Displaying items by tag: VICAT
Vicat buys out Vicat Sagar in India
16 July 2014India: Vicat Group has purchased Sagar Cements' stake in Vicat Sagar Cement for US$72m, subject to customary conditions precedents. After this transaction, Vicat will own 100% of Vicat Sagar Cement. Together with the share purchase, the two groups will untie all their ownership links.
Vicat Sagar Cement operates a cement plant in North Karnataka with a cement production capacity of 3Mt/yr. The plant includes its own captive power plant and access to the rail network. Vicat's India operations, comprising Bharathi Cement and Vicat Sagar Cement, include two cement plants with a total production capacity of 8Mt/yr.
In 2013 Vicat reported sales of US$210m in India, a rise of 12.7% year-on-year. In the first quarter of 2014, sales in India rose by 27.2%.
India: Sagar Cements plans to sell its 47% stake in the joint venture company Vicat Sagar Cement to Vicat Group. Sagar Cement's board will consider the sale of its investment in the plant located at Chatrasal, Karnataka, at a meeting on 15 July 2014. Sagar Cements had invested US$14.3m in the first phase of the plant with 2.75Mt/yr capacity. Commercial production commenced in January 2013. France's Vicat is willing to acquire the stake to make Vicat Sagar Cement a completely-owned entity. Vicat is hoping to complete the entire transaction by September 2014.
Central Asia cement roundup
02 July 2014A group of news stories from Central Asia and Azerbaijan this week present a good opportunity to look at the cement industry in this part of the world.
Uzbekistan
Eurocement has announced that it plans to build a 2.4Mt/yr cement plant near to Tashkent. Chinese contractors have been signed for the work in line with the Russia-based cement producer's other plant builds in 2014. Eurocement also operate a subsidiary in the country, the 1.6Mt/yr Akhangarancement cement plant, that reported a criminal investigation and financial audit following various misdemeanours in April 2014.
Also in April 2014 the Almalyk Mining-Metallurgical Combine (AMMC) proposed building a 1.5Mt/yr cement plant in the south of the country and then commissioning of a white cement plant in the central Jizzakh Province. Both the Eurocement and AMMC projects show that organisations are investing in the local market of the region's most populous country at around 30m.
Turkmenistan
In neighbouring Turkmenistan the TurkmenCement Production Association has issued a tender this week for the construction of a 1Mt/yr clinker plant in the central-south of the country in the Baharly District of the Akhal Region. If realised, the new plant will raise Turkemistan's cement production capacity to 4Mt/yr. Currently the country has three state-operated plants. The most recent, the 1.4Mt/yr Garlyk plant, was commissioned in February 2013.
Kazakhstan
An investor has stepped forward to finance the completion of the delayed Khantau cement plant in Zhambyl region in southern Kazakhstan. The 0.5Mt/yr plant was originally started in 2007 before being mothballed part-way through construction.
The reignition of this project follows a couple of stories from Kazakhstan including a report on testing at the HeidelbergCement Caspi cement plant in Mangistau region and the start of operation on Line 5 of Steppe Cement's Karaganda Cement. Kazakhstan has more western international cement producers, unlike the generally state-run companies in Uzbekistan and Turkmenistan. HeidelbergCement will join plants run by Italcementi and Vicat.
Azerbaijan
Finally, on the other side of the Caspian Sea, Azerbaijani local media has reported that cement production for the first half of 2014 has risen by 40% year-on-year to 1.1Mt. Following the opening of the Gazakh cement plant in mid-2013 the country has three cement plants with a combined cement production capacity of nearly 5Mt/yr.
Vicat sales up 14% year-on-year in first quarter of 2014
29 April 2014France: Vicat Group has announced its results for the first quarter of 2014, which show a 14% improvement to sales compared to the first quarter of 2013. The group highlighted improved conditions in Egypt, the United States, West Africa and Turkey, increasing sales in India and favourable weather conditions in its native France as among the reasons for the improvement.
Sales for the three months to 31 March 2014 were Euro536m, an increase of 9.2% (14% after adjusting for constant scope and exchange rates). Vicat's cement sector saw sales of Euro275m for the quarter, up from Euro256m in the first quarter of 2013, a year-on-year improvement of 7.4%(15.2% at constant scope and exchange rates). Cement sales volumes were up by 6% across Vicat's global operations.
"Vicat achieved strong sales growth in the first quarter of 2014. Our businesses benefited from mild weather conditions in France and were able to capture positive momentum in the Swiss, US and Turkish construction sectors," said Vicat's CEO Guy Sidos. "The return to growth in Egypt is a positive sign for our full-year performance and we are continuing to ramp-up our business in India, although prices are likely to remain volatile. The group is still gradually reaping the benefits of its investments over the last few years, using its strong market positions to maximise cash flow and continue reducing debt."
In Europe (excluding France) consolidated sales were Euro89m, 22.2% higher than the Euro72m seen in the first quarter of 2013. Switzerland was highlighted as a good performer, with 13% growth in cement sales, while Italy saw consolidated sales fall by 17.6% year-on-year due to a 19.2% fall in volumes.
In the United States, sales were Euro51m compared to Euro46m in the first quarter of 2013, a 9.5% rise year-on-year. The group said that business continued to pick up in the country, with cement sales picking up by 13.9% and volumes increasing by 3%.
In Turkey sales were Euro44m, 25.8% higher (at constant scope and exchange rates) than in the year-earlier quarter. In India sales came to Euro47m, 27.2% higher (at constant scope and exchange rates) year-on-year. In Kazakhstan sales fell by 14% to Euro9m (at constant scope and exchange rates), which resulted from comparison to unusually high sales in the first quarter of 2013.
In Africa and the Middle East Vicat's consolidated sales were Euro98m, a 12.9% improvement over the first quarter of 2013 when it took Euro87m. Egypt saw a 26.7% improvement year-on-year, while west Africa saw revenues up Euro11.6% due to a 14% improvement in sales volumes.
In the rest of 2014 Vicat expects the French market to gradually stabilise and the Swiss market to continue to be strong. Italy is likely to remain weak, while volume rises and price increasese are expected in the United States. In Turkey Vicat warns that further growth will be dependent on foreign exchange effects and potential after-effects of elections. It says that Egypt remains unpredictable but plans for gradual improvement to the security situation. West Africa is expected to be buoyant in terms of consumption but warns against increased competition that may dampen prices. In India, weak infrastructure development will continue to adversely affect volumes, as will chronic overcapacity in the nation's cement industry. In Kazakhstan, it expects its strong local position to continue to reap rewards.
Guy Sidos appointed chairman of Vicat Group
12 March 2014France: The Vicat board of directors has appointed Guy Sidos as the new chairman, in addition to his current position as chief executive officer. The board also appointed Jacques Merceron-Vicat as honourary chairman.
Sidos, aged 51, is the son-in-law of outgoing chairman and former CEO Jacques Merceron-Vicat. His appointment is intended to continue Vicat's independent outlook. Sidos is a graduate engineer of France's Navy School. After joining the Vicat Group in 1999 he held a number of operational positions, particularly in the US, before being appointed COO in 2004, then CEO in 2008. He will henceforth hold this position alongside that of chairman after the annual general meeting on 6 May 2014.
European cement production in 2013 – Problems head east
12 February 2014Recovery in the European cement markets arrived slowly in 2013. Balance sheets at HeidelbergCement, Cemex, Italcementi, Vicat and Buzzi Unicem appear to have stalled into something less than the recovery that everybody wants. The picture is more stable in Western Europe but declining revenues have headed east.
The European Commission's Autumn 2013 Economic Forecast has summed it up well, predicting that the European Union's (EU) gross domestic product (GDP) would remain static in 2013. On the strength of the results seen so far that feels about right. The cement industry in Europe hasn't continued to decline but the 'recovery' is slow. Yet a recovery is happening on the strength of these financial results so far. Compared to some of the sales declines seen in 2012 this is good news.
With results from the big European-based cement producers Lafarge and Holcim due later in February 2014, here is a summary of the European situation.
HeidelbergCement's revenue has remained flat in 2013 at Euro13.9bn although its cement, clinker and ground-granulated blast-furnace slag (GGBS) sales volumes have risen by 2.6% to 91.3Mt. Compare this with the 8.7% bounce in revenue from 2011 to 2012. By region, the problem areas have now shifted from losses in Western and Northern Europe to losses in Eastern Europe and Central Asia. Market pickup in the UK has driven this turnaround, despite diminished sales volumes in Germany.
Similarly, Cemex's sales have also remained flat at US$15.2bn. Both of its European areas have improved their sales, with sales losses only reported for the Northern Europe region. Again, sales in the UK drove overall business with France starting to improve too.
Italcementi had it tougher in 2013 with its sixth consecutive drop in revenue since 2008. Just like HeidelbergCement, the problem regions for Italcementi have shifted east in 2013 from Western Europe to the group's Emerging Europe, North Africa and Middle East area. However Italcementi is losing revenue in Western Europe faster than HeidelbergCement, mainly due to the poor Italian market.
Elsewhere, Vicat reported that its consolidated cement sales fell by 4% to Euro1.11bn. Sales decline lessened in France and the rest of Europe even saw sales rise by 4% to Euro427m. Buzzi Unicem saw its cement sales volumes remain static in 2013 at 27.4Mt.
Overall it may not feel great but it's better than the cement industry news for Europe we've been used to in recent years. With the European Commission Economic Forecast suggesting a 1.4% rise in GDP in 2014, the next 12 months look more promising.
Vicat cement sales down 4% to Euro1.11bn in 2013
05 February 2014France: The Vicat Group has reported that sales by its cement business fell by 4% year-on-year to Euro1.11bn in 2013 from Euro1.16bn in 2012. No reason was provided for this decline. The French building materials manufacturer produced 18Mt of cement in 2013. Across all business lines the company's sales remained flat at Euro2.29bn.
By region, Vicat saw cement sales fall by 7.6% year-on-year in France due to poor weather and 'challenging' economic conditions. Cement sales rose by 6.3% in the US, led by infrastructure growth in California. In Turkey cement sales rose by 16.7% and in West Africa sales fell by 4.7%.
National Cement Company elects James E Rotch as chairman
29 January 2014US: The Board of Directors of National Cement Company, a subsidiary of Vicat Group, has elected James E Rotch as Chairman of the Board of National Cement Company. Rotch will continue in the practice of corporate law with the firm of Bradley Arant Boult Cummings LLP, a regional law firm with offices throughout the Southeast, including Birmingham, Alabama, in addition to his duties as Chairman of the Board.
Vicat sales cement sales down by 2.8% to Euro855m so far in 2013
06 November 2013France: The Vicat Group has reported that its consolidated cement sales have fallen by 2.8% year-on-year to Euro855m for the first nine months of 2013 from Euro879 in 2012. No reason was given for the decline. Cement sales volumes rose by 1.4% year-on-year to 13.7Mt. Overall the company saw its total sales remain stable year-on-year at Euro1.74bn.
"The United States, Switzerland, Turkey and Kazakhstan again delivered healthy business levels while political and security factors in Egypt and competition in India and Senegal continued to weigh on the Group's performance in these regions," said Guy Sidos, CEO of Vicat.
Vicat holds sales steady in first half of 2013
07 August 2013France: The Vicat Group has reported that its sales rose by 1.7% year-on-year to Euro1.15bn in the first half of 2013 from Euro1.13bn in the same period of 2012. The group's earnings before interest, taxes, depreciation and amortisation (EBITDA) remained static year-on-year at Euro201m.
" Performance in Turkey, Kazakhstan and the United States improved substantially, making up for the tough competitive environment in India and the uncertainty that continues to prevail in Egypt. Operating performance in France also improved despite the persistently unfavourable market climate," said Vicat chief executive officer Guy Sidos.
Vicat's cement sector saw its volumes increase by 3.8% year-on-year to 9.21Mt from 8.87Mt. Operational sales increased slightly by 1.2% to Euro693m from Euro685m. EBITDA for the cement sector fell by 5.2% to Euro147m from Euro155m.
By region for its cement business, sales in France fell by 10.5% in the first half of 2013, mostly caused by a poor first quarter and a decline in export markets. Vicat declined to present specific figures for certain territories. In Switzerland its cement business saw its EBITDA fall by 6.2% and in Italy sales fell by 16%. In the US sales rose by 4.1% with strong growth from new infrastructure projects.
In Turkey sales rose by 18.9% due to volume and price rises. In India overall sales rose by 18.4% to Euro87.3m as Vicat built up its cement businesses. However competition, increased production costs and start-up costs for Vicat Sagar caused EBITDA to fall by 77.7%. In Kazakhstan overall sales rose by 42.8% to Euro38.9m. In Egypt sales fell by 11.8% to Euro47.2m despite a sharp increase in prices. In West Africa sales fell by 4.1% due to a fall in prices.