September 2024
Zambia: Lafarge Zambia and Zambia Railways have signed a transport agreement to improve the delivery of production inputs for cement production and to distribute clinker and cement products locally and to neighbouring countries. The deal is intended to complement other modes of transport, reduce reliance on roads and promote sustainability. The agreement will run for three years and is subject to renewal.
“We continue to have a high fleet of trucks on our roads responsible for both inbound and outbound logistics, in excess of 500 trucks. The pressure exerted on the roads continues to be high as a result of this activity. Therefore, this partnership will relieve some pressure off our roads as it complements other modes of transportation currently in use today and we also anticipate to reduce the safety risk on the road,” said Chrissie Moloseni, Chief Financial Officer of Lafarge Zambia at the signing ceremony on 8 July 2016.
Christopher Musonda, the Chief Executive Officer of Zambia Railways, added that the company has devised a new transport model to improve efficiency. The Wagon Monitoring and Control System (WAMCO) is designed in a way that will enable customers to have dedicated wagons for all movements, thereby improving efficiency levels.
Qatar to get through 5.7Mt of cement in 2017 11 July 2016
Qatar/Saudi Arabia: Saudi Arabia's decision to lift its cement export ban may help to meet Qatar's growing demand ahead of the FIFA World Cup 2022. Official data suggests that the peak demand for cement from Qatar's thriving construction and infrastructure industries is expected to reach 5.7Mt in 2017. Due to its population of around 2.2 million, this represents an incredible 2600kg/capita.
The Saudi government previously imposed a ban on cement exports in 2008 to push prices down and accommodate demand from large government-funded infrastructure projects, although some companies were allowed to export at prices lower than those in the local market.
According to market analysts, strong infrastructure spending by the Qatar government on infrastructure development will continue to boost demand for the cement sector. Huge projects are in the pipeline, including the Doha Metro, World Cup stadiums, roads and flyovers and sanitary works.
LafargeHolcim will sell Indian assets to Nirma Ltd 11 July 2016
India/Switzerland: LafargeHolcim has announced that it has entered into a letter agreement with Nirma Limited subject to approval by the Competition Commission of India (CCI) for the divestment of its interest in Lafarge India for an enterprise value of approximately US$1.4bn. Lafarge India operates three cement plants and two grinding stations with a total capacity of around 11Mt/yr. The company also markets aggregates and is one of India’s leading ready-mix concrete manufacturers. The proceeds from the divestment will be used to reduce LafargeHolcim’s debt.
Eric Olsen, CEO of LafargeHolcim, said, “This agreement is an important step in our US$3.6bn divestment programme. With this deal, two thirds of the programme has been secured and it is well on track. We are confident that we will meet our target by the end of this year. With the proposed buyer we have found the right partner who will be able to develop the business further in the interest of all of our stakeholders.”
LafargeHolcim will continue to operate in India through its subsidiaries ACC Ltd. and Ambuja Cements Ltd., which have a combined cement capacity of more than 60Mt/yr and a distribution network that extends across the entire country.
EAPCC to sell land to fund revamp 08 July 2016
Kenya: The East African Portland Cement Company (EAPCC) is waiting for cabinet approval to sell US$98.8m worth of land as part of efforts to return to profitability.
The Nairobi bourse listed firm, through the Ministry of Trade, has prepared a brief for Cabinet approval to sell part of 13,000 acres of land it owns in Athi River.
Proceeds from the sale will be used to retire a US$37.5m debt and partly fund a revamp of its ageing plant, which requires nearly US$400m of investment to be brought to a level where the EAPCC can compete well with nimble rivals like Savanna Cement.
TCC International Holdings issues profit warning 07 July 2016
China: TCC International Holdings expects to swing to a loss in the first half of 2016, compared to a net profit US$10.5m in the first half of 2015.
The Hong Kong-listed cement producer said that the expected loss was due to lower selling prices for its cement products and a foreign-exchange loss from its US Dollar-denominated bank borrowings as a result of a weak Chinese currency. It will release interim results in August 2016.
Norway: The Ministry of oil and energy of Norway has announced that it expects to complete every step in the development of carbon capture and storage (CCS), i.e. capturing CO2 emissions from an industrial plant, transporting it by ship and injecting it into a depleted oil and gas reservoir in the North Sea, by 2022. Investment would range between Euro460m and Euro815m.
The source of the CO2 could be one or more of three companies currently developing CO2 capture technology. These are the HeidelbergCement-owned Norcem Brevik plant near Oslo, fertiliser maker Yara International and a waste incinerator operated by the Oslo city council.
Planning and investment for the whole chain could reach Euro0.77-1.35bn, with a 40% cost uncertainty. The government plans to present further CCS plans in the state budget in October 2016.
Lafarge India sale moves to final stage 07 July 2016
India/Switzerland/UK: The five bidders that gave their final bids for Lafarge India’s 11Mt/yr cement business have been called to London, UK for the final leg of discussions, which started on 7 July 2016. Multinational bidders, including Mexico’s Cemex and China’s Anhui Conch, are believed to have bid aggressively. Domestic bidders Ajay Piramal Group, Nirma and Sajjan Jindal-led JSW Cement also submitted bids earlier in the week.
The bids are in the range of Euro1.19-1.33bn, which implies an enterprise value of US$108-121/t, comparable to UltraTech’s recent acquisition of JP Group’s cement assets for US$116/t.
“This discussion in London could take three to four days to finalise,” said a banker familiar with the development. “The winner will be decided not just on the price quoted for assets but also other conditions for the bid,” he said. Once the winning bid is decided, an exclusivity agreement will be signed with the bidder and it will take around three months to complete the deal.
Cyprus Cement expects improved performance 06 July 2016
Cyprus: Cyprus Cement has announced that it expects to see a ‘significant’ profit in the first half of 2016 compared to a marginal profit in the first half of 2015.
Heracles completes first stage of Volos upgrade 06 July 2016
Greece: Heracles Cement Group, a subsidiary of LafargeHolcim, has announced the completion of a first phase of an investment plan to modernize its factory in Volos.
The Euro5m investment project aims to boost the competitiveness of the factory in the domestic market and to boost its export activity. The project has been interpreted by some as evidence of LafargeHolcim’s longer term confidence in the country, which has suffered from poor economic conditions and a weakened construction sector for much of the past decade.
Eric Jaschke becomes CFO at Schenck Process 06 July 2016
Germany: Eric Jaschke has been appointed Chief Financial Officer (CFO) at Schenck Process Group with effect from 1 July 2016. Jaschke will preside over the Schenck Process Group’s global financial organisation, working closely with Andreas Evertz, President and Chief Executive Officer (CEO). Jaschke has already fulfilled the role of CFO on a provisional basis since October 2015.
Jaschke started his career at Schenck Process in 1999 as a specialist for international controlling. In this capacity he focused on building and advancing a management information system. He was CFO of Schenck Process Australia from 2006 to 2007 and became Managing Director of the company in Australia at the start of 2008. Jaschke returned to Germany in 2012 and led the Business Unit Heavy in Darmstadt, one of the four core Business Units of Schenck Process.
Jaschke holds a master’s degree in business administration at the Macquarie Graduate School of Management in Sydney, Australia. He gained his bachelor’s degree at the Baden-Württemberg Cooperative State University in Mannheim, Germany.