September 2024
LafargeHolcim completes squeeze-out of Lafarge S A 26 October 2015
Switzerland: LafargeHolcim has successfully implemented the squeeze-out of Lafarge S A. With this, the shares of Lafarge S A are now delisted from Euronext Paris. The completion marks an important and final step in the merger process of the group's legacy companies and allows LafargeHolcim to continue focusing on delivering the synergies and progress with the integration.
With the successful squeeze-out, LafargeHolcim Ltd now owns 100% of the share capital and voting rights of Lafarge S A. Following the re-opened offer period, LafargeHolcim Ltd already held 96.41% of the share capital and at least 95.25% of the voting rights of Lafarge S A.
LafargeHolcim had offered the remaining shareholders of Lafarge S A a cash indemnification of Euro60 for each Lafarge S A share (net of costs) or a share indemnification of 9.45 newly-issued LafargeHolcim Ltd shares for 10 Lafarge S A shares. In this context, LafargeHolcim has issued a total of 633,776 registered shares with a nominal value of Euro1.85 each from authorised capital and acquired 10,086,921 shares of Lafarge S A for Euro60 each.
Cemex reports 5% net sales growth in the third quarter of 2015 23 October 2015
Mexico: Cemex's consolidated net sales reached US$3.7bn in the third quarter of 2015, an increase of 5% on a like-for-like basis for the ongoing operations and adjusting for currency fluctuations, versus the comparable period in 2014. The increase was due to higher prices in local currency terms in most operations, as well as improved volumes in the US and Asia.
Its operating earnings before interest, taxes, depreciation and amortisation (EBITDA) during the quarter reached US$677m, an increase of 5% on a like-for-like basis versus the same period in 2014. The increase was mainly due to higher contributions from Mexico, the US, as well as from the Northern Europe and Asia regions. Operating earnings before other expenses, net, in the third quarter, decreased by 8% to US$439m. Controlling interest net loss narrowed to US$44m from a loss of US$106m in the same period of 2014.
"Our results reflect the unprecedented strength of the US Dollar versus the currencies in most of our markets, which intensified during the quarter. Despite this, we had favourable operating results. Our quarterly sales and operating EBITDA increased by 5% on a like-for-like basis. While EBITDA margin was relatively flat during the quarter, year-to-date EBITDA margin was the highest since 2009. Our free cash flow after maintenance capital expenditure also increased by 25% during the quarter," said Fernando A Gonzalez, Chief Executive Officer. "We are pleased with the results so far of our 'Value-Before-Volume' strategy. Our year-to-date increase in consolidated prices, adjusted for the impact of our variable costs and freight rate increases, has offset slightly more than half of the effect of foreign-exchange fluctuations."
Namibia/China: China's Asian and African Business Management has teamed up with a Namibia's Whale Rock Cement to set up a US$350m cement plant. The project will see the creation of 400 jobs.
A few years ago, Whale Rock Cement came onto the Namibian market with its Cheetah Cement brand. This triggered a fierce competition with the existing cement suppliers, leading to a price war that drove Whale Rock off the market.
The plant, about 245km from the capital Windhoek, will be the second cement plant in Namibia after Ohorongo Cement, which produces 500,000t/yr. Whale Rock Cement Public Relations Officer Manfred Uxamb said that a comprehensive feasibility study has been completed and that a limestone survey has also been carried out. "Together with our partners, we have performed a comprehensive investigation of the land plot, limestone, clay, waste iron oreand gypsum," said Uxamb, adding that they had found that all these resources meet requirements. "The survey also included market research that proved that the project is feasible. The feasibility study was presented to the Government of the Republic of Namibia and approved." According to Uxamb, the area chosen for the plant has enough limestone deposits to last more than 40 years.
HeidelbergCement reduces refinancing needs by further Euro500m 23 October 2015
Germany: HeidelbergCement has taken another step to optimise the financing of the Italcementi acquisition. The volume of the bridge financing could be reduced by a further Euro500m from Euro3.8bn to Euro3.3bn. The refinancing needs in the bond market declined by Euro500m to around Euro2.5bn, correspondingly.
Decisive for the reduction of the financing volume was that some of Italcementi's creditor banks have agreed to waive their change of control clauses. As a consequence, HeidelbergCement will have access to additional credit lines totalling Euro500m on a long-term basis also after the takeover. Therefore, refinancing of these credit lines after the acquisition is no longer necessary and the volume of the bridge financing could be reduced accordingly. As already communicated in the announcement of the Italcementi acquisition, the bridge financing should be refinanced by free cash flow, the sale of production sites and the issuance of bonds. The reduction in the volume of bridge financing thus also reduces the need for refinancing in the bond market by the same amount.
Malaysian Ringgit woes cast shadow over cement industry 22 October 2015
Malaysia: The protracted slump of the Malaysian Ringgit against the US Dollar, which has plagued importers and harmed consumer sentiment with the threat of imported inflation, has also cast its shadow over the cement industry.
The Cement and Concrete Association of Malaysia (C&CA) Chairman Datuk Yeoh Soo Keng said that some items crucial to the cement industry, such as coal and gypsum, are purchased in US Dollars. "Coal and gypsum, which are important components of our industry, are imported in US Dollars. With the current weak Ringgit levels, this has an impact on the industry," said Yeoh Soo Keng, who is also the CEO of YTL Cement Bhd, a member of C&CA.
Lafarge's former president and CEO Bradley Mulroney said that the weak Ringgit had also impacted imports of clinker. "The import of clinkers has gone up by about 20% due to the impact of the weak Ringgit," he said.
Hume Industries Bhd Managing Director Quah Thain Khan said that cement players are working to mitigate the impact of the weak Ringgit by managing the usage of raw materials, such as coal, more efficiently. "We also negotiate for cheaper sources of coal," said Thain Khan, adding that the industry is also challenged by the increasing cost of foreign labour. "I think that the industry needs to place more emphasis on automation and be less labour-intensive by investing in precast concrete systems and industrialised building systems."
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said that the construction industry would see 'reasonable growth' in 2016, fuelled by infrastructure projects under the 11th Malaysia Plan, such as Mass Rapid Transit Line 2, Light Rail Transit Line 3 and the Sungai Besi-Ulu Kelang Elevated Expressway. "It will not be double-digit growth, but it will be reasonable growth. As for the slow-down in the property sector, the softening is more in the high-end housing segment; the affordable housing segment continues to be reasonably strong," said Mustapa.
Mustapa added that Malaysia's cement and concrete industry is an important economic pillar, contributing about 4% of the country's gross domestic product. "The industry has also contributed to Malaysia's export earnings, with exports to countries such as Australia, Sri Lanka, Indonesia and India, but, at the same time, Malaysia is still a net importer when it comes to clinker." From January to August 2015, Malaysia imported US$81.4m of clinker, compared with US$77.9m in the same period of 2014. "It is hoped that more integrated cement plants will be set up in Malaysia to produce our own clinker and reduce imports," said Mustapa.
Panama: Cemex's Panamanian operations have been awarded the highest recognition in sustainable development and environmental management by the Panamanian Chamber of Construction (CAPAC). Cemex Panama earned this honour for its implementation of protection and conservation policies in the environments where it operates.
The award criteria included the company's environmental policies, energy and water efficiency, waste management and the handling of chemical substances; air pollution mitigation; environmental controls and records; environmental contingency plans; and reforestation plans.
Cemex Panama obtained this recognition thanks to such initiatives as its Technological Innovation Project based on P+L Systems, which resulted in energy savings of 32% at its cement plant; its Reduction of Water Consumption Project, which helped reduce its water consumption by over 35%; its waste management and waste-water treatment policies; its Reforestation Project, which will enable the recovery of 633,000m2 of forest by 2019.
"We are very honoured to receive this award, which recognises the integration of environmental management in our daily operations and processes," said Andres Jimenez, President of Cemex Panama. "Sustainability is an integral part of our business model and a core component of Cemex's future growth."
Sinoma to build US$386m cement plant for Ibeto Cement 22 October 2015
Nigeria: China National Materials Company's Shanghai-listed subsidiary Sinoma International Engineering Co Ltd has entered into an engineering, procurement and construction contract with Ibeto Cement Company Limited for a 6000t/day clinker line and 45MW self-generation power plant in Enugu, Nigeria. The contract is worth US$386m. It covers the whole process, from the exploitation of limestone mines and the crushing of raw materials, to the packing and delivery of cement and a captive power plant and includes engineering design, supply of equipment, steelwork and materials, civil construction, installation, debugging and staff training.
Saudi Cement Company launches new identity 22 October 2015
Saudi Arabia: Saudi Cement Company has launched a new brand identity that embodies the company's future vision for growth.
A ceremony was held at the Sheraton Damman Hotel to mark the occasion in the presence of senior government officials, businessmen, suppliers and clients. The event also marked the company's diamond jubilee.
According to a statement, Saudi Cement chose to evolve its brand and motto in order to reflect a new identity and pledge solid commitment to clients in line with its vision and determination to continue in the path of fundamental evolution embarked on in 2008.
Chairman Khalid bin Abdul-rahman Al Rajhi said that the new identity confirms that Saudi Cement is looking forward to a brighter future. "In light of the changing conditions in the markets of the cement industry, the company reveals a new brand identity that reflects its historical legacy and our present day status, as well as our relentless efforts to be innovative and have a positive impact on the future," said the Chairman. "All of the shareholders, customers, employees, suppliers and the community we serve have played a part in our successful achievements and we cherish our excellent relations with them."
Managing Director Walid bin Ahmed Al Juffali highlighted the importance of planning and development in the outstanding performance of the company. He said that there were a number of key factors to the success of the company, including the concerted efforts of co-operation between the staff of the company, customers' trust and the favourable climate created by the government to support national companies.
"We were able to attain the objectives that we set during the past decade," said Al Juffali. "Armed with a clear vision we set our goals, outlined our values and managed to develop the organisational structure of the company and motivate the human resources to materialise our objectives. Thus Saudi Cement was able to attain its well-deserved leading position and looks forward to a promising future. The leading position assumed by Saudi Cement is the outcome of a solid foundation and historical heritage spanning half-a-century during which the company was able to weave close relations with stakeholders, clients, suppliers and the community it is serving to the benefit of all parties." He stressed that the new brand identity is an accolade deserved by merit of outstanding performance in the region, driving the company to become one of the major and most trusted companies in the Saudi and Middle East markets.
Saudi Cement benefits from its presence in Al Ahsa, in close proximity to the energy needed to run the cement plant and raw materials essential for the cement manufacturing process, as well as the availability of skilled labour and craftsmen. The proximity of the cement plant, linked by rail to King Abdul Aziz Port in Dammam also helps to facilitate cement exports.
Vietnam: Sai Son Cement JSC made a US$29,030 net profit in the third quarter of 2015, down from US$323,064 in the same period of 2014 due to a fall in revenue and higher costs of goods sold. Its net revenue fell to US$3.22m in the third quarter from US$3.49m in the 2014 quarter. Gross profit fell to US$296,142 from US$708,946 in 2014.
In the first nine months of 2015, Sai Son Cement made US$206,402 of net profit on US$10.5m net revenue, compared to US$690,998 of net profit on US$10.1m net revenue in the same period of 2014.
Vietnam: The Bank for Investment and Development of Vietnam (BIDV) has signed a credit contract with Thanh Thang Cement Corporation to develop a second production line at its cement plant in Thanh Nghi, Ha Nam.
Under the agreement, the BIDV will lend Thanh Thang Cement US$156m. The project requires a total investment of US$250m. The new line will have 2.3Mt/yr of cement production capacity. It was added to the government's plan for the cement industry in Vietnam during the 2011 - 2020 period. Once completed for operation in 2017, the project is expected to create jobs for more than 1000 local labourers.
Vietnam has become the fifth-largest cement producer and consumer in the world after China, India, Iran and the US. The country now has 74 cement production lines with a combined output of 77Mt/yr. The output volume is predicted to continue increasing. The ministry has predicted that Vietnam's sales of cement and clinker will to rise by 1.5 - 4% year-on-year to 72 – 74Mt in 2015, of which domestic sales will rise by 4.5 - 6.5% to 53 – 54Mt and exports will be at 19 – 20Mt.