September 2024
Nigeria: Switzerland-based LafargeHolcim subsidiary Lafarge Africa has donated three of its facilities - along with personal protective equipment (PPE) - for use to isolate and treat coronavirus patients. Lafarge Africa chief executive officer (CEO) Khaled El Dokani said, “Our intervention will relieve healthcare facilities in Lagos and in our host communities, to support those fighting COVID-19.”
In addition, Lafarge Africa stepped up its water sanitation and hygiene (WASH) initiatives in its host communities.
Association of Cement Producers lobbies Polish government to allow production to continue 08 April 2020
Poland: The Association of Cement Producers (SPC) has told the government that the cement industry generates 1.0% (Euro5.39bn) of annual gross domestic product (GDP) directly and 10% (Euro53.9bn) indirectly via construction and, as such, ought to be permitted to continue operations as a ‘necessary business’ under the terms of the country’s coronavirus lockdown. The SPC also said that the industry serves a crucial function in disposing of 11-12% (1.32 – 1.44Mt/yr) of Poland’s waste as fuel for cement production.
Poland has been on lockdown due to the coronavirus outbreak since 11 March 2020.
Cement demand forecast to plunge in India 07 April 2020
India: Cement manufacturers in India have seen a significant turn in fortunes since the start of 2020 due to the ongoing coronavirus outbreak. Producers, which had been raising prices and selling high volumes at the start of the year, are seeing a slump in demand in the wake of a nation-wide lockdown that began in mid-March 2020. Motilal Oswal Financial Services estimates that cement sales in March 2020 will be 40% lower than those seen in March 2019. Even after the lockdown ends, there will be severe knock-on effects for the remainder of India’s 2021 Fiscal Year (FY2021), which ends on 31 March 2021. This is expected to be due to weak economic growth, government cuts in spending on infrastructure and lower real estate demand.
Indeed, ratings agency CRISIL expects cement demand in India to contract by at least 10 - 15% in FY2021 compared to FY2020, with a ‘worst-case scenario’ of up to a 25% reduction.
The only respite that cement manufacturers may see is on the logistics side. With lower production volumes, transporters are offering more concessions on freight rates that will further help with costs, according to analysts. Low oil prices will benefit producers, while Petcoke prices may also remain relatively low.
Holcim Philippines hampered by new lockdown 07 April 2020
Philippines: Holcim Philippines has suspended the operation of its manufacturing plant in Davao as the city goes on lockdown until (at least) 19 April 2020 in order to contain the ongoing coronavirus outbreak. This was due to a 4 April 2020 order by Mayor Sara Duerte that imposed enhanced community quarantine protocols. Holcim plants are now suspended in the whole of Luzon and in Davao City, prompting the company to announce that it could miss its full-year goals.
Luzon is now on the fourth week of a month-long isolation order that is formally due to end on 12 April 2020. However, government officials have already sounded the possibility that this could be extended.
South Asian trade body welcomes relief measures 07 April 2020
Pakistan: The Pak-India Business Council (PIBC), a leading Pakistan-based organisation that advocates for stronger trade ties with India, has welcomed a relief package for the construction sector announced by Prime Minister Imran Khan. The PIBC said that the measures would be help generate business in the country, including for those taking home daily wages, who have been disproportionately affected by the coronavirus outbreak.
PIBC Chairman Noor Muhammad Kasuri said that the Khan's relief package would help provide relief to construction workers. He also welcomed an exemption of duty on construction materials, including cement, that would also help construction firms and allied businesses. Kasuri even added that the steps would open ‘new vistas of investment’ in the country after the outbreak.
Cemex resumes operations in Mexico 07 April 2020
Mexico: Cemex has announced that will resume operations in Mexico, just hours after announcing that it would halt all operations in the country. The turnaround was due to new government guidelines regarding essential business operations during the coronavirus outbreak.
"In accordance with the technical guidelines published today in the official Mexican gazette, the company will resume operations in Mexico to support the development and the economy of the country during the COVID-19 contingency," said Cemex in a statement on 6 April 2020. Earlier the same day it had announced that it would halt all Mexican operations until at least 30 April 2020.
Dangote to raise US$260m in new funds 07 April 2020
Nigeria: Dangote Cement, Africa’s leading cement manufacturer, is seeking to raise up to US$260m in fresh funds from the bond market under its US$780m Debt Issuance Programme. The investor presentation document prepared by the company was themed ‘Building Prosperity in Africa.’
Cemex temporarily stops production in Mexico 06 April 2020
Mexico: Cemex has temporarily stopped production in Mexico following a government decree issue by the Health Ministry of Mexico in response to the coronavirus epidemic. The building materials company says it has maintained communication with the federal government to resume operations should the authorities decide that the construction industry should be prioritised.
“For Cemex, the health and safety of our employees, contractors, suppliers, customers and communities is a top priority,” said Fernando A Gonzalez, the chief executive officer (CEO) of Cemex. “As soon as the COVID-19 threat emerged, we activated our Rapid Response Teams to implement preventive measures in response to this unprecedented health crisis.” He added that 90% of Cemex’s customers use it Cemex Go online sales platform. The company had also identified US$200m in cost-saving initiatives for 2020 and it is evaluating the delay of certain capital expenditures that had been planned for this year, among other measures.
Vietnam: Data from the Ministry of Industry and Trade shows that clinker exports fell by nearly 40% year-on-year to 7.5Mt in the first quarter of 2020. Clinker export values dropped by 19% to US$360m in the same period, according to the Viet Nam News newspaper. Previously, the Ministry of Construction forecast that cement demand would increase by up to 5% to 103Mt in 2020 due to a recovery in the real estate market. Around a third of this was expected to be exported. Local consumption of cement and clinker grew by 2% year-on-year to 98Mt in 2019.
Pakistan domestic cement sales fall by 17% in March 2020 06 April 2020
Pakistan: Data from the All Pakistan Cement Manufacturers Association (APCMA) shows that local cement sales fell by 17% year-on-year to 3.2Mt in March 2020 from 3.9Mt in the same period of 2019 due to a contraction in construction activity, according to the News International newspaper. Exports rose by 5% to 0.51Mt but this is expected to fall as markets decline around the world due to the coronavirus outbreak. Both local sales and exports grew in the first two months of 2020.
The government has introduced an incentive package for the construction industry which is expected to help increase local cement consumption. The cement industry is also anticipating a reduction in federal excise duty, which it described as ‘very high’ regionally.