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November 2018
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World Cement
WORLDNEWS
Global
Cement consumption forecast to decline in coming years
CW Group has predicted a decline in cement
consumption in coming years in its Global Cement
Volume Forecast Report for 2H18. The company is
reporting a projected decline in cement consumption
to just over 4 billion t in 2018. This follows a sustained
slowdown in Chinese demand for cement, which has
had a significant impact on overall worldwide figures.
It is expected that global consumption of cement
will record a rise of about 1% per year until 2023.
However, this number increases to 3% if China is
excluded from world figures. Lacking investment in
real estate and infrastructure sectors, the Chinese
cement market is expected to consume just over
2.5 billion t of cement in 2018, a decrease of almost
3% on the previous year.
Similarly, Middle Eastern cement consumption was
found likely to decline in 2018, as Saudi Arabia and
Iran struggle with overcapacity and sluggish domestic
demand. However, it is expected that there will be a
recovery in regional cement production over the next
five years.
Africa has seen lower-than-expected growth in
2018. It is forecast that cement consumption in this
region will grow by 1.6% in 2018, with an average of
3.6% growth per year until 2023.
In contrast, cement demand in the US is expected
to grow by 2.8% on a cumulative annual growth
average.
“US cement demand is being propelled by
increasing consumer spending, which is reflecting
on growing residential construction,” said Robert
Madeira, Managing Director and Head of Research
at CW Group. “Nevertheless, the ambitious
infrastructure plans envisaged by the Trump
administration remain on hold, translating into a
lacklustre increase in cement demand.”
“The global economy has been accelerating since
the beginning of 2018, but recent improvements
in growth remain unevenly distributed across
countries and regions,” said Raluca Cercel, Associate
of CW Group. “Economic prospects for many
commodity exporters remain particularly challenging
and fears of future disruption to trade could
lead government-driven economies to postpone
investments, while higher oil prices could filter
through to cramp consumer spending.”
Brazil
Vicat to acquire Ciplan in
E
290 million deal
French building materials group, Vicat, has become the second European
company to invest in the Brazilian cement industry in recent months,
announcing the purchase of a majority stake in Ciplan. The news follows
Buzzi Unicem’s acquisition of a 50% stake in BCPAR, a subsidiary of
Brennand Cimentos and owner of two integrated cement plants.
Vicat will pay
E
290 million for a majority 65% stake in Ciplan. The
proceeds of the acquisitions will be used to settle the vast majority of
Ciplan’s existing debt. The transaction is debt funded and is subject to
various conditions precedent.
Ciplan operates an integrated cement plant close to the Brazilian
capitol, Brasilia, with an installed capacity of 3.2 million tpy. The
company also owns nine ready-mixed concrete plants and five
aggregate quarries.
“With this acquisition, Vicat pursues its targeted external growth and
geographical diversification strategy through the incursion into a new
emerging market, benefitting from strong growth perspectives,” the
company said in a statement.
“In order to fully capture the Brazilian market’s growth potential,
Vicat will leverage a performing industrial asset base, coupled with
strong brand awareness, abundant quarry reserves, and a solid
competitive position in its local markets.”
Egypt
HeidelbergCement sells
white cement plant
Helwan Cement, a subsidiary of
HeidelbergCement, has agreed with Emaar
Industries to sell its white cement plant,
located in Minya, Egypt. The deal is subject
to customary conditions and a de-merger
of the white cement plant from Helwan
Cement. This is expected to occur in 4Q18
or 1Q19.
This announcement comes after
HeidelbergCement disposed of its
white cement business in the US, in
February of this year. Its 51% stake in
Lehigh White Cement Co. was sold to
minority shareholders.
“As a niche product with small volumes,
the standalone production of white
cement does not fit to the strategic focus
of HeidelbergCement,” said Dr Bernd
Scheifele, Chairman of the Managing
Board of HeidelbergCement.