September 2024
Qatar: The Qatari Investors Group has appointed Faisal Abdulla al-Mana as the managing director of its subsidiary, Al Khalij Cement Company. Al-Mana was elected as member of the board of directors of the group in 2011. He has also been the vice chairman of Redco Construction Company since 2004.
It is hoped that his appointment will bring about further progress and prosperity, enhancing confidence and further development within the cement company. He brings a wealth of experience in the sector, which plays an important role Qatar's economic development, according to an Al Khalij spokesman.
Qatari Investors Group chairman Abdulla bin Nasser al-Misnad expressed optimism and confidence in al-Mana's abilities and visions, as his performance as one of the members of the board of directors of the Qatari Investors Group had been 'outstanding'.
Diamond cement tanker tribute to Queen 06 June 2012
UK: To celebrate the Queen's Diamond Jubilee, Cemex UK has decorated a cement tanker, aggregate tipper, concrete mixer and curtain sider with the Union Jack. The company's fleet of over 1000 vehicles travel thousands of miles every week to deliver essential building materials for construction projects, helping the company to build a 'Greater Britain.'
The Union Jack vehicles will be travelling around the country visiting Cemex sites and delivering loads to key customers.
Image courtesy of Cemex UK
CRH urged to go on spending spree 06 June 2012
Ireland: CRH could benefit as some of its bigger European competitors sell assets to strengthen their balance sheets, according to one senior industry analyst.
Robert Gardiner of Dublin stockbroking firm Davy says that CRH could spend up to Euro3.5bn on acquisitions while remaining within its banking agreements. However, the group's commitments to ensuring that its earnings are over six times net interest payments means that a more realistic estimate of the amount it has to spend on buying up rival businesses is closer to Euro1.5bn.
Gardiner says that the Irish group is alone among European operators in saying it intends to continue spending money on acquiring businesses. Many of its rivals, including Holcim, HeidelbergCement and Lafarge, are preparing to sell off assets to boost their own balance sheets. Gardiner adds that CRH can hopefully 'cherry pick' some of these businesses as they come on the market.
Lafarge sold Euro2.1bn worth of businesses in Asia, Australia and the US in 2011. Gardiner points out that it has signalled that there is another Euro1bn to come in 2012. He says there is speculation that its South African cement business is likely to be put on the block soon. In addition, the British authorities want Lafarge and Tarmac to sell some businesses, including cement, asphalt and readymix concrete plants, and a number of quarries, in return for allowing them to pursue a joint venture in that market. Similarly Holcim's new chief executive, Bernard Fontana, has signalled it could 'selectively' dispose of some of its businesses in 2012 as it moves ahead with a cost-cutting programme, while the group will restrict spending on expansion.
Mexican giant Cemex, which in is in the process of completing the takeover of the old Readymix plc in Ireland, wants to sell US$1bn worth of assets by the end of 2013, and intends to offload about US$500m in 2012. US operator Vulcan is looking at disposing of a similar level of assets.
CRH, which had revenues of Euro18m in 2011, spent Euro230m on acquisitions in the first four months of 2012. Much of the group's growth over the last 30 years has come through acquisition. In 2009, it raised Euro1.2bn through a rights issue in what was the largest such exercise in Irish corporate history. Its aim was to use the cash to buy businesses which it believed its rivals would be forced by to put on the market by high debts repayments. However, a fall in interest rates and other factors helped ease the burden on some of the industry's players and the opportunities that CRH foresaw did not materialise. Acquisition activity at the group has since picked up. In 2011 it spent over Euro600m on 45 purchases.
Cementos Portland fined Euro1.28m 06 June 2012
Spain: Spanish competition authority CNC has fined Cementos Portland Valderrivas Euro1.28m for submitting incomplete information. In May 2012 the CNC launched a probe into Cementos Portland over allegedly incorrect information about revenues, volume of products and corporate structure. Cementos Portland was obliged in January 2012 to pay a Euro5.72m fine for participating in a cartel fixing the prices of concrete.
UltraTech and Ambuja prop up Indian market's hopes 06 June 2012
India: Strong sales from India's two largest cement makers, Aditya Birla Group's UltraTech and Swiss major Holcim's Ambuja Cements, in May 2012 are likely to return the industry to growth figures above 10% after a gap of two months.
Following India's 'disappointing' GDP growth of 5.3% for the first quarter of 2012, strong dispatches just before the start of the monsoon season has given hope to cement industry experts for better growth in 2012-13.
Ambuja Cements sold 1.93Mt in May 2012 against 1.73Mt in May 2011, a rise of 11.9%. UltraTech Cement, registered sales growth of 10.6%. However, Ambuja's sister concern, ACC, could not match up with the other key producers and reported a growth of 3%. It sold 2.05Mt compared to 1.99Mt in May 2011.
"With 10-12% growth from country's two top cement makers, it seems the industry will hit growth of 11-13% in May 2012," said the research head of a Mumbai-based brokerage firm.
The Indian Cement Manufacturers' Association (CMA) will be releasing the sector's overall statistics in June 2012. UltraTech Cement, ACC and Amubja Cements collectively control close to one-third of the country's cement market, which has an overall capacity of 330Mt/yr.
Mozambique production hits record high 06 June 2012
Mozambique: Domestic production in Mozambique reached a record high of 0.28Mt in the first quarter of 2012, with imports falling to 79,000t during the same period.
National Director of Industry, Sidonio dos Santos, has attributed this growth to a sharp increase in the availability of cement, although domestic production is yet to meet the demands of the market. Cimento Nacional, a new cement factory, has been commissioned with an installed annual capacity of 0.25Mt/yr. Cimentos de Mocambique, the largest cement factory in the country, has increased its capacity to 0.40Mt/yr with the inauguration of a new mill.
In 2010 total production capacity for the country was estimated at 1.3Mt, which increased to 2Mt in 2011. In January 2012 domestic production reached 79,000t while imports were just 16,000t. In February 2012 production was nearly 90,000t, with imports at 26,000t. In March 2012 production was 0.11Mt, with imports at 37,000t.
"We believe we will meet the government's five-year plan for cement production, because investors are implementing their projects to increase production and build new factories," said Dos Santos.
Currently there are five cement factories in Mozambique. The government expects to inaugurate another three cement factories in the province of Maputo: GS Cimentos, with a capacity of 0.5Mt/yr; ADIL Cement, with a capacity of 0.12Mt/yr; Maputo Cement and Steel Maputo with a capacity of 0.13Mt/yr. In January 2012 Industry and Trade Minister Armando Inroga announced that the government is considering imposing a quota system for imported cement later in 2012 in order to protect Mozambican cement producers.
EAPCC fires senior manager 06 June 2012
Kenya: The head of sales and marketing at the East African Portland Cement Company (EAPCC), Francis Mwalili, has been fired. The EAPCC board accused him of inciting staff unrest and took advantage of his probationary contract to remove him. In addition EAPCC claims it had also received a letter in May 2011 from Mwalili's former employer, the Kenya Meat Commission, accusing him of extorting money from clients and potential customers.
Mwalili has denied the allegations accusing the EAPCC board of having a hidden agenda to sack him. He said his employment was on a five-year contract and he was not on any probation as alluded to in the termination letter. He is now calling on the relevant authorities to step in to avoid further disputes within the company, which have caused massive disruption since the start of 2012.
CITIC invests in Belarus upgrade 06 June 2012
Belarus: A new dry 1.8Mt/yr cement line has been commissioned at Kostyukovichi in Belarus. Architecture and Construction Minister Anatoly Nichkasov presided over the opening ceremony for the joint Belarusian and Chinese project, which was constructed by the Chinese company CITIC Construction. Director of OAO Belarusian Cement Plant Vladimir Kiselev said that the launch of a further cement manufacturing line in July 2012 would raise domestic output to 3Mt/yr. He also noted that it would create 154 new jobs.
Since 2007 CITIC has been implementing an investment programme in Belarus to modernise cement mills and manufacturing lines, including building three new cement mills and modernising the power supply for three existing ones. In April 2012 a cement line was commissioned at OAO Krasnoselskstroimaterialy with a capacity of 1.8Mt/yr. OAO Krichevtsementnoshifer will have a similar line to be completed by 1 July 2012. Loans from China Export and Import Bank are the main source of funding.
San Marcos launches in Colombia 06 June 2012
Colombia: Cementera San Marcos has started operations in Yumbo, in the Valle del Cauca region of Colombia.
The company is a project of the Cobo family that partnered with Otoya and Armitage, and a consortium of the Solarte brothers. The Cobos already own a limestone mine. Manager Fernando de Francisco estimates that the Colombian cement market currently stands at 0.95Mt/month, with Cementera San Marcos aiming at a 1.5% share.
Meanwhile Miguel Angel Rubacalva, president of Holcim Colombia, expects market growth in 2012. In 2011 Holcim Colombia saw a 19.8% increase in sales, with operating income rising by 103.3% from US$20,000 to US$40,300. Holcim plans to increase the capacity of its plant at Nobsa, Boyacá by 5%.
Lafarge Zimbabwe raises revenue target 01 June 2012
Zimbabwe: Increased cement demand in the local market has lead to Lafarge Cement Zimbabwe upgrading its revenue forecast for the year to 31 December 2012 to US$62m from an initial forecast of US$60m. At the company's annual general meeting managing director Jonathan Shoniwa said that increased capacity utilisation and cement demand had resulted in the revenue forecast adjustment.
In 2011 the company recorded a revenue of US$50m following a refurbishment exercise that increased capacity utilisation from 75% to 90% against a 19% decline in exports culminating from an increased focus on local demand. Shoniwa said that turnover in the four months to 30 April 2012 had risen by 35.2% to US$21.9m, with the operating margin having improved to 14% from 10% year-on-year.
Since Zimbabwe's economy 'dollarised' in January 2009, when US dollars were permitted to be used in parallel to the existing currency, cement demand for individual home projects increased as people focused on improving and building residential houses. According to Shoniwa, cement demand in the country is currently up by 28% predominantly due to retail construction. With the construction industry currently operating at below 40% capacity, the focus by the company will continue to be on the domestic market and increasing market share.
Lafarge Cement Zimbabwe has a capacity of 0.45Mt/yr. US$4.5m is expected to be spent on upgrades by the company in 2012.