September 2024
France: Lafarge's net loss has grown by 15% year-on-year for the first quarter of 2014, from Euro117m in 2013 to Euro135m in 2014. The company blamed the result on the 'seasonality' of its business and the effect of the variations of the net-of-tax gains and losses on divestments.
Overall sales across all business lines fell by 2% year-on-year to Euro2.63bn from Euro2.68bn. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 21% to Euro343m from Euro342m. Notably an improvement in EBITDA in the group's Western Europe region was noted.
"Our first quarter results confirmed the positive trends experienced at the end of 2013. Our volumes were supported by continuing growth in emerging markets and the progressive improvement in several European markets. North America was affected by a harsh winter but the underlying market trends are positive. Our outlook for the year is confirmed and we expect to see cement demand growth in our markets of between 2% to 5% in 2014," commented chairman and chief executive of Lafarge, Bruno Lafont.
For its cement business, cement sales volumes rose by 8% to 25.9Mt from 23.9Mt. Despite this rise in volumes, cement sales remained static at Euro365m for the quarter.
By region for its cement business, Lafarge reported static sales volumes for cement year-on-year for the quarter in North America due to adverse weather. Sales volumes rose by 7% to 2.6Mt in Western Europe with notable improvements recorded in Spain and Greece. Volumes rose by 19% to 1.9Mt in Central and Eastern Europe with increases in Poland and Romania but a fall in sales in Russia. In the group's Middle East and Africa region cement sales volumes rose by 15% to 10.5Mt. In Latin America sales volumes fell by 15% to 1.9Mt impacted by group divestment and deconsolidation in Honduras and Mexico, despite increase sales volumes in Brazil. In Asia sales rose by 7% to 7.5Mt.
Uganda: The High Court in Kampala has ordered the Minister of State for Gender and Cultural Affairs Rukia Nakadama Isanga to pay US$52,000 to Hima Cement for construction materials she bought from the company.
According to court documents, Hima supplied cement worth US$31,000 to Nakadama and her husband, Dauda Isanga, between 2003 and 2005. The couple later issued cheques worth US$31,000 to the company but these cheques were rejected by the bank due to insufficient funds. Justice David Wangutusi also ordered Nakadama and Isanga to pay US$19,500 in interest to Hima Cement accrued since 2009. The judge also ordered the couple to pay 8% interest per annum on both amounts from the date of judgement until the payment is completed.
Egypt: Suez Cement Company has announced plans to invest US$42.8m to convert two out of its four plants to use coal instead of natural gas following a controversial government decision to import coal as a means of addressing power shortages.
The conversion process for each plant will cost around US$21.4m, according to Mohammed Shanan, Suez Cement's business development director. Another company source estimated the overhaul will take between 6 - 8 months. The company is still waiting for final approval from the Ministry of Environment to use coal in the production of cement.
Suez Cement's production fell by 50% during the first quarter of 2014 as a result of fuel shortages, which has led to a 50% decline in sales.
The Egyptian Cabinet approved the use of coal for power generation in April 2014, despite the disapproval of Minister of Environment Laila Iskandar. The Egyptian government had cut natural gas supply to plants in an attempt to conserve energy resources.
A number of non-governmental organisations, including the Egyptian Initiative for Personal Rights, condemned the decision to use coal in a statement in April 2014, forecasting that it will have 'devastating consequences on health and the economy.' The Egyptian Centre for Economic and Social Rights, with support from the Doctor's Syndicate, has filed a lawsuit against interim Prime Minister Ibrahim Mehleb, President Adly Mansour and the ministers of trade, petroleum, electricity and environmental affairs in an attempt to block the use of coal in Egypt.
India: ACC Cement plans to invest US$499m to modernise its Jamul facility in Chhattisgarh and to add a grinding unit of 1.5Mt/yr capacity in its Jharkhand-based unit, according to ACC sales director C Kurian. ACC aims to decommission the existing plant at Jamul and set up a new technology-based cement plant with a 4Mt/yr production capacity. Kurian added that the Holcim-owned company is likely to finish the work by the second quarter of 2015.
ACC currently has a production capacity of 6Mt/yr but plans to raise it to 10Mt/yr by 2016. It has six plants and holds a market share of 12% in India.
Nicaragua: According to Reuters, Cemex has begun construction on a new US$55m cement grinding plant in Nicaragua.
Cemex said that the new plant would boost cement production capacity by 0.44Mt/yr, which equates to 104% of the country's current production capacity. The plant is projected to increase housing and infrastructure development. The new plant in Ciudad Sandino, on the outskirts of the capital Managua, will eventually include two grinding mills and is expected to be complete by the end of 2017.
Nigeria: Dangote Cement has reported that its first quarter pre-tax profits fell by 1.25% year-on-year to US$331.7m. Gross earnings rose to US$652.5m compared with US$599.9m in the same period of 2013.
Dangote's chairman, Aliko Dangote, disclosed that its expansion drive would increase capacity and add an additional 9Mt/yr of production capacity by July 2014, expressing satisfaction that cement imports into Nigeria had continued to fall. An estimated 1.1Mt of cement was imported in 2013, down from 1.9Mt in 2012.
Dangote vowed that the company would stop at nothing to expand, as most of Nigeria's neighbours are currently importing cement from the Far East. "We are confident that Nigeria's cement will prove more attractive than the imports, particularly within the 15 member Economic Community of West African States (ECOWAS)," he added.
To stabilise the price of cement and free the consumers from 'profiteering middlemen,' Dangote said that his company would intensify its direct-to-consumer deliveries.
Saudi Arabia: China's Tianjin Cement Industry Design and Research Institute Co Ltd Tianjin, part of Sinoma International, has signed a contract with Loesche for the delivery of a LM 56.4 vertical roller mill to the cement plant of United Cement Industrial Company in
Saudi Arabia.
The Loesche mill will grind cement raw material at a production rate of 420t/hr with a fineneness of 12% R 90μm / 2% R 200μm. Loesche will also deliver a 3600kW capacity gearbox. The very hot ambient conditions in the Kingdom of Saudi Arabia causes very dry raw materials, necessitating a grinding bed sprinkler system.
Delivery for the key parts of the LM 56.4 is scheduled in August 2014. The commercial production of cement is expected in the second half of 2015.
Gas shortage forces cement plant shutdowns 02 May 2014
Egypt: Ten cement plants, accounting for 70% of Egypt's capacity, have been forced to temporarily halt production after state-run Egyptian Natural Gas Holding Company (EGAS) stopped providing them with natural gas.
"These plants have not yet officially announced that they are shutting down. They initially gave employees 15 days off and have extended the leave by another week, because the agreed-upon daily supply of natural gas was stopped," said an official from the Federation of Egyptian Industries (FEI). He said that the plant owners are holding discussions with the prime minister to review gas prices to ensure that the cement sector can continue to operate. The shutdowns are costing each plant around US$2.14m/day on average.
EGAS supplies nearly 800Mft3/day of gas to the industrial sector at subsidised prices, of which 150Mft3/day is allocated for the cement sector. However, frequent power outages have forced the government to redirect gas supplies from some cement plants to meet the needs of power plants.
The Ministry of Petroleum had initially reduced gas supplies to cement plants by 35% in the first two months of 2014. "The government, represented by the petroleum sector, bears a cost of US$1.4bn from selling natural gas at subsidised prices to cement plants, whereas those plants export their production or offer it in the local market at international prices," said Petroleum minister Sherif Ismail.
Ismail said that the government is considering a new price mechanism for the industrial sector, however, any changes would be implemented gradually because of the difficult economic situation in Egypt 'which cannot withstand a sudden spike in prices.'
DGKC and VHMEL both hope to buy Lafarge Pakistan 02 May 2014
Pakistan: The attempts for an ultimate buyout of Lafarge Pakistan Cement Limited (LPCL) intensified on 30 April 2014 as interested parties made public announcements of their intention to acquire shares. That was to comply with the requirements of Listed Companies (Substantial Acquisition of Voting shares and Takeovers) Ordinance 2002. Currently, Lafarge SA has a 73% stake in LPCL.
William Gordon Rodgers, authorised representative of Vision Holding Middle East Limited (VHMEL), made a public announcement of VHMEL's intention to acquire 75.86% of LPCL. He said, "The total number of issued shares of LPCL is 1.45bn. VHMEL intends to buy 1.10bn shares, constituting 75.86% of the total." Rodgers added that if VHMEL proceeds to buy the shares, it would make a public announcement of offer to acquire further ordinary shares of LPCL in accordance with the requirements of the Listed Companies (Substantial Acquisition of Voting shares and Takeovers) Ordinance 2002.
DG Khan Cement Company Limited (DGKC) also disclosed its interest in Lafarge. The company expressed its intention to acquire the 100% stake of Lafarge in LPCL. DGKC's company secretary, Khalid Mahmood Chohan, said, "The proposed transaction will be subject to the relevant approvals and legal formalities, including formalities under the Listed Companies (Substantial Acquisition of Voting shares and Takeovers) Ordinance 2002."
LPCL has an installed capacity of 2.4Mt/yr with its plant located in Chakwal, Chakwal District.
European Bank for Reconstruction and Development extends loan to US$65m for Senj Sant cement plant 01 May 2014
Mongolia: The European Bank for Reconstruction and Development (EBRD) is extending a US$65m loan to Senj Sant to build a cement plant as part of a financing package dating from May 2013, which included a US$20m equity investment. Construction at the 1Mt/yr plant situated in southern Mongolia began in April 2013
"The EBRD's long-term finance, including equity, not only helps us build the first cement plant in Mongolia using the environmentally-friendly dry process, but also supports the company in raising business standards to international levels," said
CEO of Monpolymet Group, Munkhnasan Narmandakh. Senj Sant is a subsidiary of Monpolymet Group.