

Mar-12

Jan-12

-0.4% Feb-12

The recovery is also evident when it comes to retail Portland cement prices. After averaging at US$103.9 per ton in 2011, retail cement prices increased to US$107.5 per ton in 2012 and further to US$110.4 per ton in 2013. The highest cement prices of last year were registered between August and October when a ton of cement was sold on the retail market for US$111.1.

Holcim registered the highest monthly sales volume in August 2013 since 2008. Vulcan Materials followed closely with a 5.8 percent increase in cement prices over the first three quarters of 2013. The average cement price reported by the company in the first three quarters of the year touched US$82.5, increasing from US$78.0 in 9M 2012.


The 5 percent cement price increase offered a partial relief in the first nine months of 2013 for Lafarge that faced a comparable, but negative 5 percent evolution for its cement sales volume. The residential construction recovery offset in a certain degree the adverse 1H 2013 weather in the Northeast region.

$81

Cemex and Buzzi Unicem implemented lower cement price hikes in 2013 with 3 percent and 2.9 percent, respectively, in the first three quarters. Cemex reported that domestic gray cement volumes increased

$77

Company Name

u.s. 9M 2014 Cement Price %

Buzzi Unicem

2.9%

Cementos Argos

7.0%

Cemex

3.0%

Holcim

6.0%

Lafarge

5.0%

Vulcan Materials

5.8%

Texas cement prices increase 3 percent

$80

$79 $78

California cement prices decline 5 percent

$76 $75 Q1 FY 2012

Q2 FY 2012

Q3 FY 2012

Q4 FY 2012

Q1 FY 2013

by 4 percent during the first nine months of 2013, fuelled by strong fundamentals such as high affordability, large pent-up demand and low inventories. In its turn, Buzzi Unicem sold 9 percent more cement in the first nine months of 2013, building on the improved demand conditions in the Mid-Western and South-Western regions. Given its geographical footprint, Texas Industries (TXI) managed to implement lower cement price growth rates over the last two years. While cement prices generally increased in Texas, the particularities

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Q2 FY 2013

Q3 FY 2013

Q4 FY 2013

Q1 FY 2014

Q2 FY 2014

of TXI’s product mix led to lower cement prices in California. However, the company announced that it will push through with additional cement price hikes in 2014. An US$8 per ton price increase is expected for Texas in April 2014, while a comparable price rise will be split in two separate increases for California - US$3.5 per ton in January 20, 2014 and US$5 per ton in April 2014. Along with the construction recovery further projected for 2014 and subsequent years, cement consumption is set for a positive trajectory that will most likely push cement prices higher. In a market where geographical footprints and product mixes are more important than ever, cement companies relentlessly search for improved market conditions that can absorb additional cement price increases.

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MOST READ STORIES OF

in the cement business

13 DECEMBER / JANUARY 2014

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I

n this first issue of CemWeek Magazine in 2014 we look back at the most important moments in 2013, while preparing for 2014 with renewed optimism and hope for a bright new year, full of new possibilities and developments. 2013 was yet another dynamic year for the cement industry. Mergers and acquisition, new

investments, but also divestments abounded throughout the year. Business as usual for the cement industry, but which were those elements that made last year stand out? The following list comprises the most read news stories covered by the cemweek.com platform during 2013.

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AVIC International acquires KHD Humboldt Wedag

Dangote Cement closing in to its Senegalese entrance

2013 ended in full throttle for AVIC International Beijing, which acquired a majority share in German cement plant equipment maker, KHD Humboldt Wedag. A 40 percent stake was acquired via a voluntary public takeover offer, while an additional 19 percent stake came after individual share purchase agreements. AVIC already owned 20 percent of KHD. The 59 percent share was acquired in the exchange of 190.7 million euro (US$263.6 million).

Dangote Cement scored a major win in the land dispute affecting the under construction Senegalese cement plant located at Pout (Western Senegal). Even though legal land related constraints have been slowly put to rest, Senegal’s traditional domestic cement producers continue to lobby the government to stop the entrance of a third cement producer, while stating that the action will generate severe over-capacity on the market.

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Sinoma expands to India In May 2013, Sinoma International announced that it has acquired Indian LNVT Company through share acquisition and capital expansion. Following the move, Sinoma became a majority owner (68 percent of the shares), leaving the remaining stake equally split between V.C.Rao and LVT Company. Sinoma currently owns 80 percent of the Chinese cement equipment industry and approximately 40 percent of the market outside China. LNVT Company had an estimated backlog in mid-2013 of Rs120 crore, its portfolio comprising also a US$55 million Nepalese project.


Holcim sells New Caledonia facility

Jaiprakash Associates closed deal to sell cement plant

Votorantim elects former Holcim executive to its board

In 2013, Holcim decided to divest its operations in New Caledonia (Holcim Nouvelle Calédonie) by selling the interest in the company to Tokuyama Corporation of Japan for an undisclosed amount. Holcim Nouvelle Calédonie operates a 0.2 million tons cement grinding unit that has always been slightly isolated from the rest of the Group’s assets. After the acquisition, the name of the company will change to ‘Tokuyama Nouvelle Calédonie.

UltraTech acquired Jaiprakash Associates’ cement plant in Gujarat in September 2013 for an enterprise value of Rs4,100 crore. The acquisition included a debt of Rs1,800 crore. The sale of the unit aimed at reducing Rs8,000 crore in debt by the diversified Jaypee Group, which has interest in power, real estate and hospitality. The deal has been in the works for over a year and includes a 4.8 million-ton cement plant, a captive power plant and limestone reserves.

The election of Markus Akermann, former president of Holcim, to a seat of Votorantim Cimentos generated increased interest among CemWeek. com’s readers. Mr. Akermann held the position of CEO for the Swiss group between 2002 and 2012 and before that time he served in a series of areas of Holcim’s LatAm based operations. The new mandate of the executive at Votorantim Cimentos will run until 2015.

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events tion projects for laying new lines and the city’s underground stations commissioned by the Baku Metro.

have a 66.7 percent stake in the project, while Coceca will control the remaining 33.33 percent.

Cement capacity expansions gather readership interest In Angola, Galilei and HeidelbergCement will invest EUR284 million to build a 2 million-ton per year cement plant in Angola’s Benguela. Bolivia is also on a good path of development, with a new plant to rise in Santa Cruz, under a JV project between a Votorantim unit and Coceca. The plant will have an annual capacity of 850,000 tons and is set to become operational in 2014. The general manager of Itacamba, Alexander Capela Andras, said the cement market has grown almost 12 percent in recent years, which has generated a need for investment in the industry. Votorantim Itacamba will

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New production line for cement in Azerbaijan Accord is mulling to build a new production line for cement in Azerbaijan. The firm says the installation of the first production line of its new cement plant in Gazakh district, which, together with the launch of a second production line, will ensure the production of 3 million tons of cement per year. The plant will aid the company’s construction arm, wherein it has engaged in infrastructure construction through participation in construc-

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Ambuja Cement to build new plant in Benegal India’s  Ambuja Cement was looking to build plant in Bengal. The company already has plants in Sankrail and Farakka.  State Commerce and Industries Minister, Partha Chatterjee, said the cement major was looking for a greenfield unit in Bengal. Chatterjee declared that the company would invest close to Rs 225 crore for the new unit


New investment in Katni from UltraTech India based UltraTech will invest INR 3,000 crore in Katni district for setting up a cement plant there. The amount would be spent over three to five years’ time. The investment was confirmed by MP Trade and Investment Facilitation Corporation Managing Director, Arun Kumar Bhatt. The company is planning to set up a new 2 million tons per year cement plant. Mamba Cement managed to obtain a R800 million loan for building a cement plant in Limpopo, South Africa. In this regard, a master finance agreement was entered into by Nedbank Capital and Bank of China. New order from ThyssenKrupp Polysius JK Cement ordered three grinding plants from ThyssenKrupp Polysius that are to be constructed at two different cement production locations. Meanwhile, Sinoma closed a new deal in Indonesia to supply its products to Cemindo Gemilang. In Turkey, Carcotec won a contract for two roadmobile unloaders to be used for cement discharge from the Turkish company Medcem Global Pazarlama. All eyes now on 2014 As 2013 draws to a close, we turn our attention to the New Year with optimism and thrive on covering the most interesting projects and developments of the year for the global cement industry.

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event

CW

Summit

h i g h l i g h t s Group hosted its 2nd edition of the Middle East Cement Finance, Strategy and Trade Summit, on December 10-11, 2013 at the Jumeirah Emirates Towers Hotel in Dubai. Some of the meeting highlights are presented in this brief. The CW Group was represented on site of this small-group executive meeting by Robert Madeira, Managing Director and Head of Research, and Claudia Stefanoiu, Senior Analyst. The hosts were joined by a dozen senior executives and together explored the most relevant themes for the region. The executive summit offered an intimate opportunity for leaders of the industry to gain first hand access to senior CW Advisors, partners and analysts but also to meet with other key decision makers, and regional and global investors in the Middle East cement industry. The meeting took place in a dynamic and interactive workshop setting. Presentations covered, among others, trading outlook and opportunities, fly ash as a viable solution for the Middle East, growth scenarios and long-term management and construction activity in the Middle East. From global to regional In a worldwide context of declining growth rate projections, the expected evolution of the real 2014 GDP of the Middle East and North Africa region resembles the most with the global one. Back in September 2011, the IMF anticipated that the world’s GDP will increase by 4.8 percent in 2014, forecast that was lowered cycle after cycle, being currently set at 3.6 percent. The uncertain political situation in Libya, Egypt or Syria, among others, led to a similar downgrade for MENA’s 2014 GDP – from 4.8 percent in September 2011 to 3.8 percent in October 2013. In his opening presentation, Mr. Robert Madeira, the 19 DECEMBER / JANUARY 2014

Dusk or dawn in the Middle East?

Managing Director & Head of Research at CW Group, presented the Group’s view on the current growth scenario and reemergence, touching on the most pressing near term questions and challenges. Access to capital remains a challenge with margin improvement and cost reduction initiatives hamstringing global majors. Asset reshuffling is expected to continue in troubled markets, while some non-traditional players also gain more weight in the global environment. Construction sector – up for grabs Mr. Emil Rademeyer, General Manager MCI at MEED, offered a compelling update on the current GCC construction market and near term outlook. With a total value of awards of US$1.04 trillion, the GCC/MENA region continues to be led by Saudi Arabia, which took investment leadership from the UAE. The presentation concluded with the proposition of the best places to be in the next five years: UAE (and Dubai in particular) for buildings, thanks to nascent revival and Expo hopes; the Kingdom of Saudi Arabia for transport (mostly rail), industrial and petrochemicals; Iraq for upstream oil, but also Iraqi Kurdistan for a mini real-estate construction boom; and Qatar for transport (roads and railroads), infrastructure (water), or downstream petrochemicals. Afghanistan may also prove to be an attractive destination for cement companies as presented by Mr. Preeth Gowdar from the Task Force for Business and Stability Operations, US Department of Defense. In this regard, GIRoA planned to tender cement resources in a number of provinces around the country. The tendering process started during the second half of 2013, with raw materials and coal reserves potentially to be included in tender offers. www.cemweek.com


What lies in the cards for the cement industry? Claudia Stefanoiu, Senior Analyst at CW Group, further described the Gulf perspective, the outlook of the regional cement and clinker trading, but also raised an important question: “What lies behind the Middle East”? Egypt’s social conflicts and insufficient gas supplies have sent the cement market to an undesired minimum, while Morocco is passing through what can be called stabilization phase.

Is Middle East ready for fly ash substitution? Substitutes as fly ash are not yet very popular in the Middle East. Even if fly ash consumption in the region is currently estimated at just a few hundred thousand tons, it is believed that the substitution potential is enormous. However, before transforming itself into a larger fly ash consumer, the region must invest in its handling and transportation capabilities that are currently limited to bagged fly ash shipments.

But even Middle East’s major cement market did not remain untainted. Saudi Arabia’s government rush toward its Saudization policy led to a sharp slowdown of the construction and cement industries. After increasing by more than 10 percent in 2012, cement demand expanded by only 4 percent in 2013. The cement market is also facing an all-time high clinker stocks. Meanwhile, the country benefits from subsidized fuel that reduces production costs. However, fuel allocations by the Ministry of Petroleum have affected output from current facilities and limited the construction of new plants.

Mr. Matteo Spaziani, Ashes and Gypsum Manager at Enel Trade Italy noted that fly ashes end-users in Europe are mainly cement and concrete producers, with 25 million tons of fly ashes produced annually. Fly ashes are able to reduce the water/cement ratio, keeping the same workability and pump ability of the fresh mix, to increase the durability of the concrete, and to extend the useful life of the work. Additionally, fly ash increases the sustainability of the product: 1.25 ton of CO2 saved per each ton of fly ash used.

Announcements of capacity expansion projects flooded the Saudi cement market. With most of the cement companies struggling to obtain quarry exploration licenses, few of the announced projects are expected to be implemented. Another limiting factor is the government’s intention to limit concentration, while granting licenses to build new cement plants only to new cement companies. Opportunities come by rail Mr. Cesar Presas, Commercial Manager at Etihad Rail, referred to the most significant transport related opportunities for the cement industry. The region’s transportation network and product accessibility are about to change significantly following the implementation of some impressive investments pledged to develop an interlinked GCC railway. Under a 2020 vision, countries such as Turkey, Russia or China will be reachable by rail via Iraq, Jordan and Syria.

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Practical Compliance Considerations Mr. Michel Lemoine de Martigny closed the CW Summit with a speech concerning Practical Compliance Considerations. The reality of recent years reveals that compliance is becoming a global issue that cuts across virtually every industry, including the cement market. Conclusion The resumption of long delayed construction projects in the UAE brings back memories of the unprecedented 2008 boom that faded in the years to follow. In the short run, at least for the Emirates, the emergence out of the current lull relies on Dubai’s new infrastructure ventures that include among others 100 hotels, 40 percent of which to be developed under standalone projects. On a medium to long term, the World Expo 2020 is expected to drive significant momentum increase for cement demand. An underlining question remains though: can UAE return to its previous glory?

DECEMBER / JANUARY 2014

20


CEMENT MARKETS

CW Research & Analytics

CEMENT VOLUMES Preliminary 2013 results set in. Slowdown confirmed for Brazil and Saudi Arabia. 2009 has been often regarded as a fierce recession year for most of the cement markets around the world. Even though in global terms (excluding China), cement consumption contracted by 4.6 percent in 2009, recession was far from over for some of the European markets. Preliminary 2013 year end results reported by a number of cement markets reveal that regional disparities continue to hamper the industry .

Regional disparities continue to hamper the industry

While setting 2009 as base year, the cement consumption evolution of a preliminary set of 20 major cement markets can be regarded as rather constant in the last three years. The averaged index of the analyzed markets (excluding China) closed 2013 at 112. The largest cement demand expansions were registered in China, Indonesia, Saudi Arabia, Peru and Thailand with 2013 indices above 140. In the opposite corner, Spain and Cyprus noted their 2013 indices at 38 and 37, respectively.

China produced almost 2.4 billion tons of cement in 2013

China produced almost 2.4 billion tons of cement in 2013. The country’s cement demand increase topped all optimistic forecasts launched during the year. The 9.5 percent growth rate of 2013 adds to the more than 40 percent hike registered between 2009 and 2012. The Chinese cement market is expected to expand by another 6.8 percent in 2014 as real estate investments will grow rapidly.

2013/2012 Cement Demand Growth Rate (%) 15% 10%

-25% -30%

-35%

To learn more, please contact the CW Research & Analytics team at sales@cwgrp.com or +1-702-430-1748. 21 DECEMBER / JANUARY 2014

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Source: CW Group Research

-20%

Argentina

Thailand

Ecuador

China

Japan

Indonesia

Switzerland

Saudi Arabia

Brazil

South Korea

Chile

Pakistan

Germany

France

Morocco

Czech Republic

-15%

Poland

-10%

Spain

-5%

Cyprus

0%

Peru

5%


CW Research & Analytics

Saudi Arabia expanded its cement consumption by 48 percent since 2009 (37.4 million tons in 2009 to 55.3 million tons in 2013). However, the 3.8 percent growth rate reported in 2013 was extremely disappointing for the industry, given that cement consumption increased by double digits during previous years. The negative impact of labor shortages severely affected Saudi Arabia’s momentum in the last months of 2013.

CEMENT MARKETS

Indonesia reached 58 million tons in cement consumption at the end of 2013, a 5.5 percent increase versus 2012. In 2009, cement consumption for the country was rated 20 million tons lower. The Indonesian cement market is projected to grow this year at comparable pace, despite the industry’s drive to increase cement prices. Indonesian cement companies are looking to compensate for the higher electricity costs, as the government plans to increase electricity rates for large-scale consumers in order to reduce the energy subsidy. In the beginning of 2014, the Energy and Mineral Resources Ministry received approval from the House of Representatives Commission VII to raise electricity rates by 38.9 percent for companies using more than 200 kVA and by 64.7 percent for those using 30,000 kVA. The new rates will be implemented gradually with increases at every two months starting May and ending December.

The negative impact of labor shortages severely affected Saudi Arabia’s momentum in the last months of 2013

In its turn, the Peruvian cement industry crossed for the first time in its history beyond 10 million tons in cement consumption and notched a 7.1 percent increase in 2013. Thailand noted an even more impressive evolution in 2013 with a 9.7 percent hike in last year’s cement consumption, increasing by 42 percent compared to 2009. Cement Demand Historical Evolution 170 150 130

90 70 50 30

2009

2010

2011

2012

2013

Note: 2009 = Base Year; Preliminary calculation using results reported by 20 large cement markets; Weighted average excludes China

Source: CW Group Research

110

Spain registered one of the largest declines since 2009, being now at only 38 percent from the level reached in 2009. In 2013, the Spanish cement consumption contracted by 19.2 percent, reaching only 10.9 million tons in volume. Thus, cement consumption per capita was rated at 235 kg per inhabitant in 2013, a level that is superseded by the 241 kg per inhabitant seen back in 1962. The expectation is that the industry will face another fall in 2014 (8 percent decline). Cyprus reported a comparable evolution in the last five years with the 2013 cement consumption being at 37 percent versus the level noted in 2009. The country consumed only 0.53 million tons of cement in 2013. As more and more countries report on their full year 2013 indicators, last year’s global cement market recovery is expected to become more evident. To learn more, please contact the CW Research & Analytics team at sales@cwgrp.com or +1-702-430-1748. www.cemweek.com

DECEMBER / JANUARY 2014

22


CementProduction Production (million tons) Cement (million tons)

Cement Consumption (million Cement Consumption (milliontons) tons)

Country

LM

MoM (%)

YoY (%)

YTD

YTD (%)

Country

LM

MoM (%)

YoY (%)

YTD

Argentina (Nov)

1.1

-4%

12%

10.9

11%

Brazil (Dec)

5.1

-15%

0%

70.0

2%

205.3

-8%

13%

2,397.0

9%

Egypt (Oct)

3.3

-31%

-18%

35.8

-7%

1.0

-3%

10%

10.2

3%

France (Dec)

1.2

-18%

11%

19.2

-4%

4%

TABLE 2.2 AVAILABLE IN THE -6% CEMWEEK -13% 23.3 Indonesia (Dec) 5.3 -5% 3% 58.0 MAGAZINE PRINT EDITION.

-5%

Pakistan (Dec)

-2%

China (Dec) Colombia (Nov)

TABLE AVAILABLE IN THE CEMWEEK 18.4 -9% 4% 227.1 5.7MAGAZINE 7% 6% PRINT EDITION.55.9

India (Nov) Japan (Nov) Mexico (Oct)

3.0

Russia (Nov)

5.0

Thailand (Nov)

3.3

12%

-7%

6%

29.4

-18% 11% 62.5 WWW.CEMWEEK.COM/SUBSCRIBE 0%

7%

37.9

YTD (%)

-4%

Germany (Nov)

2.3

7%

Peru (Nov)

8%

Saudi Arabia (Nov)

9%

4%

0.9 -5% 1% WWW.CEMWEEK.COM/SUBSCRIBE 3.6

6%

25.3

-14%

-15%

9.4

7%

49.5

5%

US (Oct)

8.5

10%

8%

68.8

4%

South Korea (Dec)

3.7

-15%

21%

45.0

2%

Vietnam (Dec)

5.7

4%

0%

60.4

5%

Spain (Nov)

0.9

-10%

-8%

10.0

-19%

Cement MoM (%)(%) CementProduction Production MoM

110%

Cement Consumption MoM(%) (%) Cement Consumption MoM

Argentina

China

Colombia

India

Japan

Mexico

Russia

Thailand

US

Vietnam

Brazil Indonesia South Korea

Egypt Pakistan Spain

France Peru

Germany Saudi Arabia

80%

20% 0% -20%

MoM (%)

YoY (%)

YTD

YTD (%)

TABLE AVAILABLE IN -15% THE CEMWEEK 0.4 12% 3.3 0.4MAGAZINE 5% -12% PRINT EDITION.4.7

China (Sep)

1.1

Germany (Oct) Japan (Nov) South Korea (Dec)

0.4

Thailand (Oct)

0.5

4%

21%

8.3

Cement Imports (million tons) Cement Imports (million tons) Country LM

22%

Brazil (Dec)

-9%

Canada(Sep)

-5%

France (Oct)

3.6

16%

Malaysia (Nov)

-4% -2% 5.9 WWW.CEMWEEK.COM/SUBSCRIBE

-1%

US (Nov)

36%

286%

Cement Exports MoM (%) Cement Exports MoM (%) Germany

Japan

South Korea

Thailand

190%

YoY (%)

YTD

-24%

-9%

0.8

Dec-13

Nov-13

Oct-13

Sep-13

Aug-13

Jul-13

MoM (%)

0.1

YTD (%) 4%

TABLE AVAILABLE CEMWEEK0.9 0.2 107%IN THE 37% 0.2 -6% -19% 2.2 MAGAZINE PRINT EDITION.

-27% -13%

0.1

-28%

-21%

0.9

11%

0.5

-14%

-8%

5.2

3%

WWW.CEMWEEK.COM/SUBSCRIBE

Cement Imports MoM (%) Cement Imports MoM (%)

China

240%

-60% Jun-13

Dec-13

Nov-13

Oct-13

Sep-13

Aug-13

Jul-13

Jun-13

May-13

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Cement Exports (million tons) Cement Exports (million tons) Country LM

WWW.CEMWEEK.COM/SUBSCRIBE

-40%

-50%

May-13

WWW.CEMWEEK.COM/SUBSCRIBE

-30%

Feb-13

10%

-10%

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

40%

Jan-13

30%

Apr-13

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

50%

Dec-12

70%

60%

Mar-13

90%

Brazil

Canada

France

Malaysia

US

400% 300%

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

100%

0%

Dec-13

Nov-13

Oct-13

Sep-13

Aug-13

Jul-13

Jun-13

May-13

Dec-13

Nov-13

Apr-13

WWW.CEMWEEK.COM/SUBSCRIBE

-100% Oct-13

Sep-13

Aug-13

Jul-13

Jun-13

May-13

Apr-13

Feb-13

Jan-13

-60%

Mar-13

WWW.CEMWEEK.COM/SUBSCRIBE

Dec-12

-10%

Mar-13

40%

200%

Feb-13

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

90%

Jan-13

140%

Dec-12

MARKET DATA SNAPSJOT

CW Research & Analytics

MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year

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CEMENT ENERGY MARKETS

CW Research & Analytics

CEMENT ENERGY MARKETS Coal Market Update United States, South Africa and Australia coal exports plunge November total coal trading volume suffered a decrease from October following a lower demand mainly from Korea and Turkey. As a consequence, coal exports plunged in United States, South Africa and Australia. Deliveries out of United States ports declined more than 1.2 million tons, with the highest drops observed in shipments to South America (Brazil and Chile), Europe (Netherlands, Spain, Sweden and United Kingdom) and Japan. In Australia, volume exported from Port Waratah Coal Services Limited (PWCS), located in the Port of Newcastle, decreased 25 percent versus October, as demand from Asian countries for Australian product receded. South Africa’s coal output from Richards Bay Coal Terminal (RBCT) contracted 14 percent to 6.3 million tons. In Russia’s shipments remained flat in November versus the previous month. After reaching a year high of 8.1 million tons in September 2013, Colombian coal exports suffered a setback in October and November due to multiple disruptions at the coal mines and operational disputes at the ports. 2013 has been a turbulent year for the industry in Colombia that included, among others issues, several attacks to railroads by the “guerillas”. January to November year-to-date volume is down 6 percent from last year and the local government announced it is expecting a 10 percent decline in coal production by the end of the year.

2013 has been a turbulent year for the coal industry in Colombia

Coal Global Trading (million tons)

In the U.S. year-to-date coal exports are 6 percent lower than 2012. Total coal volume dispatched to Europe has plummeted 9 percent as a consequence of continuing economic weakness in the region and deliveries to Asian markets have fall 18 percent, driven by a 42 percent collapse in exports to India who has switched its imports to Indonesia. The U.S. Energy Information Administration estimates that coal exports totaled 107 million tons in 2013, down about 6 percent from 2012. However the lower volume was offset with an increase of 4 percent in local coal consumption, mainly as a result of higher coal usage in the electric sector, after natural gas prices started to recover. Coal Global Trading (million tons) 120

Indonesia

Australia

Russia

South Africa

Colombia

US

Rest

40 0 NOV-13 OCT-13 SEP-13 AUG-13 JUL-13 JUN-13 MAY-13 APR-13 MAR-13 FEB-13 JAN-13 DEC-12 NOV-12 OCT-12 SEP-12 AUG-12 JUL-12 JUN-12 MAY-12 APR-12 MAR-12 FEB-12 JAN-12 DEC-11 NOV-11 OCT-11 SEP-11 AUG-11 JUL-11 JUN-11 MAY-11 APR-11 MAR-11 FEB-11 JAN-11 DEC-10 NOV-10

Source: customs data

80

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DECEMBER / JANUARY 2014

24


CEMENT ENERGY MARKETS

CW Research & Analytics

Energy Prices Update Coal Coal trading prices recovered in November for the second consecutive month in main export hubs and the average for the top 5 exporter countries is now at US$82 per ton. The China’s Bohai-rim Steam Coal Price Index (BSPI), which covers six major coal shipping ports in China, reached 576 yuan (US$94) per ton at the end of November, the highest value since July 2013. Prices in China have started to rise following a strong demand from power plants and a more robust market than the third quarter. In Indonesia, the average Harga Batubara Acuan (HBA) price closed at US$78 per ton, up 2 percent from October. Price slightly increased thanks to a higher coal demand from local power stations and abroad clients that are replenishing stocks in advance to the winter season. Australia’s Newcastle coal export price recovered 3 dollars in November and is now at US$88 per ton, the highest price since the beginning of June 2013 but still 14 dollars Steam Coal FOB Average Prices (US$/ton) 150

Indonesian HBA

US exported

Colombia exported

Australia Newcastle

South Africa Richards Bay

130 120 110 100 90 80 70 60

NOV-13

SEP-13

JUL-13

MAY-13

MAR-13

JAN-13

NOV-12

SEP-12

JUL-12

MAY-12

MAR-12

JAN-12

NOV-11

SEP-11

JUL-11

MAY-11

MAR-11

JAN-11

NOV-10

SEP-10

JUL-10

MAY-10

MAR-10

JAN-10

NOV-09

50

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Sources: : EIA, Colombia Ministry of Mines and Energy, IMF, Indonesia Ministry of Energy and Mineral Resouces

140


below the 18-month-high of US$102 per ton observed in February 2013. Surge in price was mostly caused by Chinese advanced purchases due to the New Year celebration in late January. In South Africa, export price has grown 15 percent from July 2013 and is now at US$83 per ton. Colombia’s coal, which plummeted in August and September, is now back in track at US$ 83 per ton. US Petcoke Export Price (US$/ton) rolling 12-month average 140 120 100 80 60

20

NOV-13

OCT-13

SEP-13

AUG-13

JUL-13

JUN-13

MAY-13

APR-13

MAR-13

FEB-13

JAN-13

DEC-12

NOV-12

OCT-12

SEP-12

AUG-12

JUL-12

JUN-12

MAY-12

APR-12

MAR-12

FEB-12

JAN-12

DEC-11

NOV-11

0

Source: customs data

40

Petcoke Note: prices are calculated alongside ship and includes inland freight and insurance The average price of U.S. uncalcined petcoke for export markets advanced in November to reach US$79 per ton. Monthly price has been recovering for the last 3 months but the year-to-date price average is still down 5 percent versus 2012. November’s highest jump in price was observed in petcoke sold to India, delivered from facilities in the U.S. West coast. Price rose 33 percent versus October driving the total U.S. export price 8 percent up, compared to the previous month. Prices to Europe remain stable. Averages out of the Gulf coast range from US$45 per ton to Spain to US$71per ton to Italy. In terms of volume, U.S. petcoke exports reached 2.2 million tons in November 2013, down 25 percent from October and 5 percent below November of last year. Volume is the lowest monthly reading since January 2013. Still, year-to-date volume remains 8 percent higher than 2012 thanks mostly to higher sales to China (+54 percent) and Canada (+27 percent). To learn more, please contact the CW Research & Analytics team at sales@cwgrp.com or +1-702-430-1748. www.cemweek.com

DECEMBER / JANUARY 2014

26

CEMENT ENERGY MARKETS

CW Research & Analytics


CEMENT ENERGY MARKETS

CW Research & Analytics

Natural Gas Natural gas price in the U.S. remains stable as the country prepares for the winter season. The Henry Hub natural gas spot price averaged $3.6 per MMBtu in November, just 1 percent down from October’s price. Henry Hub has been now over the $3.0 per MMBtu level for more than 12 consecutive months, losing competitiveness to coal. Even though the competition between coal and natural gas is more complex than just price, the U.S. has seen an increased number of facilities switching back to coal. European natural gas price remains strong at US$11.4 per MMBtu. Reports of low stock storage reserves at some European countries, anticipated harsh winter weather, a steady decline in production as well as a reduction in imports are expected to push the price further up. Most concerns are around the current trend of lower stocks at the beginning of the winter season. Current infrastructure in the region offers enough flexibility but a steep decrease in inventories will push countries to undertake huge natural gas savings and in some cases, increase imports. Natural Gas Prices (US$/MMBtu)

18

US

Europe

16 14 12 10 8 4 2

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NOV-13

MAR-13

JUL-12

NOV-11

MAR-11

JUL-10

NOV-09

MAR-09

JUL-08

NOV-07

MAR-07

JUL-06

NOV-05

MAR-05

JUL-04

NOV-03

MAR-03

JUL-02

NOV-01

MAR-01

JUL-00

NOV-99

MAR-99

JUL-98

NOV-97

0

Source: EIA, World Bank

6


Petcoke - US Exports (million tons - Aug)

Coal - Exports (million tons)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINTYoYEDITION. LM MoM (%) (%) YTD

Coal - Exports (million tons) Country Indonesia

32.0

0%

-6%

14.7WWW.CEMWEEK.COM/SUBSCRIBE -12% 4% 168.0

US

7.7

CoalColombia Exports MoM (%) South Africa

YTD (%)

Country

14%

Total US

2.2

10%

To Mexico

0.1 -24% -28% WWW.CEMWEEK.COM/SUBSCRIBE

2.5

4%

To India

0.1

-48%

-40%

2.1

12%

To Brazil

0.2

11%

63%

1.8

0%

To Turkey

0.2

60%

344%

1.9

2%

To Italy

0.2

275%

15%

1.2

-19%

357.5

Australia

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION. LM MoM (%) YoY (%) YTD

Petcoke - US Exports (million tons)

-14%

0%

98.2

-6%

6.7

9%

11%

67.4

-6%

5.9

-16%

-9%

66.1

-3%

-25%

US petcoke exports prices MoM (%)

-5%

YTD (%)

28.4

8%

Coal Exports MoM (%) US petcoke exports prices MoM (%) 6%

Global

2%

90%

WWW.CEMWEEK.COM/SUBSCRIBE

0% -2%

China Japan Korea, South

10.4

-3%

-12%

India

WWW.CEMWEEK.COM/SUBSCRIBE 14.5 9% 10%

Turkey

2.5

-1%

Petcoke - US export prices (USD/ton)

2%

Country

116.4

0%

Total US

145.0

31%

To Mexico

26.0

-1%

To India

Coal - Global export prices (USD/ton)

Coal - Global export prices (USD/ton)

Country

LM

MoM (%)

YoY (%)

YTD

YTD (%)

78.1AVAILABLE 2% IN THE -4% 83.2 TABLE CEMWEEK 88.1 4% -4% 90.6 MAGAZINE PRINT EDITION. 74.8 -2% -7% 78.6

Indonesia Australia US Colombia

83.0

South Africa

83.8

0%

-9%

WWW.CEMWEEK.COM/SUBSCRIBE 4% -2%

-14%

Nov-13

Oct-13

Sep-13

MoM (%) (%) YTD TABLE LM AVAILABLE IN THEYoYCEMWEEK 79.4 8% 4% 77.4 MAGAZINE PRINT EDITION. 64.6 0% -2% 65.6 97.2

3%

-5% -2%

97.9

7%

62.0

-6%

WWW.CEMWEEK.COM/SUBSCRIBE 61.9 0% -5%

To Turkey

68.5

-1%

-1%

69.3

0%

To Italy

67.6

0%

-2%

67.8

-2%

Natural Gas Prices (US$/mmBtu)

TABLE LM AVAILABLE IN THEYoYCEMWEEK MoM (%) (%) YTD MAGAZINE PRINT EDITION. 11.4 0% -3% 11.8

Natural Gas Prices (US$/mmBtu)

-7%

Country

83.3

-12%

Europe

79.8

-14%

US

Coal export prices MoM (%)

8%

YTD %

To Brazil

-13%

WWW.CEMWEEK.COM/SUBSCRIBE 3.6 -1% 3%

YTD (%) 3%

3.7

36%

Natural Gas prices MoM (%)

Natural Gas prices MoM (%)

Coal export prices MoM (%) Indonesia

Aug-13

YTD (%) 21%

-23%

Jul-13

Petcoke - US export prices (USD/ton - Aug)

LM AVAILABLE MoM (%)IN THE YoY CEMWEEK (%) YTD TABLE 28.4 17% 21% 248.7 MAGAZINE6%PRINT EDITION. 16.7 7% 174.1

Italy

-8% Jun-13

Coal - Imports (million tons)

Turkey

-10%

Coal - Imports (million tons) Country

Mexico

WWW.CEMWEEK.COM/SUBSCRIBE

Nov-12

Nov-13

Oct-13

Sep-13

Aug-13

Jul-13

Jun-13

May-13

Apr-13

Mar-13

Jan-13

Feb-13

-60%

-6% Dec-12

-4% Nov-12

-10%

Brazil

May-13

40%

India

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

4%

Apr-13

South Africa

Mar-13

Colombia

Jan-13

US

Dec-12

140%

Australia

Feb-13

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

Indonesia 190%

Australia

US

Colombia

South Africa

US

20%

15%

Europe

15% 10%

Nov-13

Oct-13

Sep-13

Aug-13

Jun-13

May-13

Dec-12

Nov-13

Oct-13

Sep-13

WWW.CEMWEEK.COM/SUBSCRIBE Apr-13

-5%

Mar-13

0%

Jul-13

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

5%

-10% Aug-13

Jul-13

Jun-13

May-13

Apr-13

WWW.CEMWEEK.COM/SUBSCRIBE Mar-13

Dec-12

Nov-12

-10%

Feb-13

-5%

Jan-13

0%

Feb-13

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

5%

Jan-13

Coal export prices MoM (%)

Nov-12

10%

Source: CW Group analysis estimates

LM: latest month (November except where other specified); MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year

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MARKET DATA SNAPSHOT

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people

Resignations at China Resources Cement China Resources Cement has announced the resignation of Board Vice President and Executive Director Yu Zhongliang, effective January 1, 2014. New CEO at India’s Dalmia Bharat Limited India’s Dalmia Bharat Limited has appointed Mahendra Singhi as Group CEO – Cement. With 36 years of experience in the cement sector, Mr. Singhi joins Dalmia Cement from Shree Cement, where he served for 19 years and was Executive Director. In his previous organization, Mr. Singhi was credited with fostering growth, a professional family culture, and a high level of happiness quotient. Dalmia Bharat Limited, part of the Dalmia Group, has been a pioneer in cement manufacturing since 1939. With an expanding India footprint, the company is a category leader in super-specialty cements used for oil wells, railway sleepers and airstrips.

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Martin Brydon to replace Mark Chellew as CEO at Adelaide Brighton In Australia, the CEO of Adelaide Brighton, Mark Chellew, will step down from the cement group next year after a 13-year tenure. He will be succeeded internally by cement and lime executive general manager Martin Brydon. Maude Queiroz Pereira has resigned from the Semapa board In Portugal, Maude Queiroz Pereira has resigned from the Semapa board. The resignation follows an agreement ending a months’-long family dispute for control of Semapa. The agreement involved the sale of Maude Queiroz Pereira’s stakes in ‘holdings’ that control Semapa - Cimigest (18.5%), Sodim (4.9%) and Cimipar (40%) - for less than EUR 100 million. First Chief Executive Officer for Savannah Cement Kenya’s Savannah Cement has appointed Ronald Ndegwa as its first Chief Executive Officer. Commissioned in July 2013 as Kenya’s sixth cement manufacturer, Savannah

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Cement has been operating without a substantive CEO. Mr. Ndegwa, who previously served as the Director of Supply Chain at Tata Chemicals Magadi (Magadi Soda), has joined the firm with a clear brief to spearhead the business development agenda. New board member at Bamburi Cement Kenya’s Bamburi Cement has appointed financial secretary Mutua Kilaka to its board. Kilaka joins the Bamburi board, which is dominated by French Lafarge, at a time when the National Social Security Fund (NSSF) has been seeking to reclaim its seat in the cement firm. Second nomination for Carlo Pesenti at Cement Sustainability Initiative In Italy, Carlo Pesenti, Italcementi CEO, has been nominated for the second time as co-president of the Cement Sustainability Initiative (CSI). Mr. Pesenti previously held this role in 2006-2007, and will now remain in office until 2015. The appointment of the Chief Executive Officer of Italcementi confirms


Mr. Albert Manifold, new Group Chief Executive at CRH

the consolidation of sustainability as a strategic foundation for innovation and for the development of the Group. Dr. Ali Mdabash resigned after months of protest In Yemen’s Bajil Hodeidah, cement director Dr. Ali Mdabash has resigned from his office after months of protest against his lack of full powers to stop rampant corrup-

T

he international building materials group, CRH, has confirmed that Mr. Albert Manifold has succeeded Mr. Myles Lee as Group Chief Executive, effective January 1, 2014. Mr. Lee retired after 32 years with CRH, including 5 years as Finance Director and 5 years as Chief Executive. Mr. Manifold joined CRH in 1998 as Finance Director for CRH’s Europe Materials division, where he helped build CRH’s position in Eastern Europe.  In 2004, he became Group Development Director and in 2007 he was appointed Managing Director of CRH Europe Materials.  During this time, Mr. Manifold led CRH’s initial entry into Asia and the development of CRH’s positions in China and India. In January 2009, Mr. Manifold joined the CRH Board of Directors as Group Chief Operating Officer. In this role, Mr. Manifold helped to further develop CRH’s sustainability capability and to shepherd CRH’s operational excellence and cost reduction programs through the financial crisis. Prior to joining CRH, Mr. Manifold was COO of a private equity group, holding operational responsibility for that business in US and Europe. Mr. Manifold has worked extensively in Europe, Eastern Europe, the US, Asia, and Australasia. He is a qualified accountant and holds both an MBA and an MBS.

tion in the factory and lift the plant, which threatens to collapse, from its current depressed state. The factory has stopped work and equipment has been out of service for more than five years. 31 unionized workers laid off for one month at Lafarge Canada In December, Lafarge Canada laid off 31 unionized workers for one month at its

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cement plant in Brookfield, a seasonal cost-cutting measure characteristic of the business. The Brookfield cement plant caters to customers throughout Atlantic Canada and the northeastern United States. In 2010, the cement plant received $670,000 from ecoNova Scotia Fund for Clean Air and Climate Change to produce a new low-carbon cement, expected to be available on the market by 2015.

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while maintaining its edge in the southern African region.

REGIONAL REPORT:

Nigeria Lafarge Cement WAPCO Nigeria Plc. will increase its investment in Nigeria. Nigeria is one of the fastest growing markets in cement production. The move will enable the company to double its cement production capacity in the next five years.

Africa Tunisia The Tunisian Ministry of Trade and Handicrafts is closely monitoring prices of gray cement and artificial lime in order to counter smuggling, control distribution channels, and guarantee transaction transparency and fair competition so that supply and prices remain stable. Kenya In Kenya, cement prices have reached a 12year low due to the entry of new players, such as National Cement, Savannah Cement, and Mombasa Cement, on the market. The retail price of a 50-kg bag of cement stands at about Sh650 in Nairobi, down from Sh740 in 2008 and 2009. Consumers outside the city pay higher rates due to transport costs. The trend is likely to reverse and prices to increase in the near term, as the Ministry of Mining imposes a 1.5 percent-per-ton levy on cement makers. The price of a 50-kg bag of cement is expected to rise by at least Sh10. The levy is intended to create a level playing field between those who import finished products and those with clinker.

increase in November, up 29.70 percent, but annual sales declined 6.52 percent through the period. The major problem facing the sector is lack of liquidity due to the banking crisis. Ghana In Ghana, the government has asked GHACEM to double its local raw materials utilization to 50 percent. GHACEM, which produces about 60,000 tons of cement per week, argues that suitable limestone reserves in the country are insufficient. South Africa In South Africa, the Competition Tribunal has approved PPC’s R377 million acquisition of a 69.3 percent stake in Safika Cement Holdings. The move enhances PPC’s South African footprint through Safika’s five blending facilities and one milling operation that produce blended 32.5N cement under three brands. PPC plans to expand its revenue from the rest of Africa from 21 to 40 percent by 2016,

Angola The government of Angola has enacted import curbing measures to protect the domestic cement industry, for which production capacity (8.5 million tons) currently exceeds local demand (5.5 million tons). Zambia The firm Dangote will commission a $50 million power plant to supply 30 MW of electricity to its new multi-million dollar cement factory in Ndola, Zambia. The power plant is expected to function by

EUROPE, EUROPE, RUSSIA RUSSIA AND AND BALTIC BALTIC REGION REGION Company/Location

Senegal The French firm Vicat has accused the Senegalese government of favoritism toward the Nigerian group Dangote, to the detriment of its local subsidiary, Sococim. Vicat has filed a request for arbitration to the Common Court of Justice and Arbitration (CCJA).

Agro-Alliance/Russia

Morocco Cement sales in Morocco showed a strong

Holcim/France

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Algeria Import of construction materials to Algeria reached $2.53 billion in the first 10 months of 2013, up 1.2 percent year-over-year despite an increase of more than 28 percent in quantities imported. Imports of major construction materials (cement, wood and steel) increased from 6 million tons in the first ten months of 2012 to 7.6 million tons in the same period of 2013. The value of cement imports reached US$351 million in the period, up 62.7 percent year-overyear.

Lafarge/Ukraine

Overview Agro-Alliance plans to build a cement factory in Surazh, Bryansk region. The cement plant will have a capacity of 2 million tons of cement per year.

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

Volkscement OJSC/Russia Asia Cement/Russia

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Lafarge will build in the Crimean region a new cement unit for 18 billion rubles. In the first phase, the plant will produce 2 million tons per year. Volskcement OJSC Russia (Holcim Group) contracted a subsidiary of KHD for the construction of a production line in Volsk.

WWW.CEMWEEK.COM/SUBSCRIBE Asia Cement produced the test batch of cement at its Penza cement

plant, found in construction in the Nikolsk district. The company intends to produce 50,000 tons of cement by the end of this year. Holcim starts production at new French site at Grand Port Maritime de La Rochelle.


MIDDLE EAST MIDDLE EAST Company/Location Jordan

Overview The head of the Investors Association revealed a proposal coming from a number of investors in the sector to create a cement plant that may cost up to 40 million dinars.

TABLE AVAILABLE IN THE CEMWEEK Al Khalij Cement/Qatar MAGAZINE PRINT EDITION.

FLSmidth has received an order worth DKK 515m from Al Khalij Cement. The order will cover the supply of a complete cement production line for the customer’s plant in Umm Bab.

Oman Cement/Oman Adra Cement/Syria

WWW.CEMWEEK.COM/SUBSCRIBE FLSmidth has signed a contract for supply of equipment and machinery for a cement plant.

The director of the General Organization for Cement and Building Materials, Ghassan Freeh, says Adra Cement has increased production by a quarter. The calibration of first and second lines led to a daily production of about 150 tons per day for each line.

the end of the first quarter of 2014, and the cement manufacturing factory in July 2014. Tanzania Tanzania’s Mbeya Cement, a Lafarge subsidiary, has inaugurated a new ultra modern bag filter system at Songwe, expected to reduce stack emissions to 10mg/ nm3, far below the 50mg/mn3 imposed by the 2013 Tanzania Environmental Regulations and in line with Lafarge’s industrial targets. The project required an investment of 1.5 million EUR. Mbeya intends to increase its cement capacity to 0.7 million tons per year by adding a new cement mill, a clinker line upgrade, and a new packing plant by Q2 2015. Europe

German cement production, threatening competitiveness and attracting an immediate cessation in production. A state aid procedure will be implemented because both the local system of green electricity and the exemptions for the industry are distorting competition. The “special equalization scheme” of the Renewable Energy Sources Act (RES) is no longer applicable. Businesses previously exempted will now have to pay full RES surcharge on energy consumption. Since 48 percent of cement production costs are due to electricity, this will be an extreme cost burden. German manufacturers pay EUR 250 million per year for the required energy. Without the green electricity clause, this cost will reach around EUR 470 million.

France In France, cement packaged in bags of 35 kilos, to be distributed within 250 kilometers of the Charente-Maritime, has started rolling out of the new Holcim production unit inside the Grand Port Maritime de La Rochelle. Russia Russia-based Sibcem has increased its stake in Iskitimcement to 25 percent, with the remaining shares in the company under the control of independent portfolio investors. Cement production in Russia between January and October of 2013 increased by 7.4 percent year-over-year, exceeding 56.7 million tons. Production was not distributed uniformly across the country. The worst figures were recorded in the North-West Federal District, where there was a decline in production of cement by 0.6 percent. Leaders in production were the Central and Southern federal districts, where production increased by 15.7 percent and 9.6 percent, respectively. Along with the growth of production, consumption also increased. From the beginning of the year until October, this figure increased by 6.6 percent and reached almost 61 million tons. Growth indicators allowed Russia to increase production and exports, which grew by more than 23 percent and accounted for more than 1.5 million tons. Imports grew by just 1.8 percent, leading to a record of 4.5 million tons.

Germany The European Commission has turned down Germany’s request to its competition authority to review a proposed takeover by Swiss cement maker Holcim of some of Mexican rival Cemex’s activities in cement, ready-mix concrete, and aggregates in western Germany and elsewhere. The German competition authority has argued that the takeover threatens to affect competition in the cement markets of northern and western Germany, as well as parts of Belgium, the Netherlands, and the northeast of France. Meanwhile, an expected doubling in electricity prices would affect 57 percent of

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Poland Although total annual cement sales in Poland for 2013 came in at 7.5 percent below 2012, sales rose 54 percent, yearover-year, in December, with production up 42 percent. The change results from mild winter and recovery in the construction industry. Cement plants using waste (wood, plastic, tires etc.) as alternative fuel, an underdeveloped option, could help with Poland’s current waste disposal problem. Currently, only 2 percent of cement production energy comes from alternative fuel. Spain Cement consumption in Catalonia, Spain, fell by 21.8 percent, year-overyear, in November, compared with the 9.3 percent decrease for Spain as a whole. This is the sixth consecutive year of low consumption in Catalonia. Catalonia’s cumulative production decline for 2013 was 36.7 percent. Meanwhile, exports decreased by 33.4 percent, partly due to increased electricity costs threatening the survival of some plants. A total of 21 electricity-intensive Spanish plants have stopped production due to the high prices of electricity. Electricity prices in Spain are now 30-60 percent higher than in Germany. Cemex has reopened its cement plant in Tarragona, Spain, a year after laying off 136 workers and closing the unit due to overcapacity in Cataluna. Cement production in the region fell in 2013 to 0.8 million tons, 24 percent lower than in 2012 and 82 percent lower than in 2007. Cement consumption in Spain is expected to fall 8 percent in 2014, and production volumes to fall about 20 percent. Economic conditions are expected to improve in 2015. Per capital cement consumption in Spain currently stands at 220 kg/capita, far below normal consumption.

China, India and the United States. Cement exports in the country have increased 34 percent, year-over-year, with production rising 4 percent.

licenses in the country to meet accelerating local demand for cement. However, the provision of fuel for the new production lines presents major difficulties.

Saudi Arabia Saudi Arabia’s clinker stocks are now at a record high (around 13 million tons) due to an aggressive slowdown in cement demand following the departure of thousands of expatriate workers under a sevenmonth government amnesty. Cement sales dropped 30 percent in November. After expanding by 10 percent in 2012, the market was expected to close 2013 at only 3 percent above last year. Cement prices also hit a minimum of SAR12-13.5 per bag, but are likely to improve again in January 2014. Two new cement plants, one in Taif and another one in Southern Saudi Arabia, will be commissioned soon.

UAE Cement makers in UAE have defended their right to export in Oman amidst Raysut Cement’s calls for restrictions on imports. Raysut Cement has said that the market requires 1 million tons of cement per year but that UAE producers are exporting 2.5 million tons per year. However, UAE producer Fujairah Cement estimates demand at almost 3 million tons per year.

Saudi’s Ministry of Petroleum and Mineral Resources, in coordination with the Ministry of Commerce and Industry, may issue up to three new cement production

AFRICA Company/Location

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AFRICA

Overview

Dangote Cement/Zambia

The company is reportedly close to completing its new cement plant in Zambia for which it is spending US$400 million.

CTIEC/Algeria

China Triumph International Engineering Group secured a deal for the development of a 1.5 million tons per year cement plant in Adrar.

Dangote Cement/Cameroon

Dangote Cement reported that work at its cement plant in Cameroon is nearing completion, with progress already at 80 percent.

Cimaf/Cameroon

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Habesha Cement/Ethiopia

The first cement bag from the factory located in the Bonaberi industrial zone will be produced in January 2014. If the testing period is passed successfully, the cement plant will start commerical production in February 2014. Habesha Cement secured a letter of credit (LC) for its Chinese contractor from the Eastern & Southern Africa Trade & Development Bank, known as the PTA. The Chinese contractor can now start work at the plant.

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ARM Cement/South Africa

Kenya based ARM Cement is still waiting to receive its directors’ approval for a plan to construct a plant in South Africa.

ARM Cement/Kenya

ARM Cement intends to raise up to Sh25.5 billion (approximately US$300 million) to fund new units, including a planned cement plant in Kitui that will own a daily cement capacity of 8,000 tons.

Guinea Bissau

Guinea Bissau will build by 2015 a cement plant with an annual cement capacity of 500,000 tons.

Ciments de Bizerte/Tunisia

Ciments of Bizerte announced that it intends to increase its production capacity by 50 percent in early 2014 and reach 1.5 million tons in cement capacity in total.

Middle East Iran The Islamic Republic of Iran ranks first in cement exports worldwide and is the fourth global producer of cement after

Jordan Jordan-based construction companies have denounced rising cement prices, up 100 percent during the past six months. Cement prices are nearing 110 dinars per ton. Price hikes affect the building and construction segment, and the industry is demanding a thorough study to determine if there is collusion in the market.

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REGIONAL REPORT:

India In India, Zuari Cement is investing Rs 2,500 crore to set up a cement grinding unit at Auj and Shingadgaon in Solapur, a terminal in Kochi, and a 3 millionton-capacity integrated cement plant at Gulbarga. India-based Jaypee Cement has sold its Gujarat cement plant, comprising an integrated 2.4-MTPA Cement Plant at Kutch and a 2.4 MTPA Cement Grinding Unit at Wanakbori, to UltraTech Limited. Meanwhile, the Competition Commission of India (CCI) has approved JSW Steel’s acquisition of Heidelberg Cement India’s 0.6 million-ton-capacity grinding facility at Raigad, Maharashtra. The continued slowdown in the Indian economy has resulted in weak cement demand. Production costs are also increasing. Demand is expected to improve in 2014. Cement prices have increased by Rs 30-40 per bag in the past two months, but this price recovery is likely to be only marginal, due to excess capacity. Pakistan Cement sales increased in December in Pakistan, breaking a five-month trend. Local December sales came in at 2.33 million tons, up 3.8 percent year-overyear. Exports also showed improvement, reaching 0.63 million tons, up 7.8 percent year-over-year. The improvement was not enough to lift overall export figures during July to December 2013, which totaled 1.8 percent under the same period in the previous year. Pakistani cement exports to India were down 11 percent, year-on-year, between July and November. Non-tariff barriers,

including renewal of BIS certificates, are hampering exports. Pakistan’s total cement exports during the period declined by 3 percent to 3.5 million tons. Meanwhile, construction costs are expected to rise with the restoration of the Gas Infrastructure Development Cess (GIDC). A resulting increase of Rs 10-12 per cement bag for companies with gas-fed captive power plants is expected, following a Rs 10-20 increase in cement prices by producers in the southern region.

cement plant near the Shan State capital of Taunggyi in Northern Myanmar. The plant was developed by a consortium of investors led by KBZI, part of the Kanbawza Group (40 percent of shares), and completed by a group of foreigners affiliated with LVT (20 percent) and local Burmese construction companies (40 percent).

Pakistani cement retailers have complained that companies in Karachi are restricting sales and creating an artificial supply shortage that will result in a significant increase in prices in the coming weeks. The first five months of FY2013-14 brought a 4 percent increase in cement prices (Rs 20 per 50-kg bag) in the country, with further increases on the horizon. Tajikistan Cement production in Tajikistan amounted to 0.3 million tons in the first 11 months of this year, up 83,200 tons yearover-year. Production increased after the commissioning of the Huaksin Ghayyur Cement plant and Dushanbe Cement plant’s switch from natural gas to coal. Uzbekistan Kizilkumcement will invest $39.6 million in 2014-2016 to implement a modernization program including the construction of a 0.5 million-ton-capacity cement mill, the modernization of clinker lines, and the construction of the main step-down substation 220/10 kV. Myanmar Thailand-based LV Technology has built a new 0.5 million-ton, US$75 million

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REGIONAL REPORT:

Philippines In the Philippines, the Cement Manufacturers’ Association of the Philippines (CeMAP) member companies CEMEX Philippines, Holcim Philippines, Lafarge Philippines, Northern Cement Corp., Pacific Cement Corp., and Taiheiyo Philippines have invested in sustainability technologies reducing the use of raw materials. Meanwhile, Lafarge Republic is set to acquire a property it currently leases at the Manila Harbor Center to improve the distribution of its cement products. China China exported 10 million tons of cement between January and November 2013, 0.46 percent of total output and a rise of 17.42 percent year-on-year. Clinker exports reached 3.2 million tons during the period, up 33.34 percent. Cement imports reached 0.35 million tons (down 40.34 percent), while clinker imports notched 0.04 million tons. Cement demand is projected to grow 6.5 percent next year in China, driven by real estate. So far this year, cement production has expanded by 9.2 percent.

International at a premium of 27 percent in an effort to achieve annual capacity of 100 million tons. Japan In Japan, cement sales increased for the fifth consecutive month by 5.1 percent to 5.2 million tons in November. Japan’s domestic sales growth rose by 9.5 percent year-over-year to 4.48 million tons; meanwhile, exports fell 16.2 percent to 0.71 million tons. Eleven plants had 3.8 million tons of cement stocks, down 7.8 percent year-over-year. In South Korea, cement volumes affected by the railway strike have reached 0.43 million tons. Damages are estimated at 12 billion won.

Indonesia Semen Indonesia aims to produce 31.8 million tons of cement in 2014, up from 30 million tons in 2013, and to sell 27.22 million tons for a sales boost of 10 percent year-on-year. Indonesia’s Bosowa Corporation plans to build a cement factory in Cilegon, Banten next year, for an investment of Rp 1.5 trillion. As a whole, the Indonesian cement industry in 2014 is likely to underperform 2013, but planned governmental infrastructure projects will boost the sector. Indonesia’s new import regulation, Governmental Decree No 40/2013, is opposed by domestic cement producers since domestic cement capacity (65 million tons) is sufficient to cover demand (58-59 million tons). Vietnam In Vietnam, cement consumption increased 9 percent year-over-year in November 2013. Production in the first 11 months of 2013 reached 55.17 million tons, up 13 percent year-on-year. Cement exports reached nearly 14 million tons. THAILAND Thailand’s LV Technology will divest its share in LV Europe SA (LVE) to IBG Global Limited, a distributor and supplier of raw materials and machinery.

ASIA PACIFIC ASIA PACIFIC

Company/Location Semen Indonesia/Indonesia

Overview

A new vertical mill was installed in Tuban. The current cement capacity of the Tuban cement plant reached 14 million tons per year.

Semen Baturaja/Indonesia

Semen Baturaja plans to build a new cement plant as part of its 750 billion rupiah capex this year. The new plant will increase production

In the first three quarters of 2013, the Chinese cement industry experienced an extreme downturn phase, but thereafter cement prices grew significantly. National fixed asset investment (excluding farmers) from January to November totaled 39 trillion yuan, an increase of 19.9 percent. National real estate investment over the period was 7.7 trillion yuan, an increase of 19.5 percent, 0.3 percent higher than the growth rate of months 1-10. Residential investment totaled 5.3 trillion yuan, an increase of 19.1 percent. Taiwan Cement will intensify its acquisitions in China, conducting a 100-percent buyout of TCC 35 DECEMBER / JANUARY 2014

capacity by 3.85 million tons per year, up from the current 2 million tons a year.

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

Bosowa Corporation/Indonesia

Bosowa Corporation held a ground-breaking ceremony for a cement packing plant and supporting facilities in Barru, South Sulawesi. The Rp 700 billion (US$57.4 million) investment includes the cement packing plant, a port and jetty, silos and warehouses.

TL Cement/East Timor

POSCO has inked a cement plant project worth US$350 million from WWW.CEMWEEK.COM/SUBSCRIBE

East Timor’s TL Cement. According to the contract, a 1.5 million tons cement plant will be built in Baucau, northeastern East Timor.

Guangxi Dragon Cement/ China

A new cement grinding unit was inaugurated at Tianlin County. The project investment was pegged at 50 million yuan and has a cement capacity of 0.65 million tons.

PT Semen Padang/Indonesia

FLSmidth received an order worth DKK300 million (approximately EUR40 million) from Indonesian PT Semen Padang. The cement plant is located in Indarung, outside the city of Padang in West Sumatra.

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REGIONAL REPORT:

Bolivia

Peru In Peru, growth of domestic cement demand slowed to 1.14 percent in November. For comparison, agricultural production in Peru increased 3.25 percent nationwide in November, while power production rose 5.03 percent. Overall, Peruvian exports declined 20.3 percent in November. By contrast, in October, consumption of cement in Peru increased 6.42 percent, a sign of recovery in the construction sector. Cement consumption had fallen 1.2 percent in September, its first contraction in 26 months. Construction has been contributing to the growth of the Peruvian economy, which slowed to between 5.1 and 5.2 percent in 2013 from 6.3 percent in 2012. Declines in export volumes and metal prices were responsible for the slowdown. Honduras In Honduras, the Commission for the Protection and Promotion of Competition (CDPC) announced its endorsement of the purchase by Colombia’s Cementos Argos of Lafarge Cemento’s Piedras Azules cement plant, located near Tegucigalpa, along with another unit and port facilities in San Lorenzo. Cement prices in Honduras have increased recently to 153.50 lempiras from 142.50 lempiras for a 42.5-kg bag. Cementos del Norte (Cenosa) confirmed that the company has not increased the ex-works price for gray cement sold in bags.

Bolivia’s Deputy Minister of Medium and Large Scale Industrial Production has stated that there is no cement shortage and no upcoming price change in the Bolivian domestic market. However, due to high cement prices at hardware stores—Bs 80 per bag—buyers have turned to agencies in search of the product. This situation is attributable to speculation by retailers as well as the high season typical of the end of the year. Argentina In San Juan, Argentina, cement supply is expected to be limited after the government announced an ambitious plan to build 6,000 houses for unemployed miners. The company Loma Negra, which provides 63 percent of the cement consumption of the province, confirms that it has sufficient supply to meet the increased demand. If need be, the company will bring cement from plants located outside the province.

Brazil Brazil’s Administrative Council for Economic Defense (CADE) has postponed the trial of an alleged cement cartel involving the largest companies in Brazil’s cement industry. Accused cartel participants include the National Association of the Cement Industry, the Brazilian Association of Concrete, the Brazilian Association of Portland Cement, InterCement Brasil (former Camargo Correa Cimentos), Cimpor Brasil, Cia de Cimento Itambé, Cementos Liz (former Soeicom), Holcim Brasil, Itabira Agro Industrial, Lafarge Brasil, and Votorantim Cimentos. The Council requested the postponement in order to further study the trial process. In Brazil, Adrianopolis Governor Beto Richa has signed a letter of intent with the CVR, Companhia Vale do Ribeira, for the construction of a cement plant. Adrianopolis has one of the lowest HDI (Human

Cement consumption in San Juan increased 20 percent per year between 2010 and 2012, faster than the national market. In the first 9 months of 2013, the province’s demand expanded 15 percent, while national demand grew by 10 percent. By the end of the year, San Juan will consume a total of 0.30 million tons of cement, up from 0.18 million tons in 2010. In response to increasing demand, Argentina’s Loma Negra plans to build a new plant in San Juan Province in 2014. Loma Negra is the leading cement company in Argentina. It currently holds nine manufacturing plants, six of which are located in the province of Buenos Aires, while the rest are in Neuquén, San Juan, and Catamarca.

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Development Index) values of its state. The venture, which will require investment of 518 million reals and improved road infrastructure in the region and will create two thousand direct and indirect jobs, will receive the support of the state government through Paraná Competitive tax incentives. MEXICO Mexico’s Cemex, one of the world’s biggest cement companies, has paid off $355 million in notes maturing in 2016. The company struggled through the global economic downturn with a heavy debt load from costly acquisitions and reported greater-than-expected third quarter losses in October. PARAGUAY Paraguay’s Industria Nacional del Cemento (INC) plans to invest $100 million to upgrade equipment and increase production in its plant by double digits to 80,000 bags per day or 60 percent of the national market. To ensure the provision of the Paraguayan cement market, the state will hold a tender to purchase an estimated 300,000 bags of cement per month. US In the US, Texas Industries (TXI) may sell its Dallas-based building materials company, currently evaluated at $1.68 billion. TXI may draw interest from buyers such as Holcim or Vulcan Materials. The company’s largest shareholders, Southeastern Asset Management and NNS Holding, have been trying to sell their combined stake of more than 51 percent for some time.

fying that the facility performs in the top 25 percent of cement plants nationwide for energy efficiency and meets strict energy efficiency performance levels. To reduce the impact of its operations on the environment, Lehigh Hanson has operational efficiency programs in place across all its business lines, and strict energy management is a priority at its manufacturing sites across North America. Holcim US’s Holly Hill plant has received Energy Star certification for the fourth year in a row. Meanwhile, four other Holcim plants have also received the Energy Star: the Theodore cement plant (for the fourth time), the Ste. Genevieve cement plant (fourth time), the Devil’s Slide cement plant (sixth time) and the Portland cement plant (third time). Amid signs of demand recovery, Holcim is looking to expand in Latin America’s two largest markets: Peru and Mexico. Holcim hopes to add plants and reenter the Peruvian market, and is planning an exchange of European sites with Mexico’s Cemex SAB de CV. Columbia In November 2013, production of gray cement in Colombia reached 1.02 mil-

lion tons, an increase of 9.6 percent over the same period of 2012. In the same period, 0.98 million tons of gray cement were shipped to the domestic market, an increase of 6.9 percent. This shipment growth was largely a result of the growth in distribution channels of builders and contractors. Venezuela Jamaica’s Carib Cement will make its first shipment of clinker to Venezuela as part of a deal to repay its PetroCaribe loan. The shipment is the result of months of negotiations with Venezuela. Under the Trade Compensation Mechanism, Jamaica can settle a portion of its oil debt through exporting goods and services. The clinker shipments will go from the Caribbean Cement Company (CCCL) to the Corporacion Socialista del Cemento in Venezuela. CUBA In Cuba, Empresa Mixta Cementos Cienfuegos recently reached a new annual record after producing 1.02 million tons of clinker, exceeding by 1,200 tons the volume produced four years ago. Estimated total production for 2013 stands at 1.08 million tons. The company intends to reach its designed clinker capacity of 1.5 million tons in future years.

AMERICAS AMERICAS Company/Location Elizabeth Group/Brazil

Overview The inauguration of the R$ 350 million cement plant of Elizabeth Group, which is being built in the city of Alhandra, Paraíba, should take place in June this year. The plant will have a capacity of 1.1 million tons of cement.

The US’s St. Mary’s Cement is looking for a land swap deal to solve a land issue at its Michigan-based unit. St. Mary’s would like to obtain about land at the northern tip of Fisherman’s Island State Park in Charlevoix Township. For this land, it would like to exchange about 220 acres along the southern section of the park. Lehigh Hanson’s cement plant in Union Bridge, Maryland, has earned the US Environmental Protection Agency’s (EPA) prestigious Energy Star certification, signi-

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TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

Companhia Vale do Ribeira/ Brazil

Companhia Vale do Ribeira (CVR) teamed up with China’s CITIC-HIC to build a new cement factory in the city of Adrianopolis, in Paraná. The investment is set at R$ 518 million and production capacity should reach 1 million tons of cement per year.

WWW.CEMWEEK.COM/SUBSCRIBE Lafarge/United States

Lafarge has installed new equipment at its Alpena based unit in the form of scrubbers.

INC/Paraguay

The head of Paraguay’s Industria Nacional Cemento (INC), Jorge Mendez, said the company plans to increase production to 80,000 bags per day, thus occupying more than 60 percent of the national market.

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sector coverage : Construction & BUILDING MATERIALS by BmWeek.com

Construction In Panama, the expansion of the Panama Canal has been suspended due to an increase of over $1.4 billion in construction costs for a new set of locks. The Panama Canal Authority (ACP) is in disagreement with the multinational consortium Grupo States Canal (GUPC), which it says is forcing renegotiation of the terms of the construction contract. In the Gulf Cooperation Council countries, construction sector spending has grown significantly, representing an important GDP contributor for the region. The total 2013 value of construction projects in the area reached an estimated US$87 billion. The sector contributes around 11 percent to the region’s GDP, with an annual growth rate of around 5 percent. The overall Palestinian Construction Cost Index (CCI) increased by 0.08 percent month-over-month in November 2013 and reached 113.37 (where December 2007=100). Raw materials used in building construction rose 0.10 percent with prices of iron and steel up 0.55 percent, cement up 0.23 percent, and tiles and panels up 0.11 percent. Quarries and quarrying

products declined by 0.43 percent, cutting and shaping stones shrank by 0.37 percent, ceramic products were down by 0.28 percent, and lime and gypsum declined by 0.21 percent. The Road Cost Index (RCI) declined 0.11 percent month-over-month to 117.00 (where December 2008=100). In Saudi Arabia, the index of construction costs increased by 0.08 percent monthover-month in November 2013, rising to 113.37 from 113.28. Meanwhile, prices of construction materials increased by 0.10 percent, a rise generated by increases of 0.55 percent in the prices of iron and steel. The Saudi construction sector, which was hit by the recent amnesty and sanctions on undocumented workers, is slowly improving. Contracts worth about SR53.6 billion were awarded during the second quarter of 2013. There were 200,000 registered contracting companies before the undocumented worker correction campaign. More than 100,000 of these companies have closed since the campaign. In Nepal, locals have accused Nagarjun JV Construction of using substandard materials (non-Maruti cement) in the construction of Siddhicharan Highway on

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the Harkapur-Okhaldhunga road section. The main contractors on the project have handed over the work to small contractors for commissions. In Kampala, Uganda, a buyer’s market has emerged due to abundant supplies of building materials leading to an 8.7 percent fall in construction costs in the third quarter of 2013. In Antigua and Barbuda, output in the construction sector improved during the recent period as both public and private residential construction increased. Central government capital expenditures totaled $11.8 million, up year-over-year from $7.2 million. The increase was driven by activity on an intensive road work program and continued work on the new airport terminal building. In the private residential sector, the increase in activity was supported by a $9.9 million increase in loans and advances for home construction and renovation. The volume of cement imported, a key indicator of construction activity, rose by 22.3 percent. In the UK, growth in private house building, infrastructure, and commercial activ-

DECEMBER / JANUARY 2014

38


sector coverage : Construction & BUILDING MATERIALS by BmWeek.com

ity are set to drive industry recovery over the next four years. Construction output is expected to rise by 3.4 percent in 2014 and by a further 5.2 percent in 2015, with growth projected to continue until 2017. However, considerable uncertainty remains regarding the long-term sustainability of the recovery in the industry. Concrete In Malaysia, Cemex is part of a consortium providing over 0.55 million m³ of readymix concrete for the first phase of Malaysia’s largest infrastructure project, the Klang Valley Mass Rapid Transit (MRT) system. The first line of the project is the Sungai Buloh – Kajang Line, comprising 31 stations, including 7 underground stations. Cemex Malaysia contributed the first 90,000 m³ of ready-mix concrete to complete the foundations for six of the seven underground stations. Cemex supplies high-durability, flowing concrete, which minimizes defects in the structures and allows for workability 39 meters deep. As a result of strong public projects spending, Turkey’s ready-mixed concrete industry increased in 2013 by 10 percent, to 102 million m³, and is expected to rise further in 2014. Turkey is the third largest readymixed concrete producer in the world, after China and the United States. In Russia, average wholesale prices for ready-mixed concrete and mortars in Russia increased in 2013 by 2.9 percent. Mean-

39 DECEMBER / JANUARY 2014

New Residential Construction in the U.S NEW RESIDENTIAL CONSTRUCTION IN THE U.S (THOUSANDS OF UNITS) september’13

october’13

974 1,039 TABLE AVAILABLE IN THE CEMWEEK 873 PRINT EDITION. 889 MAGAZINE

november’13

Authorized Units

1,007

Started Units

1,091

Units under construction

661

668

685

Units completed

762

824

823

WWW.CEMWEEK.COM/SUBSCRIBE

Source: U.S. Census Bureau, New Residential Construction Statistics

while, the average prices of sand rose by 7.5 percent, rubble by 7.2 percent, cement 1.5 percent, and custom-made wall materials 10.1 percent. A new, 10 million ruble concrete products plant will be opened in Lipetsk, Russia, by the firm Alliance, with production capacity of 30-50 m per hour for tile and 30 m³ per hour for concrete. The project will cost 1.5 million rubles of the company’s funds and increase total production capacity by 80 percent. Aggregates In the US, the Disaster Recovery Program (DRP) is continuing to work with Lafarge to justify a large ($1.7 million) invoice for rock (at $55 per ton) used for creek bank armoring during June’s flooding emergency in Colorado. During the same crisis, Downer Holdings Ltd. charged $30 a ton for rock. The Russian company Vostokcement has closed a major gravel and rocks supply

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contract for the construction of the Vladivostok-Nakhodka-Vostochny Port highway. Vostokcement exceeded its annual target for gravel sales by more than 20 percent, and reached 120 percent of its target for asphalt. The company caters not only to the Vladivostok and Primorsky Krai regions, but also to all regions of the Far East, a geographical supply diversity beneficial to the firm. In fact, Vostokcement has begun exporting cement and clinker to the North Korean border city of Rajin, in a joint port project with Korean Railways. The first 14,000 tons have already been shipped. The indefinite strike of truckers in Bangalore has generated a near-doubling in sand prices. Associations of truckers are demanding more permits for sand-transporting vehicles. Currently, only 1,000 permits are given, while the number of trucks required by the region is five times higher. Losses from project delays as a result of the strike amount to Rs 250 crore per day. The price of river sand before the strike was around Rs 25,000 - 30,000 per truckload and has risen to Rs 50,000. The cost of filtered sand has increased to Rs 25,000 per truckload.


Other Lafarge will sell its 20 percent stake in European and South American gypsum operations to Etex in a EUR145 million transaction. In India, with the rising prices of sand and cement hindering building construction works across Chennai State, the raw materials manufacturer Build On has launched a special variety of gypsum to substitute for sand and cement. The product, called

sector coverage : Construction & BUILDING MATERIALS by BmWeek.com

In Maryland, US, Lafarge will sell five aggregates quarries and related assets to Bluegrass Materials for a total enterprise value of $320 million. With these divestments, the Group has largely completed its strategy of refocusing on its core markets in the United States. Lafarge today operates a strong network of integrated positions, located mainly in the Great Lakes and Mississippi River regions. Operations in the US consist of nine cement or grinding plants and associated cement terminals, with a combined capacity of 11 million tons, as well as related aggregates and concrete businesses in these markets. Overall, the North American market represented over 21 percent of Lafarge’s 2012 sales.

‘Gypsum plaster one coat,’ is imported from Iran and can be used only for interior wall works and ceiling decorations, as gypsum does not endure rough weather conditions. Krakatau Indonesia Cement, a joint venture of Krakatau Steel and Semen Indonesia, has been established for a total investment of Rp 440 billion. The cooperation can increase revenue, contribute to the reduction of CO2 emissions, and secure the supply of raw materials for industrial cement. The plant is capable of processing slag powder GBFS at 0.7 million tons per year and will be operational in 2016. Austrian building materials giant Wienerberger has installed a unit in India’s Bangalore. The facility has the distinction of being India’s first fully automated (robotic) production unit for clay bricks, with a capacity to build over 100 million bricks per year. Finally, the firm Knauf plans to hire 60 more employees and spend 30 million euros to expand its presence in Germany and boost the operations of a new gypsum fiber board plant in Harz.

PRODUCTION Production IN in CONSTRUCTION Construction INDEX Index (2010 = 100)

country

september’13

october’13

november’13

Czech Republic

77.7

83.3

78.6

Germany

106.6

105.9

104.1

France Slovakia Hungary

TABLE AVAILABLE IN THE CEMWEEK 97.0 96.7 MAGAZINE PRINT EDITION. 81.4

79.6

WWW.CEMWEEK.COM/SUBSCRIBE 96.9 96.1

96.8 81.7 NA

Poland

98.5

101.6

105.6

Portugal

58.7

58.6

58.9

Sweden

111.5

110.0

NA

Source: Eurostat

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DECEMBER / JANUARY 2014

40


equipment

Cemex supplies concrete for largest infrastructure project in Malaysia CEMEX announced that it is part of a consortium providing over 550,000 m3 of ready-mix concrete for the first phase of what will be Malaysia’s largest infrastructure project, the Klang Valley Mass Rapid Transit (MRT) system. The first line of the project is the Sungai Buloh – Kajang Line, comprising 31 stations, including 7 underground stations covering a span of 51km across the heart of Kuala Lumpur.

relation to the MRT’s construction project, and to bring in US$1 – 1.5 Billion annually in Gross National Income every year until 2020. “We are honored to play a pivotal role in the largest public infrastructure project in Malaysia, a country where construction is crucial to its economic growth,” says Fikry Kaissouni, President of CEMEX in Malaysia. “The strategic distribution of our ready-mix concrete plants and our high standards of quality positioned us very well to provide materials for this project.”

The Klang Valley MRT project is designed to ease public mobility in the Klang Valley region which is expected to see its population substantially grow during the next 7 years.

CEMEX is working together with its customer, MMC-Gamuda KVMRT (T) Sdn Bhd, to overcome the challenging aspects of underground construction by providing consistently high-quality products and a reliable delivery service.

The Government of Malaysia expects to create approximately 130,000 jobs in

CEMEX Malaysia was the first supplier to contribute a total of 90,000 m3 worth of

ready-mix concrete to complete the foundations for six of the seven underground stations: KL Sentral, Cochrane, Merdeka, Pasar Seni, Pasar Rakyat and Maluri stations. CEMEX is supplying high-durability, flowing concrete, which minimizes defects in the structures and allows for workability 39 meters deep. In addition, the concrete is specifically designed to meet the temperature-control requirements of the Malaysian climate, and low-water permeability needed by underground substructures. For the past several months, CEMEX provided 24-hour service, increased field technicians on-site by more than 150% and ensured dedicated truck delivery service to these stations. Loesche opens a new subsidiary in Jakarta, Indonesia The new subsidiary in Indonesia will be managed by Detlef Blümke. With Mr Blümke having taken up his new role at the beginning of October 2013, Loesche’s Indonesian operation is scheduled to be fully operational from 1st January 2014. Detlef Blümke, who joined Loesche in 1990, has been head of the company’s commissioning department and deputy-director of Loesche’s technical field service since 2006. “In his new position, he will have responsibility for all management activi-

41 DECEMBER / JANUARY 2014

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ties at PT Loesche lndonesia. This will involve establishing PT Loesche Indonesia in the Asian market, as well as developing strategies and concepts for the company to become a new regional service hub for the Loesche group,” Dr Kirchmann, Loesche’s joint CEO added. The company has reached the position where it needs expert staff on-the-spot to guarantee that projects are completed on time and to budget and handle the growing market for spare parts and service. “Indonesia is central to economic development within Southeast Asia, and Loesche has responded by making itself much more accessible to its customers on an in-country basis”, Mr Blümke commented. FLSmidth to supply cement production line in Qatar FLSmidth has received an order worth DKK 515m from Al Khalij Cement. The order will cover the  supply of a complete cement production line for the customer’s plant in Umm Bab. The order covers all main equipment for the production line: conveyor transport systems, mills, complete pyro line, electrical and automation systems as well as filters. The production line is being supplied in cooperation with CNBM International Engineering, which is part of China National Building Materials (CNBM). FLSmidth’s role in the cooperation is to engineer the plant and supply the main equipment.The order will be booked by the Cement division and contribute to FLSmidth’s earnings until mid-2015.

including a raw mill, coal mill, preheater, kiln, burner, clinker cooler and silo equipment as well as a complete control system for the entire plant. This new line will be the sixth at the plant and the fifth supplied by FLSmidth. The order will be booked by the Cement division and contribute beneficially to FLSmidth’s earnings until the end of 2015. “FLSmidth has a long and strong relationship with PT Semen Padang and Semen Indonesia Group. FLSmidth’s last major orders from Semen Indonesia Group comprised two production lines that were successfully commissioned in 2012. Most of the equipment at Semen Indonesia Group’s cement plants in Indonesia was supplied by FLSmidth, starting in 1910 with the successful commissioning of Padang’s first production line,” President of the Cement Division Per Mejnert Kristensen comments. Boral pact positions Omani mining firm on strong growth A landmark joint venture agreement announced recently by two of the world’s largest gypsum board manufacturers augurs well for local Omani mining firm Zawawi Minerals’ ambitions to become a major player in the region’s booming cement and construction sector. Zawawi Minerals’ partner, USG Corpora-

tion of the United States, recently inked a 50:50 joint venture pact with Australianbased Boral Limited, a leading building and construction materials manufacturing firm in Asia. The JV effectively creates a world-leading gypsum board and ceilings partnership in Asia, Australasia and the Middle East, positioning Zawawi Minerals – as a constituent of this formidable alliance – for strong growth across this promising market. The USG-Boral pact comes less than a year since Zawawi Minerals announced the establishment of two joint ventures with USG Corporation – one for gypsum mining and the other for Gypsum board and Plaster of Paris manufacturing projects in Salalah. Under the terms of JV, USG Corporation – a major American-based multinational corporation with revenues of over $3.2 billion in 2012 – is committed to providing its world-class expertise and technological know-how in the fields of gypsum mining and gypsum board manufacturing. The plant will be primed for full production in the first quarter of 2015. When operational, the JV will enjoy the right to produce and market USG’s world-renowned Gypsum board brand Sheetrock’ for the next 20 years on a renewable basis, said Alawi bin Qais Al Zawawi.

FLSmidth ends 2013 with a large cement order FLSmidth received an order worth DKK300 million (approximately EUR40 million) from Indonesian PT Sement Padang. The cement plant is located in Indarung, outside the city of Padang in West Sumatra. The order includes equipment for the main part of the 8,000 tpd production line,

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DECEMBER / JANUARY 2014

42


FLASHBACK NEWS FLOW IN CEMWEEK.COM LAST TWO MONTHS (darker red shows higher news volume)

India holds main place in the CemWeek news flow as it is the stage of recent major moves by global cement players. It is followed closely by China, the United Sates and Russia.

CW GROUP MEETING AGENDA

The CW Group will be hosting and participating in a number of webinars and conferences. We invite you to join us on-line or in person at the events to discuss our views of the industry. To learn more, please visit http://www.cwanalytics.biz/meetings

Conferences where the CW Group will be presenting

WPP – World Paper & Pulp Industrial and Business Conference

April 2-3, 2014

Golden Tulip Paulista Plaza Sao Paulo, Brazil

AshTrade Europe 2014 - Fly Ash Industry Conference

May 2014

Dusseldorf, Germany

Cement Business & Industry (CBI) Africa 2014

June 12-13, 2014

Hyatt Regency Johannesburg, South Africa

CW Group Hosted Executive Summits

CW Summit - ASIA

June

43 DECEMBER / JANUARY 2014

Bangkok

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CW Research & Analytics Webinars:

2014 Global Cement Volume Forecast Report

February 11, 2014 at 2:00 PM GMT


buzz TOP CEMWEEK STORIES 1

India: Zuari Cement builds grinding unit

2

Fives signed new contract with Lafarge Republic

3

India: Builders intend to have their own plant

4

Saudi Cement postpones expansion project

5

FLSmidth to supply cement plant in Qatar

6

Bolivia: Oruro cement plant construction project confirmed

7

KHD Board recommends shareholders to accept takeover bid

8

Dangote seeks to increase presence in Ivory Coast

9

Big comeback for the revenue of Cementos Portland

10

Guinea Bissau to build cement plant

11

Chinese state firm bids for KHD Humboldt Wedag

12

UltraTech yet to secure nod for acquisition of JP plant

13

Holcim US earns EPA’s Energy Star for Holly Hill plant

14

El Salvador: ETAP provides update for Holcim’s cement plant

15

India: ACIL expands sales network

CEMWEEK.COM acquisition  aggregates 

 

  association  average  bags  boost  building  cementos  cemex  chief  pleted

Kenya to complete fiscal devolution

2

US: Leigh Cement to meet pollution requirements

3

India: NGO worried about demolition waste

4

Australia: Fletcher to merge locally

5

Dubai: Building materials prices decrease

6

US: Caledonia company halts its operation

7

Net profit of SU-155 rose

8

Africa: High rates of return

9

Russia: Slight increase in ready-mix concrete market

10

Egypt: Construction obstacles resolved

11

Saudi Arabia: reduced participation for new tenders

12

Murray & Roberts uses waste as alternative

13

Plans to invest in New Zealand for Knauf

14

UK: Problematic situation for employees at Millfields Road

15

Qatar’s concrete demand to increase

china  commission  competition 

  concrete  costs  dangote  decline 

velopment 

com-

de-

  director  drop  economic  egypt  estimated  executive  expansion  export  exports  flsmidth  french  grinding  growth  holcim  honduras  hope  impact  import  imports  improvement

 

dinars

increased 

increasing 

india 

indonesia  industries  infrastructure  investment  investors  jordan  lafarge  lempiras  located  majority 

makers 

      materials  media  mining  ministry  myanmar  national  northern 

management manufacturers markets

BMWEEK.COM

TOP BMWEEK STORIES 1

 

agreement argos assets

activity  addition 

aggregates  arabia  asphalt  association 

australia  awarded  boral  brick  bricks  built  cemex 

 

concrete

      contract  contractors  contracts  costs  countries  cubic  data  decline  development  director  economic  economy  engineering  environmental  equipment  european  expansion  facility  factory  firm  fletcher  general  government  gravel  growth  gypsum  housing  india  industrial  infrastructure  investment  lafarge  land  leading  limestone  long  meters  mineral  mining  minister  ministry  mixed  national  noted  operations  output  plans  plants  previous  price  private  products  project  public  qatar  quarry  rate  ready  region  research  residential  resources  results  rise  road  roads  russia  sales  sand  saudi  says  sector  share  transport  units  value  work  workers  working  world  zealand  2014 coal competition completed

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DECEMBER / JANUARY 2014

44


A GMI GLOBAL INDUSTRY CONFERENCE CBI India 2014 Conference will focus on the various aspects of India’s cement industry from a business growth & investment perspective. Notably, the program will take a dual-track business and technical approach to the issues around: Market perspective, forecast and competitive outlook Alternative fuels, new business models Environmental performance management Finance and capital markets Coal as mainstay fuel option and outlook Efficiency, innovation, new developments Technology, operations and best practices

A GMI GLOBAL CEMENT AND LIME INDUSTRY CONFERENCE AND EXHIBITION

CEMENT BUSINESS & INDUSTRY

2014

NOVEMBER

INDIA

12-13,

2014

NEW

DELHI,

EXHIBIT & SPONSOR OPTIONS

For attendance, speaking opportunities or general questions about the conference please contact the CBI Client Service team at sales@gmiforum.com or via phone at +1-203-516-7424.

Organized by GMI Global and again with the great support from the India Cement & Construction Materials (ICCM) journal the event is expected to bring together more than 200 cement and lime professionals. GMI is excited to build on the success of the CBI series to expand the scope to include participants from the entire region this time around. PAST PARTICIPANTS: ACC Ltd. | Alley-Cassetty Companies, Inc. | Alliance Polysacks Pvt. Ltd. | Alternative Resource Partners | Ambuja Cements | Argus Media | ASEC Trading | Beroe Consulting Pvt. Ltd | BEUMER Group GmbH & Co. KG |Bharathicement Corporation Pvt. Ltd | Binani Cement | Browz | Burundi Cement (BUCECO) | Cachapuz Cement Manufacturers Association (CMA) | Cimpor | Claudius Peters India | Coal Insights | Credit Suisse | CRH India | CW Group | Dalmia Cement | Evonik Degussa India | Fives FCB | FLSmidth | FLSmidth Maag Gear AG | Golder Associates Canada | Golder Associates India | Golder Associates UK | HeidelbergCement Group | Hi-Bond Cement India | IFC | India Cements Ltd | J.K.Cement Ltd | JK Sons | KHD | Lafarge Inda | Larsen & Toubro Limited | Loesche | Loesche India | Madras Cement Limited | Magnesita Refractories | Mapei Construction Products | McKinsey & Co | Middle East Green Energies | Mitsui & Co. India Pvt. Ltd. | Mjunction Services | Mondi Oman LLC | Oman Cement | Orient Cement | Promac India | RAMCO - Enterprise Process Solution | Ready Mixed Concrete Manufactureres | Association (RMCMA) | Refratechnik | Reliance Cement Company Pvt. Ltd. | Rexnord | Sagar Cements Limited | SAIF | Sanghi Industries Ltd. | Segezha Packing | Shree Cement Ltd. | SKF India Limited | Somi Conveyor Beltings Ltd | Starlinger & Co. GmbH | String Automation Pvt. Ltd. | The Crescent Group | Timken India Limited | UltraTech Cement Ltd. | Union Cement | Vicat | Vyankatesh Chemical Industries | W.R. Grace | Zuari Cement, Italcementi Group

Organized by GMI Global LLC To learn more visit the GMI website: www.gmiforum.com


CemWeek Magazine, Issue 18