September 2024
Pakistan: Lucky Cement plans to further upgrade its integrated Pezu plant following strong results in the first half of its financial year. It intends to increase the production capacity at the unit by 3.15Mt/yr. The cost of the project will be announced following the conclusion of negotiations with suppliers. Work is expected to start in 2021 and be completed in 2023.
The cement producer recorded sales of US$188m in the first half of its 2021 financial year (1 July 2020 – 30 June 2021), up by 42% year-on-year from US$132m in the first half of its 2020 financial year. Cement and clinker sales volumes grew by 36% to 5Mt from 3.7Mt. Its profit after tax more than doubled to US$28.3m from US$12.1m. It attributed this to higher production capacity at its Pezu plant as well as higher demand in the market generally.
Lucky Cement also reported that its new 1.2Mt/yr integrated plant at Samawah in Iraq started its kiln in the first week of January 2021 and trial production started in mid-January 2021. Commercial production is scheduled to start in February 2021.
Shree Cement reports nine-month sales drop in 2021 financial year 01 February 2021
India: Shree Cement has recorded consolidated net sales of US$1.27bn in the first nine months of its 2021 financial year (1 April 2020 – 31 March 2021), down by 2% year-on-year from US$1.29bn in the corresponding period of its 2019 financial year. The group’s net profit increased by 52% to US$204m from US$138m.
The company is currently working on a 6Mt/yr addition to its grinding capacity, consisting of two new grinding plants, in Athagarh Tehsil, Odisha, and Patas, Maharashtra. The facilities had been scheduled for completion in the first half of the 2021 financial year.
Portland Cement Association updates economic forecast 01 February 2021
US: The Portland Cement Association (PCA) has updated its winter 2020 – 2021 economic forecast. Senior vice president and chief economist Ed Sullivan said that in light of possible delays of three months or more to the national Covid-19 vaccine rollout, predicted robust economic recovery will be ‘slower than expected’ compared to expectations stated in the original forecast in December 2020. The PCA’s Market Intelligence Group expects cement consumption to grow by nearly 1% year-on-year in 2021, fueled largely by residential construction.
Japan/Indonesia: Taiheiyo Cement says that its board has approved and concluded its deal with Semen Indonesia to buy a 15% stake in its subsidiary Solusi Bangun Indonesia (SBI) for around US$220m. As part of the agreement, SBI’s Tuban plant will increase its export capacity by building a new jetty and silos. It will then export 0.5Mt/yr of cement to Taiheiyo Cement’s subsidiary in the US. The Japanese cement producer said that is focusing on markets in South-East Asia as part of its sustainable business development strategy in response to projected long term declining cement demand in Japan.
Titan Cement continues grinding partnership with Magotteaux in 2021 01 February 2021
Greece: Titan Cement has signed a frame agreement with Belgium-based Magotteaux whereby the latter will continue to be the main partner for grinding media for Titan cement plants worldwide until the end of 2021. Magotteaux says that the deal follows the ‘very successful’ implementation of the first phase of a strategic partnership.
The supplier said, “Magotteaux is also proud to supply many more technical solutions to Titan, including ball mill internal cast parts such as liners and diaphragms.” It added, “The aim of this agreement is to improve Titan’s overall cost of production, by increasing the productivity, reducing maintenance cost and downtime, by using the latest technologies for the abrasive and impact applications.”
LafargeHolcim partners with Massachusetts Institute of Technology as founder member of MIT Climate and Sustainability Consortium. 29 January 2021
US: Switzerland-based LafargeHolcim has become a founder member of the MIT Climate and Sustainability Consortium with the Massachusetts Institute of Technology (MIT). The group says that the consortium aims to accelerate climate action through innovation. It says that it will represent the building materials industry in working with MIT’s research team to develop ‘scalable solutions’ to tackle climate change. It joins 12 other companies, including Apple, Boeing and IBM.
Chief executive officer Jan Jenisch said, “I am committed to building a net zero future, driving innovative and sustainable building solutions that work for people and the planet. With the urgency of today’s climate crisis, no single organisation can tackle it alone. That’s why I am proud to be joining MIT’s alliance of like-minded industry leaders and academic partners to scale up our climate action together.”
Beumer Group technical report updates on Covid-19-led changes 29 January 2021
Germany: Beumer Group has published a technical report detailing changes to its operations due to the on-going Covid-19 outbreak. The group says that cement producers in some markets have changed to 50kg to 25kg bags. It also reported an increased rate of digitisation, less personal interaction with customers and an increased reliance on alternative fuels.
Cement head of sales Kay Wieczorek said, "Over past months, Covid-19 has forced us to cope with some changes. This will probably bother us even more in the colder months." He added, "Even if the Covid-19 figures are currently in progress, I am sure that BEUMER Group will come through this crisis pretty well; we just have to be well-prepared for it."
SCG forecasts 5 – 10% earnings growth in 2021 29 January 2021
Thailand: Siam Cement Group (SCG) has forecast total earnings growth of 5 - 10% from US$13.3bn in 2020. The Bangkok Post newspaper has reported that the group believes that its businesses are likely to be driven by product development and the circular economy, with an emphasis on diversification outside of cement.
President and chief executive officer Roongrote Rangsiyopash said, "We have a positive outlook for our businesses because we have strong strategies. The company is focused on high value-added products and global trends to support our businesses during the outbreak."
Fake cement facility raided 29 January 2021
India: A raid by customs officers on an alleged fake cement production facility near Manpur, Madhya Pradesh, has resulted in the recovery of 250 bags of fake cement. Also present were large quantities of fly ash and low-quality cement, as well as further empty cement bags. The bags bore UltraTech Cement branding. The Free Press Journal has reported the operation was situated in a shed adjacent to a roadside restaurant. Police are searching for an individual seen fleeing the site at the time of the raid.
Eagle Materials’ nine-month sales rise by 16% to US$1.28bn 29 January 2021
US: Eagle Materials’ sales in the nine months up to 31 December 2020 rose by 16% year-on-year to US$1.28bn from US$1.10bn. Its net earnings were US$273m, compared to a loss of US$1.54m in the first nine months of its 2020 financial year. Total cement volumes rose by 28% to 6.1Mt from 4.8Mt, and cement sales revenue rose by 35% to US$676m from US$502m.
President and chief executive officer Michael Haack praised the performance in the quarter which ended on 31 December 2020, saying, “Our cement shipments were up by 28% year-on-year, reflecting the strong performance of the recently acquired Kosmos Cement Business and the strength of our core markets. We continued to generate strong operating cash flow, which significantly improved our balance sheet and liquidity position providing us with increased financial flexibility.” He added, “As we continue to navigate the Covid-19 environment, I want to thank our team for their exceptional work under extraordinary circumstances, delivering strong results, remaining focused on the integration of Kosmos and keeping our strategic projects on schedule. We continue to closely monitor the disruptions caused by the Covid-19 pandemic and their possible impact on our business in current and future periods. We also continue to enforce strict health and safety protocols to protect our employees, customers and business partners, and we will continue to manage our cash flow prudently and protect our balance sheet.”