September 2024
UK: The Construction Products Association (CPA) has predicted a 25% year-on-year decline in total national construction output in 2020. It said that the coronavirus lockdown resulted in the loss of 60% of planned construction output in April 2020, included 85% of homebuilding.
CPA economics director Noble Francis said, “Even under this most optimistic of scenarios, the country’s construction activity would suffer its sharpest fall ever recorded. Returns to site in May 2020 will focus on partially completed developments rather than new starts as house builders are expected to be cautious given uncertainty regarding demand. This uncertainty will also keep the recovery muted in commercial offices, industrial factories and the most severely-affected sub-sector, commercial retail.” He added, “A more positive outlook is expected for infrastructure activity thanks to a greater ability to implement safe distancing for workers on larger sites but also, vitally, thanks to HS2 being given the go ahead to proceed. An increase in activity from the five-year investment programmes within regulated sectors such as water and sewerage, roads and rail also adds to this more positive story.”
Cemex amends main bank agreement 27 May 2020
Mexico: Cemex has announced the amendment of its facilities agreement with several financial institutions to alter its consolidated leverage and coverage covenants. Under the new terms, the leverage covenant will increase to 6.75x for June 2020 and to 7.00x for September 2020 through to March 2021 and decrease thereafter.
Cemex chief financial officer (CFO) Maher Al-Haffar said, “We are very pleased with the completion of this process and with the support of our lenders. We are proud of our track record in working together with our bank group in both good and challenging time.”
Cemex said that as part of the amendment it has agreed to ‘temporarily limit certain flexibilities related to capital expenditure.’
Nigeria: Dangote Cement has recorded earnings before interest, taxation, depreciation and amortisation of US$293m in the first quarter of 2020, up by 2.2% year-on-year from US$287m in the first quarter of 2019. Sales rose by 3.8% to US$639m from US$616m. Cement sales volumes fell by 0.6% amid a total suspension of South African operations from late March 2020 due to the coronavirus lockdown.
Dangote Cement chief executive officer (CEO) Michael Puchercos said, “2020 started strongly, with growth across the board despite the early effects of the COVID-19 pandemic. We are closely monitoring all markets according to the guidance provided by the authorities in each country. We continue to provide superior services and deliver high quality products to our customers.”
Aïn Touta Cement awarded ISO certifications 27 May 2020
Algeria: The Aïn Touta Cement (SCIMAT) plant near Batna has been awarded two conformity certificates, according to the Ministry of Industry and Mining. The subsidiary of Public Industrial Cement Group of Algeria (GICA) has earned ISO 45001: 2018, relating to the occupational health and safety management system, and ISO 50001: 2018, related to energy management.
Philippines: Holcim Philippines has announced its full return to cement production across all integrated plants after it resumed operations at its 3.3Mt/yr Bulacan, Norzagaray plant, 2.1Mt/yr Davao, Ilang plant and 1.2Mt/yr La Union, Bacnotan plant. The company’s 1.8Mt/yr Lugait, Misamis Oriental plant remained open throughout the coronavirus lockdown. It says that it started to reopen plants and terminals from mid-March 2020 after national and local governments began to ease the lockdown.
Holcim Philippines president and chief executive officer (CEO) John Stull said, “We are ready to continue supporting our partners nationwide as they build important structures and contribute to reinvigorating the economy. Holcim Philippines is determined to ensure the wellbeing of our people, communities and business partners in our operations consistent with our core value of health and safety. Our company is also ready to share our expertise on this area to government and private sector partners to further contribute to the recovery efforts.”
Uzbek government lifts cement import ban 26 May 2020
Uzbekistan: Imported cement has begun to enter Uzbekistan after the government ended a ban on the ‘import of cement products’ on 23 May 2020. Uzbekistan Daily News has reported that the protectionist measure was lifted due to a spike in cement demand from the construction sector following an easing in the country’s coronavirus lockdown.
India: Birla Corporation has recorded a consolidated net profit of US$25.8m over the three months ending 31 March 2020, the fourth quarter of the Indian fiscal year 2020, up by 52% year-on-year from US$16.9m in the fourth quarter of the fiscal year 2019. Sales were US$223m, down by 5.5% from US$247m. This was due to the impacts of the coronavirus outbreak, which ended dispatches from late March 2020.
Birla Corporation said, “Despite muted market conditions, the company was able to raise price realisation through judicious adjustment of geographic and product mix aimed at increasing the share of blended and premium cements.”
Birla Corporation’s full year net profit for the fiscal year 2020 was a record US$66.7m, nearly doubling from US$33.7m in the fiscal year 2019.
Vietnam: Producers sold 29.2Mt of cement between 1 January and 30 April 2020, down by 7% year-on-year from 27.3Mt over the corresponding period of 2019. The Vietnam National Cement Corporation (VICEM) has reported that domestic sales fell by 4% to 19.3Mt (66% of total sales) and exports fell by 11% to 9.90Mt (34%), according to the Việt Nam News newspaper. April 2020 cement sales were just 8.08Mt, including 2.42Mt of exports, due to the effects of the coronavirus lockdown on cement demand from construction.
Russia: Iskitimcement has announced the beginning of CEM-II ground granulated blast furnace slag (GGBFS) cement at its Iskitimcement plant in Novosibirsk Oblast. Regional Weekly News has reported that the cement will be used in road base concrete production and soil reinforcement. Iskitimcement says that the cement has high frost, abrasion and impact resistance and strength of over 5.5MPa. It will sell the cement, the seventh type produced at the plant, in 25kg, 50kg and 1t bags.
Japan: Sumitomo Osaka Cement’s net profit in the fiscal year that ended on 31 March 2020 was US$102m, up by 40% year-on-year from US$72.7m in the fiscal year 2019. Sales fell by 2.4% to US$2.28bn from US$2.34bn. This was due to the collapse in cement demand following the coronavirus state of emergency declared in Tokyo and six other prefectures on 7 April 2020.