September 2024
Brazil: LafargeHolcim has launched a marketing campaign for its Cimento Montes Claros cement brand in six states and the Federal District. The campaign is intended to increase brand recognition and improve its relationship with customers in Minas Gerais, Pernabuco, Bahia, Paraiba, Rio Grande do Notre, Goias and the Federal District, according to the Sags website. The campaign includes television and radio coverage, advertising on transport networks and social media spots. The campaign is planned to run until December 2017.
Pacific Cement to import cement from Vietnam 02 August 2017
Fiji: Pacific Cement plans to import 25,000t of cement from Vietnam due to supply shortfalls from local plants. The increase in demand has been attributed to increased construction activity in the country, according to the Fiji Sun newspaper. Pacific Cement is currently running at reduced production levels whilst it waits for spare parts to arrive. It plans to return to full production in October 2017. The producer is also wants to install a cement mill in early 2018 to increase its production capacity.
Poland: Cementownia Warta and Cementownia Odra have joined the Pewny Cement certification scheme run by the Polish Cement Association. The kite mark is intended to convey high specification standards in production, packaging and distribution for customers outside of the construction industry. Warta and Odra join LafargeHolcim, Górażdże Cement, Cement Ożarów and Cemex on the scheme.
Germany: HeidelbergCement’s cement sales volumes have struggled to grow in the first half of 2017 following its acquisition of Italcementi. Its sales volumes rose to 60.7Mt year-on-year in the first half of 2017 from 39.9Mt in the same period in 2016. However, on a pro forma basis its sales fell by 1% with falling sales noted in its Asia-Pacific region. The group blamed its poor performance in the second quarter of 2017 on reduced working days, bad weather in the US and a late Ramadan period that reduced selling days in Indonesia.
“In the light of the difficult general conditions, we achieved a good result in the second quarter,” said Bernd Scheifele, chairman of the managing board. “We were able to almost offset the effect of higher energy costs, bad weather conditions, fewer working days, and increased competition in some emerging countries. The synergies from the Italcementi acquisition are clearly visible in the results.”
The group’s sales revenue rose by 31% to Euro8.39bn from Euro6.41bn although it only rose by 1% on a pro forma basis. Its earnings before interest and tax rose by 6% to Euro776m from Euro728m.
By region cement sales rose in all regions on both a consolidated and pro forma basis except for Asia-Pacific. Here, cement and clinker sales fell by 3.1% once the newly acquired Italcemeni assets in India and Thailand had been excluded. A particular decline was recorded in Indonesia due to the timing of Ramadan in June 2017 and reduced demand for residential housing. Elsewhere, the US market was hit by poor weather, although the housing market remained promising. In the group’s Africa-Eastern Mediterranean, the group reported issues in Egypt but strong increases in cement sales were reported as new production capacity started in Togo, Tanzania and Burkina Faso.
Portland Cement Association pins hopes on airport expansion 01 August 2017
US: The Portland Cement Association (PCA) expects that increased demand for air travel will help drive increased cement consumption over the next 25 years. Increased population, economic growth and airport expansion are anticipated to drive the trend according to a new study by the association. Personal, business and cargo levels are all expected to rise.
“With more people traveling by air, you will need more capacity at airports – that means more cement is needed for concrete used in runways, terminals and other airport facilities,” said PCA Chief Economist and Senior Vice President Ed Sullivan.
The PCA expects cement consumption in the airports market to approach 2.4Mt/yr by 2040, with a possible high of 2.6Mt/yr, compared with 1.5Mt/yr at present. Of the estimate 65% will likely be attributed to runway replacement, 23% is projected to runway expansion projects and 11% is expected to be used for new terminal expansion.
India: Birla Corporation has proposed building a US$375m cement plant at Mukutbandh near Nagpur in Maharashtra. Company chairman made the announcement following the company’s annual general meeting, according to the Press Trust of India. The proposal will now go to the company’s board for approval. The plant will have a production capacity of 4Mt/yr. It will be financed from a mixture of debt and internal funds.
Nigeria: Dangote Cement’s sales revenue and operating profit have risen in the first half of 2017 despite a significant drop in sales volumes in Nigeria due to the poor state of the economy. Its sales revenue rose by 41.2% year-on-year to US$1.31bn in the first half of 2017 from US$928m in the same period in 2016 with increased revenue in both Nigeria and the rest of Africa. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 53.7% to US$647m from US$421m. It attributed the rising revenue to improved margins from better efficiencies and a better fuel mix in Nigeria.
“Our revenues have continued to grow despite the lower volumes seen in Nigeria, especially because of the recent heavy rains. Our margins have improved significantly, helped by improved efficiencies and a much better fuel mix in Nigeria. We are using much more gas and increasing our use of coal mined in Nigeria, thus reducing our need for foreign currency and supporting Nigerian jobs,” said chief executive officer (CEO) Onne van der Weijde. He added that the group had seen its first sales from Sierra Leone in the first quarter and that its new plant in the Republic of Congo will be in production at the end of July 2017.
Italy: Cementir’s acquisition of Compagnie des Ciments Belges has propped up its sales revenue, volume and operating profit for the first half of 2017. Its sales revenue rose by 31.3% year-on-year to Euro631m in the first half of 2017 from Euro481m in the same period in 2016. However, on a like-for-like basis its sales revenue fell by 1.5%. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 68.5% to Euro85.1m from Euro72m but fell by 4.9% on a like-for like basis. Its sales volumes of cement rose by 34% to 6.37Mt from 4.75Mt but fell by 2.4% on a like-for-like basis. The group blamed its poor like-for-like performance on falling revenue in Turkey and Malaysia despite good results in Denmark, Norway, Sweden, China and Italy.
“Results in the first half 2017 were up thanks to the effect of the acquisitions concluded in the second half 2016, which added Euro16.6m to EBITDA, despite adverse changes in exchange rates. On a like-for-like basis, the improvement in EBITDA in Egypt, Italy, China and Norway partially compensated lower earnings in Turkey and, to a lesser extent, in Denmark and Malaysia, as well as the depreciation of foreign currencies against the Euro – mainly the Egyptian Pound and the Turkish Lira,” said Francesco Caltagirone Jr, Chairman and Chief Executive Officer (CEO).
Sinoma to build US$500m cement plant in Uganda 31 July 2017
Uganda: China National Materials Group (Sinoma) has signed an agreement with Tian Tang Group to build a US$500m cement plant at the Mbale Industrial Park. The project is part of a wider investment package to develop the site, according to the Daily Monitor newspaper. Sinoma requires assurances from the government that the site has sufficient reserves of limestone and a research trip has been scheduled for August 2017 to survey the proposed location of the plant.
Chettinad Cement wins investment proposal approval from Odisha state government to build grinding plant 31 July 2017
India: Chettinad Cement has received approval from the Odisha State-level Single Window Clearance Authority (SLSWCA) for an investment proposal to build a 2Mt/yr cement grinding plant at the Kalinga Nagar Industrial Complex in Jajpur district. The project is budgeted at US$36m, according to the Press Trust of India.