September 2024
Afrimat secures recommendation to acquire Lafarge South Africa 08 November 2023
South Africa: The Competition Tribunal has received a recommendation from the Competition Commission that it should allow aggregates producer Afrimat to acquire Lafarge South Africa. Creamer Engineering News has reported that the commission found that the merger involves ‘horizontal overlaps’ in the aggregates and ready-mix concrete sectors. As such, it recommended that the parties be required to divest assets across the affected sectors.
Mbeya Cement to reshuffle corporate structure 08 November 2023
Tanzania: Mbeya Cement plans to reform its board of directors and appoint a new chair. The measures are part of an agreement between the government and other shareholders, including Zambia-based Lafarge Cement. Daily News has reported that the government helped Mbeya Cement to pay off US$67.9m-worth of debt.
Holcim’s East and South Africa area manager Rajesh Surana said “It is another milestone as we today sign the agreement on behalf of other shareholders, aimed at ensuring that Mbeya Cement operates on profit to rebuild growth for improved performance.”
Saudi Cement reports rising nine-month sales so far in 2023 08 November 2023
Saudi Arabia: Saudi Cement’s sales rose by 9% year-on-year in the first nine months of 2023, to US$288m from US$264m. The producer’s net profit also rose, by 13% to US$73.9m from US$65.1m.
Saudi Arabia: During the third quarter of 2023, Southern Province Cement reported sales of US$76.2m. This represents an 11% drop year-on-year from US$86.1m during the same quarter in 2022. Reuters has reported that the company noted lower local demand for cement. Meanwhile, its net profit dropped by 41% to US$14.1m from US$23.7m, amid a year-on-year rise in operating expenses.
Hail Cement’s sales decline in first nine months of 2023 08 November 2023
Saudi Arabia: Hail Cement recorded sales worth US$46.2m in the first nine months of 2023, down by 35% year-on-year from US$71.5m in the first nine months of 2022. Nonetheless, the producer’s net profit more than tripled to US$5.7m from US$1.57m. During the third quarter of the year, the company’s sales dropped by 50% year-on-year to US$13.7m, and it reported a loss, against a profit of US$1.59m in the third quarter of 2022.
UAE: Umm Al Qura Cement’s sales fell by 34% year-on-year during the first nine months of 2023, to US$31.6m. Meanwhile, the producer’s net profit dropped by 66%, to US$2.68m.
UAE: India-based UltraTech Cement has issued a US$73.5m corporate guarantee in favour of Abu Dhabi Commercial Bank. Reuters has reported that the guarantee covers credit facilities availed by the group’s subsidiary UltraTech Middle East Investments.
Iraq: Saudi Arabia-based Northern Region Cement Company has hired Germany-based KHD to build a 1.32Mt/yr cement line in Iraq. Reuters has reported the value of the contract as US$139m. The supplier said that the project will last for 16 months from its date of commencement.
India: JK Cement raised its second-quarter sales in the 2024 financial year by 23% year-on-year to US$331m. Over the same period, its profit grew by 62% to US$21.4m.
UNACEM obtains US$345m loan for Tehachapi cement plant purchase 06 November 2023
Peru/US: UNACEM has secured syndicated financing worth US$345m. It will put the funds towards its acquisition of the Tehachapi cement plant in California, US. Contify Banking News has reported that Spain-based BBVA operated as sole lead arranger and global coordinator for the financing.
UNACEM corporate general manager Pedro Lerner said “This operation will strengthen Grupo UNACEM’s investment portfolio in our core business and consolidate our presence in the southwestern region of the US, doubling our installed capacity in the country.”