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Cemex resumes operations in Mexico 07 April 2020
Mexico: Cemex has announced that will resume operations in Mexico, just hours after announcing that it would halt all operations in the country. The turnaround was due to new government guidelines regarding essential business operations during the coronavirus outbreak.
"In accordance with the technical guidelines published today in the official Mexican gazette, the company will resume operations in Mexico to support the development and the economy of the country during the COVID-19 contingency," said Cemex in a statement on 6 April 2020. Earlier the same day it had announced that it would halt all Mexican operations until at least 30 April 2020.
Dangote to raise US$260m in new funds 07 April 2020
Nigeria: Dangote Cement, Africa’s leading cement manufacturer, is seeking to raise up to US$260m in fresh funds from the bond market under its US$780m Debt Issuance Programme. The investor presentation document prepared by the company was themed ‘Building Prosperity in Africa.’
Cemex temporarily stops production in Mexico 06 April 2020
Mexico: Cemex has temporarily stopped production in Mexico following a government decree issue by the Health Ministry of Mexico in response to the coronavirus epidemic. The building materials company says it has maintained communication with the federal government to resume operations should the authorities decide that the construction industry should be prioritised.
“For Cemex, the health and safety of our employees, contractors, suppliers, customers and communities is a top priority,” said Fernando A Gonzalez, the chief executive officer (CEO) of Cemex. “As soon as the COVID-19 threat emerged, we activated our Rapid Response Teams to implement preventive measures in response to this unprecedented health crisis.” He added that 90% of Cemex’s customers use it Cemex Go online sales platform. The company had also identified US$200m in cost-saving initiatives for 2020 and it is evaluating the delay of certain capital expenditures that had been planned for this year, among other measures.
Vietnam: Data from the Ministry of Industry and Trade shows that clinker exports fell by nearly 40% year-on-year to 7.5Mt in the first quarter of 2020. Clinker export values dropped by 19% to US$360m in the same period, according to the Viet Nam News newspaper. Previously, the Ministry of Construction forecast that cement demand would increase by up to 5% to 103Mt in 2020 due to a recovery in the real estate market. Around a third of this was expected to be exported. Local consumption of cement and clinker grew by 2% year-on-year to 98Mt in 2019.
Pakistan domestic cement sales fall by 17% in March 2020 06 April 2020
Pakistan: Data from the All Pakistan Cement Manufacturers Association (APCMA) shows that local cement sales fell by 17% year-on-year to 3.2Mt in March 2020 from 3.9Mt in the same period of 2019 due to a contraction in construction activity, according to the News International newspaper. Exports rose by 5% to 0.51Mt but this is expected to fall as markets decline around the world due to the coronavirus outbreak. Both local sales and exports grew in the first two months of 2020.
The government has introduced an incentive package for the construction industry which is expected to help increase local cement consumption. The cement industry is also anticipating a reduction in federal excise duty, which it described as ‘very high’ regionally.