Semapa to focus on Brazilian investment

Semapa, the Portuguese holding company that controls cement maker Secil, has said it is focussed on constructing a new plant in Brazil as domestic demand continues to wane.

“At this moment we are focused on building the plant in Brazil,” Paredes said. “There is a growing tendency for our cement sales from outside Portugal to increase,” Bloomberg quoted Semapa board member Jose Miguel Paredes as saying.

Semapa entered the Brazilian market by acquiring a 50 per cent stake in local cement producer Supremo Cimentos last year. With an already existing capacity of 0.4Mta at its plant in Pomerode, through the Semapa deal Supremo secured an investment of US$394m for expansion. FLSmidth has been awarded the contract for the new 1.7Mta plant in Paraná which includes an EV crusher, Atox mills for raw and fuel grinding, an ILC five-stage preheater, Rotax kiln and an OK mill for cement grinding.

Meanwhile, over in Portugal, Semapa controls three cement plants with a total capacity of 3.9Mt. Demand has been more or less in constant decline since 2001 when a record 11.33Mt of cement was consumed. In 2012, it noted a drop to 3.3Mt, less than a third of the 2001 volumes and the lowest level since 1973. Further declines are expected in the near-term and Semapa (as well as Portugal's other main player and market leader Cimpor) have become increasingly reliant on exports.

Aside from its Brazilian investment, Secil has also expanded internationally with cement producing subsidiaries in Africa and the Middle East.