Cement Energy and Environment

.. ltalcementi, Cimpor, Malaysia YTL, Taiwan Cement, Taiwan Asia Cement, Sumitomo Osaka Cement, CRH and many other foreign companies or investment companies have invested in mainland China's cement industry. Especially during the financial crisis, those who have invested in China's cement companies have seen good market returns. ICR: What level of merger and acquisition activity will take place in 2011? CCA: Over the past 15 years. China's cement industry has been engaged in restructuring - the development of large new dry lines and the elimination of backward cement capacity. In 2010, dry-process lines accounted for over 80 per cent of total capacity, and it will reach more than 95 per cent by the end of the 1 ih Five-Year Plan. The second part is organizational restructuring, namely mergers and acquisitions to encourage companies to raise production concentration, which is the focus of the next five years . To this end , CCA is assisting the government to draft the programme for the implementation of corporate mergers and acquisitions in the cement industry. The Association will discuss this issue with participants during the 2011 · China International Cement Conference this April in Beijing. The last part is product structure adjustment, with low– carbon technologies at the core, to adjust cement types and to extend cement's industrial chain to enhance company competitiveness. At the end of 201 0 , there are more than 1 0 cement groups with an output of more than 20 Mta, including two of more than 100 Mta. The result of mergers and reorganization will achieve optimal allocation of resources and create the conditions for Chinese producers to become international. ICR: Finally, what's on the agenda for Cementtech 2011? CCA: We will discuss the policy and technical issues of the China cement industry. We are looking forward to learn your opinions and suggestions . Courtesy: International Cement Review, March 2011, Pp38-42. ALPHA NATURAL RESOURCES TO INVEST IN CERATECH Alpha Natural Resources , a major coal supplier has made a strategic equity investment in Ceratech (a producer of green cement), a Virginia-based producer of green cement, which reduces C0 2 emissions and landfill requirements from the cement manufacturing method. The green cement uses 95 per cent of waste fly ash, a by– product of coal combustion, from electric utilities. The company's innovative technology facilitates the recycling of fly ash. About 4? million tonne of ash produced per year is dumped in a landfill. By producing one tonne of green cement, the company eliminates nearly 1,800 lbs of landfill waste. Ceratech 's green cement, is an ideal substitute for Portland cement in terms of reliability and strength. It fulfills the requirement of green construction regulations, especially the LEED certification conditions of the US Green Building Council, as no other cement in the market contains over 90 per cent of fly ash. Courtesy: Indian Cement Review, April2011, P15. APCMA SEEKS GOVT HELP TO SAVE CEMENT INDUSTRY All Pakistan Cement Manufacturers Association (APCMA) has appealed to the government ~o remove bottle– necks impacting cement industry, as four out of 22 units have been shut down and the rest are on the verge of collapse due to mounting losses. APCMA spokesman said cement manufacturers have yet to pass on large impact of rapidly increasing input costs in coal, electricity, diesel, paper sacks and transportation cost. Current cement rates range from Rs 340 to Rs 355 per bag in different markets. Inflationary pressures in the past three years impacted rates of every item but cement industry has not been able to pass on impact of increased cost to consumers due to stiff competition among manufacturers and surplus capacity particularly in north of the country. He said construction activity has come to a standstill due to a drastic cut in development expenditure and increase in cement rates would further impact whatever activities are taking place. Government levies account for 30 per cent price of 50 kg cement bag. "These levies are highest in the region. They include federal , provincial excise duties amounting to Rs 37 per bag which is unjustified, over and above, GST at 17 per cent, ie, Rs 45 per bag. In tota l, government levies exceed Rs 80 per bag." He said governments world over encourage use of cement as it is major component 37