September 2024
Vicat profit increases by 6% in first half of 2014 05 August 2014
France: Vicat Group's financial results for the first half of 2014 show consolidated sales of Euro1.22bn, a 6.1% improvement over the same period of 2013 and 10.8% higher at constant scope and exchange rates. Vicat's cement sales were up by 17.1% at constant scope and exchange rates.
The group's consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) came to Euro208m, an increase of 3.1% in absolute terms and an increase of 8.8% at constant scope and exchange rates.
The cement sector remains Vicat's most important activity, accounting for 53.5% of income as opposed to 53.4% in the first half of 2013. Vicat highlighted that continued growth in India, West Africa and the USA, a return to growth in Egypt and favourable winter weather conditions in mainland Europe (especially France and Switzerland) helped drive its increased sales. It noted a fall in volumes in Turkey but this was partially offset by increased sales prices in that country.
"Over the first half, Vicat saw strong growth in business volumes and operating profit," states the group report. "Nearly all regions contributed to this performance, particularly Egypt which saw a return to growth, India, which saw significant progress despite continued competitive pressures and the USA, which is once again generating positive operating profits. In France, despite a promising first quarter helped by good weather conditions, performances were down slightly, due to a persistently unfavourable macroeconomic and sector conditions."
Spain: Cementos Portland Valderrivas (CPV) has seen its net loss widen to Euro31m in the first half of 2014 compared to a loss of Euro0.6m in the same period of 2013. It said that its performance was due to 'exceptional circumstances' and that without one-off items it would have improved its result by 36%.
CPV's revenue also decreased by 3.8% to Euro260m between January 2014 and June 2014. Cement sales volumes were up by 5%, of which 63% came from overseas markets, predominately the USA and Tunisia.
Drop in quarterly profit for Alexandria Portland Cement 05 August 2014
Egypt: Alexandria Portland Cement has reported a 79% year-on-year drop in its profit for the first quarter of the 2014 fiscal year, which ended on 30 June 2014. Its consolidated net profit fell from US$25.9m in the first quarter of 2013 to US$5.45m in the first quarter of 2014.
New plant for Eurocement in North Caucasus 05 August 2014
Russia: Eurocement Group will invest Euro167 m in the construction of a cement plant in the Karachay-Cherkess Republic in the North Caucasus. The new plant based on dry process technology will produce up to 4Mt/yr of clinker.
Brazil becomes the fourth-largest global consumer of cement 04 August 2014
Brazil: According to Datamark, the Brazilian cement industry has doubled in size, moving from 10th place to 4th place in terms of global consumption. Currently, Brazil's cement consumption is only behind the US, India and China. It is expected that Brazil's cement consumption will reach 75Mt/yr by 2016 and 85Mt/yr by 2020.
Cementos Yura invests in new cement plant 04 August 2014
Peru: Cementos Yura, a Gloria Group subsidiary, has invested US$50.0m in machinery and equipment for a new cement plant. The company is building capacity to meet the demand of large construction projects in Southern Peru. In the first half of 2014, Yura reported US$39.2m in profit, down from US$39.9m in the same period of 2013. Yura's domestic market share fell from 22% in the first half of 2013 to 21.7% during the same period of 2014.
Cherat Cement to install new production plant 04 August 2014
Pakistan: Cherat Cement Company Limited will invest US$197m to install a new production plant at its existing site in Nowshera, Khyber Pakhtunkhwa Province. The new plant will have a 1.3Mt/yr production capacity and will be commissioned in 30 months, according to Abid A Vazir, executive director of Cherat Cement.
The term-loan for the project has been arranged and Cherat Cement has established a letter of credit for the foreign component of the loan. The plant will be acquired from China's Tianjin Cement Industry Design and Research Institute Company Limited.
Cherat Cement expects domestic cement demand to grow exponentially as the present government has planned spending on major infrastructure projects, with a special focus on constructing highways and hydropower and housing projects. Cherat Cement is also expecting huge spending by the private sector on construction-related activities, fuelled by inflows of remittances from expatriate Pakistanis.
Canada: McInnis Cement has announced that the financial structure of its cement plant under construction in the Gaspé Region of Quebec has been completed. The National Bank of Canada, as the sole book-runner of the bank syndicate, has confirmed the availability of a US$329m loan for the project. This is in addition to the US$458m in equity from private and public investors, including the joint venture formed by Groupe Beaudier and La Caisse de dépôt et placement du Québec, as well as the participation of Investissement Québec (IQ). IQ has also provided a US$229m commercial loan, which brings the loan total to US$1.00bn.
"We are pleased that the project can be realised without any subsidy; we are also very proud to be able to complete, more than 30 years after it was imagined by local entrepreneurs, this visionary, ambitious and modern cement plant at the cutting edge of technology." said Christian Gagnon, CEO of McInnis Cement. "Construction has begun and the project is well under way. Moreover, the ecological footprint of this flagship project for the cement industry in Canada and across the world will be one of the lowest in the industry."
The plant will use up to 40% less fuel per tonne of cement than traditional cement plants due the use of hydroelectric power, reducing emissions of greenhouse gas. It will comply with the US standards set out in the National Emission Standards for Hazardous Air Pollutants (NESHAP 2015), which are more stringent than those presently applied in Quebec. For example, the NESHAP 2015 standard for particulate matter is 15 times lower than the current Quebec limit. The Port-Daniel cement plant will be the only one in Canada to comply with the NESHAP 2015 standards.
The plant will be equipped with state-of-the-art technology for improved environmental performance, including the latest generation of bag filters for improved efficiency. It will also utilise maritime transportation for fuel, further reducing greenhouse gas emissions. Initially, the plant will use petroleum coke as fuel, although this is set to change in due course.
"Over the coming years, we intend to further reduce greenhouse gas emissions by partly replacing the petroleum coke with biomass, which is available in the Gaspé region," said Gagnon. "This partial conversion to biomass is at the very heart of the concept of the cement plant."
Russia: Russia's Federal Antimonopoly Service (FAS) has made a decision to extend the consideration period for Holcim's application for the right to direct the following businesses: OAO Lafarge Cement (Moscow), FIANT LLC (Moscow), Lafarge Aggregates & Concrete LLC (Republic of Karelia), Drilling and Blasting Company LLC (Republic of Karelia), Bolshoy Massiv Quarry LLC (Republic of Karelia) and Tekhnobud Klesovsky Quarry of Non-Metallic Minerals LLC (Ukraine). The right to direct the businesses would stem from Holcim's acquisition of 66% of the shares in Lafarge.
Lafarge is licensed for the production, storage and application of industrial explosive materials, being engaged in the activities provided for by Article 6 of the Federal Law on Procedures for Foreign Investments in Business Entities of Strategic Importance for the National Defense and State Security. Therefore, Lafarge qualifies as a business entity of strategic importance for the national defence and state security. Therefore, the deal applied for requires prior approval as provided for by Russia's investment law.
Buzzi Unicem and Wietersdorfer deal completed 01 August 2014
Italy/Slovenia: Buzzi Unicem has completed a strategic agreement with Austria's Wietersdorfer & Peggauer, which was initially announced in February 2014. Under the terms of the deal, W&P Cementi, Wietersdorfer & Peggauer's Italian subsidiary, has acquired Buzzi Unicem's 0.3Mt/yr cement plant in Cadola, Belluno Province, Italy. W&P Cementi has also won the right to purchase Buzzi Unicem's 0.4Mt/yr cement plant in Travesio, Pordenone Province, Italy within the next five years for Euro22m. At the same time, Buzzi Unicem has paid Euro22m for a 25% stake in W&P Cementi and a 25% stake in Salonit Anhovo, Wietersdorfer & Peggauer's Slovenian subsidiary.