CemWeek Magazine Issue15 Lo Res

CemWeek
CemWee
MAGAZINE
GLOBAL CEMENT INDUSTRY. KNOWLEDGE.
JUNE / JULY 2013
CemWee
CemWee
BMWeek
Carbon Capture
& Storage
Mozambique
The rough diamond
of South Africa
News
Analysis
The Next Giant Step for

the Cement Industry
Market Coverage
Interviews
People Moves
cbi
conference
cement business & industry

india & south asia
October 9-10, 2013 Hilton Mumbai International Airport Hotel Mumbai, India
CBI India & South Asia 2013 Conference will focus on the various aspects of Indias cement
industry from a business growth & investment perspective. Notably, the programme will
take a dual-track business and technical approach to the issues around:
GMI
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
GLOBAL
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 CBI India 2012 to expand the scope to include
participants from the entire South Asia region this time around.
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
supported by
india
CemWeek
CEMENT
& CONSTRUCTION MATERIALS
CemWeek
EDITOR'S NOTE
CemWeek
CemWeek
CemWeek
BMWeek
BMWeek
BMWeek
MAGAZINE
www.cemweek.com
Letter from the publisher and editor
Improving beyond today.

reen shoots of improvement may be starting to emerge on a wider scale around the
planet. But even while the main focus in these markets may be on optimizing the
core franchise, some are looking beyond. In this issue of the CemWeek Magazine,
we take a look at two aspects in particular: the exciting (even if not yet fully certain)
prospects of carbon capture and the ever-present need to improve logistics with a case
example from Holcim-controlled ACC in India.
But one market that has not had to suffer the waning demand that many developed
economies did, is Mozambique in southeastern Africa. The CW Groups Research &
Analytics team shares some
highlights about this market from
their recently published market
research report. Additionally,
CW
Groups
Research
&
Analytics provides a snapshot
of the international Cement
and CemEnergy segments as
a recurring viewpoint in the
eponymous section.
Be sure to also take a look at the
CW Group upcoming meetings
to see if we can meet in person or
virtually in the next few months.
Our regularly scheduled webinars are an excellent way to share some ideas and get
a conversation started always feel free to contact our consultants and analysts about
these topics. Additionally, the CW Group will take part of several industry events over
the coming months, including Cement Business & industry India 2013 and Solid Fuels
Summit India 2013, both hosted in Mumbai on October 9-10, and 8-9, respectively. We
hope to meet you there!
The CemWeek Magazine is published by the

CW Group (CemWeek 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
CW Group
staffbox
CW Group
Robert Madeira
cemweek publisher
head of cw group research
CW Group
Paolo Dela Rosa

art director
Anthony Fitzgerald
advertising
Clare Aslan
roxana chiscop
Laura Goldner
Claudia Stefanoiu
contributing writers & researchers
Tudor Mircea
editor
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 research
Tudor Mircea
editor
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.
To subscribe please visit www.cemweek.com/subscribe
CW Group
CONTENTS
FEATURES
6 Carbon capture projects in the
cement industry
The Next Giant Step for the Cement
Industry
12 Leaders Q&A with Indias ACC
Achieving logistics excellence
16
16 Mozambique
The rough diamond of South Africa
06
12
DEPARTMENTS
EDITORS LETTER
1 Improving beyond today
34 Americas
38 Asia Pacific
Numbers in Brief
4 Cement Equipment Order Intake
Index Slides
From our Industry Partner

40 Building materials update
Research
20 Official Prices
22 Coal market update
23 Energy price update
26 Tables Page
regional Reports
28 Europe, Middle East & Africa
32 Central and Southeast Asia
Projects & People

43 People on the move
44 Equipment & notable projects
CW Group Meeting Agenda
46 CW Groups upcoming events
31
iT is always a good Thing To moniTor
The Trends of our business buT
we Think iT is much
beTTer To
lead
Now its time for LOESCHE innovative technology. For further information
please call +49 211 53 53 0 or visit www.loesche.com
NUMBERS
IN BRIEF
Indices plummet in first

quarter of 2013
Equipment companies experienced a steep decline in order intake during the first quarter of 2013, as orders were still affected by
the weak situation in some markets and uncertainty about the future performance of the industry.
CEMENT EQUIPMENT ORDER INTAKE INDEX
The CEOI dropped 70 percent and 82 percent in the first quarter of 2013, compared to the last quarter of 2012 and the first quarter
of 2012, respectively. The slide is mostly attributed to a lack of large orders during the period, since cement customers remain
indecisive about expansions and new greenfield plants under the current environment. The most active countries in terms of new
capacity are still located in South America, sub-Saharan Africa and Asia, where infrastructure projects continue to boost cement
demand.
CEMENT EQUIPMENT ORDER INTAKE INDEX (CEOI)
100
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Source: CW Group Research
200
CEMENT EQUIPMENT ORDER BACKLOG INDEX

The Cement Equipment Order Backlog Index (CEOB) moved to the 93 level in the first quarter of 2013, down 16 percent from
the second quarter of 2012. The index continues to follow a downward trend that started in the second quarter of 2012; however,
equipment supplier expectations remain positive. Companies are counting on cement demand growth from developing regions
to support a strong order intake and an increase in order backlog in 2013, but tough competition and hard market conditions will
remain in the short term.
CEMENT EQUIPMENT ORDER BACKLOG INDEX (CEOB)
100
80
Q4 2009
www.cemweek.com
Q1 2010
Q2 2010
Q3 2010
Q4 2010
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
Q1 2011
Coal Week
Coal Week
Coal Week
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
120
The resource
for global
cement prices
The CW Group's Global
Cement Trade Price Report
includes current pricing for
cement delivered through
the retail channel as well as
import and export pricing
for major markets around
the world.
Worldwide monthly cement
prices
Major market retail prices

Regional retail price indices
Covers grey and white products
Regional monthly cement

price indices:
Mediterranean basin
North America & Caribbean
East & Southeast Asia
And other regions
Global import and export

cement prices:
Major market trade flows
FOB export prices
CIF import prices
Global market cement prices.

Import & export trade prices.
All in a single must-have resource.
Annual subscriptions
include four quarterly 50+
page reports:
Single user: USD2,300

Multi-user (max 3-users): USD3,800
Corporate use: Upon request
Contact us at sales@cwgrp.com
to discuss this unique offering
further.
We know the cement industry well. Let us guide you. For more information please contact us at inquiries@cwgrp.com or on +1-702-430-17 48
848 N. Rainbow Blvd., Box #1658, Las Vegas NV, 89107, USA
Carbon
Capture &
Storage
www.cemweek.com
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
Coal Week
Coal Week
Coal Week
The Next
Giant Step for
the Cement
Industry
As global development surges on, the
rapid deterioration of the environment has
become a major concern in every part
of the world. And carbon dioxide (CO2)
emissions have been recognized as the
primary culprit in climate change.
Brevik Cement Plant, Norway

Norcem is working with Norways Aker Solutions and
RTI International on a carbon capture pilot project at the
Brevik cement plant
Courtesy of Norcem, HeidelberCement Group. Norway.
JUNE / JULY 2013
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
Coal W
Coal W
Coal W
FEATURE
2013 Aker Solutions
uring the past decades, the world

has seen a rapid increase in carbon
dioxide emissions, and the most
recent statistical reports show that
global CO2 continues to rise. Growth is
primarily concentrated in the Asia Pacific
region, and attributed mostly to emissions in China, Japan and India. Industrialized nations with more access to the
latest technology and information have
been able to curb growth in carbon dioxide emissions for the past two decades.
Although there is no question that the
answer lies in energy conservation and
alternative fuel sources, technology plays
a critical part in finding a real solution
to this global issue. As the largest contributors to emissions, energy generators have been one of the first sectors to
pursue projects aimed at discovering
new technology and methods to reduce
CO2 emissions. On the other hand, the
U.S. and Europe are currently leading
the way in the use of hybrid technology
for the transport industry, which is the
second largest contributor. Vehicles that
run purely on renewable energy sources
and electricity may be decades away
from commercial distribution, but those
that run on a mix of electricity and fuel
are gaining popularity. As the technol-
www.cemweek.com
ogy becomes cheaper and more reliable,

it will soon become the standard in the
automotive industry. And as the third
largest contributor, the manufacturing
and construction industries are ensuring
that they follow the same commitment as
the energy producers in finding ways to
minimize, if not totally eliminate, carbon
dioxide emissions.
Global Cement Industry Active in
Reducing CO2 Emissions
At the very core of global progress and
development is rising infrastructure, and
along with increased infrastructure de-
velopment comes increased production

of cement. In 2011, world cement production was estimated at 3.6 billon tons,
which translated to more than 2 billion
tons of CO2 released in the atmosphere
from fuels utilized in the production process and the calcination of limestone. So
it is no surprise that cement manufacturers have become one of the sectors that
more actively pursue reduction of CO2
emissions.
Over the past two decades, cement producers were able to reduce CO2 emissions
per ton of cementitious material by as
GLOBAL CARBON DIOXIDE EMISSIONS-MILLION TONS OF CO2

20,000
Asia Pacic
Africa
South & Central America
Middle East
Europe & Eurasia
North America
10,000
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
0
1991
Coal Week
Coal Week
Coal Week
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
Source: BP Statistical Review of World Energy, June 2012
SOURCES OF CO2 EMISSIONS
4%
12.2%
43.9%
18.2%
21.7%
2013 Aker Solutions
Others
much as 16 percent. From 754 kg of CO2

per ton in 1990, the world average has declined to 633 kg per ton in 2010.
The reduction was primary attributed to
efforts and programs related to (a) energy efficiency, (b) alternative fuel and
(c) clinker substitution. However, these
efforts will not be sufficient as urbanization in emerging economies is expected
to accelerate in the coming decades. Increasing demand and production will
soon outpace any progress made by such
programs.
Carbon Capture and Storage to
Substantially Cut Down CO2 Emissions of Cement Sector
According to the International Energy
Agency (IEA), in order to meet interna-
tional standards, the cement industry will

need to cut down its CO2 emissions by
approximately 18 percent from current
levels by 2050. With the cement sector
currently accounting for 5 percent of
global CO2 emissions, the only way to
achieve this goal would be the use of Carbon Capture and Storage (CCS) technology in cement production worldwide. By
2050, the IEAs vision is to have 50 percent of cement plants in North America,
Europe, Australia and East Asia using
CCS technology, while a somewhat lower
adoption rate of 20 percent is targeted in
China and India.
CCS technology involves capturing
waste carbon dioxide from large sources
such as power plants, transporting it to a
storage site and eventually depositing it
Fuel Combustion for Other Uses

Industries
Transport
Energy Generation
Source: www.oica.com
where it cannot have any impact on the

atmosphere. The sequestered CO2 is normally injected in geological formations to
serve various purposes such as enhanced
oil recovery. There are three types of technology for carbon sequestration that are
currently under study: pre-combustion,
post-combustion and oxyfuel combustion. For cement production, only postcombustion and oxyfuel combustion are
possible options for carbon capture.
CEMENT INDUSTRY - AVERAGE NET KG OF CO2 PER TON OF CEMENTITIOUS MATERIAL

South America ex. Brazil
CIS
China
North America
Central America
Middle East
Japan Aus NZ
Brazil
India
Asia ex. China, India, CIS and Japan
Europe
Africa
1,000
500
1990
2000
2005
2010
Souce: World Business Council for Sustainable DevelopmentBMWeek

- Cement Sustainability
Initiative
CW Group
CemWeek
JUNE / JULY 2013
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
Coal W
Coal W
Coal W
FEATURE
Post-combustion carbon capture involves
the use of either chemical absorption or
membrane technology, and these will not
require major changes to the kiln-burning process. Post-combustion technology is possible for new kilns as well as for
retrofits and has the potential ability to
capture about 77 percent of CO2 exhaust
gases. Aside from higher capital costs, a
cement plant with post-combustion technology is likewise estimated to consume
more energy to capture and compress the
CO2.
Below is a table indicating the comparative costs of cement plants with postcombustion technology using chemical
absorption (MEA-based solvents). The
European scenario is based on a 1 million ton per year plant while the Asian
developing country scenario is based on
a 3 million ton per year plant. Costs of
transport and storage are excluded.
On the other hand, oxyfuel combustion
technology utilizes oxygen instead of air
in cement kilns. It cannot be installed
as a retrofit and is only possible as new
build. A new cement plant with oxyfuel

technology is expected to incur 25 percent more in investment cost than a traditional cement plant. Oxyfuel combustion
is still in its early stages of research and
would require more study before it can be
considered as a viable option for CCS.
The costs of an oxyfuel cement plant using a 1 million ton per year plant for the
European scenario and a 3 million ton
per year plant for the Asian developing
country scenario are provided below.
Costs of CO2 transport and storage are
excluded.
With CCS technology, it is important to
emphasize that the transport and storage
of the captured CO2 is an essential part
of the process and cannot work with mere
sequestration technology alone. The captured CO2 will be compressed into liquid form and transported via pipeline or
tankers for storage. Thereafter, the CO2
will be injected in depleted oil and gas
fields or deep saline aquifer formations.
In the process known as Enhanced Oil
Recovery (EOR), the CO2 will be inject-
2013 Aker Solutions
10
www.cemweek.com
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
Coal Week
Coal Week
Coal Week
ed into porous rocks and bind chemically

to the rock over time, keeping natural gas
and oil secure underground for years.
Pilot Projects for CCS Technology
in Cement Production
At the moment, there are four pilot activities worldwide that are working on CCS
technology for cement plants.
1. Skyonic established a CCS facility at
the Capital Aggregates cement mill
in the U.S., which focuses on the recycling of CO2 to create sodium bicarbonate or baking soda. They are
operating a mobile facility that tests
the technology with CO2 captured
from a cement plant.
2. Norcem of the Heidelberg Cement
Group is working with Norways
Aker Solutions and RTI International on a $15-million carbon capture
pilot project at the Brevik cement
plant in Norway. RTIs post-combustion capture technology was initially intended for coal-fired power
plants and will now be tested for the
first time on a cement plant. It in-
WITHOUT CCS
PARAMETERS
Total Investment Cost
WITH POST-COMBUSTION CAPTURE
UNIT
(EUROPEAN
SCENARIO)
(EUROPEAN
SCENARIO)
(ASIAN DEVELOPING
COUNTRY SCENARIO)
263
558
647
Net Variable Operating Costs
M/y
17
31
97
Fixed Operating Costs
M/y
19
35
50
Cost per Tonne of CO2 Emissions

Avoided
/t
N/A
107.4
58.8
Cost per Tonne of Cement Product
/t
65.6
129.4
72.2
Source: IEA GHG (2008)

WITHOUT CCS
PARAMETERS
Total Investment Cost
WITH POST-COMBUSTION CAPTURE
UNIT
(EUROPEAN
SCENARIO)
(EUROPEAN
SCENARIO)
(ASIAN DEVELOPING
COUNTRY SCENARIO)
263
327
N/A
Net Varialble Operating Costs
M/y
17
23
N/A
Fixed Operating Costs
M/y
19
23
N/A
Cost per Tonne of CO2 Emissions

Avoided
/t
N/A
42.4
22.9
Cost per Tonne of Cement Product
/t
65.6
82.5
46.4
Source: IEA GHG (2008)
cludes Alstoms chilled ammonia

process, Alstoms regenerative carbonate cycle and Aker Clean Carbons amine scrubbing.
3. The Industrial Technology Research Institute is currently working with Taiwan Cement to operate
a 1 ton per hour pilot scale facility
for calcium looping capture. The
testing is being performed at the
Hualian cement plant in eastern
Taiwan.
4. The European Cement Research
Academy (ECRA) is now proceeding with Phase IV of its CCS project. This phase of the project will
be focused on oxyfuel technology
and is expected for completion by
2015.
However, the IEA is determined to adopt

CCS into cement production and believes
it is now the most viable option for the
cement sector. Although it is estimated
that CCS technologies will be available no
earlier than 2025, the IEA is targeting to
have 50 percent of all cement facilities in
OECD countries equipped with CCS technology by 2050. And for countries currently identified as the biggest contributors
to CO2 emissions, such as China and India, the IEAs vision is to have no less than
20 percent of their cement facilities CCSequipped by 2050.
Prospects of CCS in the Cement

Industry
While these pilot projects are still in
their early stages, other efforts to curb
CO2 emissions in the cement industry
include the production of alternative cement products that produce lower CO2
emissions. These are manufactured using magnesium instead of calcium.
2013 Aker Solutions
JUNE / JULY 2013
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
11
Coal W
Coal W
Coal W
LEADERS
Q&A
ACC Limited Innovates

Logistics Management
In March 2012, Indias cement manufacturer ACC Limited, one
of the top cement producers in the country, launched an RFIDbased vehicle tracking system called SPEED with the objective of
developing a new logistics management system that would stimulate
efficiency and productivity along with saving on freight costs and
reducing the detention time of vehicles at its cement plants.
12
www.cemweek.com
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
Coal Week
Coal Week
Coal Week
assures tracking, access control, identification and better supply chain management. It helps in tracking the item on
real-time basis.
RFID technology offers several significant advantages over barcodes (which
are also capable of supporting automated
data capture). Some of these are:
Deepak Gulati ACC
PEED was initially implemented

in ACCs Tikaria plant located
in the Amethi district in the
state of Uttar Pradesh (U.P.) in
northern India. Following the success
in Tikaria, the company subsequently
adopted the program in two more plants
Damoder Cement Works in West Bengal and Thondabhavi Cement Works in
the State of Karnataka. The company
plans to roll out the system to all of its 16
plants in two years.
Barcodes have to be manually

scanned, keeping them close to
the reader. An RFID tag, bearing a
unique identifier, can be scanned
from a much longer distance.
RFID tags can hold more data compared to barcodes.
Expanded reading range supports
quicker reading and faster processing.
Facilitates rapid product movement.
Continuous data reading, writing,
modifying, adding and deleting information possible.

Readability of RFID tags is better
in adverse conditions such as dirt

and outdoors it makes an obvious
choice for an industry like cement.
RFID allows us to measure detention time at each stage of truck loading and thus the utilization of assets
within the plant.
CW: What was the value creation in
terms of overall plant and logistics management?
DG: This project has been aptly named
SPEED, keeping in mind:
Safety of the stakeholders
Productivity of the packers
Efficient utilization of the assets
(trucks) and
Ensuring customer
Delight
And thus the acronym SPEED.
ACCs Tikaria plant loads around 500
trucks of outbound bagged cement per
day. Due to this high volume, tracking
and knowing the location of the vehi-
This project effectively keeps in mind the safety of

the stakeholders, the productivity of the packers
and the efficient utilization of the assets
We spoke to ACCs Logistics DirectorNorth, Mr. Deepak Gulati to learn how

the project has helped the company to
improve the performance of the distribution fleet and what ACC sees as the
biggest logistics challenges the Indian cement industry will face in the future.
CW: What technology choices were made
and why?
Deepak Gulati: We chose RFID (Radio Frequency Identification) technology,
which is extensively used in the identification process with the help of a card and
a reader. The choice of this technology
was obvious it is a fast emerging nextgen technology that uses radio frequency
waves to transfer data between a reader
and a moveable item. The technology
SPEED-LED screen
displaying delivery details
for loader personnel
JUNE / JULY 2013
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
13
Coal W
Coal W
Coal W
LEADERS Q&A
cles at any stage of the loading process

was extremely difficult. This project has
given the logistics team the functionality
to monitor real-time in-plant movement
of vehicles and improve the overall safety
inside the plant.
Another major advantage in terms of
logistics management has been the visibility of the trucks. Now, with the help
of RFID based tracking, it has become
possible for us to filter the seasonal and
occasional trucks coming to our plant for
loading during lean seasons and instead
focus on the dedicated and regular fleet.
This has also significantly reduced the
pressure on the parking yard infrastructure which can now be better utilized by
the dedicated fleet.
14
www.cemweek.com
CW: How will this help ACC serve its customers better?
DG: ACC treats each of its stakeholders
as a very important business partner. The
implementation of the ACC SPEED project has given us several benefits and created a win-win situation for both.
We have been able to reduce the overall
in-plant detention of the vehicles.
This in turn has contributed in the faster
execution of orders for our customers
and channel partners.
Dealers/customers can now be kept informed, with a high degree of accuracy,
as to when the truck carrying their order
is likely to leave the plant, the estimated
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
Coal Week
Coal Week
Coal Week
transit time and a forecast of when the

consignment is expected to reach destination. Earlier we were not able to project this kind of valuable information
with great accuracy. Now our customers
can plan their work much better with this
valuable input that we are able to provide.
CW: Does the project create a competitive advantage for ACC?
DG: Yes. This project with its transparent
and visible dispatch process is also coupled with other improvements we have
implemented, such as enhanced basic
amenities for the trucks crew members
like a new washroom complex, a large
cafeteria with television, water coolers
and covered cooking area in a now much
cleaner parking yard. Thanks to all these
improvements, our Tikaria plant has become the most attractive plant for loading in the area.
Tikaria Cement Plant
More frequent trips now enjoyed by regular and dedicated trucks translates into
higher earnings for them. These benefits
factored in as a freight advantage with
transporters can help make our product
more competitive in a highly price-sensitive market.
CW: Is the company currently investing
in any other logistics-related optimization processes?
DG: This project has already been replicated across two more locations of ACC
with three more in the pipeline. In order
to further strengthen the good logistics
practices, the company has already partnered with a leading GPS service provider. In the first phase, 1000 vehicles are
planned to be fitted with GPS devices for
real-time, out-plant vehicle tracking.
In addition, we are also in various stages
of testing/piloting a truck scheduler for
automated truck/order assignment and
a driver/vehicle management center for
improving the safety of drivers/vehicles.
What are the biggest logistics challenges
the Indian cement industry is and will be
facing?
The major challenges faced by the cement
industry today are:
Overall rising costs particularly of
fuel, which leads to rising transportation costs.
Availability of roadworthy and safeto-ply trucks.
Shortage of competent drivers and
lesser number opting for driving as a
profession.
Poor road and safety infrastructure
in the country.
All the above factors, particularly the
availability of competent drivers, will
pose the biggest challenge in road transSPEED-LED displaying
portation as fewer people now seem inpacking bay number, tare
terested to enter this profession as comweight details for drivers
pared to alternate areas of employment. BMWeek CemWeek CW Group
BMWeek
BMWeek
CemWeek
CemWeek
CW Group
CW Group
Coal Week
Coal Week
Coal Week
JUNE / JULY 2013
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
15
Coal W
Coal W
Coal W
FEATURE
Mozambique
The Rough Diamond Of South-Eastern Africa
The prospects for Mozambique may finally be looking bright as its

resource sector has seen an unprecedented boom. The start of coal
mining in 2010 and the discovery of significant offshore gas fields
have become major springboards for the Mozambican economy.
However, the consolidation of the countrys growth depends on its
ability to exploit these huge opportunities without hiccups.
16
www.cemweek.com
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
Coal Week
Coal Week
Coal Week
JUNE / JULY 2013
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
17
Coal W
Coal W
Coal W
COUNTRY SNAPSHOT
Mozambiques economy expanded 7.5
percent in 2012, concluding two decades
of uninterrupted growth that followed the
end of the countrys civil war in 1992. The
real GDP compound annual growth rate
of 7.9 percent registered in the last twenty
years is expected to stretch over the next
five years, as well. In early 2013, severe
floods destroyed crops and damaged
infrastructure in southern Mozambique,
which led financial institutions to lower
their 2013 growth expectation for the
country.
Notwithstanding positive long-term
prospects, Mozambique is still severely
constrained by infrastructure bottlenecks
that limit the pace of development. Thus,
most of the earmarked construction
investments focus on the infrastructure
segment with large funds pledged for
railway modernization. Mozambique is
dependent on Foreign Direct Investments
(FDI), receiving more than US$5,200
million in 2012. Over the next three years,
the amount is projected to exceed US$10
billion, on the basis of annual approval of
around 300 projects.
Over the past years, Mozambiques
cement industry has been slowly
expanding under the aegis of Cimpor.
But with a surge in economic activity and
predicted impressive growth in cement
demand glittering on the horizon, the
government awarded a series of cement
plant construction licenses. But even
so, to date, only one new cement plant
has started commercial operations since
2005.
Today, Mozambique is home to five
production units, four of which owned
by Brazils InterCement (subsequent to
its take-over of Cimpors assets in the
country). The combined output of these
units reached 1.19 million tons in 2012,
falling short of the 1.6 million tons of
cement consumed domestically.
FOREIGN DIRECT INVESTMENTS IN MOZAMBIQUE (20012012)
6,000
YoY Growth
3,000
0%
www.cemweek.com
-100%
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
APPARENT CEMENT DEMAND & PRODUCTION (20052012) - TONS
2,000,000
Cement production
Apparent consumption
1,000,000
Even though the cement capacity of

the Mozambican cement plants exceeds
the countrys cement consumption,
18
250%
FDI Inward (US$ million)
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
2005
Coal Week
Coal Week
Coal Week
2006
2007
2008
2009
2010
2011
2012
Mozambique is still dependent on

cement imports. Around 27 percent
of the countrys cement consumption
since 2005 was covered by imports.
Operational
challenges,
financial
difficulties and production interruptions
are just a few of the hurdles faced by the
Mozambican cement producers.
NAMEPLATE CEMENT PRODUCTION CAPACITY (20072017E) - TONS
10,000,000
New Capacity
Baseline Capacity
5,000,000
0
2007
2008
2009
2010
2011
2012'
2013E
2014E
2015E
2016E
2017E
APPARENT DEMAND FORECAST (20052017E) - TONS
3,000,000
Apparent consumption
1,750,000
500,000
2005
2006
2007
2008
2009
2010
2011
2012
2013E 2014E 2015E 2016E 2017E

The CW Group highlights another

important aspect of Mozambiques
cement sector - only a fraction of the
cement capacity can be produced with
domestic clinker. This situation is causing
increased dependency on imported
clinker, with around 3.23 million tons
of clinker imported by Mozambique
between 2005 and 2012. Although
Mozambique is known for its abundant
availability of high-quality limestone,
the deposits remain untapped as a result
of high logistics costs as well as the
limited clinker production capacity of the
country.
By 2017 the per capita cement
consumption is estimated to cross 100
kg per inhabitant for the first time in
its history. Large construction projects,
combined with infrastructure and
housing deficits, are regarded as the
major drivers of the cement industry
over the next five years. CW Group
concludes: under the base case scenario,
cement consumption is projected to
increase by a compound annual growth
rate of 10.7 percent between 2012 and
2017. A more optimistic scenario, which
assumes a smoother implementation for
main construction projects given the
presence of established and experienced
international companies on the market,
predicts a higher CAGR (13.6 percent)
that could potentially push the cement
demand beyond 3 million tons by the end
of 2017.
This article is a summary of the 43-page indepth market research from CW Analytics.
To learn more, contact CW Analytics at
sales@cwgrp.com.
JUNE / JULY 2013
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
19
Coal W
Coal W
Coal W
Preliminary June
2013 estimates reveal
an upward trend for
cement prices
Official Cement Prices

Global prices upbeat at the end of H1 2013
India and Pakistan lead the pack in price increase movement
After booming in the first two months of 2013, the global official cement prices entered
a stabilization phase that lasted for three consecutive months. Preliminary June 2013
estimates reveal an upward trend for cement prices, mostly driven by a sharp increase
in South East Asian countries of India and Pakistan.
In Pakistan, a 50 kg cement bag was traded for Rs 488.4 in June 2013, 5.45 percent
higher versus the previous month, and 10.2 percent over the corresponding month of
2012. As soon as the Federal Budget for 2013 2014 was released in mid June by the
government, cement producers hurried to announce price increases from Rs 30 to Rs
45 per 50 kg bags of cement, blaming budgetary measures, the elevated transportation
costs and retention price as driving forces
Before the release of the budget, a goods and services tax (GST) was due only on
wholesale prices, but the situation has changed and the GST is currently applied on
the retail price. Additionally, the recent implementation of the new axle load limit led
transportation costs for both cement and coal on higher grounds.
On the positive side, the Pakistani government reduced the withholding tax on dealers
to 0.1 percent in a movement predicted to relieve the burden on cement production
companies. Corporate tax rate was also reduced from 35 percent to 34 percent with the
prospect to reach 30 percent over the next five years.
M-O-M CEMENT PRICE COMPARATIVE SET METRICS
1%
Jun-13
May-13
Apr-13
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
-0.4%
Jun-12
0%
May-12
CEMENT MARKETS
CW Research & Analytics

CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
CW Group
CEMENT MARKETS
SOURCE: CW Group Research

Group
Coal Week
CemWeek
BMWeek
To learn more, please
contact
the CWCWResearch
& Analytics team at sales@cwgrp.com or +1-702-430-1748.
CemWeek
CW Group
Coal Week
BMWeek
CemWeek
BMWeek
JUNE
/
JULY
2013
www.cemweek.com
CW
Group
Coal
Week
20
In neighboring India, cement prices closed the first half of 2013 at Rs 294 per 50 kg
bag, 3.2 percent higher compared to May 2013. After increasing in a range between
Rs 5 and Rs 25 in the beginning of June, mostly in the northern, eastern and western
India, cement prices reversed the trend and declined between Rs 10 and 20 per 50 kg
bag during the last days of the month. Local sources mention an even further price
decrease during early July, even though cement companies struggled to keep prices at
high levels ahead of the monsoon season.
From an annualized growth rate perspective, Egypt bagged the lions part from the
price increases reported over the last 12 months - 15.6 percent. An unusual 21.2 percent increase in February 2013 up to LE 676.7 per ton prompted Egypts Consumer
Protection Agency (CPA) to file a complaint against cement companies accusing them
of unfair practices. Market sources argued that the impressive increase was generated
by energy shortages and unfavorable exchange rates. In order to counteract energy
costs inflation, Egyptian cement companies are currently looking for alternative fuel
sources, focusing on switching to coal instead of using gas. More recent data points
show that cement prices declined in the beginning of July 2013 to around LE 600 per
ton.
CEMENT MARKETS

CemWeek
BMWeek
BMWeek31 countries CemWeek
BMWeekregistered CemWeek
cement price
increases
over the last 12
months
At the other head of the scale, Trinidad and Tobago reported the highest decline in
the 12-month annualized growth rate, with -12.3 percent, after a successful market
recovery from the mid-2012 production hick-up.
After stabilizing in the last 10 months at AED 260 per ton, UAE cement prices also
declined on an annualized base to -6.6 percent. The stabilization of the market was
obtained on the back of stable evolution of raw materials and freight rates.
Taking a rear-view, cement prices have been on a rise in the last 12 months. Price
drops were registered in 13 countries out of the 47 included in CW Analytics and Research universe. Three markets were stable, while in the remaining 31 cement prices
increased.
JULY 2012 - JUNE 2013 GROWTH RATE (%)
Trinidad and Tobago*

United Arab Emirates
Russia
Nepal*
Australia*
Poland
Chile
Czech Republic
Greece
Mexico
Slovakia
France
India
Cyprus
Japan
Oman*
Sweden
Singapore
United Kingdom
Indonesia
Malaysia
Canada
Tunisia
Bolivia
Hungary
Peru
South Africa
Haiti
El Salvador
Germany
Belarus
United States?
Turkey
Ecuador
Belgium
Venezuela
Romania
Brazil
Philippines
Serbia
Nicaragua
Colombia
Panama
Thailand
Pakistan
Argentina
Egypt
20%
-15%
CW Group
CemWeek
To learn more, please contact the CW Research & Analytics team at sales@cwgrp.com orBMWeek
+1-702-430-1748.
JUNE / JULY 2013
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
21
Coal W
Coal W
Coal W
CEMENERGY MARKETS

CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
CW Group
CEMENT ENERGY MARKETS
COAL MARKET UPDATE
Chinese coal imports might

be stalled but trading
markets still have high
expectations for 2013
Coal exports recover in some markets while markets wait for Chinas
decision on low calorific value coal exports
Despite the deceleration in economic growth in China, the top coal importer worldwide, year-to-date coal trading volumes remain flat compared to 2012.
Coal trading volumes in the second quarter of 2013 showed a marginal increase from
the second quarter of 2012 as declining volumes from Colombia and the United States
were offset by an increase in coal exports from Australia and Russia.
June 2013 coal output from South Africas Richards Bay Coal Terminal (RBCT) rose
22 percent to 5.3 million tons, following a 30 percent decline during May. In Australia,
coal shipments out of Newcastle grew 10 percent, recovering from a 9 percent drop in
May.
Colombian coal exports are back on track after the steep decline in February and
March volumes that followed the coal union strike. As a result of the strike year-todate coal exports are 23 percent down from last year.
In the United States, the Energy Information Administration (EIA) is expecting coal
production to remain relatively stable this year compared to 2012, while coal exports
are anticipated to decline to around 100 million tons in 2013. Exports will be mainly
affected by increased competition due to low coal prices, the ongoing economic slowdown in Europe and deceleration in some economies in Asia, mainly China.
COAL GLOBAL TRADING (million tons)

Rest
100
US
Colombia
South Africa
Russia
Australia
Indonesia
May-13
Apr-13
Feb-13
Mar-13
Dec-12
Jan-13
Oct-12
Nov-12
Sep-12
Jul-12
Aug-12
Jun-12
Apr-12
May-12
Feb-12
Mar-12
Dec-11
Jan-12
Oct-11
Nov-11
Sep-11
Jul-11
Aug-11
Jun-11
Apr-11
May-11
Feb-11
Mar-11
Jan-11
Dec-10
Oct-10
Nov-10
Sep-10
Aug-10
Jul-10
Jun-10
May-10
50

Group
Coal Week
CemWeek
BMWeek
contact
the CWCWResearch
CemWeek
CW Group
Coal Week
BMWeek
CemWeek
BMWeek
JUNE
/
JULY
2013
www.cemweek.com
CW
Group
Coal
Week
22
CEMENERGY MARKETS

CemWeek
BMWeek
CemWeek
BMWeek
CemWeek
BMWeek
Chinas coal imports have been declining this year as a result of weakening demand in
the country. Also, the local industry has seen its sale prices plunge, making imports
less attractive to coal buyers and favoring domestic products. Meanwhile, the government is still considering a ban on imported coal with low calorific value, but the
proposal has found strong opposition and it is unknown whether the authorities will
move on with the ban or not. The ban would have a negative effect on Indonesia, the
main supplier of low calorific coal to China. As a response, the Indonesian government has announced the country will be looking for new export markets to divert the
volume lost to China.
ENERGY PRICES UPDATE

Coal
Coal trading prices in the main export hubs declined in May for a second month in a
row as a consequence of a still oversupplied market. Australia, Russia and the United
States have been the major sources of the additional coal shipped this year and trading volume is not expected to contract anytime soon. Despite cutbacks in production
to balance supply and the closure of unprofitable mines in some markets, a number
of mining companies have reported an increase in production to maximize output,
sacrificing margin over volume.
The average Harga Batubara Acuan (HBA) coal price in Indonesia slid 4 percent from
April. In Colombia and South Africa, price fell 1 percent versus the previous month.
Year-over-year prices are down 16 percent in Indonesia, 14 percent in South Africa, 13
percent in Colombia and 9 percent in Australia and the U.S.
Coal prices mainly

unchanged, but trends are
mixed
In China, coal prices continue to fall off. The Bohai-rim Steam Coal Price Index
(BSPI), which covers six major coal-shipping ports in China, is now 5 percent below
the level it had at the end of 2012.
STEAM COAL FOB AVERAGE PRICES (US$/TON)
South Africa Richards Bay
150
Australia Newcastle
Indonesian HBA
US exported
Colombia exported
90
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
Sep-09
Jul-09
May-09
30

CW Group
CemWeek
+1-702-430-1748.
JUNE / JULY 2013
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
23
Coal W
Coal W
Coal W
CW Group
CW Group
CW Group
Petcoke
The 12-month average price of U.S. uncalcined petcoke for export markets in April
remained unchanged for the third consecutive month at US$81 per ton. Prices seem to
have stabilized after a long slide that started in the fourth quarter of 2011. The decline
has eased in some markets and the price in India, for example, is now at the same level
it was a year ago. Compared to 2012, seven out of the top ten export market destinations show signs of price recovery. Only Japan, Canada and South Korea are lagging
behind.
While prices are bogged down, volumes are on the rise. U.S. petcoke exports soared in
April and reached the second-highest petcoke volume exported in U.S. history. Output was boosted by an increase in shipments to China, Canada, The Netherlands and
Mexico. April year-to-date exports to The Netherlands more than doubled versus last
year and the volume shipped to Mexico is 40% higher over the same period of 2012.
US PETCOKE EXPORT PRICE (US$/TON) ROLLING 12-MONTH AVERAGE
120
60
0
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
CEMENERGY MARKETS

CemWeek
BMWeek
CemWeek
BMWeek
Petcoke
prices stable and no
signs of rebound yet
CemWeek
BMWeek

Group
Coal Week
CemWeek
BMWeek
contact
the CWCWResearch
CemWeek
CW Group
Coal Week
BMWeek
CemWeek
BMWeek
JUNE
/
JULY
2013
www.cemweek.com
CW
Group
Coal
Week
24
CEMENERGY MARKETS

CemWeek
BMWeek
CemWeek
BMWeek
CemWeek
BMWeek
Natural Gas
With oil prices declining from a 12-month high in February 2013 and a soft demand
environment, natural gas prices in Europe and liquefied natural gas (LNG) prices in
Japan were 5 percent and 2 percent down, respectively, in May compared to April.
LNG price in Japan reached its lowest since November 2012, but it is expected to recover as the summer season hits and power consumption goes up.
In Europe, even after this months slide, price remains at high level, and the average
price for the first 5 months of 2013 is 5 percent higher than the same period of 2012.
Natural gas demand in Europe is still sluggish but Russias Gazprom, the largest gas
supplier to European markets, is expecting a 9 percent growth in its deliveries to the
region during 2013, following a decline of 7 percent in 2012. Gazprom reported an
increase of 5 percent in its export contract pricing during 2012.
In the U.S., Henry Hub spot price has been declining since the beginning of June, after
reaching levels over US$4/mmBtu in April and May. Prices are down in most regions
except for the Northeast where they rose 10 to 20 percent during the second week of
June due to warmer-than-normal temperatures. The heat wave continued to affect
west and southwest states through the end of June and the beginning of July, with temperatures hitting triple digits in most locations. Experts are predicting summer 2013
will be among the top 10 warmest on record, which could send natural gas prices back
to US$4/mmBtu. However, the U.S. Energy Information Administration (EIA) still
maintains its natural gas price forecast for 2013 at around US$3.92/mmBtu.
Extended winter drives rally

in US natural gas prices
NATURAL GAS PRICES (US$/MMBTU)
20
Japan LNG
Europe
US
May-13
Sep-12
Jan-12
May-11
Sep-10
Jan-10
May-09
Sep-08
Jan-08
May-07
Sep-06
Jan-06
May-05
Sep-04
Jan-04
May-03
Sep-02
Jan-02
May-01
Sep-00
Jan-00
Sep-98
Jan-98
May-97
May-99
10

CW Group
CemWeek
+1-702-430-1748.
JUNE / JULY 2013
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
25
Coal W
Coal W
Coal W
Cement - Production (million tons)

Country
LM
CW Group
CW Group
CW Group
Cement - Consumption (million tons)
MoM (%)
YoY (%)
YTD
YTD %
Country
LM
MoM (%)
YoY (%)
YTD
YTD %
China (June)
227.5
1%
10%
1,083.7
8%
France (June)
1.9
6%
-10%
9.6
-7%
India (April)
22.5
-7%
13%
89.9
8%
Brazil (June)
5.5
-8%
4%
33.6
2%
US (April)
6.5
14%
0%
21.7
1%
S. Arabia (June)
5.1
-4%
15%
31.4
11%
Russia (April)
5.4
15%
6%
16.6
11%
Spain (May)
1.0
10%
-18%
4.4
-25%
Mexico (April)
3.0
-1%
2%
11.7
-2%
Indonesia (April)
4.5
0%
9%
18.1
9%
Colombia (May)
0.9
5%
1%
4.4
2%
Egypt (March)
3.5
0%
-10%
10.6
-15%
YTD
YTD %
YTD
YTD %
Portland Cement - Exports (million tons)
Portland Cement - Imports (million tons)
Country
LM
MoM (%)
YoY (%)
China (March)
0.8
26%
13%
2.2
Thailand (May)
0.7
13%
4%
3.1
Country
LM
MoM (%)
YoY (%)
38%
US (May)
0%
Malaysia (May)
0.5
-3%
-20%
1.9
6%
0.1
-27%
27%
0.4
25%
Japan (May)
0.4
9%
-28%
2.1
-5%
Canada (March)
0.1
24%
1%
0.2
10%
Korea (May)
0.3
46%
-32%
1.4
16%
France (April)
0.2
16%
-22%
0.7
-21%
Germany (March)
0.3
17%
-21%
0.8
23%
Brazil (May)
0.1
41%
-5%
0.4
38%
Coal - Exports (million tons)

Country
Petcoke - Exports (million tons)
LM
MoM (%)
YoY (%)
YTD
YTD %
Indonesia
27.7
3%
-7%
134.5
-3%
Australia
14.0
-5%
9%
70.4
10%
US
7.8
-12%
-30%
45.5
-6%
Petcoke - Global export prices (USD/ton)

Country
Colombia
7.1
17%
-13%
25.6
-23%
South Africa
4.8
-30%
-7%
30.9
0%
2%
Country
LM
MoM (%)
YoY (%)
YTD
YTD %
US
2.9
23%
10%
9.7
1%
US
LM
MoM (%)
YoY (%)
YTD
YTD %
78.5
-6%
-5%
79.9
1%
Natural Gas Prices (US$/mmBtu)
COAL EXPORTS MoM (%)

Colombia
South Africa
US
Australia
Indonesia
Country
LM
MoM (%)
YoY (%)
YTD
YTD %
Japan
15.3
-2%
-11%
15.9
-4%
Europe
12.3
-5%
6%
12.1
5%
US
4.0
-3%
66%
3.7
59%
NATURAL GAS PRICES MoM (%)

60%
0%
US
Europe
Japan
Apr-13
May-13
May-13
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Jun-12
COAL EXPORT PRICES MoM (%)
Australia
93.7
0%
-9%
97.3
-16%
US
74.4
0%
-9%
76.4
-12%
Colombia
83.8
-1%
-13%
86.6
-12%
South Africa
81.1
-1%
-14%
83.6
-18%
South Africa
10%
Colombia
US
Indonesia
Australia
0%
-10%

LM: latest month (June where not specified);
month vs previous
YoY:
month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year
CW Groupmonth;
Coal
Week
CemWeek
BMWeek MoM:
CemWeek
CW Group
Coal Week
BMWeek
CemWeek
JUNE / JULY
2013CW Group Coal Week
www.cemweek.com BMWeek
Mar-13
-19%
Feb-13
88.0
Jan-13
-16%
Dec-12
-4%
Nov-12
85.3
Oct-12
Indonesia
Sep-12
YTD %
Aug-12
YTD
Jul-12
YoY (%)
Jun-12
MoM (%)
May-12
LM
26
Apr-13
Coal - Global export prices (USD/ton)

Country
-30%
May-12
May-13
Apr-13
Mar-13
Feb-13
Dec-12
Jan-13
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
0%
Jun-12
-1%
May-12
CEMENERGY MARKETS

CemWeek
BMWeek
CemWeek
BMWeek
CemWeek
BMWeek
REGIONAL REPORT:
center (production capacity 0.6 million
tons). The venture will utilize a system
based on the external supply of raw materials concept. The French firm Vicat
has started trial production of Alpenat
cement, a new product with 30 percent
lower CO2 emissions in manufacturing.
In New Caledonia, Holcim will sell its
0.2-million-tons operations, Holcim
Nouvelle Caldonie, to Tokuyama Corporation of Japan. Holcim aims to increase operating profit by CHF 1.5 billion
between 2011 and 2014.
EUROPE
Tough economic times continue for the
Spanish cement market, which has fallen 24 percent in 2013 on reduced public
spending and is predicted to finish the
year down 21 percent from 2012. Market predictions suggest that the market
will stabilize at 20-25 million tons of
consumption next year. Holcim in Spain
will cut 75 percent (568 million euros) of
its capital expenditures. The struggling
Spanish CEMEX branch has sold its Sant
Feliu de Llobregat, Catalonia, unit to Cementos Molins.
The Italian cement market has a similarly poor outlook, with production
volumes halved in the past seven years
and declines of 20-25 percent predicted
for 2013. Production in 2012 decreased
20.8 percent year-over-year to 26.2 million tons, while consumption fell by 22.1
percent. Excess production capacity is
estimated at 40-50 percent. The Italian
firms Cementir and Italcementi have
announced closures and worker layoffs,
spurring protests. Italcementi is moving
ahead with a restructuring plan intended
to boost efficiency from 60 million to 100
million euros.
In France, Holcim is venturing into the
western portion of the country. Western
Oversupply of European cement has

boosted imports into Belgium. Market
watchers expect a loss of 8 percent in cement consumption in Belgium in 2013.
In Switzerland, Holcims Siggenthal unit
has begun using lignite to power its kiln,
importing 1,500 tons of fuel per week via
freight train. Since the fuel comes from
Europe, the supply chain is shorter and
security higher than for overseas coal.
acquisitions have included Atlantic Cement and the cement import terminal of
Montoir-de-Bretagne in Saint-Nazaire.
Additionally, Holcim has opened a clinker grinding center in Grand-Couronne,
with production capacity of 0.58 million
tons, and is set to open a second center on
the Port of La Rochelle, also with capacity
of 0.58 million tons.
Kercim is targeting 10 percent of the western French market with its ultra-modern,
US$44 million Saint-Nazaire grinding
select PROJECTS IN THE WORKS: europe, russia and baltic region

COMPANY (LOCATION)
Holcim/Russia
Russia
Table available in the CemWeek

Magazine Print Edition.
Kerry Qiefu/Belarus
28
OVERVIEW
www.cemweek.com
Holcim announced that it will start construction at a new cement plant in Saratov region, Volsk
by the end of this year. The company targets to commission the unit late 2015 - early 2016.
A new cement plant will rise in the Buinaksk district of Dagestan. The plant will have a capacity
of 0.3 million tons per year.
Kerry Qiefu
grinding plant has undergone initial ignition. Kerry Qiefu cement plant was the last
www.cemweek.com/subscribe
plant in a three plants construction project, being also the longest project of all three.
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
Coal Week
Coal Week
Coal Week
Price pressures are increasing in the Austrian cement industry, after 2012 registered stable sale margins of 4.46 million
tons, but revenue that declined 4.7 percent to 375 million euros. New technologies are one promising approach: in the
Austrian Leitha Mountains, Lafarge has
a 12 million-euro, large-scale plant with
catalyst technology, expected to reduce
nitrogen emissions.
Cimpor will export 0.045 million tons of
cement from Alhambra port via barge
to Lisbon and thence to Africa. The city
of Tema, Ghana, will receive 55 percent
of the shipment, with the rest bound for
Freetown in Sierra Leone.
In Romania, the cement manufacturer
Carpatcement expects to increase cement
production by 1.9 percent this year to 2.8
million tons. Total cement production in
Romania totaled 7.7 million tons in 2012
and 7.6 million tons in 2011. Carpatcement predicts a turnover of RON 834.8
million this year, up 3.3 percent compared to 2012, and a gross profit of RON
174.9 million, down 4.9 percent.
regional report: europe, middle east, africa
RUSSIA AND THE BALTIC REGION

Cement production in the first four
months of the year has increased by 10.5
percent year-over-year in Russia to 16.6
million tons. Market players have shifted
over the same period, with Eurocement
reducing its stake by 1.1 percent to 32.8
percent, while Novoroscement increased
its stake by 2.6 percent to 10.4 percent,
and Heidelberg Cement is up 0.5 percent
to 5.4 percent. Holcim has announced
construction of a new cement plant in the
Saratov region. In Pikalyovo, Russia, the
company BaselCement will spend up to 5
billion rubles to modernize BaselCement
Pikalyovo, integrating two new production lines. Sebryakovsky Cement has also
announced the opening of a new production line in Russia.
In contrast to Russia, cement production
in the Ukraine reached 1.046 million tons
in May 2013, up from April by 24.5 percent, but a year-over-year decrease of 8.4
percent. April 2013s production, 23.1
percent higher than March, came in at 5.5
percent below April 2012. In total, 2013
production in the country has totaled
3.201 million tons, a drop of 3.2 percent
compared with the same period in 2012.
Production in 2012 fell 6.8 percent below
those of 2011, which had seen an increase
of 11.2 percent over 2010s production.
On the fuels side, the Ukrainian cement
firm Ukrcement has requested 0.816 million tons of the countrys imported coal
quota to continue production.
After receiving a modernization loan

of US$530 million from Eximbank, the
Belarusian cement industry launched a
US$1,134 million modernization project, including installation of three new
production lines with a 1.8-million-ton
capacity each. The lines were expected
to increase national cement production
select PROJECTS IN THE WORKS: middle east

COMPANY (LOCATION)
OVERVIEW
Najran Cement/Saudi
Arabia
Najran Cement successfully tested its third clinker line that increased the company's daily
clinker capacity to 15,500 tons. The latter production line brought an additional capacity of
6,500 tons per day.
Eastern Cement/Saudi
Arabia
Eastern Cement also announced the start of the trial run of its new 600 tons per day
production line. The trial period will last for three months.
Tabuk Cement/Saudi
Arabia
Tabuk Cement announced the construction of its second clinker production line (5,000 tons
per day) and a captive power plant (30 MW).
Babylon Cement Plant/

Iraq
The Ministry of Industry and Minerals has signed a joint investment with an Iraqi company and
two others for the rehabilitation of the Babylon cement plant, while confirming that the value
of the contract amounts to US$ 25 million for a period of 15 years. Once rehabilitated, the
cement capacity of the plant should reach 0.22 million tons.
Raysut Cement/Yemen/
UAE/Oman/Somalia
Raysut Cement is planning to build a state-of-the-art cement terminal in Berbera Port,

Somalia, and a grinding plant in Mukulla, Yemen. The company has also approved a plan to
build a new cement terminal in Duqm Port, Oman, but also an expansion project at its UAE
affiliate, Pioneer Cement.

by 117 percent. However, with two of

three new lines operational, production
decreased by 1.6 percent, year-over-year,
between January and April 2013. Domestic market consumption shrank and exports are limited by long transportation
distances and lack of demand.
MIDDLE EAST
In Saudi Arabia, cement demand is expected to decrease due to a summer
building lull. This is in contrast to the
first half of 2013, when demand was high
enough to require an estimated total of
5-6 million tons of cement imports over
the year. Total cement sales in the country from January through May 2013 totaled 26.23 million tons, up 6.6 percent
year-over-year. Looking ahead, a new
250-million-riyal Saudi cement plant will
be constructed by Umm al-Qura, while
Najran Cement has already begun testing a new production line expected to
produce 6,500 tons of clinker daily and
to boost the firms total output to more
JUNE / JULY 2013
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
29
Coal W
Coal W
Coal W
lower than 2010 and 2011. Meanwhile, in

Kuwait, a new 8,500-ton clinker production line is open on a trial basis in Kuwait
Cements Shuaiba Industrial East plant.
With the new line, the total plant capacity
will reach 5 million tons per year.
The Israeli cement market is currently
controlled almost entirely by the company Nesher, with 10 percent supplied
by Lion Baron. To promote competition
and lower prices, the Israeli government
has approved a bill to de-monopolize the
market.
than 17,000 tons of cement per day. The

Saudi company Eastern Cement has announced a trial run of a new 600-ton production line for specialized cement types.
In Iran, cement and clinker exports have
doubled, to 5.75 million tons, in the first
quarter of the Persian solar calendar fiscal year. In June alone, 1.4 million tons
of cement and 0.33 million tons of clinker were exported. Iran exports cement
to Iraq at US$50 per ton, a price that will
increase by US$5 going forward.
With assistance from the government,
the Iraqi company Babylon Cement will
rehabilitate its cement plant for US$25
million, aiming for production capacity
GCC cement sector profits rose in the
first quarter of 2013 to US$585.3 million,
an increase of 16.9 percent year-overyear. The profit margin reached 40.8 percent compared with 39.7 percent a year
earlier. Cement prices, however, fell overall by 0.9 percent in 2013 to US$66.1 per
ton, taking into account price drops of
2.5 percent in Saudi Arabia and a price
increase of 6.7 percent in Kuwait.
In the UAE, foreign cement trade reached
US$269 million and a growth rate of 11
percent during the first nine months of
2012. Reflecting stable commodity prices and a lack of cement scarcity, cement
prices in the UAE are holding steady at
250-260 dirhams per ton in 2013.
30
www.cemweek.com
For a total investment of US$24 million,

Raysut Cement plans to build a cement
terminal in the Port of Duqm, Oman,
and another in Berbera Port, Somaliland,
Yemen, in addition to a grinding plant in
Mukulla, Yemen. Pioneer Cement Industries, a subsidiary of Raysut, will expand
storage capacity with an additional cement silo as well as equipment upgrades.
Domestic cement demand has been
moderate in Jordan so far in 2013, with
a volume of 1.5 million tons. White cement demand, 100-120 tons per day, has
remained flat from 2012 but substantially
Finally, Syrias Hama Cement company

reports reduced cement marketing because the current political crisis has hindered construction projects and impeded
transportation networks. In addition, cement prices are up due to high fuel costs.
AFRICA
In Egypt, product transport vehicles have
returned to full work capacity, bringing
cement prices down 50 pounds per ton
after the price rose to 650-700 pounds
previously. Nevertheless, cement production at the Ain Sukhna cement plants has
fallen by 50 percent as a result of security concerns in conjunction with political
protests.
select PROJECTS IN THE WORKS: africa

COMPANY (LOCATION)
OVERVIEW
GalileiHeidelbergCement/
Angola
Galilei partnered with HeidelbergCement and Angola National Cement for the construction of a
2 million tons cement plant in the exchange of a total investment of EUR 284 million.
HeidelbergCement/
Liberia
HeidelbergCement commissioned a new cement mill at its grinding plant in the capital city of
Monrovia. The 0.5 million tons mill represented an investment of US$ 14 million.
Tanga Cement/Tanzania
Tanga Cement plans to invest US$ 165 million for the construction of a second kiln at its
plant, investment that will lift the clinker capacity by 0.6 million tons.

Dangote/Tanzania
The ground breaking ceremony of Dangote's three million tons cement factory took place in
the end of May, 2013 in Tanzania.
CIMAF Gabon/Gabon
Morocco's CIMAF group laid the foundation stone of its new cement plant worth CFA 9.67
billion. Located in Owendo, 15 km south of Libreville, the cement plant will have an initial
capacitywww.cemweek.com/subscribe
Lafarge/Zimbabwe
Lafarge Cement Zimbabwe announced plans to invest US$ 200 million within the next 10
years towards setting up a new one million tons cement manufacturing plant.
Socit Saoura Ciment/

Algeria
The Socit Saoura Ciment (SSC), a subsidiary of Algeria's GICA, launched a tender for the
realization of a cement plant with a capacity of 3,200 tons of clinker per day in Bechar.
Lafarge/Nigeria
The Enugu State Government has signed a Memorandum of Understanding with Lafarge for
the establishment of a cement factory in the region.
Lucky Cement/
Democratic Republic of
Congo
Lucky Cement starts construction at its US$ 240 million factory in Democratic Republic of
Congo. Lucky Cement entered into a 50-50 agreement with the Rawji Group for a company
called Nyumba Ya Akiba (NYA).
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
Coal Week
Coal Week
Coal Week
Algerian cement imports rose 102 percent between 2012 and 2013, reaching
US$159.39 million between January and
May 2013. Import quantities increased
more than 105 percent to 1.791 million tons. The Algerian firm GICA is
set to construct a new multi-batch,
3,200-ton-capacity clinker plant in Bechar. GICAs development plan, aiming
to increase production from 11.5 million
tons to 25.7 million tons by 2017, includes
the construction of three other plants at
Salah, Yellel, and Sigus.
New cement developments are emerging

across the African continent. In Tanzania, the Tanga Cement Company plans
to invest US$165 million to construct a
second, 0.6-million-ton kiln and double clinker production. Meanwhile, the
Confederation of Tanzania Industries
(CTI) has called on the government to
increase taxes on imported cement. Galilei and HeidelbergCement will partner
to construct a 2-million-ton capacity
plant in Benguela, Angola, at the cost of
284 million euros. Commissioning a new
0.5-million-ton, US$14-million mill at
its grinding plant in Monrovia, HeidelbergCement has expanded its presence in
Liberia. A booming construction sector
has prompted Zambezi Portland Cement
to increase production capacity from
1,000 to 1,400 tons per day. In Zimbabwe, Lafarge will invest US$200 million
in a new cement manufacturing plant,
elevating Lafarge Cement Zimbabwes
production from 0.45 million tons per
year to 1.45 million tons. Construction is
including Pretoria Portland Cement

Company Limited (PPC Ltd.). PPC will
raise 1.3 billion rand this year from bond
sales and expects to build a US$200-million plant near Kinshasa to address a 1
million-ton shortage of cement in the
country.
Elsewhere, the cement sector is hampered

by a more negative outlook. Under high
transportation costs, the price of cement
has increased from K65 to K75 in Zambia. In Senegal, accusations that President
Macky Sall blocked commissioning of a
Dangote Cement plant due to pressure
from a French business lobby were deunderway on a FCFA 35-billion cement nied.
factory in Issongo-Bakingili, Limbe,
Fako Division of Cameroon. The plant In Morocco, sales have registered their
is expected to produce between 0.8 and largest decline in 35 years, finishing the
1 million metric tons of cement per year. first half of 2013 down 13.5 percent. The
The Gabon-based company Cimaf (Afri- drastic decrease is of concern to econoca Group Moroccan Cement) has begun mists, who view cement consumption as
construction on a second clinker grind- an indicator of a countrys development.
ing plant with anticipated capacity of 0.5 Morocco registered a decline in housing
million tons and potential to expand to 1 starts of 11.5 percent in 2012 and a demillion tons.
crease in cement demand of 14.5 percent
as of May 2013. In all, 2013 consumption
Nigerias cement market is also attract- is expected to come in at 8 percent below
ing new developments. Lafarge has an- 2012 levels. Moroccos cement overcapacnounced plans to establish a new cement ity reached 5 million tons in 2012.
factory to process limestone from large
deposits in Enugu State. Meanwhile, Similarly, poor performance in the conthe Public Investment Corporation has struction market in Madagascar leaves
invested US$289.3 million in Nigerias the cement industry on uneasy footing.
Dangote Cement and is considering ad- With 0.5 million tons of cement available
ditional Dangote investments.
in the local market in 2013 and private
construction responsible for 80 percent
The rebuilding of destroyed infrastruc- of purchasing, oversupply with associatture in the Democratic Republic of Con- ed price declines (already down 6 percent
go (DRC) is attracting cement makers, this year) are likely.
JUNE / JULY 2013
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
31
Coal W
Coal W
Coal W
REGIONAL REPORT:
reversal in the interest rate cycle, a pickup in infrastructure expenditures due to

governmental elections, and the low-base
effect.
Cement prices rose in June 2013 across
India. Over one month, the all-India average increased Rs 14/bag to Rs 308/bag.
Prices are up year-over-year by Rs 15/
bag. Greatest gains occurred in the southern region, with an average price hike of
Rs 30/bag. Prices increased by Rs 15-20/
bag in the east and west regions, yielding
average prices of Rs 333/bag in the east
and Rs 306/bag in the west. In the northern and central regions, prices increased
by Rs 5-10/bag, bringing the northern
and central price averages to Rs 296/bag
and Rs 293/bag, respectively. Demand
fell across the country, as a result of early
monsoon arrival and a slowdown in infrastructure.
In India, the first quarter of 2014 is expected to be the third consecutive weak
quarter for cement companies. Industry
volumes are likely to be up 4 percent yearover-year and down 8 percent quarterover-quarter to 61.7 million tons, while
average all-India cement realizations are
likely to be down 4 percent year-overyear and broadly flat quarter-over-quarter. Average EBITDA per ton is expected
to decline by 27 percent year-over-year
and to remain broadly flat quarter-overquarter. The earnings downgrade cycle
is likely to continue through the quarter.
Positive outlooks on the sector hinge on
demand recovery in the second half of
2014, a scenario predicated upon a housing upswing after a normal monsoon,
32
www.cemweek.com
Meanwhile, Holcim plans to carry out a

substantial restructuring and optimization of Indian operations, perhaps including a much-anticipated merger between
its local subsidiaries Ambuja Cements
and ACC. Madras Cements plans to invest Rs 360 crore to set up a new grinding unit in Andhra Pradesh and another
Rs 55 crore to increase its power generation capacity. The new unit will open in
the second quarter of FY2014-2015. The
clinker for this plant would be transported from its Jayanthipuram plant. The outSelect projects in the works: Central and Southeast Asia
COMPANY
(LOCATION)
OVERVIEW
Orient Cement/India
Orient Cement received environmental clearance for its cement plant at Chittapur in Gulbarga
district of Karnataka. The Rs 1.75 crore project is expected to be commissioned by the end of
December 2015.
Madras Cement/
India
The company is pledging Rs 360 crore for the construction of a new grinding unit in Andhra
Pradesh and another Rs 55 crore to boost its power generation capacity. The grinding unit will be
supplied with clinker from the Jayanthipuram cement plant and is expected to come online in the
second quarter of FY 2014-2015.
Dal Teknik Makina

Ticaret Ve Sanayi/
Uzbekistan
The Turkish contractor, Dal Teknik Makina Ticaret Ve Sanayi, signed a contract with German Pfeiffer
for the supply of a MPS 3350 cement mill. The delivery of the equipment is scheduled for late
2013 - early 2014.
Akkord
Corporation/
Azerbaijan
The International Bank of Azerbaijan (IBA) announced the success of its program to finance the
development of the sector of construction materials through the finalization of the construction
process of a second cement plant in the country, funded by the World Bank and built in
partnership with Akkord Corporation.
HeidelbergCement/
Kazakhstan
The new 1.8 million tons cement plant in the village of Shepte is on track to start production by
the end of the year.

CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
Coal Week
Coal Week
Coal Week
The Ghorahi Cement Industry of Nepal

has launched its new Sagarmatha OPC
(Ordinary Portland Cement) cement,
which complies with Nepal Standards NS
49-2041. Aiming to substitute its product
for imports from India and China, the
company is now seeking to obtain ISO
9001 certification for the new cement.
The new products strength ranges from
55-60 MPa, while 53 MPa is considered
high-grade. Sagarmatha cement is manufactured at a plant equipped with stateof-the-art technology from KHD Humboldt of Germany.
regional report: SOUTH ASIA
ernment to support local production by

rolling back fee waivers on imports from
India.
Sri Lanka plans to protect local manufacturers and traders by banning foreign
investments in steel, cement and supermarkets. Previously-approved projects
will not be affected by the new investment
ban.
put from the new unit would be marketed
in coastal Andhra Pradesh and in Odisha
and Chattisgarh. The company currently
operates three grinding units.
were up 4.8 percent to 0.408 million tons.

Exports registered a steep monthly decline of 20 percent to 0.63 million tons in
June.
Several notable sales are also on the horizon in India. Jaiprakash Associates (JP)
will sell its Gujarat cement unit stake by
the end of the year. The 4.8 million ton
cement plant has been valued at Rs 4,000
crore. French cement major Lafarge received approval from Competition regulator CCI for its 14 percent stake sale in
its Indian subsidiary to Paris Cement Investment Holdings, a subsidiary of Baring, while CRH and Vicat are in a race
to acquire Shree Jayajothi Cements, the
cement unit of Shriram Group. Shree
Jayajothi Cements is valued at US$250
million.
Beginning July 1, cement prices in Pakistan will increase Rs 25-30 per 50-kg
bag, as a consequence of a new 19 percent federal sales tax. The tax includes a
17 percent general sales tax, as well as a 2
percent tax on retailers and distributors.
In Pakistan, total cement sales declined

6.44 percent over one month to a June
2013 total of 2.702 million tons. Local
sales declined 1.4 percent to 2.07 million
tons. In northern Pakistan, sales declined
2.8 percent over one month to 1.665 million tons, but in southern Pakistan sales
In Nepal, the value of cement imports

rose by 15.5 percent to Rs 3.34 billion in
the first 10 months of the fiscal year, and
seven new cement factories were brought
online. Domestic manufacturers argue
that local production can meet the Nepalese market demand and call for the gov-
By contrast, Pakistani manufacturers

have slashed the price of cement exports
to Afghanistan by around Rs 300 per ton
in order to compete in the Afghan market. Cement exports to Afghanistan via
the Torkhum border had been halted due
to high availability of cheaper Iranian cement.
A proposal to abolish the import duty on

cement in Kyrgyzstan has been rejected
by the Parliamentary Committee on Economic and Fiscal Policy. The proposal
argued that high cement prices increase
construction costs and harm Kyrgyzstans
markets. However, the committee rejected the proposal because the import duties
do not apply to the CIS countries.
The Yuzhnokyrgyzsky cement plant in
Kyrgyzstan plans to produce 0.6 million
tons in 2013, up from 0.5 million tons in
2012 and 0.335 million tons in 2011, but
down from 0.922 million tons in 2010.
Natural gas shortages have cut Tajikistans
cement production significantly. In the
first five months of this year, the country
produced only 0.017 million tons of cement, down from 0.09 million tons during the same period in 2012. The largest
cement plant in the country, a facility
of Tajikcement, has been dormant since
mid-November of last year. Tajikistans
cement industry is working to shift equipment from gas-powered to coal-powered
in an effort to restart production.
JUNE / JULY 2013
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
33
Coal W
Coal W
Coal W
REGIONAL REPORT:
Because of unfavorable market conditions, Brazilian cement company Votorantim Cimentos has postponed until
September 11 its sale of US$3.7 billion
in shares. The deal would have been the
worlds second-largest this year, after
Brazilian insurer BB Seguridade Participacoess US$5.7 billion sale in April. Votorantims postponement follows six Brazilian IPOs, worth a combined US$7.3
million, since January. Although IPOs
are down 4.2 percent globally and 31 percent in the U.S. over the same period last
year, Brazilian IPOs this year have been
the highest for the period since 2002 and
have tripled 2012 levels.
The Portuguese company Semapa-Sociedade de Investimento e Gestao purchased
a 50 percent stake in Supremo Cimento in
2012 and is building a cement plant in the
Brazilian state of Parana. The new plant
will increase Supremos cement capacity
from 0.4 million tons to 1.7 million tons.
Portuguese cement and building companies are focused on Brazil in anticipation
of the 2014 soccer World Cup and 2016
Olympic Games. Additionally, cement
consumption in Portugal has slowed considerably after the countrys 2011 bailout.
In other developments, the port of Paranagu on the coast of Paran is receiving parts for the R$340 million Margem
cement plant, located in Adrianopole in
the Metropolitan Region of Curitiba and
expected to generate 150 direct jobs in
2014. Parts arriving at the port originate
from 15 countries and a large number of
companies, including FLSmidth.
Construction has prompted Holcim, Cemex and Cementos Argos to together invest more than US$700 million to build
new plants and expand existing facilities.
Cemex, which has a 2.7 million-ton capacity plant near Ibague, another in the
city of Ccuta, and two mills located in
Bucaramanga and La Calera, will invest
about US$75 million in Colombia in
2013, building a new mill in Bolivar.
Overall, gray cement production in Colombia increased slightly year over year
in May, reaching 929,100 tons, but sales
declined. A total of 901,600 tons of gray
cement were shipped to the domestic
market, down 0.3 percent from the same
The Colombian market is poised for expansion as a result of a government program slated to build 100,000 new homes.
34
www.cemweek.com
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
Coal Week
Coal Week
Coal Week
month last year. The decrease was mainly

due to marketing sector losses, which
subtracted 3.2 percent from the total. By
contrast, there were increases in shipments to builders and contractors and
cement trucks, which together contributed 2.9 percent. Shipment reductions
occurred in Bogot (-15.5 percent), Nario (-38.2 percent), and Cesar (-20.5 percent), combining to subtract 3.9 percent
from the total. Meanwhile, Crdoba (54.7
percent), Atlantic (22.4 percent) and Bolivar (25.8 percent) summed to a gain of
3.4 percent overall.
Notable among individual companies,
Cementos Argos has recently raised
US$1.4 billion in capital. In the first funding round, the company earned 1.4 trillion paisa and awarded 182 million preferred shares. U.S. investment banks JP
Morgan Securities and HSBC Securities
purchased 27.2 million preferred shares
for 209,423,000 pesos. With an investment of US$93 million, Cementos Argos
then began to expand plant capacity in
Rioclaro, Nare, and Cairo, increasing by
0.9 million tons the central Colombian
cement production capacity.
regional report: americas
In Argentina, a factory gas compression

plant is slated to open in the northern
province of San Juan, enabling a new gas
pipeline investment of US$250 million by
cement firm Loma Negra. Loma Negra
will open its tenth cement unit this year.
Additionally, the company has invested
US$45 million this year in the new plant
and a coal grinding unit.
The Argentinian port of Comodoro
Rivadavia will ship 6,000 tons of cement to Ecuador. Shipment will occur on
the Brazilian merchant vessel HC Opal
and represents an exporting batch from
Petroqumica de Comodoro Rivadavia.
Between January and April 2013, sales of
concrete and local cement dispatches in
Peru grew by 90.7 percent and 0.5 percent, respectively. Combined year over
year growth was 8.7 percent. Public sector
consumption was stimulated by US$38
million in construction at public facilities. Tax works construction (US$3 million) on the Mansiche Road interchange
began in the same period.
The Chilean company Bio Bio and its Brazilian partner Vatorantim, working with
the Local Ipsa and the Hispanic World
Cement Group, anticipate completion in

2016 of a US$160 million cement plant
with a production capacity of 0.7 million
tons in Peru.
Between January and March of this year,
671,078 metric tons of cement were sold
in Bolivia, an increase of 6.6 percent over
2012s first quarter. Overall, 2.4 million
metric tons were sold in the country in
2010, 2.6 million tons in 2011, and 2.7
million tons in 2012. Demand is expected
to grow by at least 10 percent until December of this year.
Expansion of the Bolivian cement market is illustrated by the recent opening of
the Cooperative Boliviana de Cemento,
Industries and Services (COBOCE)s second modern cement plant, in the town of
Irpa Irpa. The furnace currently produces
1,600 tons of clinker and is expected to
double capacity.
In late 2012, Bolivia imported about
10,000 metric tons of cement to supply
the domestic market. However, recent expansion of domestic production capacity
via the cement factories Viachan Soboce
(La Paz), Fancesa (Sucre), and Coboce
of Irpa Irpa (Cochabamba) ensures that
domestic supplies will meet current demand. Construction experienced no cement shortage during the recent busy
construction season. However, construction on a priority installation of a cement
plant in Oruro, spurred by the presence
of a rich deposit of limestone in North
Caracollo, has stalled.
In the Dominican Republic, new entrants like Grupo Estrella have recently
joined the fast-growing market, while
foreign investments in the cement industry have totaled over US$1 billion.
Local companies include Cementos Andino Dominican with a milling capacity
of 0.475 million tons, Cemex with 2.4
million tons, Cementos Cibao with 1.3
million tons, Domicem with 1.1 million
tons, Cementos Colon (Argos) with 0.5
million tons and Santo Domingo with
0.35 million tons. The seventh Dominican cement plant, belonging to Grupo
Estrella, is currently under construction.
The countrys installed capacity is estimated at 6.1 million tons per year.
In 2012, the Dominican Republic exported 1.37 million tons of cement, 36
percent more than the previous year. Exports to markets in South America, the
JUNE / JULY 2013
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
35
Coal W
Coal W
Coal W
regional report: AMERICAS
Caribbean, and Central America have

been strong enough to partially offset a
6 percent reduction in the domestic market.
The Colombian cement company Argos
arrived in the Dominican market in 1996
with a stake in Cementos Colon, gaining
control of the company in 2009. In the integration process that followed, Argos has
made investments to increase production
capacity and has already launched a concrete plant to add to the Dominican market.
Of additional interest in the growing Dominican Republic market is the launch of
a new cement variant, known as Titan cement, by Cemex. A high efficiency (HE)
product available in bulk quantities for
industrial use, Titan exhibits enhanced
resistance and performance and is expected to raise the quality of buildings in
the country.
The cement industry in Venezuela has
shown recent signs of stabilization after
the country invested US$458 million to
improve operations. Production from
April 2012 to April 2013 amounted to
8.4 million tons. The domestic industrys
production capital consists of 10 cement
plants with a total of 23 kilns for clinker
production and a capacity of 8.8 million
tons per year, as well as 20 cement production lines with total capacity of 9.09
million tons per year.
Looking to boost the cement industry,
Venezuela may spend as much as US$1.2
billion to increase domestic cement production to 500 kg per person per year.
Venezuela currently produces about 280
kilos per person per year.
To further bolster supplies, Venezuela has
begun importing cement, with the port of
Puerto Cabello recently receiving 23,991
tons of cement from Cuba. These supply
changes may impact fluctuating prices of
cement in Venezuela. Bulk cement prices
in the country increased by 40 percent in
recent weeks, affecting the final price of
works by about 8 percent.
36
www.cemweek.com
In Texas, demand in a market led mainly

by the oil and gas industry has fueled Cemexs plans to expand production capacity at its Odessa, Texas, cement plant by
62 percent to nearly 0.9 million tons per
year. Meanwhile, Texas Industries reports
that the second kiln at its Hunter cement
plant is now operational. In combination,
the two TXI kilns will produce and ship
approximately 2.3 million tons of cement
per year.
To settle allegations of air pollution, the
U.S. company Ash Grove Cement will pay
a US$2.5 million penalty and invest about
US$30 million in pollution-control tech-
nology at its nine cement manufacturing plants. The nine plants are located in
Foreman, Ark.; Inkom, Idaho; Chanute,
Kan.; Clancy, Mont.; Louisville, Neb.;
Durkee, Ore.; Leamington, Utah; Seattle,
Wash.; and Midlothian, Texas.
In the first three months of 2013, cement
demand plummeted 10 percent in Mexico, placing the 2013 first quarter among
the worst in the past decade. However,
the Mexican unit of Swiss cement giant Holcim expects demand for cement
in the country to grow by 1-2 percent
in 2013, once the government initiates a
public works plan.
select PROJECTS IN THE WORKS: americas

COMPANY
(LOCATION)
OVERVIEW

Cementos Yura/
Peru
Cementos Yura is expecting high-tech equipment from Germany for the expansion of its cement plant.
Cementos Bio
Bio/Peru
All permissions have been obtained for Cementos Bio Bio's Peruvian projects. The Chilean cement
company is partnering with the Brazilian Votorantim for the construction of the 0.7 million tons cement
plant. The expectation is that the unit will be operational by 2016.
Loma Negra/
Argentina
Cemex/USA
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
Coal Week
Coal Week
Coal Week
Loma Negra is currently
preparing the Environmental Impact Statement (EIS) for its US$ 250
million Pocito cement project announced two years ago. Once approved, the company can start the
construction process at the plant.
Cemex plans to expand the production capacity at its Odessa, Texas cement plant with the objective to
reach a total capacity of 0.9 million tons per year.
REGIONAL REPORT:
The Chinese cement market is expected

to grow by about 6 percent in 2013, up
from 5.74 percent in 2012. Urbanization
and strong infrastructure demand will
sustain the Chinese market in a stable
development phase.
In the first five months of 2013, national
cement production has maintained rapid
growth, with output reaching 866.35
million tons, up 8.9 percent year-overyear. Over the same period, national
investment in fixed assets (excluding
farmers) was 13.1211 trillion yuan, up by
20.4 percent nominal growth. May fixed
asset investment (excluding farmers)

increased 1.43 percent. The national real
estate development and investment over
the period was 2.6798 trillion yuan, up by
20.6 percent nominal growth. Residential
investment equaled 1.8363 trillion yuan,
up 21.6 percent.
From January to April, Chinese exports
of cement and cement clinker amounted
to 4.07 million tons, an increase of 31.5
percent. Exports were valued at $230
million, an increase of 21.1 percent. April
was the best month, with 1.23 million
tons of cement and clinker exported.
Cement and clinker FOB prices were at

about $55 per ton, $4 lower than the same
period last year. Industry-wide, total
profit in China for the period was 8.23
billion yuan, a decrease of 12.1 percent
year-over-year.
Losses were reported in 12 provinces,
with greatest declines for the northern
and northeastern regions. Better
earnings occurred in the southwest, with
substantial growth in Sichuan, registering
total gross profit of 1.043 billion yuan
(up 156 percent year-over-year), and in
Guizhou (up 189 percent year-over-year)
and Yunnan (up 192 percent year-overyear).
The Chinese cement market has entered
its off season, with national cement
market prices down 0.67 percent in the
past week to 320 yuan per ton. Local
prices have dropped 10-30 yuan per
ton. In northern and central China, the
price of P.O42.5 fell 0.6 percent. For large
enterprises, P.O42.5 fell from 350-360
yuan per ton to 340-350 yuan per ton,
with other SMEs remaining in the 300330 yuan per ton range. Beijing market
prices are expected to remain stable.
The regions of Handan and Xingtai have
been affected by reduced housing starts.
In east-central China, P.O42.5 cement
prices fell 0.8 percent over the period as
demand weakened. Jiangsu and Zhejiang
Provinces registered declines of 20-30
yuan per ton, and local cement prices
dropped 20 yuan per ton in Hefei, Wuhu,
and Luan.
Lafarge (Lincang) Cement is installing a
new 2,000t/d dry process cement clinker
production line in China. The project
represents a total investment of 460
million yuan, and is expected to come
online in July. Once operational, the line
will earn 5 billion yuan annually.
Two Taiwanese cement makers have
announced plans for expansion programs
in mainland China. Taiwan Cement Corp.
will invest 109 million Chinese yuan
(US$17.41 million) in Liaoning province,
and Asia Cement Corp. will invest more
than US$20 million to expand production
facilities in mainland China.
38
www.cemweek.com
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
Coal Week
Coal Week
Coal Week
regional report: ASIA PACIFIC
In Indonesia, cement sales between

January and May 2013 rose 6.9 percent to
23 million tons, but monthly growth rates
are slowing. May sales increased to 4.7
million tons, an increase of 2.1 percent.
This was the lowest monthly growth rate
in recent years. Before May, 2013 sales
grew at 8.6 percent year-over-year.
Cement
consumption
contracted
between January and May 2013 on all
islands except Java and Sulawesi. About
55 percent of Indonesias total cement
consumption occurs on Java, which
experienced cement sale increases of 5.3
percent to 2.8 million tons.
Contributing to cement price hikes,
fuel prices have risen in Indonesia, with
premium oil up 44.4 percent, from Rp
4,500 per liter to Rp 6,500 per liter, and
diesel up 22.2 percent, from Rp 4,500
per liter to Rp 5,500 per liter. Fuel costs
account for approximately 15 percent of
the cement markets total cost of good
sold (COGS).
On the individual company front,
Semen Indonesia will seek to raise as
much as US$200 million of a total Rp
4 trillion in capital funds this year. In
addition, the company is aiming to meet
10 percent of its total energy needs with
alternative energy sources, up from 5-8
percent. Along with these developments,
Semen Indonesia is actively looking to
expand into Myanmar, and is reviewing
partnership opportunities. The planned
investment in Myanmar will total US$200
million. The resulting joint ventures
will generate production capacity of 0.3
million tons per year. Semen Indonesia
itself is aiming for production capacity of
1-1.5 million tons per year.
The company Semen Padang has
installed a Rp 197 billion cement mill
in conjunction with its packing plant
facilities in Aceh Village.
January to May 2013 cement consumption
in Vietnam was up 19 percent year-overyear, to 23.8 million tons. Domestic
cement production was up 109 percent
year-over-year, reaching 19.15 million
tons. Vietnams exports (primarily to
select PROJECTS IN THE WORKS: ASIA PACIFIC

COMPANY
(LOCATION)
OVERVIEW
Semen Padang/
Indonesia
In order to meet the cement demand in the East Coast of Sumatra, Semen Padang installed a
cement mill in Aceh Village with an investment of as much as Rp 197 billion. The location also
benefits from a packaging plant opened in December 2010.
Semen
Indonesia/
Indonesia
The company is pledging Rp 7 trillion for the construction of two cement plants in West Sumatra
and Central Java. Both cement plants are expected to be completed in 2016.

Thanh My
Cement/Vietnam
Kampot Cement/
Cambodia
Thanh My Cement Plant (Quang Nam) announced that by mid-December the company will start
operations at its new cement plant, targeting to supply cement to the central region market. At this
point, the construction is 95 percent completed.
Kampot Cementwww.cemweek.com/subscribe
has accelerated works on the second factory after signing an agreement to buy
technology and machinery from the Chinese company CITIC Heavy Industries. The plant start-up is
scheduled for late 2015.
Cahya Mata
Sarawak/
Malaysia
Cahya Mata Sarawak is investing RM150 million in a new grinding plant. The one million tons
cement unit will commence production in late 2015.
Cemex Apo/
Philippines
Cemex intends to install a new mill at its Naga based cement plant. The 1.5 million tons vertical mill
is expected to be commissioned in Q2 2014 and will require a total investment of P2.5 billion.
Lafarge
Republic/
Philippines
Lafarge Republic is building a new 0.85 million tons cement mill at Teresa, Rizal. Commercial
operations are scheduled to start in 2015.
Taiwan, Singapore, and Indonesia) have

also increased in recent months. The
country exported nearly 5.2 million tons
between January and June 2013, up 170
percent year-over-year.
private and government construction

activity. Meanwhile, the 8990 Group has
made the mandatory tender offer (priced
at P0.4083, a 67 percent discount) to
the minority shareholders of Southeast
Asia Cement Holdings after buying out
the controlling shareholders. Previous
shareholders include Calumboyan
Holdings, Lafarge Holdings Philippines,
and Seacem Silos.
The Vietnamese company Quang Ninh

(QNC) will close two branches: the
cement factory branch Hatu and the
Uong Enterprise building. The closures
occur amid difficult market conditions
in Quang Ninh Province.
Cemex in the Philippines is installing a
new P2.5 billion vertical cement mill for
Filipino cement companies report mixed its Naga-based plant. The new mill will
activities in recent weeks. Siam Cement increase the Naga plant capacity by 1.5
Group of Companies (SCG) expects to million metric tons per year, and will
grow its Philippine operations by up come online in the second quarter of
to 15 percent this year, in light of both next year.
JUNE / JULY 2013
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
39
Coal W
Coal W
Coal W
SECTOR COVERAGE:
From March to May 2013, the number of
housing starts in France was up 6.7 percent to 86,700. Multi-unit housing was
up 15.5 percent. Housing residence starts
increased 5.3 percent and individual
housing rose 1.3 percent, while individual dwellings grouped fell 4.4 percent. In
Spain, residential construction is expected to grow by 5 percent in 2014 and 15
percent in 2015, signifying modest recovery after a 20 percent decrease in 2013.
New housing starts in 2012 numbered
45,000 and are projected to reach 60,000
in 2015, far below the 250,000 starts recorded between 1991 and 1993.
Infrastructure remains the strongest area
of construction industry growth in Romania. Poor weather conditions and limited infrastructure funding reduced construction in the first half of 2013 to well
below 2012 levels. Safe forms of industrial
development include work supported by
European funding, public-private partnerships, and foreign investors. Market
volume in 2013 is expected to be similar
to or slightly up from 2012.
CONSTRUCTION
The construction sector has grown in
several regions in the past months. In
Bangladesh, infrastructure projects and
continued urbanization have boosted the
industry. In illustration of this, authorities recently floated a tender for the main
infrastructure of a proposed US$3.0 billion Padma Bridge. Marginal construction expansion in Germany brings positive growth in May for the first time in
over a year. The Markit Germany Construction Purchasing Managers Index
(PMI) posted 50.6 in May, up from 48.8
in April. Values over 50 signify positive
growth. Housing in Russia is up by 10.9
percent year-over-year, with completion
of 17.5 million m of new residences.
40
www.cemweek.com
The value of new housing is down by 0.1

percent year-over-year, however, totaling
RUB 1.729 trillion (40.13 billion). In all,
212,200 apartments were completed between January and May.
Total construction spending in the U.S.
rose to a seasonally adjusted annual rate
of US$874.9 billion in May, up 5.4 percent year-over-year. Total residential
housing spending rose to the highest level in 4.5 years, up 0.5 percent from April.
Public construction rose 1.8 percent, with
state and local activity up 1.6 percent and
federal spending up 0.6 percent. Private
residential construction rose 1.2 percent.
By contrast, spending on nonresidential
projects fell by 1.4 percent.
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
Coal Week
Coal Week
Coal Week
In other nations, construction slowdowns have been in evidence. In India,

the infrastructure sector reflects a general
downturn in the economy. Infrastructure
output registered growth of 3.2 percent
in the last fiscal year after 5 percent the
previous year. Nevertheless, the country
is projected to become the worlds third
largest construction market by 2025. In
Ireland, the construction sector continued to contract in May. The Ulster Bank
Construction Purchasing Managers Index (PMI) posted 42 in May and 41.9 in
April. The construction sector has now
posted monthly declines for six straight
years, and a general lack of confidence in
the sector is pervasive.
In the EU, construction fell by 5.9 percent and in the Eurozone by 6.6 percent
from January to April. April construction
registered a slight increase of 0.9 percent
in the EU and 2 percent in the Eurozone
over March, with building construction
up 1.1 percent in the Eurozone and 0.7
percent in the EU. By contrast, construc-
tion in March declined from February by

1.8 percent in the EU and 1.3 percent in
the Eurozone, and building construction
dropped by 1.2 and 0.9 percent, respectively. Civil engineering rose by 3.9 percent in the Eurozone and by 0.8 percent
in the EU27, after -3.9 percent and -2.2
percent, respectively, in February. Construction rose in eight and fell in seven
of the EU member states in April, with
highest increases in Germany (6.7 percent), Portugal (5.9 percent) and Italy (5.5
percent), and largest decreases in Poland
(5.2 percent), Romania (3.7 percent) and
Spain (3.1 percent).
CONCRETE
In Russia, production of precast concrete
structures and parts declined 10.7 percent
month-over-month to 2.2 million cubic
meters in May 2013, a drop of 0.6 percent
from May 2012. Production so far in 2013
has reached 10.4 million cubic meters,
rising each month from January to April.
An even sharper May drop occurred in
the Ukraine, where concrete production
in May 2013 experienced a 1.6 percent
monthly drop and came in 16.5 percent

Mar-13
Apr-13
May-13
Authorized Units
890
1,005
974
Started Units
1,005
856
914
Units under
construction
Units completed
594
606
810
696
620
690
Source: U.S. Census Bureau, New Residential Construction Statistics
lower than May 2012, whereas April 2013

had registered 9.5 percent above April
2012, a 49.8 percent rise from March. The
net January-May production level was
roughly equivalent between 2012 and
2013 (4.2 million tons).
New acquisitions, plants, and contracts
have stimulated the concrete sector in
several regions. Major improvements to
Riga International Airport in Latvia have
required over 80,000 m of a CEMEX
specialty ready-mix concrete.
So far in 2013, the Irish company CRH
has logged 400 million in acquisitions
across North America and Europe. CRHs
Northstone branch has acquired the
ready-mixed concrete, aggregates, and
block operations of Cemex in Northern

Ireland. The deal generates 24 million
tons of reserve. In addition, CRH has
acquired the import facilities of the Dudman group in mainland Britain.
sector coverage: construction materials
New Residential Construction in the U.S. (thousands of units)
The company Guizhou Qinglong Panjiang Cement is building a new concrete

plant in Qinglong County, China. The
plant, priced at 80 million yuan, is projected to produce an annual output of
800,000 cubic meters. Lafarge has opened
a new concrete manufacturing plant in
Gorzw, Poland, and predicts daily production of more than 600 m3 of concrete.
Meanwhile, the German company Sommer Anlagentechnik GmbH will supply
Tajikistans KDSK with equipment to upgrade the former KPD-3 concrete plant,
elevating production to 150 thousand
square meters.
GYPSUM AND LIME
Several companies have logged new investments in gypsum and lime in recent
months. Metso has acquired a Copenhagen, Denmark, lime kiln and Karlstad, Sweden, recausticizing technology
from the Danish equipment maker FLSmidth. VKG Energia company has began
construction of a new lime plant, slated
to produce 24,000 tons of lime annually using waste rock from the companys
Ojamaa mine. Bulgarias Calcit has contracted Pfeiffer to supply its Asenovgrad
quicklime works with an MPS 112 B vertical roller mill and other equipment. The
MPS mill yields 5 tons/hour of quicklime,
ground to a product fineness of 1% residue 0.090 mm.
Nordkalk Corporations Louhi limestone
plant in Savonlinna, eastern Finland, is
restarting production after being placed
on stand-by in 2009. In light of positive
JUNE / JULY 2013
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
41
Coal W
Coal W
Coal W
SECTOR COVERAGE: CONSTRUCTION MATERIALS BY BMWEEK.COM
sales and demand projections, limestone

quarrying will restart in August 2013 and
the quicklime kiln will restart. The locations slaking and grinding plants have
been running continuously.
The French company Lafarge will sell its
North American gypsum business to U.S.
private equity firm Lone Star for US$700
million, as part of an effort to cut debt
and help restore Lafarges investment
grade rating. The rating was lost in 2011
as a consequence of debt accrued through
Lafarges purchase of Orascom in 2007.
Several new gypsum production facilities have entered the worldwide pipeline.
The Spanish company Xella, through its
subsidiary Fermacell, has opened a new
gypsum fiber board manufacturing facility in Orejo, northern Spain. The facility
is expected to produce 12 million square
meters annually, and represents a EUR
30 million investment. The Bank Sohar
SAOG and USG-Zawawi Group will establish a US$45 million gypsum quarry
and gypsum board manufacturing plant
in the Salalah Free Zone in the Dhofar
Governorate of Oman.
Research by Tecnalia-Construction in
Spain aims to assess the feasibility of a
gypsum recycling processing plant, located in the Basque town of Urtuella, capable of removing gypsum particles from
construction and demolition waste.
AGGREGATES
To improve efficiency and alignment with
its strategic plan, Vulcan Materials has
disposed of its four remaining quarries
in the cities of Franklin, Dousman, Racine, and Sussex, Wisconsin. Meanwhile,
a new Lafarge quarry in Aldermaston,
West Berkshire, England, is expected to
yield 2.5 million tons of sand and gravel
over the next 12 years. By contrast, consumption of aggregates for construction
in Andalusia, Spain, registered a heavy
decline in 2012, coming in at 17 million
tons or 37.8 percent below 2011. The industry is now down 81.3 percent since
2005.
42
www.cemweek.com
GREEN AND INNOVATIVE BUILDING

In Nantes, France, Lafarge has begun
using recycled construction aggregates,
comprising layers of sand, Agneo, gravel natural, bitumen, and asphalt. Italian
scientists in Salerno have added rubber
strips from shredded waste tires to water and cement as part of concrete proProduction in Construction
Index (2010 = 100)
Country
Mar-13
Apr-13
Czech Republic
79.0
81.1
Germany
99.5
106.2
France
95.0
95.2
Italy
70.3
74.2
Hungary
91.2
92.5
Table available
in the CemWeek
Magazine Print
Edition.
Poland
95.7
90.1
Portugal
58.1
61.5
Sweden
124.7
121.7
Source: Eurostat
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
Coal Week
Coal Week
Coal Week
duction. Bio-Brick, an innovative new

concrete product utilizing bacteria in
production, is capable of reducing greenhouse gas emissions over those of traditional clay bricks by at least 800,000 tons
of CO2.
A subsidiary of the corporation Transstroi has applied for a patent for a new
Inzhtransstroy-developed concrete mix
incorporating fine mineral powder to reduce the amount of required cement and
utilize limestone dust.
The firm Saint-Gobain, in partnership
with Akron Summit Community Action, Inc., and YouthBuild Akron, has
completed an Akron, Ohio, home renovation expected to achieve the citys first
U.S. Green Building Councils (USGBC)
Leadership in Energy and Environmental
Design LEED Platinum certification. The
building will be the seventh LEED Platinum-certified home in Ohio.
PEOPLE
variety of notable personnel shifts

have occurred across the cement
industry in the past two months.
In a controversial move at TCL,
five new nominees for directorship have
been proposed by a group of institutional
investors from Trinidad and Tobago. The
TCL board opposes the nominations.
Meanwhile, company executive Djelal
Hamid has been installed as general
manager of Sour El Ghozlane. Hamid,
formerly technical assistant, was selected
by industry group Cements Algeria
(IPAC)s CEO, Bachir Yahia, to replace
Ahcne Rezzagui following disappointing
cement production levels.
Carlos Gonzalez, president of Cemex in
the Dominican Republic, has been named
president of the Dominican Association
of Cement Producers (Adocem) for
2013-2014. He will be supported at
Adocem by Gabriel Ballestas Agros as
treasurer and Jose Caceres de Cementos
Cibao as secretary.
Independent director Tom Ransdell
will take over as chairman of the board
at Texas Industries. Ransdell replaces as
chairman recently deceased Bob Rogers.
After 39 years in the business, general
manager Jorge Matus has resigned from
Chiles Cementos Bio Bio. Iaki Otegui,
current manager of the cement division,
has been appointed new general manager
of corporate business. Hernn Briones
Goich has been appointed the new
Cementos Bio Bio chairman, Alfonzo
Rozas Ossa the vice president, and Jose
Ramon Valente Routes the third member
of the Audit Committee. Board of
Directors members include Luiz Alberto
de Castro Santos, Eduardo Novoa and
Jose Ramon Valente Castelln.
The CEMBUREAU General Assembly
elected former vice president Peter
Hoddinott to succeed Ignacio Madridejos
as CEMBUREAU president. Daniel
Gauthier has been elected vice president.
As Executive Vice-President of Energy &
Source: ADOCEM
Strategic Sourcing of Lafarge since 2012,

Hoddinott was responsible for worldwide
energy strategy and sourcing of Lafarges
externally sourced inputs.
Tim Surridge, CFO of Dangote Cement,
has resigned his position because of
family reasons. A global search for a
replacement is expected. In the interim,
CFO duties will be performed by Kuzhiyil
Ravindran, currently CFO of Dangote
industries and former CFO of Dangote
Cement.
Notable resignations are also reported
at Cimpor, where Lus Sequeira Martins
and Manuel Lus Barata de Faria Blanc
have stepped down from the board of
directors. Sequeira Martins, aged 65, has
been a member of the Cimpor board of
directors since 1987. Barata de Faria
Blanc, aged 68, has been administrator
of Cimpor since 2001. The resignations
arrive at a time when the cement

industry undergoes changes under
the tender offer (OPA) launched by
InterCement, a division of Brazils
Camargo Corra Group.
At Votorantim Cement, the largest
cement producer in Brazil, executive
Markus Akermann has been elected
to the board of directors. Akermann
served as CEO of the Swiss giant
Holcim between 2002 and 2012. After
11 years with Votorantim, executive
Fbio Faria will transfer to CSN to head
the latters corporate IT Group. He
will report directly to CSN president
Benjamin Steinbruch.
Isidoro Miranda, CEO of Lafarge in
Spain, has been appointed president
of Oficemen. He will replace Jos Luis
Senz de Miera, president of Cementos
Portland.
JUNE / JULY 2013
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
43
Coal W
Coal W
Coal W
EQUIPMENT
& NOTABLE PROJECTS
New orders placed by Indian

companies
On June 5, 2013, FLSmidth received a
new DKK 200 million order from Orient Cement for the supply of a greenfield
cement plant to be located in the state of
Karnataka. The 6,000 ton per day line
follows the 4,000 ton per day brownfield
project that was supplied by FLSmidth in
2007. The new order covers engineering and supply of main equipment from
limestone crusher to packing plant and
will contribute to FLSmidths earnings
until the end of 2014.
Sinoma Energy successfully signed a cogeneration contract with HeidelbergCement India for its Damoh cement plant.
The Waste Heat Power Generation Project is dedicated to the three cement production lines of Damoh cement plant that
own 1,700 ton per day, 2,350 ton per day
and 6,000 ton per day, respectively, in ce-
44
www.cemweek.com
ment capacity. The installed capacity of

the cogeneration project is estimated at
15MW.
HeidelbergCement India also reported
that the Loesche mill installed in Jhansi,
Uttar Pradesh, already exceeded its guaranteed performance. The mill type LM
53.3+3 C was guaranteed for 215 tph.
Following the performance tests run in
March 2013, results revealed that the mill
was already operating at 235 tph. HeidelbergCement supplies its clinker needs
from the Narsingarh unit situated in
Madhya Pradesh. The current cement capacity of the company in India has been
thus boosted to 6 million tons per year.
ThyssenKrupp wins large contract
in Thailand
Thailands TPI Polene Public Company
has awarded a 150-million euro contract
to ThyssenKrupp for the construction
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
Coal Week
Coal Week
Coal Week
of a greenfield cement plant located in

Saraburi, near the capital Bangkok. The
10,000 ton per day clinker line is expected
to be commissioned in 2015. According
to the awarded contract, ThyssenKrupp
will supply major components for raw
material preparation, clinker production,
cement grinding and fuel preparation.
FLSmidth to supply cement plant in
Equatorial Guinea
FLSmidth won an order worth DKK 505
million (approximately EUR 68 million)
from Grupo Abayak AKOGA Cemento
for the supply of an integrated cement
plant in Akoga, Equatorial Guinea. The
contract includes engineering and main
equipment, such as jaw crusher, cone
crusher, ATOX raw mill, OK cement
mill, pyroline with cross bar cooler, dosing systems, filters, packing plant and automation control system. The 3,000 ton
per day line is expected to be commis-
sioned by the end of 2016 and will serve

the currently undersupplied local market,
as well as neighboring countries.
First Pfeiffer raw mill reaches
Uzbekistan
The Turkish company DAL Teknik Makina has ordered a Pfeiffer MPS 3350 B vertical roller mill for raw mill to be installed
as early as next year in Uzbekistan. The
grinding plant will benefit from a grey cement raw meal capacity of 200 tons per
hour and a white cement raw meal capacity of 160 tons per hour.
Chinas CITIC HIC enters Brazil
The Chinese company CITIC HIC is
looking to build a 2,500 ton per day cement plant in Adrianpolis, the metropolitan region of Curitiba. The project
represents the first Brazilian cement
plant of the company and will be built in
partnership with CVR. Another three
cement plant projects are found in different construction stages in Adrianpolis. Margem Cimentos already pledged
R$340 million for the construction of
a cement plant, while two other cement
companies are negotiating the installation of cement producing units in the region. With an aggregated investment of
over US$1 billion, the projects will create
10,000 direct and indirect jobs.
Another area the company is exploring

is the promotion of concrete roads construction, which is viewed as a more durable and cost-effective building solution.
Cemex already announced that it intends
to support four major concrete paving
projects in the country during 2013.
McInnis Cement launches new
website
The website launched by McInnis Cement
on June 12, 2013, contains a broad array
of information, including a 3D animation
showcasing the Port-Daniel-Gascons cement plant project in its setting.
The total investment pledged for the cement plant project reaches $1 billion, including $700 million to be invested in the
Gasp region of Quebec. The project is
expected to create up to 600 jobs during
the construction phase and provide permanent direct and indirect employment
for another 400 people after commission-
ing. The company benefits from a deposit of 450 million tons of high-quality
limestone, ideal for cement production.
In addition to the purchase of the property, significant development work on the
project has already been undertaken including site preparation, the access road
and maritime terminal, engineering and
necessary environmental upgrades.
Sinoma-Loesche partnering for
Saudi cement project
Sinoma International Engineering, Nanjing, ordered a Loesche LM 56.4 mill for
Southern Province Cements Tahamah
plant. The Vertical Roller Mill is designed with 400 tons per hour, a product
fineness of RMI 8% R 0.09 mm and 1%
residue on 212 m. Additionally, Loesche
will supply metal detector, magnetic separator, slide gates and rotary valves below
Cyclones. The delivery will be performed
in October and December 2013 through
FOB North Sea Port.
Cemex invests in Egypt

Cemex has reinforced its commitment to
Egypts development, while setting aside
approximately US$100 million for operational enhancements. The largest part of
the investment is expected to counteract
the fuel subsidies elimination scheduled
for 2014. Following the investment, the
Assiut cement plant is expected to increase the capacity to use coke, coal and
alternative fuels. Since 2000, Cemex has
co-processed over 0.25 million tons of
waste in Egypt. The company will also
install new waste co-processing and additional environmental equipment, thus
reducing its emissions. Cemex inaugurated back in 2010 a new US$12 million
dust filter.
JUNE / JULY 2013
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
45
Coal W
Coal W
Coal W
FLASHBACK
News flow on CemWeek.com last two months
(darker red shows higher news volume)
GLOBAL SPOTLIGHT
Tracking the news flow of the global cement sector.
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.
CW Research & Analytics Webinars:
Alternative fuels and power as a

new business model
October 7-8,
2013
Cement Business &

Industry (CBI) India
2013
October 9-10,
2013
CBI Brazil & LatAm

2014 Cement &
Lime Conference
February 5-6,
2014
46
www.cemweek.com
Caribbean Rim Cement Finance,

Strategy & Trade Summit 2013
Fall, 2013
Panama City,
Panama
Alternative fuels and power as a new

business model
December 1011, 2013
Dubai, UAE
August 6, 2013 at 2:00 PM GMT
Conferences where the CW Group will be presenting:

Solid Fuel Summit
(SFS) India 2013
CW Group Hosted Executive Summits:
Hilton Mumbai
International Airport Hotel
Mumbai, India
Hilton Mumbai
International Airport Hotel
Mumbai, India
Hilton Morumbi
Sao Paulo, Brazil
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
CemWeek
BMWeek
JUNE / JULY
2013CW Group
Coal Week
Coal Week
Coal Week
BUZZ
TOP 15 STORIES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
HeidelbergCement unit on track in Togo

Votorantim elects former Holcim exec to its
board
India: HeidelbergCement sells Raigad grinding
unit
Cement prices on the rise in Zambia
Uzbekistan plans to put up new cement plant
by end of 2013
FLSmidth bags fresh order from Indian firm
India: Opposition questions cement plant
project
FLSmidth receives order for cement plant in
Africa
Cementos Molins buys Cemex plant in Spain
HeidelbergCement to continue expansion
plans
India: Vasavdatta Cement to burn plastic waste
to power unit
India: Jaypee to sell cement unit by years end
Turkey: Cargotec wins contract for two
road-mobile unloaders
Holcim to slash spending in Spain
India: MCL looking to build new cement plant
CEMWEEK.COM
alternative
average bags
case cements cemex cent
chairman china
completed concrete consumption continue
court crore data development
director domestic
economic energy equipment expand expansion export exports factory
fuel general global growth holcim
imports investment building governmentproject

increasedmaterials india indonesia
installed iran lafarge likely madras manufacturers

national
operations output pakistan
plans plants port power
profits program reached region

research rise russia safety saudi sector
shares support
training
transport value work
area
center
competition
digits
fiscal
fuels
fourth
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Lafarge CEO in Algeria to discuss cement

market
New mining projects in Spain discussed in
European Parliament
ThyssenKrupp may sell off rail, construction
units
Mexico mining production declined in March
New railway system for Saudi Arabia
Vulcan set to mine in Azusa
Saudi traders say Nitaqat hurting construction
India: Minister bats for sustainable construction
China: Gezhouba inks deal with XCMG
Concrete
Concrete production increased in Ukraine
Sandvik sets sights on India
Equipment sales slow for CAT
Quarry proposal turned down in Spain
Italy: Construction materials market tumbles
US: Builders express supply concerns
impact
imported
infrastructure
morocco
phase
producers
previous
product
regional
quality
remain
rate
rates
results
stop
times
thousand
working
TOP 15 STORIES
1.
association
BMWEEK.COM
activity
aggregates

china contract costs
development director
energy
environmental
equipment
firm
government growth gypsum housing
aggregate
assets
board
average
chief
agreement
caterpillar
builders
coal
cemex
economic
europe
executive
expansion
decline
engineering
firms
facility
gravel
global
deal
county
department
central
france
general
india
home
industries
investment concrete lafarge limestone

mining
operations

price
products project
quarry
sales sand says sector
work
world
infrastructure
located
long
jobs
loss
management
output
orders
knauf
plans
public
research
rise
road
share
spain
meters
manufacturing
people
plants
qatar
minister
port
previous
quality
rate
workers
technology
operating
process
product
ready
region
services
saudi
spending
national
times
value
working
JUNE / JULY 2013
CW Group
CemWeek
BMWeek
CemWeek
CW Group
BMWeek
www.cemweek.com
CemWeek
BMWeek
CW Group
47
Coal W
Coal W
Coal W
M
ct um
ob
Re e bai
gis r 7 , In
te -8, dia
r
To 20
da 13
y!
OctOber 7-8, 2013 | MuMbai, india

HiltOn MuMbai internatiOnal airpOrt HOtel
the Solid Fuels Summit india 2013 is a focused executive-oriented meeting and
networking opportunity for coal and petcoke industry professionals who are
involved in the indian coal and petcoke sectors. the Summit will bring a special
dual focus on business and industrial issues and the program will include topics
such as:
assessing indias solid fuel needs: coal & petcoke

Solid fuel opportunities beyond today trinity of sectors
Mining technology & maximizing productivity for coal
reducing costs through better technology
petcoke a threat to indian coal?
Fuel waste trash or treasure?
the international trade & bulk handling perspective
COal * PeTCOke * a lTeRnaTIve Fuels * Fly a sh
GMI
GLOBAL
Organized by gMi glObal witH tHe great SuppOrt FrOM

cOalweek tHe event iS expected tO bring a FOcuSed grOup OF
cOal and petcOke induStry prOFeSSiOnalS.
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

CemWeek Magazine Issue15 Lo Res

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

CemWeek Magazine Issue15 Lo Res

Transféré par

Droits d'auteur :

Formats disponibles

CemWeek

GLOBAL CEMENT INDUSTRY. KNOWLEDGE.

JUNE / JULY 2013

The Next Giant Step for

cement business & industry

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

Register on-line at www.gmiforum.com or email sales@gmiforum.com.

Letter from the publisher and editor

Improving beyond today.

The CemWeek Magazine is published by the

Paolo Dela Rosa

To subscribe or advertise, please contact us at

To subscribe please visit www.cemweek.com/subscribe

From our Industry Partner

Projects & People

iT is always a good Thing To moniTor

The Trends of our business buT

Indices plummet in first

Source: CW Group Research

CEMENT EQUIPMENT ORDER BACKLOG INDEX

Source: CW Group Research

Major market retail prices

Regional monthly cement

Global import and export

Global market cement prices.

Single user: USD2,300

Brevik Cement Plant, Norway

JUNE / JULY 2013

2013 Aker Solutions

uring the past decades, the world

ogy becomes cheaper and more reliable,

velopment comes increased production

GLOBAL CARBON DIOXIDE EMISSIONS-MILLION TONS OF CO2

South & Central America

Europe & Eurasia

Source: BP Statistical Review of World Energy, June 2012

SOURCES OF CO2 EMISSIONS

2013 Aker Solutions

much as 16 percent. From 754 kg of CO2

tional standards, the cement industry will

Fuel Combustion for Other Uses

where it cannot have any impact on the

CEMENT INDUSTRY - AVERAGE NET KG OF CO2 PER TON OF CEMENTITIOUS MATERIAL

Asia ex. China, India, CIS and Japan

Souce: World Business Council for Sustainable DevelopmentBMWeek

build. A new cement plant with oxyfuel

2013 Aker Solutions

ed into porous rocks and bind chemically

WITH POST-COMBUSTION CAPTURE

Net Variable Operating Costs

Fixed Operating Costs

Cost per Tonne of CO2 Emissions

Cost per Tonne of Cement Product

Source: IEA GHG (2008)

WITH POST-COMBUSTION CAPTURE

Net Varialble Operating Costs

Fixed Operating Costs

Cost per Tonne of CO2 Emissions