September 2024
Algerian cement exports expected to reach US$400m by 2021 20 November 2019
Algeria: Trade Minister Said Djellab has revealed that the country’s cement exports are expected to reach a value of US$400m by 2021. Export earnings were around US$20m in 2018 and then tripled to US$60m in 2019, according to the El Mujahid newspaper. The minister made the comments at a ceremony marking an export of cement from a Ciment Lafarge Souakri (CILAS) plant. He added that the local market has a cement production capacity of 40Mt/yr and that only 22Mt/yr is required domestically. Producers are targeting countries in west Africa, including Guinea Bissau, Senegal, Gabon and Mali.
Breedon Group’s sales grow despite uncertain UK market 20 November 2019
UK: Breedon Group’s revenue grew by 8% year-on-year to Euro933m in the ten months to the end of October 2019. Its cement sales volumes increased by 6% but its ready-mixed concrete sales fell by 5%. Aggregate and asphalt sales volumes also rose. The group said that its results were achieved against the backdrop of a flat construction market in the UK where lower industry sales volumes were recorded for all major heavyside construction materials in the nine months to 30 September 2019.
Paraguay opens up cement imports due to shortage 20 November 2019
Paraguay: The Ministry of Industry and Commerce (MIC) has lifted restrictions on cement imports following problems with local production. The local market needs around 100,000 bags/day of cement and state-owned Industria Nacional del Cemento (INC) normally provides around half of this, according to the ABC Color newspaper. However, production problems at INC’s plants have seen significant drops in supply.
Cemex Ventures to enter Chinese market 20 November 2019
China: Cemex’s corporate venture capital subsidiary Cemex Ventures is preparing to enter the Chinese market offering innovations for the construction industry. It wants to build relationships with startups in order to do this and it has signed deals with local companies Glodon, a digital platform service provider in construction industry based in Beijing, and Interdream Ventures, a venture capital firm that focuses on the digitalisation of construction and decoration industry.
"This type of alliance between two segments that fit together, is key to finding new successful business models, and operate in the Chinese market. Glodon and Interdream Ventures also have a complete vision of the entire value chain and are good partners to drive the construction revolution,” said Juan Nieto, a representative of Cemex Ventures Asia.
Cemex Ventures is the corporate venture capital wing of Cemex that was launched in 2017. It invests in startups with potential in the construction industry and works with entrepreneurs, universities and other stakeholders.
Global Cement exhibits at International Cement Seminar in Atlanta 20 November 2019
US: Global Cement is exhibiting at the 36th International Cement Seminar & Exhibition taking place in Atlanta, Georgia. The long running cement equipment and technology event has returned after a lengthy break. Portland Cement Association (PCA) chief economist Ed Sullivan gave the keynote address at the conference with an industry forecast for 2020.
Brazil: Markets in Brazil and North America have supported Votorantim Cimentos’ sales so far in 2019, despite setbacks in Turkey and Latin America. Its sales revenue rose by 2% year-on-year to US$907m in the first nine months of 2019 from US$891m in the same period in 2018. Overall sales volumes of cement fell slightly to 8.4Mt. The cement producer’s adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased by 5% to US$188m from US$199m, with declines reported in all operation regions except North America.
Taiwan Cement’s profit rises on cement prices 19 November 2019
Taiwan: Taiwan Cement’s profit has risen so far in 2019 due to stable cement prices and falling coal prices. Its net profit increased by 11.1% year-on-year to US$214m in the first nine months of 2019, according to the Taipei Times newspaper. However, its sales revenue fell by 3.5% to US$2.87bn. The cement producer says it has a production capacity of 102Mt/yr following the formation of a joint venture in Turkey and an acquisition in Portugal in 2018.
The company reported higher labour, transportation and raw material costs in China in the third quarter of 2019. Its expenses were also inflated by environmental upgrades. Company president John Li said, that despite falling prices in Guizhou province, demand in regional markets, including Guangdong, Guangxi and Jiangsu provinces was expected to remain beneficial.
Cemex looking to sell stake in Kosmos Cement plant in Kentucky 19 November 2019
US: Cemex is looking to sell its majority stake in the Kosmos Cement plant at Louisville in Kentucky. Sources quoted by the El Financiero newspaper said that the integrated plant could be valued as high as US$750m. Cemex is working with Bank of America and Citigroup on the potential sale. Buzzi Unicem, through its subsidiary Dyckerhoff, owns the remaining stake in the plant. Cemex’s decision to try and sell the plant follows falling sales and profits for the Mexican building materials producer so far in 2019.
Philippine Competition Commission considers voluntary commitments as part of Holcim acquisition 19 November 2019
Philippines: The Philippine Competition Commission (PCC) is considering voluntary commitments submitted by First Stronghold Cement and related parties in connection to its proposed acquisition of Holcim Philippines. First Stronghold Cement, an indirect subsidiary of San Miguel Corporation, has agreed to buy an 85.7% stake in Holcim Philippines, according to the Philippine Star newspaper. Companies undertaking acquisitions can make behavioural or structural voluntary commitments during the process to alleviate competition concerns with the PCC. Behavioural commitments include market constraints imposed by the PCC whilst structural commitments cover divesting assets.
Initial findings by the PCC on the proposed purchase found it could affect the market concentration of relevant products in parts of Luzon, and Northern and Southern Mindanao. This would normally prompt a stage two review of the proposed acquisition. However, if the PCC accepts the suggested voluntary commitments it would bypass this step.
HeidelbergCement targeting expansion to 20Mt/yr in India 19 November 2019
India: HeidelbergCement India is targeting expansion options to increase its production capacity to 20Mt/yr from 12.5Mt/yr. Managing director Jamshed Cooper said that the company is looking at companies in the range of 5 – 10Mt/yr in order to avoid the National Company Law Tribunal (NCLT) process, according to the Indo-Asian News Service. The cement producer is also planning to build a 22MW waste heat recovery unit at its Zuari plant in Yerraguntla, Andhra Pradesh at a cost of US$28m. Debottlenecking initiatives are also being conducted at a cost of US$7m to increase overall production capacity by 0.5Mt/yr when completed in 2021.
The group operates two subsidiaries locally: HeidelbergCement India and Zuari Cement. HeidelbergCement India serves the central markets and Zuari Cement, a former Italcementi subsidiary, focuses on the south of the country.