September 2024
Nigeria: Dangote Cement has appointed Guillaume Moyen as its chief financial officer (CFO) for operations. He was the CFO of UAE-based OLA Energy from 2014 to early 2019, according to Bloomberg. He will report to group CFO Brian Egan.
Vicat builds sales in 2018 20 February 2019
France: Vicat’s sales rose slightly to Euro2.58bn in 2018 from Euro 2.56bn in 2017. Its cement sales volumes fell slightly to 22.8Mt and its ready-mix concrete sales volumes decreased by 6.7% year-on-year to 9.04Mm3. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 2.2% to Euro435m from Euro444m. However, at constant scope and exchange rates its sales and earnings rose by 5.9% and 2.7% respectively.
“Vicat delivered a satisfying performance in 2018, in a very mixed operating environment that saw large seasonal variations. The dynamism of the group’s sales teams, combined with a very firm grip on costs, allowed us to limit the consequences of the monetary and geopolitical difficulties affecting some of our markets,” said Guy Sidos, the group’s chairman and chief executive office (CEO). He added that the company had also reduced its debt in 2018 and purchased Ciplan in Brazil.
The group reported growth in France in all businesses and good sales in Kazakhstan, India and Turkey. Improvement was noted in the US, despite weather issues, and Senegal. There was a slight fall in sales in Europe, excluding France, and Egypt experienced a ‘sharp’ fall in sales and volumes.
India: JSW Cement plans to invest over US$275m towards meeting its target production capacity of 20Mt/yr by 2020. Following this achievement it intends to launch an initial public officer (IPO), according to the Economic Times newspaper. The company aims to reach its capacity target through expansions and upgrades at its existing plants.
At present the cement producer has a capacity of 12.6Mt/yr. It will add 1.8Mt/yr at Dolvi, 1.8Mt/yr at Vijayanagar, 1.2Mt/yr at Jajpur in Odisha and 1.2Mt/yr in Salboni. Following the IPO it will build new capacity in Rajasthan and Chhattisgarh.
Indian cement importers cancel orders from Pakistan 20 February 2019
India/Pakistan: Cement importers in India have asked exporters in Pakistan to stop their consignments following a 200% rise in tariffs for cement and other products in India. The duties have been imposed in response to an attack on police in Pulwama in Jammu and Kashmir in mid-February 2019, according to the Dawn newspaper. A source quoted by the newspaper said that cement shipments are being recalled on route to destinations in India.
Around 75% of Pakistan's cement exports to India are conducted at the Wagah land border, while the rest are handled at sea. Exports to India between July - January of the current financial year were 0.65Mt and exports in 2017 -2018 were 1.2Mt.
Cimenfort to build new cement plant in Angola 20 February 2019
Angola: Cimenfort plans to build a new cement plant at Cabinda. The site will have an area of 51 hectares and create 150 news jobs, according to the Mercado newspaper. The country has a total cement production capacity of 8Mt/yr.
Germany: Poor weather in the US and lower asset sales than expected reduced HeidelbergCement’s earnings in 2018. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 6.8% year-on-year Euro3.07bn in 2018 from Euro3.3bn in 2017. Its revenue rose by 4.7% to Euro18.1bn from Euro17.3bn. Cement sales volumes grew by 3.4% to 130Mt from 126Mt and ready-mix concrete volumes increased by 3.7% to 49Mm3 from 47.2Mm3.
“In operational terms, we were almost able to offset the impact of adverse weather conditions, particularly in the US, and the higher than expected cost inflation through growth in sales volumes and price increases,” said Bernd Scheifele, chairman of the managing board. He added that the company achieved record sales volumes and revenues in 2018. He also said that its action plan is producing its first results, with a reduction in debt to below Euro8.4bn due to portfolio ‘optimisation’ and spending discipline.
By region the group reported that construction activity in North America was hampered by a long winter in the north and heavy rainfall, particularly in the north and southwest of the US. A ‘strong’ level of construction was noted in the group’s Northern and Eastern Europe-Central Asia Group area leading to revenue increases. In Asia-Pacific its operating EBITDA fell by 4.4% due in part to high competition in Indonesia and infrastructure project delays in Thailand. Cement sales volumes growth was reported in most counties in Sub-Saharan Africa.
Ambuja Cement fights energy cost inflation in 2018 19 February 2019
India: Ambuja Cement’s earnings fell in 2018 due to rising energy and fuel costs. The subsidiary of LafargeHolcim says it has implemented efficiency and cost saving programs to mitigate these effects. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 6% year-on-year to US$265m in 2018 from US$266m in 2017. Despite this, the company’s sales volumes of cement grew by 5% to 24.2Mt from 23Mt. Its sales revenue rose by 7% to US1.54bn from US$1.44bn. Overall, the consolidated results for both Ambuja Cement and its fellow subsidiary ACC, saw growth in EBITDA, net sales and sales volumes of cement.
Cementos Argos reports mixed results in 2018 19 February 2019
Colombia: Poor weather in the US reduced Cementos Argos’ sales revenue in 2018. Its sales revenue fell by 1.4% year-on-year to US$2.7bn in 2018 from US$2.74bn in 2017. Cement sales volumes decreased by 1.1% to 16Mt from 16.2Mt. The cement producer said that its cement volumes in the US were impacted by weather and a 43 day halt at its Martinsburg Plant in Texas, US. However, its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 8% to US$494m from US$457m. This was in part due to an improved Colombian construction market.
Saudi Arabian cement demand expected to fall in 2019 19 February 2019
Saudi Arabia: Demand for cement is forecast to fall in 2019. A report by Al Rajhi Capital expects this due to reduced government spending on infrastructure projects and growing construction costs, according to Trade Arabia. Cement producers will focus on pricing rather than volume in this environment. Exports are also expected to increase. Local sales volumes of cement decreased by 13% year-on-year in 2018.
Anhui Conch orders mills from Kawasaki Heavy Industries 19 February 2019
China: Japan’s Kawasaki Heavy Industries has delivered two 220t/hr CK Mills to Jiande Conch Cement via Anhui Conch Kawasaki Energy Conservation Equipment Manufacturing (CKM), a joint venture between Kawasaki Heavy Industries and Anhui Conch. Kawasaki is handling design and operation-related technical guidance, whereas CKM is in charge of manufacturing and delivery. The mills have a table track diameter of 4900mm, 5100kW motors and four rollers. No value for the order has been disclosed.