09 May 2018

Germany: HeidelbergCement has increased its sales volumes of cement in the first quarter of 2018 despite facing poor weather and coping with reduced working days. Sales volumes of cement rose by 2% year-on-year to 28.2Mt from 27.5Mt in the same period in 2017. Falling sales volumes in Europe and North America were offset by growth in Asia-Pacific and Africa-Eastern Mediterranean Basin. In Asia, Indonesia and India contributed strongly to its growth, the cement producer said. In Africa, increases in sales volumes were recorded in Egypt, Ghana and Tanzania. Its sales revenue increased on a like-for-like basis by 2% to Euro3.78bn.

“HeidelbergCement generated a profit in the seasonally weak first quarter and despite difficult weather conditions,” said Bernd Scheifele, chairman of the managing board of HeidelbergCement. “Our successful management of the portfolio and financial result more than compensated for the weather-related decline in operating result.”

The group completed its acquisition of Cementir Italia in Italy and the Alex Fraser Group in Australia in the reporting period. It also finished the sale of the sand-lime brick operating line in Germany and its white cement business in the US.

Thailand: SCG’s cement business’ earnings have risen due to higher local prices and cost savings in the first quarter of 2018. Its earnings before interest, taxation, depreciation and amortisation (EBTIDA) rose by 7% year-on-year to US$201m in the first quarter of 2018 from US$195m in the same period in 2017. The company said that local demand for cement remained flat in the reporting period as increased demand from the government sector balanced out declines elsewhere. Local exports rose by 20% to 1.2Mt.

Uzbekistan: President Shavkat Mirziyoyev has signed a resolution that fixes the price of cement to support housing and infrastructure projects. The new legislation will force approved suppliers to sell 2Mt of cement for a fixed price to contractors, according to Uzbekistan Daily. Tax levels for cement producers have also been increased.

Pakistan: Cement producers have proposed finding an alternative water source in a case about the Katas Raj Temples being adjudicated by the Supreme Court. They have also agreed to pay the Punjab government for any water they use until then, according to the Statesman newspaper. The court was investigating allegations that the pond at the Hindu heritage site was drying out due to water consumption by nearby cement plants.

Bestway Cement and DG Khan Cement proposed that they would submit up to US$17m and US$4m respectively as security deposits until they find alternative water sources. They have also proposed building a small dam in the area, the outflow of which will be maintained in a way that the pond at Katas Raj is not adversely affected. Local cement plants of the two companies are currently using water from nearby river and underground sources.

Bosnia & Herzegovina: Austria’s Asamer Baustoffe has made a bid for the remaining share of Fabrika Cementa Lukavac. At present it owns 99% of the cement producer. Fabrika Cementa Lukavac operates 0.8Mt/yr integrated plant at Lukavac.

Brazil: Mineração Belocal, a subsidiary of Belgium’s Lhoist, has purchased L-Imerys, a lime producer that operates a plant at Doresópolis in Minas Gerais. L-Imerys is a subsidiary of France’s Imerys, according to the Diário do Comércio newspaper. The 0.4Mt/yr lime plant was inaugurated in 2013. The sales is depending on approval by the relevant competition bodies. No value for the acquisition has been disclosed.

Finland: Cargotec has signed an agreement with JCE Invest to establish a joint venture, Bruks Siwertell Group, specialised in dry bulk handling. The new joint venture will own Siwertell and Bruks Holding. Cargotec will own 48% of the shares in Bruks Siwertell Group and JCE Invest will own the remaining share.

"This joint venture supports Cargotec's strategy to focus on container ports, heavy industrial segment and logistics. Siwertell's business is outside these core focus areas, with different customers, customer locations and limited synergies with the rest of our businesses. By joining forces with JCE Group, we are able to create a company that will be a significant player in the bulk material handling with a globally competitive and specialised product portfolio," said Antti Kaunonen, president of Kalmar, part of the Cargotec group.

Siwertell is a supplier of ship unloaders, road-mobile unloaders, port-mobile unloaders, ship loaders, mechanical and pneumatic conveying systems, and bulk terminal solutions. Bruks specialises in mechanical-engineering and equipment supply for the bulk materials handling industries.