Displaying items by tag: GCW133
Dongwu Cement to form joint venture with Hengtong
10 January 2014China: Dongwu Cement and Hengtong Group have agreed to establish a 50:50 joint venture company with a registered capital of US$24.8m.
The joint venture scope includes highways, urban roads, bridges, tunnels, foundation works, sewage treatment and drainage works. It also covers the construction and management of industrial and civil buildings and landscaping projects, including engineering technical consultation, project supervision, project bidding agency, property management, sales of building materials and domestic trade.
Rostec and SibCem may sever ties
10 January 2014Russia: Russian government-owned Rostec is exiting a collaborative arrangement with Siberian Cement Holding Company (SibCem). The plan to build a regional cement superpower in Siberia has 'run its course,' according to local press.
In 2010 SibCem chairman Oleg Sharykin proposed creating a cement mega-producer in Siberia 'to counter the Chinese expansion' and to 'cartelise' the cement market to prevent sharp price fluctuations.
Rostec assisted SibCem to build its cement group, starting with building the cement giant in 2010 using the Russian Cement Company LLC as a platform for consolidation. The Russian Cement Company went on to acquire a 50.52% stake in Angarsk Cement, affording the government and SibCem a greater than 98% stake in Angarsk Cement. The Russian Cement Company established a 100% subsidiary in September 2011, the Russian Nephrite Company, which the Russian Cement Company has since exited.
Market analysis by RBNN Analytical Centre suggests that the three-year partnership between SibCem and Rostec yielded no significant results. In the autumn of 2013 Rostec representatives resigned from the Angarsk Cement board, while the Russian Cement Company divested its stake in the Russian Nephrite Company.
A Rostec source has indicated that the government will retain a stake in the Russian Cement Company by personal request from Sharykin, who, despite antitrust objections from the Federal Antimonopoly Service (FAS), made a deal to buy a controlling stake in Iskitimcement in 2013, which suggests that SibCem is still interested in increasing its influence in the region. SibCem sources added that Rostec is expected to divest its shareholding in the Russian Cement Company completely in 2014 and that the sale is to be channelled through companies controlled by Sharykin and domiciled in offshore jurisdictions.
US: Texas Industries Inc's (TXI) fiscal second-quarter loss widened as the construction materials company reported higher product costs and a jump in interest expenses, masking broad sales growth that boosted the top line. Though TXI reported higher sales for cement, concrete and the company's aggregate operations, the results were weaker than expected.
The company, which sells cement and other building materials in Texas and California, has struggled to compete against more geographically diverse peers. However, TXI has reported stronger sales so far this fiscal year.
For the quarter that ended on 30 November 2013 TXI reported a loss of US$17.6m compared to a loss of US$11.1m in the quarter that ended on 30 November 2012, while net sales grew by 25% to US$209m. Its gross margin narrowed to 6.8% from 7%. Sales by its cement segment, the company's largest top-line contributor, increased by 12% on higher shipments and a slight increase in prices. TXI announced that while pricing has improved, its prices still remain well below levels seen prior to the recession.
Poland's cement output surges 42% in December 2013
09 January 2014Poland: Poland's cement production totalled 846,500t in December 2013, up by 42% year-on-year, according to statistics from the country's Cement Producer Association.
Cement sales jumped to 725,500t in December 2013, marking a 55.3% year-on-year increase on December 2012. For the 12 months to December 2013, cement output declined by 7.5% to 14.5Mt, while sales dropped by 7.6% to 14.6Mt.