Displaying items by tag: construction
Cemex’s net income falls in January - March 2020
01 May 2020Mexico: Cemex has recorded a consolidated net income of US$47.2m in the first quarter of 2020, down by 13% year-on-year from US$54.1m in the same quarter of 2019. Net sales rose by 6% to US$260m from US$245m. Cemex said, “The world is going through an unprecedented time due to the COVID-19 pandemic. Construction activity across most of our markets is being impacted to varying degrees.”
In 2019 Cemex’s net income was US$179m, down by 69% year-on-year from US$570 in 2018. Net sales were US$13.1bn, down 3.0% from US$13.5bn in 2018.
Cemex implements new coronavirus protocols
27 April 2020Mexico: Cemex has implemented more than 50 new safety protocols to minimise the risk of coronavirus spread in its cement, ready-mix concrete and aggregates operations. Cemex said that it recognised ‘the importance of the construction industry in supporting the maintenance and service of essential infrastructure required to face the pandemic and contribute to the economy,’ and would resume or continue all possible operations in line with the regulations of the countries in which it operates.
“The health and safety of its employees is the company’s number one priority,” said Cemex. “Among the protocols implemented are the company’s Personal Hygiene Protocol, Physical Distancing Protocol, Screening at Workplace Protocol, Cemex Truck Drivers Protocol, Workplace Cleaning Protocol, and Commuting To and From Work Protocol,” all developed in line with advice from national and international bodies such as the World Health Organization (WHO).
Cemex has leveraged its Cemex Go digital platform to limit physical contact and ‘protect employees, customers and suppliers.’
Demand down as production partially resumes in India
24 April 2020India: Both Germany-based HeidelbergCement and Aditya Birla subsidiary UltraTech have responded to the government’s partial lifting of the coronavirus lockdown for rurally-located continuous industries by resuming ‘partial operations in some production facilities.’ Orient Cement subsidiary CK Birla said, “We are in the process of partially resuming our operations at our plants in Karnataka and Maharashtra.” Producers require the permission of the relevant state government to restart plants. In Telangana, where the government has not lifted the lockdown, CK Birla’s facilities remain shut.
The Economic Times newspaper has reported that ‘limited transportation facilities, higher than usual inventory and stricter rules regarding labour safety’ have added a note of caution to resumed operations. Shree Cement managing director Hari Mohan Bangur said, given the continuation of restrictions on construction in cities, “We expect just 10% of normal consumption, with hopes of a gradual increase.”
Cement and Concrete Association of Malaysia welcomes return to cement production and lobbies for construction to resume
24 April 2020Malaysia: The Cement and Concrete Association of Malaysia (CCA) has praised the government’s decision to grant an exception to cement plants in order to allow production to resume in the third phase of the country’s lockdown, beginning on 28 April 2020. The Straits Times newspaper has reported that the current and previous stages of the lockdown have exacerbated the cement sector’s losses over the past two years.
The CCA said that the development ‘will have a multiplier effect on the economy.’ CCA chair Datuk Yeoh Soo Keng said that 100,000 jobs ‘depend either directly and indirectly on cement production,’ including many ‘in small and medium enterprises’ that will not survive the outbreak without it. “Cement is the fundamental building material of our country’s wealth,” he added. The CCA thanked the government for the ‘welcome reprieve’ and urged it to allow ‘related sectors to slowly and gradually resume operations, for the industry to effectively function.’
Salonit Anhovo suspends production
24 April 2020Slovenia: Salonit Anhovo suspended production from 20 April 2020 to 4 May 2020. SeeNews has reported the reason for the suspension as a lack of demand from its usual Italian and Slovenian markets amid the ongoing coronavirus crisis. Salonit Anhovo management board member Dejan Zwitter said, "We expect domestic sales to stabilise as the government is providing incentives for construction activities."
The company will continue to serve its customers with deliveries of it products.
European Roadmap Towards Lifting COVID-19 Containment Measures gives hope to cement producers
23 April 2020EU: The European Council and European Commission have published their joint coronavirus exit strategy, entitled ‘European Roadmap Towards Lifting COVID-19 Containment Measures.’ It advises EU member states on a course of action aimed at restoring community life and the economy, while also preserving public health, after the coronavirus outbreak.
The roadmap consists of a progressive lifting of travel restrictions, initially between border regions, then between regions less affected by the outbreak and subsequently across internal and external borders of the EU. The strategy applies a similar approach to restarting the economy, beginning with ‘essential sectors’ such as construction. The Commission will maintain a rapid alert system for supply chain disruptions, with the help of existing networks such as the Enterprise Europe Network (EEN), Clusters, Chambers of Commerce and trade associations.
CRH publishes 2020 first quarter trading statement
23 April 2020Ireland: CRH has said that it had a ‘positive start to the year’ in the first three months of 2020. Total sales over the period rose by 3% year-on-year. In the Americas region, cement volumes rose by 4% and prices by 6%. European cement sales were ‘broadly in line with the same period of 2019’ due to general volume and price increases offset by a fall in volumes in Western Europe.
Government-implemented covid-19 restrictions on construction towards the end of the period impacted sales in Canada, the UK and France. The likely effects on 2020 profit ‘cannot be reasonably estimated at this time.’ CRH chief executive officer (CEO) Albert Manifold said, “With the financial strength of CRH and the experience of our leadership teams, we will endure through these unprecedented and uncertain times.”
Spanish cement demand falls in first quarter of 2020
23 April 2020Spain: Cement demand in the first quarter of 2020 was 3.14Mt, down by 13% year-on-year from 3.60Mt in the corresponding period of 2019. In March 2020 cement consumption in Spain was 924,000t, down by 28% year-on-year from 1.28Mt due to the effects of the coronavirus outbreak. Agencia EFE has reported that this is the lowest level of demand in any month since the immediate aftermath of the 2008 financial crash. Construction activity has been restricted by a government-imposed coronavirus lockdown since 14 March 2020.
On 23 April 2020 Spain’s confirmed coronavirus case count was 213,024, with 22,157 deaths.
Ghana: Diamond Cement Group has donated 250t of cement and US$17,500 to the government to support its efforts to curb the spread of coronavirus in Ghana. The Ghanaian Times newspaper has reported that the cement will be used for hospital repairs. Diamond Cement Group chair Mukesh Patel said, “It is crucial that we all work together to minimise the negative impact of the pandemic on economic activities.”
SLK Cement supplies cement for coronavirus hospital
20 April 2020Russia: Italy-based Buzzi Unicem subsidiary SKL Cement has supplied 400t of cement to the site of an upcoming coronavirus hospital in Omsk, Omsk Oblast. SLK Cement CEO Andrei Immoreev said, “In a difficult time for the whole world, our company continues to work to provide cement for construction sites of regional and federal facilities,” according to AMF News.
On 16 April 2020 the government launched a raft of measures, including subsidies for construction companies to keep jobs open and paid, to help the sector to recover after the crisis. and Major infrastructure projects in all regions will continue.