September 2024
Oficemen appeals for Spanish construction to continue 23 March 2020
Spain: Oficemen, the Spanish cement industry association, has joined other voices in the construction sector to advocate for the continuation of construction works, including infrastructure projects, during the coronavirus outbreak. According to the Ministry of Industry, Commerce and Tourism, "The closure of the works is not obligatory, as this activity has not been expressly suspended." However, increasing numbers of local authorities are stopping them, including those in Barcelona, which has ordered the closure of all building work in the city, both public and private.
Oficemen's president, Víctor García Brossa, argued, "Once the service sector is paralysed, construction becomes one of the main pillars of the Spanish economy" asserting that its work is "of the utmost importance… to prepare our country for the way out of this crisis." Regardless of whether works can officially continue or not, García Brossa has confirmed that the current situation predicts a ‘sharp short-term drop’ in cement consumption.
In February 2020, cement consumption in Spain fell by 0.5% year-on-year to 1.17Mt, about 5500t less than in February 2019, according to Oficemen’s latest data. This represented the fourth consecutive month of falls, although in year-on-year terms (from March 2019 to February 2020) consumption increased by 3.9%.
Exports continued their dire performance, falling for the 33rd consecutive month. A decrease of 31.4% month-on-month was seen in February 2020, which was down by 24.2% year-on-year compared to February 2019.
HeidelbergCement boosted in ‘bizarre’ start to 2020 23 March 2020
Germany: HeidelbergCement started the new year better than ever before, according to chief executive officer (CEO) Dominik von Achten. He reported that this had been mainly due to good weather before the onset of the coronavirus outbreak. Von Achten warned that the situation had already changed beyond recognition since mid-February 2020 for the multinational.
He said that the coronavirus outbreak had not only caused plants to be closed, either by enforcement or due to a lack of demand, but because migrant workers are unable to travel to construction sites. For example, workers from Eastern Europe are increasingly lacking in Western Europe. In Indonesia, a market that is important for HeidelbergCement, the lack of Chinese construction workers is stark, as they remain confined to their home country.
According to Von Achten, HeidelbergCement is now paying particular attention to its costs, has deferred all unnecessary investments and has considerable liquidity leeway. He added that the group is likely to benefit significantly from lower fuel costs as conditions improve over the course of 2020. HeidelbergCement is currently particularly affected in Lombardy, where its Italcementi subsidiary has its headquarters. HeidelbergCement has shut down its factories in Italy and imposed a freeze on hiring and non-essential spending. "You can see it's hitting the world like a wave," says Von Achten. "It's a tough test."
China Shanshui profit rises by a third 23 March 2020
China: China Shanshi Cement Group has reported that its profit was US$420m in 2019, a rise of 35.3% year-on-year compared to 2018.
North Korean plant ‘commissioned in a week’ 23 March 2020
North Korea: Local press says that the Sangwon Cement Complex in North Hwanghae Province has reported an upsurge in production, apparently making a record 10,000t/month of cement, its highest production level ever.
Chief engineer Yun Song Chol was quoted as saying that this had been made possible by ‘prioritising science and technology’ and ensuring the operation of equipment ‘at full capacity in accordance with the completion of modernisation at the end of 2019.’ Following the works, the line was reportedly commissioned in just a week.
Dangote donates to explosion rebuild effort 23 March 2020
Nigeria: Dangote Cement has donated cement worth US$270,000 to the Lagos State government to support the ongoing reconstruction process at the Abule-Ado site in Amuwo-Odofin Local Government area, which was affected by a deadly pipeline explosion on 15 March 2020. The donation was made by the chairman of Dangote Cement, Aliko Dangote, represented by the company’s Independent Non-Executive Director Emmanuel Ikazoboh.
BUA Group buys major construction firm 23 March 2020
Nigeria: BUA Group has announced its acquisition of a majority shareholding in PW Nigeria, one of Nigeria’s leading construction, engineering and mining companies. According to BUA, this was necessary to further deepen its investments in the infrastructure business in Sub-Saharan Africa.
Speaking on the acquisition, Abdul Samad Rabiu, executive chairman of BUA Group, said, “This acquisition marks the beginning of the next phase of our medium term strategy for our infrastructure business following the completion of the consolidation of our cement arm, BUA Cement in January 2020. BUA’s acquisition of majority holdings in PW Nigeria provides a prime opportunity to increase our investments in the entire value chain of the cement, mining and construction sector. We believe PW Nigeria, with its solid experience in building dams, roads, airports, water projects and other infrastructure projects in Nigeria, provided a strong value proposition too difficult to ignore.”
Import duties to continue in Armenia 23 March 2020
Armenia: The Armenian government has announced that it plans to extend the duration of state duties on cement imported from Iran and several other countries until 1 July 2020. The decision was made on the basis of analysis that confirmed an extension of the customs duties was appropriate. The government said that it would continue to monitor the situation.
According to the RA Statistical Committee Armenia produced 0.59Mt of cement in 2019, 8.1% more than in 2018. The RA Customs Service reported that the country imported 0.31Mt in 2019, a year-on-year increase of 70.5%.
EU ETS prices fall to lowest level since 1 November 2018 20 March 2020
EU: The coronavirus has caused emissions credits sold under the Emissions Trading Scheme to take a price dive to Euro16.31/t of CO2 on 19 March 2020, down by 36% month-on-month from Euro25.66/t on 19 February 2020 and 22% year-on-year from Euro21.01/t on 19 March 2020. Environmental consultancy firm Energy Aspects said, “As the COVID-19 outbreak is now spreading rapidly in Europe, it will start to reduce emissions as lockdowns are put in place in multiple countries,” according to Reuters. The European Commission has forecasted a 1.0% contraction in the EU economy in 2020, revising its February estimate of 1.4% growth year-on-year. This would correspond to a reduction in industrial CO2 emissions of between 10.0Mt and 20.0Mt by the end of year.
Titan Group strengthens sales as profit drops 20 March 2020
Greece: Titan Group’s profit dropped by 5.5% year-on-year to Euro50.9m in 2019, from Euro53.8m in 2018. The group said that it ‘demonstrated strength’ in ‘sustaining a growth performance’ despite challenges in Southeastern Europe and the Eastern Mediterranean. Sales were Euro1.61bn, up by 8.0% from Euro1.49bn in 2018, led by Titan Group’s US subsidiary Titan America’s sales growth of 10.7%, to Euro952m from Euro860m. Titan Group’s Greece and Western Europe sales grew to Euro245m, up by 3.3% from Euro237m in 2018, with sales gains from the private sector offsetting the decreased revenue from delays in public infrastructure projects. Cement exports, especially to the US, were also a major regional sales contributor, while clinker exports fell.
Group volumes of cement, including clinker and cementitious materials, were 17.0Mt, down by 7% from 18.2Mt.
World: Cement producers are mobilising human and material resources and implementing strategies to keep operations going with the minimum possible impact from the coronavirus. Germany-based HeidelbergCement subsidiary Lehigh Hanson has closed a minority of its facilities and prepared a contingency plan for further reduced operations ‘if conditions worsen.’ Brazil-based Votorantim Cimentos has established a Special Coronavirus Crisis Management Commission to aid communications and emergency response implementation across its facilities. UK-based Quinn has suspended all non-essential travel for employees.