Holcim shutdown æno threat to supplyÆ
Carli Lourens
--------------------------------------------------------------------------------
E-Mail article Print-Friendly
Trade and Industry Editor
THE planned shutdown of a cement production oven by Holcim, part of listed construction group Aveng, at the end of the year was unlikely to affect supply in Gauteng, the group said yesterday.
The disclosure by Holcim follows a warning in a Merrill Lynch report released yesterday that supply in the province ôshould tightenö as Holcim shuts down one of its ovens for three months.
The report says ôthis is worryingö, as domestic demand for cement is still growing strongly, albeit at a slower pace, with the market having grown almost 11% in the first half of the year.
The brokerage says that Holcim has breached environmental limits, and that this prompted the temporary shutdown.
Holcim SA MD Karl Meissner-Roloff said yesterday that the oven ù one of two at Dudfield, near Lichtenburg ù would be shut down to bring it in line with environmental requirements by early next year.
But the company had governmentÆs permission to operate on old emission standards until then, he said, while the shutdown would only take place over the holidays, when building had slowed down.
Holcim estimates it will have enough stockpiled cement by that time to prevent disrupting supplies.
The report says that ôtight supply-demand dynamicsö expected in the domestic
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
