September 2024
US$100m Reliance Cement plant approved for Bengal 07 August 2013
India: The state government of Bengal has approved a US$100m cement plant project by Reliance Cement that has been waiting for clearance since 2011, according to the Times of India. 100 acres of land near Durmut village in Raghunathpur, Western Bengal have been allocated to the project.
The project, Reliance's third cement plant, will have a production capacity of 3.5Mt/yr, comprising 1.75Mt/yr of Portland Pozzolana Cement and 1.75Mt/yr of Portland Slag Cement. Currently Reliance Cement operates two cement plants in Madhya Pradesh and Maharashtra.
Kenya: Cemtech, the Indian cement firm owned by the Sanghi Group, is set to build a 30MW coal power plant for its proposed cement plant in West Pokot County. Construction of the plant is expected to begin on 14 August 2013, according to the Kenyan newspaper Business Daily.
15MW of electrical energy is intended to run the operations of the proposed cement plant. The remaining 15MW will be sold to the Kenyan national power grid said the National Environment Management Authority (Nema).
The entire cement plant project is expected to cost US$175m. The plant is due for completion in 2015 and will have a cement production capacity of 1.5Mt/yr. Although centered on the Kenyan cement market the plant will also target Uganda and South Sudan.
Titan increases sales in Q2 07 August 2013
Greece: Titan Cement has increased its sales year-on-year in the second quarter of 2013 by 2% to Euro329m from Euro323m. The Greek-based multinational cement producer said that recovery in the US and 'resilient' demand in Egypt had compensated for continued decline in the Greek market.
Despite the increase in sales net profit fell by 81% to Euro5.3m from Euro27.8m. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 12.6% to Euro67.9m from Euro77.7m. Overall for the half-year to 30 June 2013, sales rose by 4.4% to Euro572m and EBITDA fell by 17.8% to Euro92.2m.
In Greece demand for cement continued to decline with domestic cement sales at around just a sixth of Titan's cement production capacity. In the US, the rebound of the housing market, particularly in Florida, has had a positive effect on demand for building materials. In south-eastern Europe demand for building materials remained low and profit margins 'shrank' due to competition. In Egypt, despite political instability and problems with production, demand remained stable and Titan was able to increase sales by importing clinker. In Turkey, construction activity grew, both in the private and public sectors, as did exports.
In its outlook Titan reflected upon the mixed fortunes of its major production territories, with continued growth expected for the US, instability in Egypt and continued gloom in Europe.
Vulcan sales up by 7% in Q2 07 August 2013
US: Vulcan Building Materials has increased its sales year-on-year by 7% to US$696m in the second quarter of 2013 from US$649m. The construction aggregates and building materials producer said that demand for its products had followed the recovery in private construction activity, particularly residential construction.
"Each of our operating segments reported solid growth in second quarter earnings, contributing to improved gross profit margin and earnings per share. We achieved these results despite challenging, wet weather conditions that sharply reduced June shipments in many markets, " said chairman and chief executive officer Don James.
Vulcan's gross profit for the quarter rose by 25% year-on-year to US$133m from US$106m. Its net earnings were US$28.8m up from a loss of US$18.3m. Vulcan's cement business reported a rise of 11% to US$11.9m from US$10.7m. Volumes of cement shipped rose by 20% to 0.26Mt from 0.22Mt.
In its outlook for the rest of 2013 Vulcan expects the continued recovery of the US economy and building sector to drive demand. Cement earnings are predicted to improve overall in 2013 due to higher shipments and pricing as well as lower production costs.
Siam Cement Group reports robust Q2 earnings 07 August 2013
Thailand: Siam Cement Group (SCG) has reported that its revenue rose by 10.5% year-on-year to US$412m for the three months ending on 30 June 2013 from US$373m. Net profit for the period rose by 10.3% to US$369m from US$334m.
Chief executive officer Kan Trakulhoon said that SCG will acquire a company that makes roofing products in Cambodia, Laos, Vietnam and the Philippines, extending a strategy of expansion in Southeast Asia to access rising incomes in countries neighbouring Thailand.
Sumitomo Osaka Cement profits rise sharply in Q1 2013 06 August 2013
Japan: Sumitomo Osaka Cement has reported that its operating profit rose by 77% to US$38.5m in the first quarter of the 2012 - 2013 Japanese financial year that ended on 30 June 2013. In the quarter ending on 31 March 2012 it was US$21.8m. The Japanese cement producer noted that public-sector demand for cement was increasing due to reconstruction following the March 2011 earthquake and tsunami disaster and that private-sector demand had also increased in urban areas.
The company's sales revenue rose slightly in the first quarter of the 2012 – 2013 financial year to US$547m from US$539m. Net profit increased by 151% to US$25.8m from US$10.3m. Sales from the company's cement business in the quarter were US$440, a slight increase year-on-year.
Italy: Buzzi Unicem made a net loss of Euro26.6m in the first half of 2013, 44% higher than the Euro18.5m loss seen in the first half of 2012. It recorded a 25% fall in first-half core earnings for 2013, which it said were hit by lower sales volumes.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months fell to Euro150.7m from a restated Euro200.5m in the first half of 2012. Buzzi's net sales fell by 5.7% to Euro1.27bn. Buzzi's cement sales for the first half of 2013 were 12.3Mt, representing a 5.8% decrease compared to the first half of 2012 when it sold 13.1Mt.
The company said that the results for the first half of 2013 were below its own expectations and were caused by the extremely difficult economic situation in Italy, flat activity in Central Europe, the lack of clear signs of recovery in Eastern Europe and an unforeseen slowdown in Mexico.
Buzzi also said that it believed that there were grounds for a sizeable improvement of results in the second half of 2013, thanks especially to a volume recovery in Central Europe, acceleration of sales and prices in the United States and the attainment of an operating profitability closer to that of the previous year in Eastern Europe.
Based on the above considerations, for the full financial year 2013, Buzzi expects to report a recurring EBITDA that is 5 - 10% lower than that of 2012.
Holcim Indonesia sells less amid temporary overcapacity 02 August 2013
Indonesia: Holcim Indonesia has reported that market oversupply has caused lower cement sales in the first half of 2013 than in the first half of 2012. Sales volumes dropped by 1.3% to 4Mt between January 2013 and June 2013.
"The company had foreseen the contraction after a similar dip in the first quarter, the first time after eight consecutive quarters of growth," said Holcim Indonesia's president director Eamon Ginley.
In the first quarter, Holcim Indonesia reported that its cement sales volume had declined by 1.6% to around 2Mt. Ginley said the condition was temporary as demand would continue to increase over the medium to long terms, citing government and private sector investments in infrastructure and housing.
One dead in Dangote accident 02 August 2013
Nigeria: One worker was killed on 31 July 2013 at the Dangote Cement Gboko plant when he was hit by falling limestone, according to the All Africa Media Group. The deceased labourer, Solomon Ashir, was killed instantly.
Ashir was from the local community, which reacted angrily towards Dangote following his death. Many were of the opinion that health and safety measures at the plant had been deficient.
Bonfires were lit on the roads used to access the plant in the hope of trapping key staff members in the plant and Ashir's body was even carried into the office of the local Assistant General Manager (AGM) in charge of mines. He had fled the office in fear for his life before the protesters arrived.
Local media reported that Dangote representatives took the body to the local hospital after the protesters had vacated the office. Dangote's community relations manager could not be reached for comment.
Meanwhile, Benue State Police Public Relations Officer, Daniel Ezeala, confirmed that the incident had taken place and said that an investigation into the cause of the incident was underway.
New Zealand: Holcim New Zealand Ltd has announced that it will spend more than US$80m on the construction of an import terminal and related infrastructure that will allow it to import and distribute bulk cement to the New Zealand market, according to local news agency Scoop Independent News. The terminal is expected to be operational in two to three years time. The location of Holcim New Zealand's new import terminal is yet to be finalised and the company is investigating options at a number of New Zealand ports.
Announcing the decision, Holcim New Zealand Ltd managing director Jeremy Smith said, "This represents a substantial commitment by Holcim to the New Zealand building materials market. It means we will be able to leverage off the vast resources available through the Holcim Ltd worldwide supply network to ensure that our New Zealand customers receive cement of a quality and specification suitable for New Zealand conditions."
Once operational, cement imported through the new terminal will replace local production at the company's Westport cement plant. Holcim New Zealand has signalled for some years that the Westport plant was not sustainable in the long term. The decision also means that the long-delayed proposal for a new cement plant at Weston, near Oamaru, is on hold for the foreseeable future. Holcim will, however, maintain ownership of its land assets for the foreseeable future.
"We recognise that this decision has an impact for our staff, customers and for the Westport and Weston communities," said Smith. "It's one we've arrived at after extensively investigating a range of cement supply options and we will be working through the implications with those who will be impacted by the move. For the current economic environment, constructing an import terminal and importing cement is simply the most appropriate decision."