September 2024
Court dismisses Tanga Cement tax charge 19 February 2016
Tanzania: The Court of Appeal has dismissed a disputed tax charge for US$371,000 against Tanga Cement as ‘incompetent.’ Counsel for Tanzania Revenue Authority (TRA), Felix Haule, conceded that the appeal was indeed incompetent because the decree was not signed by members of the Tax Appeals Tribunal, according to local media. Before rejecting the two appeals, the Justices of the appeals court were informed that the respondents into the matters have lodged preliminary objections to challenge their competence for having offended the rules under the Tax Revenue Appeals Tribunal. The case was one of three worth over US$1.3bn that were also dismissed as part of a series of corporate tax appeal cases.
Shree Cement's highest bidder for limestone deposits in Chhattisgarh 19 February 2016
India: Shree Cement has offered the highest bid in an auction for limestone deposits at Karhi Chandi, Baloda Bazar in Chhattisgarh. The site has estimated reserves of 155Mt of limestone in an 252 hectare area. Official confirmation from the state government that confirms Shree Cement as the winner of the auction is still awaited.
Local press reports that Shree Cement offered US$4/t for the deposit. The sale was the first non-coal mining lease auction by the state government. Shree Cement has plans to expand its cement plant at Raipur.
Brazil: Votorantim Cimentos has launched a new portfolio of bagged cement for the Brazilian market. The launch follows research with construction professionals and stakeholders. The company then set up a multidisciplinary group to develop its new portfolio of bagged cement from a consumer's viewpoint.
Specific products have been developed for different types of construction work. ‘Obras Estruturais’ is intended for foundations, columns, beams and structures. ‘Todas as Obras’ is intended for plasters, subfloors and slabs. ‘Obras Básicas’ is intended for repairs and renovations without structural function. ‘Obras Especiais’ is intended for industrial use as pavers, precast and artifacts. ‘Obras Especiais em Meios Agressivos’ is intended for coastal areas, pipes and sewage treatment facilities.
“For the non-specialist consumer, buying cement will be easier, more convenient and safer. For retailers and professional workers, this will bring more confidence in their recommendations, ensuring high quality and productivity at the construction site,” said Walter Dissinger, Global CEO of Votorantim Cimentos.
Bestway Cement profit rises by 47% to US$54.4m in first half 19 February 2016
Pakistan: Bestway Cement has reported that its profit after tax has risen by 47% year-on-year to US$54.4m from July to December 2015 from US$372m in the same period in 2014. Its revenue rose by 45.5% to US$201m from US$138m. It attributed the growth to the acquisition of Pakcem, an increase in domestic demand and stable prices during the period.
Domestic sales volumes for the company increased by 47% to 3.1Mt from 2.1Mt. It reported that overall dispatches by the Pakistan cement industry increased by 6.3% to 18.2Mt from 17.1Mt. Overall exports dropped by 26% to 3Mt from 4.1Mt. Bestway reported that it maintained its market share in the north of Pakistan and retained its position as the largest exporter of cement to Afghanistan and India, despite fierce competition.
Work on Bestway Cement’s 12MW waste heat recovery plant at Pakcem Kallar Kahar progressed during the period. The upgrade project is expected to cost US$15m.
Italcementi loss grows to Euro69.3m in 2015 19 February 2016
Italy: Italcementi’s loss has grown by 41.7% year-on-year to Euro69.3m in 2015 from Euro48.9m in 2014. The multinational cement producer blamed this on falling revenue per unit amidst general poor markets, particularly in Egypt. Despite this its revenue grew by 3.5% to Euro4.3bn in 2015 from Euro4.16bn in 2014, boosted by a stronger fourth quarter and currency effects.
Overall cement clinker sales volumes remained unchanged in 2015 at 43.4Mt. Growth in North Africa, Middle East (Egypt and Kuwait) and the more contained growth in North America was counterbalanced by downturns in Europe, Asia and Trading.
Italcementi expects growth in North America, moderate sales growth Egypt and stability in emerging markets in 2016. Demand for building materials is expected to be stable overall in Italy, France and Belgium, with a general recovery elsewhere in Eastern European and Mediterranean markets. It plans to raise prices in all areas except for India and Thailand.
The group also announced that it has completed the procedures for the sale of non-core assets to Italmobiliare, under the agreements signed by Italmobiliare with HeidelbergCement. Italcementi will sell to its parent Italmobiliare the stakes it holds in renewable energy company Italgen and e-procurement specialist BravoSolution, in addition to a building in the centre of Rome. The asset sales will be wrapped up on finalisation of the agreement between Italmobiliare and HeidelbergCement.
Wang Shizhong resigns from BBMG Corporation 19 February 2016
China: Wang Shizhong has resigned as an executive director and a member of the Strategic Committee of BBMG Corporation with immediate effect. He resigned due to the re-designation of his work. The board of BBMG expressed its appreciation for Wang’s contribution to the company development in a statement.
KHD ordered to pay damages to South American customer 18 February 2016
Germany: KHD International and its US-based subsidiary Humboldt Wedag (HW Inc) have been ordered to pay damages by a Portuguese arbitration court to a customer in South America. HW Inc’s arbitration claim for disbursement of outstanding payments, reimbursement for a called bank guarantee, as well as additional compensation (for damages) was denied. KHD expects the damages to lead to expenses of Euro15m in its 2015 financial results. The customer has not been named.
“This ruling does not reflect our own or our legal counsel’s expectations in any way. We believe that it is grossly incorrect and will exhaust all promising possibilities for success in proceeding against this judgement,” said KHD International CEO Johan Cnossen. KHD said in a statement that the arbitration award would not have an impact on its forecast results for 2015 as ‘adequate’ provisions had already been set up.
Union accepts pay increase at Lafarge South Africa 18 February 2016
South Africa: LafargeHolcim has reported that the National Union of Mineworkers (NUM) has accepted an 8% pay increase, according to Reuters. Around 800 workers affiliated to the union started a strike on 11 February 2016 asking for an 8.5% wage increase, a US$6500 housing grant, salary adjustments and a 35% acting allowance, Lafarge said in a statement. It added that the company was ‘well placed’ to meet its customer’s orders. The industrial action followed a series of negotiations which started in October 2015.
LafargeHolcim stops quarry extension at Sagunto cement plant 18 February 2016
Spain: LafargeHolcim has decided to stop the expansion of its limestone quarry at its Sagunto cement plant. It decided this due to environmental issues with the local government and the lack of viable alternative for expansion in the area, known as Margas.
Lafarge originally signed at agreement with the government to expand the quarry in 2013. However the one licence requires renewal in 2017 and the local government has opposed the request.
Anhui Conch confirms that production at Shaanxi subsidiary is suspended until mid-march 2016 18 February 2016
China: Anhui Conch Cement has confirmed that its subsidiary in Shaanxi province, Liquan Conch Cement, has suspended its production. The decision follows Shaanxi Provincial Government legislation requiring all cement and clinker producers to adopt off-peak production. Most producers are required to stop production from 15 December 2015 until 15 March 2016 with a few exceptions. 25 cement companies, with a total of 37 clinker production lines, are based in the province.
Liquan Conch has a cement production capacity of 4.4Mt/yr, contributing 1.5% to the total production capacity of Anhui Conch. It held audited net assets worth US$96.3m at the end of 2014, representing 0.9% of Anhui Conch’s total. Anhui Conch do not expect the temporary suspension of production at Liquan Conch to adversely affect its operating results. Liquan Conch was built in 2009.