Long-term prospects for the UAE cement industry are bright due to growth in investment in infrastructure in the UAE, GCC and key foreign markets, the latest study by Dubai Chamber of Commerce and Industry has found. The UAE has the potential to become the major provider of cement to the MENA region and beyond when taking into account the lucrative opportunities that exist. The study, based on the Business Monitor International (BMI) UAE Infrastructure report for Q1 2012, finds that ,given the historic importance of construction projects in the UAE and the GCC, the cement industry has acquired increased prominence as an important industry with growing demand. Furthermore, this is also an industry that can be expected to become more important in the future as demand for building materials increases in line with plans for infrastructure spending in the UAE and the rest of the GCC. Demand for cement depends on the growth of the global construction industry, and growth in this industry is underpinned to some extent by growth of the global economy. Therefore any weakness in global economic growth could translate into weakness in global cement demand. Other challenges are caused by competition by established players in foreign export markets. In the short to medium term, UAE companies could increase exports by finding gaps in demand and supply. While these gaps could emerge in any market, there could be more possibilities of such gaps developing in emerging markets in MENA, Africa and Central Asia. Over the longer term, UAE cement companies could develop contacts and establish a stronger brand presence in major export markets in developing countries to further increase their sales. Meanwhile, increased prices of raw materials and other inputs needed for cement production could create challenges for UAE cement companies. These challenges could be met by incorporating more efficient methods of production, more efficient financial and capital management, and a better and timelier service. This could not only help UAE cement and cement product manufacturers to absorb raw material price increases, but also in the longer run it will enable them to be more competitive and lower-cost cement producers. In conclusion, the study finds that the need to build more real-estate and infrastructure in the UAE is expected to drive future demand for cement, while the growth in demand for construction materials from developing countries that presents lucrative export opportunities. This could especially be the case for emerging markets in Africa, Central Asia and the MENA region, in which supply-and-demand gaps may be created as long-term economic growth causes increased cement demand. The study recommends that UAE cement businesses develop contacts in these markets in order to fully realise this potential and grow their exports. Meanwhile, they ought to actively continue to enhance their competitive advantage in this industry by creating a brand presence in foreign markets, by differentiating their products, reducing production costs and improving efficiency. This, the study concludes, could help propel the UAE cement industry to be the major provider of cement to the MENA region and beyond.

Loesche GmbH has entered into a close cooperation agreement with A TEC Holding GmbH, Austria. The move will see Loesche’s dry-grinding and thermal process solutions combine with A TEC’s cement pyroprocess technology to jointly provide stronger support to clients in the cement industry. The agreement, which also sees Loesche acquire shares in A TEC, will enable the two companies to offer complete process solutions, as well as partner for the realisation of plant improvement and environmental projects. The cooperation will also generate attractive synergies for both Loesche and A TEC, through both R&D and joint technology developments. The core business of both Loesche and A TEC will remain unchanged.

But with years to go before it is up and running, the $50 billion port and industrial complex in the southern city of Dawei is already struggling to look relevant as Myanmar emerges from untouchable state to Asia s latest Eldorado. Conceived during the day s of military rule when Myanmar faced crippling sanctions, the project was at the time a very welcome offer of major foreign investment. Officials insist that nothing has changed despite the rapidly growing list of investors looking hopefully at a rapidly changing Myanmar. "It will go ahead," said Tin Maung Swe, an official from Myanmar s Home Ministry who works as liaison officer on the project which he says has the backing of reformist President Thein Sein. "I m staying here," he told a group of journalists on a rare trip to the site. "I can contact the president directly." The visit was laid on this month by the project s developer, Italian-Thai Development Pcl, Thailand s biggest construction company, which first made a deal with the Myanmar Port Authority in 2008 when few investors would, or could, go near the country. The tour coincided with the debt-laden company s struggle to tempt investors to fund the $8.5 billion it needs for the first phase, details of which it hopes to finalize by the end of the year. Italian-Thai - the "Italian" refers to one of its founders 54 years ago - is pressing ahead and has started to relocate 30,000 people to make way for the 250 sq km (97 sq mile) complex which will allow in pollution-belching heavy industry that Thailand doesn t want. Even the government has raised questions about Dawei. Energy Minister Than Htay told Reuters in January that the country could develop home-grown special economic zones more quickly, including one south of the commercial capital, Yangon, and another on the Bay of Bengal, where a China-Myanmar pipeline starts. Slow progress on the project and Italian-Thai s own financial difficulties reinforce the skepticism of some analysts. It hasn t helped confidence that the construction of a huge 4,000-megawatt coal-fired power plant destined for the zone was vetoed this year after an outcry over the environmental impact. "It s very challenging for Italian-Thai," said Kasem Prunratanamala, head of research at CIMB Securities in Bangkok, who visited the site in February. "The company s balance sheet is not strong because it has a debt burden, which could raise doubts about the viability of the project." RELOCATION, COMPENSATION But around the site, preparatory work is going ahead. In one big area of scrubland outside the zone, workers are clearing the land and knocking in support pillars for two-storey cement houses that villagers will be relocated to. More than 1,800 families, most of them reliant on farming, will move there from five villages inside a 42 sq km zone set aside for heavy industry. "We have already paid compensation for about 5 percent of these areas," said Panno Kraiwanit, the Italian-Thai project manager in charge of relocation. In total, about 30,000 people from 16 villages will move out by the end of next year, with Italian-Thai footing the bill to compensate them for housing and the loss of livelihoods from rubber, betel and cashew nut and other crops. The company is also committed to providing infrastructure, power and water, schools and medical services for the new communities. ROADS AND JOBS The company says that by the end of 2015 it will open a $1 billion, four-lane highway to Thailand, a $1.2 billion deep-sea port plus infrastructure including a 400-MW power plant. Construction of the asphalt highway is expected to start early next year and could be expanded to eight lanes by 2017. Italian-Thai has completed a 132 km (80-mile) dirt road linking Dawei with the Thai border in western Kanchanaburi province, said Anusorn Makornpan, project manager for the road. It has also built a small, temporary port for local use and to bring in construction materials for the project. "The priority is the road and deep-sea port, which should be opened by the end of 2015. How can you invest in a project without a road? Power and water will be ready the same year," said Kiwamu Honda, a senior adviser to Italian-Thai. Once the infrastructure is in place in 2015, the focus will switch to developing heavy industries including steel, oil and petrochemicals, Honda said, adding that the Japan Bank for International Cooperation and the World Bank were keen to provide support. Asian investors including Japanese and South Korean firms were interested in investing in the steel project, he said. Outside the project site, surrounded by thick jungle and mountains, Italian-Thai has to contend with the Karen National Union (KNU), an ethnic minority rebel group that dominates areas bordering the road to Kanchanaburi. Here at least, the political climate in Myanmar is working in Italian-Thai s favor. The KNU has agreed a truce with the government in its fight for greater autonomy and in April became the first rebel group to begin talks on a political settlement. The company had set up a committee with the KNU to soften the impact of the project on the environment, said Nophadol Briksuvand, an Italian-Thai environmental adviser. "Everyone says it s risky for the company because they have to pay for everything. But it s a good opportunity for the company to be brave and invest," he said.

Long-term prospects for the UAE cement industry are bright due to growth in investment in infrastructure in the UAE, GCC and key foreign markets, the latest study by Dubai Chamber of Commerce and Industry finds. The UAE has the potential to become the major provider of cement to the Middle East and North Africa (MENA) region and beyond when taking into account the lucrative opportunities that exist. The study, which is based on the Business Monitor International (BMI) UAE Infrastructure report for Q1 2012, finds that given the historic importance of construction projects in the UAE and the GCC, the cement industry has acquired increased prominence as an important industry with growing demand. Furthermore, this is also an industry that can be expected to become more important in the future as demand for building materials increases in-line with plans for infrastructure spending in the UAE and the rest of the GCC region. Demand for cement depends on the growth of the global construction industry and growth in this industry is underpinned to some extent by growth of the global economy. Therefore, any weakness in global economic growth could translate into weakness in global cement demand. Other challenges are caused by competition by established players in foreign export markets. In the short to medium term, UAE companies could increase exports by finding gaps in demand and supply. While these gaps could emerge in any market, there could be more possibilities of such gaps developing in emerging markets in the MENA region, Africa and Central Asia. Over the longer term, UAE cement companies could develop contacts and establish a stronger brand presence in major export markets in developing countries to further increase their sales. Meanwhile, increased prices of raw materials and other inputs needed for cement production could create challenges for UAE cement companies. These challenges could be met by incorporating more efficient methods of production, more efficient financial and capital management, and a better and timelier service. This could not only help UAE cement and cement product manufacturers to absorb raw material price increases, but also in the longer run it will enable them to be more competitive and lower cost cement producers. In conclusion, the study finds that the need to build more real-estate and infrastructure in the UAE is expected to drive future demand for cement, while the growth in demand for construction materials from developing countries that presents lucrative export opportunities. This could especially be the case for emerging markets in Africa, Central Asia and the MENA region, in which supply and demand gaps may be created as long-term economic growth causes increased cement demand. The study recommends that UAE cement businesses develop contacts in these markets in order to fully realise this potential and grow their exports. Meanwhile, they ought to actively continue to enhance their competitive advantage in this industry by creating a brand presence in foreign markets, by differentiating their products, reducing production costs and improving efficiency. This, the study concludes, could help propel the UAE cement industry to be the major provider of cement to the MENA region and beyond.

Cement results 1Q12 Dangote Cement has released its financial results for 1Q12. The results reveal an 8.9% y/y increase in profit before tax, rising from N27.4 billion in 2011 to N31.6 billion in 2012. Operating profits grew 13.7% y/y to N31.6 billion whilst revenues rose by 17.6% y/y to N64.1 billion. Commenting on the results, Chief Executive of Dangote Cement, D.V.G. Edwin, said: ��The first quarter of 2012 saw our new capacity at Obajana and Ibese become operational and both plants are ramping up towards higher levels of production. The nationwide gas problems affected margins in the first quarter, but we expect some resolution of the problem in the summer that will enable us to achieve the much higher margins associated with gas-fired plant��. He went on to add that, ��The significant investments we have made in Nigeria have helped the nation become self-sufficient in cement and we are confident that when local demand is satisfied, we will begin to export cement to neighbouring countries.�� Expansion By 2015, Dangote Cement plans to expand its 10.25 million tpa Obajana plant by a further 3 million tpa and its new Ibese plant by 6 million tpa, as well as increasing capacity at its Gboko plant by 4 million tpa by mid-2012. The Group has also recently signed a memorandum of understanding for the construction of a 3 million tpa plant in Calabar, due to be built by 2015. Dangote aims to increase its overall capacity in Nigeria to 32.25 million tpa by 2015, and by 19 million tpa across Africa. Plans for cement manufacturing plants are currently underway in Cameroon, Ethiopia, Gabon, Republic of Congo, Senegal, South Africa, Tanzania and Zambia, as well as import/packing facilities in Cote d��Ivoire, Ghana, Guinea, Liberia and Sierra Leone. The company is expected to convert some of its import terminals into export terminals as it expands into neighbouring markets.

The National Cement Factory (NCF), Holcim and the Higher Cooperation for Specialized Economic Zones (ZonesCorp) organized a joint full-day cleanup campaign for ICAD I yesterday. The campaign represents one of the many cooperative initiatives that ZonesCorp has been implementing recently, particularly focusing on environmental and safety issues. Falling under its "Together for Communities" initiative, NCF set the cleanup to encourage its employees to participate in positive, social efforts. Falling in line with ZonesCorp s commitment to maintaining safety standards within its different areas, the joint effort that was meant to minimize sand buildup that was a result of the many sandstorms that ICAD witnesses regularly. 100 employees from NCF and Holcim participated in the initiative and took part in cleaning two main roads in ICAD I. Additionally, NCF volunteered equipment in support of the campaign. Throughout the entire process, ZonesCorp ensured that all safety measures and precautions were in place to safeguard employees. Commenting on the success of the initiative, HE Mohamed Hasan Al Qamzi, CEO of ZonesCorp said: "We are pleased to have concluded yet another successful campaign of this nature within our zones. ZonesCorp has always been a leader with regards to implementing environmental initiatives and in promoting eco-friendly practices and we strongly believe that the best way to achieve this is through leading by example. We encourage all other organizations and investors within our zones to take part in similar efforts, and we will continue to welcome their ideas with the same level of enthusiasm while providing the needed support, as is customary of ZonesCorp." On his part, Manuel Sanchis, General Manager of NCF added: "We would like to express our gratitude and appreciation towards ZoneCorp for their cooperation with us, which has aided in the success of this campaign. Together, we worked on determining the roads which required cleaning, and were able to target the specific areas that needed the most attention. We look forward to take part in more efforts of this kind of community service in the future." National Cement Factory (NCF) is a joint venture between Ittihad International Investment L.L.C. & Holcim. Located in ICAD 1, NCF was established to supply base material in support of the predicted construction boom in the UAE and the region. HOLCIM is one of the leading manufacturers of cement in the world operating in over 70 countries with 80,000 employees and the company concentrates all its resources on "Creating Value to all Stakeholders". In 2012, Holcim celebrates its centennial. Over the course of the year, many activities are planned at both a corporate level as well as in various group companies.

Long-term prospects for the UAE cement industry are bright due to growth in investment in infrastructure in the UAE, GCC and key foreign markets, the latest study by Dubai Chamber of Commerce and Industry finds. The UAE has the potential to become the major provider of cement to the Middle East and North Africa (MENA) region and beyond when taking into account the lucrative opportunities that exist. The study, which is based on the Business Monitor International (BMI) UAE Infrastructure report for Q1 2012, finds that given the historic importance of construction projects in the UAE and the GCC, the cement industry has acquired increased prominence as an important industry with growing demand. Furthermore, this is also an industry that can be expected to become more important in the future as demand for building materials increases in-line with plans for infrastructure spending in the UAE and the rest of the GCC region. Demand for cement depends on the growth of the global construction industry and growth in this industry is underpinned to some extent by growth of the global economy. Therefore, any weakness in global economic growth could translate into weakness in global cement demand. Other challenges are caused by competition by established players in foreign export markets. In the short to medium term, UAE companies could increase exports by finding gaps in demand and supply. While these gaps could emerge in any market, there could be more possibilities of such gaps developing in emerging markets in the MENA region, Africa and Central Asia. Over the longer term, UAE cement companies could develop contacts and establish a stronger brand presence in major export markets in developing countries to further increase their sales. Meanwhile, increased prices of raw materials and other inputs needed for cement production could create challenges for UAE cement companies. These challenges could be met by incorporating more efficient methods of production, more efficient financial and capital management, and a better and timelier service. This could not only help UAE cement and cement product manufacturers to absorb raw material price increases, but also in the longer run it will enable them to be more competitive and lower cost cement producers. In conclusion, the study finds that the need to build more real-estate and infrastructure in the UAE is expected to drive future demand for cement, while the growth in demand for construction materials from developing countries that presents lucrative export opportunities. This could especially be the case for emerging markets in Africa, Central Asia and the MENA region, in which supply and demand gaps may be created as long-term economic growth causes increased cement demand. The study recommends that UAE cement businesses develop contacts in these markets in order to fully realise this potential and grow their exports. Meanwhile, they ought to actively continue to enhance their competitive advantage in this industry by creating a brand presence in foreign markets, by differentiating their products, reducing production costs and improving efficiency. This, the study concludes, could help propel the UAE cement industry to be the major provider of cement to the MENA region and beyond.

Three of the four top cement players that have so far reported results for the March 2012 quarter, have recorded higher operating profit margins year-on-year. Some have improved it sequentially, too, helped by higher realisations. At Rs 320, all-India average cement price was higher by Rs 40 a bag (13 per cent) over last year. This was Rs 20-25 higher over the preceding December-2011 quarter. For the top players net profit (before exceptional items) grew in the band of 10-19 per cent, year-on-year. Profits were helped by growth in despatches as well as better realisations. Despatches growth for the industry was recorded at 9.5 per cent, year-on-year. Revival in despatches After a sluggish half-year, cement demand improved starting September. Higher orders from Government infrastructure projects and higher rural housing demand are believed to have driven growth. The industry closed the year FY12 with a growth of 6.5 per cent in despatches. This is higher than the 4.5 per cent growth recorded for 2010-11. In the March 2012 quarter, ACC recorded despatches of 6.72 million tonnes, up nine per cent over the same period last year. Ambuja Cements recorded a similar growth. UltraTech Cement reported an eight per cent increase. Cost pressure Cement majors, however, had to deal with higher costs. At $115-120/tonne, thermal coal prices in the international market were seven per cent lower compared to last year, but rupee s depreciation against the dollar from 45 to 53 wiped out the savings. For ACC power and fuel costs as a percentage of sales rose to 23.6 per cent from 20 per cent last year. Ambuja cements saw power costs at 24 per cent of sales. This was 21.7 per cent last year. Besides, in March railway freight rate for cement was revised 20 per cent higher. The players who used roadways to dispatch cement were also under pressure on increased petrol/diesel prices. Improved profit margins Cement manufacturers seem to have helped pass on increase in excise duty and Railway freight, apart from costs. For players such as Ambuja Cements and UltraTech Cement profit margins were higher both sequentially and year-on-year in the March quarter. Operating profit margins for Ambuja Cements in March-2012 quarter was 29 per cent, up from 28 per cent last year and 23 per cent in the December-2012 quarter. UltraTech Cement reported profit margin of 27 per cent. This is higher than the company s last year margin of 25 per cent. A key overhang for cement stocks has been the Competition Commission of India s reported investigations into alleged cartelisation. Any negative development on this front can hurt margins.

Dangote Cement, Nigeria s largest cement producer says its new capacity is operational and ramping up towards higher production, even as Nationwide gas supply problems affected margins in the short term, Devakumar Edwin, Group Executive Director has revealed. According to its unaudited results for the three months ended 31 March 2012, the company’s revenue grew by 17.6% to N64bn from N54.5bn in the first quarter of 2011. According to the company, performance indices recorded an upward trend; earnings before interest and taxes (EBIT) grew by 13.7% to N31.6bn, a 49.3% margin compared to N27.8bn in the first quarter of 2011 while pre-tax profit rose to N30.3bn in contrast to N27.4bn of the first quarter of 2011 representing an 8.9 per cent increase, including an earnings per share rise to N1.97, an increase of 11.3%. BusinessDay investigations reveal that sales of locally produced cement grew by 38% as new capacity becomes operational. Even though Nationwide gas supply issues are continuing; there are expectations of resolution in the second half of 2012 as well as optimism of investments to transform Nigeria from deficit to export. ‘‘The first quarter of 2012 saw our new capacity at Obajana and Ibese become operational with both plants ramping up towards higher levels of production,’’ said Devakumar Edwin, Group Executive Director at Dangote Cement. The Group Executive explained that gas problems experienced in the country affected margins in the first quarter, saying that ‘‘we expect some resolution of the problem in the summer that will enable us achieve the much higher margins associated with gas-filled plants’’. He continued that the significant investments the Group have made in Nigeria have helped the nation become self-sufficient in cement, ‘‘being confident that when local demand is satisfied, we will begin to export cement to neighbouring countries,’’ adding that Dangote Cement is on its way to becoming Africa’s leading cement manufacturer. Dangote Cement is a fully integrated quarry-to-depot producer with an expected production capacity of 20 metric tonnes per annum in Nigeria by the middle of 2012, with hopes of increasing to 32 metric tonnes per annum by 2015. The Group has announced plans to invest more than $2.5bn to build manufacturing plants and import terminals across Africa. Current plans are for eight cement plants in Cameroon, Ethiopia, Gabon, Republic of Congo, Senegal, South Africa, Tanzania and Zambia, as well as importing/packing facilities in Cote d’Ivoire, Ghana, Guinea, Liberia and Sierra Leone. The Group listed on the Nigeria Stock Exchange in October 2010.

The production of twelve state-owned cement works under Algeria s industrial cement group GICA is expected to reach 29 million tonnes by 2020, said the CEO of Centre of Research and Technical Services of Building Material Industry (CETIM). "GICA group s investment programme in the next eight years worth more than US$4 billion is aimed at increasing production capacities of some cement works and building new ones," Abdennour Adjtoutah said on the sidelines of the 15th international building fair (BATIMATEC). With an additional capacity of 17.5 million tonnes, cement production in the public sector will hit 29 million tonnes by 2020, he told Algeria Press Service. Adjtoutah said studies had been finalised and tender notices published to increase production of cement works. He said new cement works would be built in the southern provinces of Bechar, Adrar and Tamanrasset. Discussions are also underway for a cement plant project in Djelfa as part of a partnership between the GICA group and Egypt s ASEC Cement, he added.

Arabian Cement Company (ACC) recently participated in an event hosted by Hope Village Society to showcase current progress of their development. Jose Maria Magrina, ACC CEO, attended the event to reiterate ACC s support to the Hope Village Society and share their celebration of their recent milestones. The event was also attended by Laura Garagnani, EU delegation s Head of Operations along with Abdel Kawy Khalifa Deputy Governor of Cairo and Fatma Barrada, Chairwoman of Hope Village Society. ACC has been supporting Hope Village Society to develop its "Dream Building" project since 2010. Among others, Hope Village Society initiatives include securing shelter to more than 300 orphans through its properties across Cairo, 10th of Ramadan and Alexandria. The Dream Building project aims at serving as an integrated shelter for all the Hope Village orphans. As such, ACC is collaborating with Hope Village by providing it with the cement needed to complete its project. "ACC is keen to support initiatives aiming at developing the society and offering a better life for children," said Jose Maria Magrina, ACC CEO. "We have been able to achieve outstanding success in the market, and are constantly looking for ways to contribute to our local community. ACC earned its position in the market not only by offering high-quality products, but also through being a responsible member of the society." ACC has donated 300 tons of cement to the Dream Building project, and is planning to donate over 65 more tons in the near future. To date, over 40% of the project has been completed, and ACC will continue its support until the entire development is compete. ACC will also continue its support to Hope Village Society initiatives, aiming to deliver a better future for Egyptian children.

The UAE s push to enhance its industrial sector is set to get a shot in the arm with the launch of a new trade show - Made in UAE. At present, the contribution of the industrial sector to the GDP stands at 14% and the UAE has chalked out plans to increase this to 25% in the next 15 years, focusing on specific industrial fields such as petrochemical, food and value-added industries, among others. On its part, "Made in UAE" will offer the industrial establishments an opportunity to effectively showcase their cutting-edge products, their cost-effectiveness and logistical advantage to traders and dealers, thus boosting trade and becoming a key component that will drive the growth of the national economy. The inaugural edition of Made in UAE exhibition will be held at Expo Centre Sharjah in 2013. The launch of the show and an agreement to jointly organize it by the UAE Federation of UAE Chambers of Commerce and Industry (FCCI), Sharjah Chamber of Commerce and Industry (SCCI) and Expo Centre Sharjah was announced at a press conference held at Expo Centre Sharjah on May 6. It was addressed by Mr. Hussain Al Mahmoudi, Director-General of the Sharjah Chamber of Commerce and Industry (SCCI); Mr. Sultan Jemei Obeid bin Jemei, Exhibitions Committee Chairman of FCCI and Deputy Director General of Fujairah Chamber of Commerce & Industry; Mr. Saif Mohammed Al Midfa, Director General of Expo Centre Sharjah; and Mr. Ahmed Al Qaizi, Director of Economic Affairs, FCCI. "Our industrial sector has a lot going for it... what with the upswing in economic growth, focus on diversification and high oil prices. Together with Federation of UAE Chambers of Commerce and Industry, we are providing a platform for the country s manufacturing units to ride this wave and showcase their excellence to regional and global trade partners and dealers," said Mr. Hussain Al Mahmoudi. The number of non-oil manufacturing units in the UAE stands at 5,200 at the end of 2011, underlining the country s focus to reduce its reliance on the oil sector and highlighting the capability it has acquired in manufacturing. According to the UAE Ministry of Trade, the country s investments in the non-oil manufacturing sector amounted to nearly $11bn in 2010. "The UAE has been laying emphasis on promoting SMEs to drive inclusive economic growth. SMEs are the backbone of our economy and they represent majority of the firms registered in UAE. Apart from industrial majors, Made In UAE will be an important event for SMEs to help achieve global competitiveness," said Mr. Ahmed Al Qaizi. The UAE s industrial sector expanded by nearly 11 per cent in 2011 to maintain its position as second largest component of GDP after the hydrocarbon sector, said a study. From Dhs127.6bn in 2010, the manufacturing sector s contribution to the UAE s overall GDP swelled to an all time high of Dhs141.7bn in 2011. "There is a continuing shift towards global outsourcing of production, apart a phenomenal growth of regional supply chains to serve the surge in demand from rapid-growth markets. New markets are also opening up in MENA and Sub-Saharan Africa. The Made in UAE exhibition will be a fantastic opportunity for national firms to explore new markets, pursue new projects and boost expansion programmes," said Mr. Saif Mohammed Al Midfa. "The Made In UAE exhibition will be a welcome boost for the industrial sector in the country. It will seek to further stimulate the industrial sector and push for increased sales and promotion of local products. The show will also be a good opportunity for local firms to trade directly with major trading partners of the UAE," said Mr. Sultan Jamea Obaid. The exhibit profile of the show will cover food and beverages; textile and readymade garments; leather, wood, woodwork and furniture; paper and paper products; chemical and chemical products; oil, rubber and plastic products; metal and non-metal raw materials; machinery and other manufacturing equipment; ceramics and tiles; cement and concrete and other building materials. Apart from industrial units from across the country, the show will also bring together free zones, municipalities and government establishments.

Italian cement maker Italcementi said on Friday it has agreed to acquire a stake in West China Cement as the group moves to strengthen its position in the world s largest building materials market. In a statement on Friday Italcementi said that when the deal is complete it will own a stake of around 6.25 percent in West China Cement (WCC) to become the company s third largest shareholder. Under the agreement Italcementi will sell to WCC Shaanxi Fuping Cement Company, which also owns 35 percent of Shifeng Cement, against the subscription of a reserved capital increase of WCC. Italcementi will underwrite 284.2 million new shares in WCC at HK$ 2.1815 per share, it said.

Oman Daily Observer reported that cement sector players in Oman are scaling up their production capacity to meet the ever rising local demand and also from the countrys export markets like Yemen and some East African nations. Till recently, the Omani cement manufacturers were victims of cheap inflow of cement from UAE. In 2011, imports met 25% of cement demand in Oman, mainly from UAE where weak construction sector resulted in excess supply of cement. The UAE companies recently increased their cement prices. Cement prices for local players declined by 19% over last year and now stand at an average of OMR 25 per tonne. Now with the rising operational costs, the UAE players are no longer in a situation to offer cement at lower prices, which gives strong case of market share capitalization by local players. This is evident from the first quarter results of Oman Cement, a leading producer in Oman. Oman Cement said that the higher demand for cement during the current quarter is driven by ongoing infrastructure and construction activities in the local market. For the Q1 of 2012, the cement sales volume increased by 13.8% on YoY basis. The company achieved revenues of OMR 13.965 million an increase of 9% on YoY and 20% on QoQ. Gulf Baader Capital Market said that the revival of demand in the cement sector and improvement in the market share of the local players aided by higher volumes owing to higher infrastructure and construction activities have helped the company achieve this growth. Oman Cements clinker production during the quarter scaled up to 538,000 tonnes against 277,000 during the same period in 2011. The current capacity utilization stands at 90%. The output from new kiln stood at 321,000 tonnes out of 538,000 tonnes of clinker produced during the quarter. Gulf Baader said that the gains in the international oil prices have made the government to continue with its aggressive spending towards the infrastructure and construction activities which has spelled boon for the cement sector. With most of construction projects in Oman in implementation stage, the cement demand in the local market will remain at higher levels. This is clearly evident from Oman Cements improvement in its sales volume during the Q1. At the same time, Raysut Cements sales revenues in the Q1 fell by 8% to OMR 14.9 million compared with OMR 16.3 million during the corresponding period last year. Profit before tax dropped 35% to OMR 4.45 million during the quarter from OMR 6.81 million during the same period of last year. Mr Mohammed bin Alawi Ali Muqaibal chairman of Raysut Cement said that The decline in profit is attributable mainly to severe competitions faced both in domestic and the export markets impacting both volume and the price, which started from the later quarters of the previous year. Mr Ali Muqaibal said that overall, we believe Omani cement companies to witness unabated growth in forthcoming quarters aided by volume improvement. While Oman Cements plant is located in the fast growing Muscat region helping in meeting cement demand in northern side of Oman, Raysut Cement is located in the southern part of the country focusing more on the south. Due to close proximity to construction developments in this region, Oman Cement incurs lower transportation costs. The close proximity to Yemen, its major exporting market is also an additional advantage. Pioneer Cement, Raysuts UAE subsidiary, currently focuses on northern Oman, apart from the UAE market.

His Highness Sheikh Faisal Bin Saqr Al Qasimi, Chairman of RAK Finance Department and Ras Al Khaimah Free Trade Zone (RAK FTZ) - one of the fastest-growing and most cost-effective free trade zones in the UAE - today, inaugurated the new production facility of Eskate Middle East FZC, part of the world-renowned German group dealing in flanges and fittings, at the free zone s Industrial Park. His Excellency Klaus Ranner, Consul General of Germany in Dubai, Dr Peter Göpfrich, CEO of German Emirati Joint Council for Industry and Commerce AHK in Dubai, Maryam Al Murshedi Al Shehhi, Deputy Director General of RAK FTZ, Oliver Breitenkamp, CEO of Eskate Middle East FZC, senior officials from German Embassy, and other dignitaries were present at the ceremony. Eskate Middle East FZC has presence in a wide array of sectors including oil and gas, construction, petrochemicals, cement, environment, and trading services, among others, and has been associated with many prestigious projects in the region, including the Palm Jumeirah and Palm Jebel Ali developments. In his comments at the inauguration, Breitenkamp said: "We are delighted with the inauguration of our production facility at RAK FTZ, and we are extremely thankful to the support and visionary leadership of Ras Al Khaimah and RAK FTZ. The free zone offers unmatched benefits through its strategic location, competitive costs, and the unique advantage to cater to both the Middle East and Africa markets." He added: "This plant is a big step forward in our growth journey across the region, and we are confident that the facility will further build our leadership. With our new facility, we are looking at further penetrating the regional market across various business sectors, besides catering to our other global operations." In his comments, Sheikh Faisal said: "We are extremely privileged to have the production facility of Eskate Middle East at RAK FTZ. The growing number of world-class companies at the free zone reinforces its position as a strategic hub for industries across multiple sectors. This is a major acknowledgement for our investment-friendly regulations and transparent policies, and we look forward to a mutually beneficial partnership with Eskate in the years to come." The company, which is headquartered in Germany, with operations in South Africa and Poland, plans to expand its operations in RAK FTZ in the short-term with new warehouses and presence in Business Park, along with a massive warehouse facility at RAK FTZ s Industrial Park.