Displaying items by tag: ASEC

Iraq: Arab Swiss Engineering Company (ASEC) will cover operation and maintenance of KAR Group’s 1.9Mt/yr integrated Qarachogh cement plant in Erbil. In a press release, ASEC stated that it has already overseen recruitment and planning and implementation of personnel development programs. ASEC's chairman and managing director Khaled El-Sebaie said he was ‘thrilled’ at the completion of the plant's hand-over.

Egypt: ASEC Engineering has renewed its technical management contract with Misr Beni Suef Cement until the end of 2023. ASEC originally worked on the first production line at the plant in 2001. It maintenance contract was renewed in 2007 with the addition of a new production line. The cement plant has a production capacity of 3.1Mt/yr.

Algeria: Egypt’s Qalaa Holdings has announced that its subsidiary ASEC Cement is looking to exit from Algeria-based Zahana Cement Factory. ASEC holds around a 35% stake in the Algerian facility and has so far invested US$62m in the plant, taking its capacity to 0.75Mt/yr. A new 1.6Mt/yr production line is currently being constructed at the plant, with commissioning expected in early 2020.

Algeria: ASEC Cement Company and ASEC Cement Djelfa Offshore have sold their 100% stake in ASEC Ciment Algerie to an Algerian investor for US$60m. ASEC Cement is based in Egypt, while ASEC Cement Djelfa and ASEC Ciment Algerie are based in Algeria.

Sudan made a rare mention in the cement news this week when state plans to increase production capacity were revealed. Minister of Investment Mudathir Abdul-Ghani commented on a visit to a cement plant in River Nile State that the government wants to increase production capacity from 3Mt/yr to 5Mt/yr.

It's likely that the minister meant cement production as opposed to production capacity and that something was lost in translation from the original source via the Sudan News Agency. Global Cement Directory 2016 data places the country's cement production capacity at just under 7Mt/yr from six plants. ASEC and the United States Geological Survey (USGS) have cited similar figures in recent years too. A Global Cement contact reported in June 2015 that only three of the six cement plants were generally operational. These were Atbara Cement, Alshamal Cement and Al Takamol Cement (ASEC). The last available figures from the Bank of Sudan reported cement production was 2.9Mt in 2013, excluding data from one plant.

Regardless, the focus on Sudan is worth attention. The usual African demographic factors and rebuilding potential following the secession of South Sudan in 2011 suggest that the country is ready for increases in cement consumption. In 2009 per capita cement consumption was placed at 65kg/capita, an extremely low figure. After this point cement production leapt up from 0.6Mt/yr in 2009 to 2.91Mt/yr in 2013. This was due to expansion projects and new plant builds such as the Al Takamol (ASEC) cement plant. Using the current 2015 estimate for population this would still keep the country's per capita consumption below 100kg/capita.

Back in its 2012 annual report ASEC described the Sudanese market as one 'plagued' by oversupply and fuel shortages, creating a difficult environment to operate within. Transportation challenges, political instability, economic sanctions and the separation with South Sudan were all mentioned as problems to the local cement industry, hitting utilisation rates. ASEC's stated plan at the time was to reduce costs to stay in business. This all chimes with direct reports to Global Cement placing the utilisation rate at 50%. Demand for cement reportedly fell in January 2016 due to high inflation rates, at about 35%, and a poor economy.

With these kinds of conditions it would take a brave investor to spend their money in Sudan despite the golden demographic trends. State investment or incentives could be instrumental. This makes the Minister of Investment's comments noteworthy. Despite all the problems ASEC reported a 'marked' rise in sales revenue in 2013 to US$70m for its subsidiary Al-Takamol in Sudan.

Egypt: ASEC Cement, part of Egypt-based Qalaa Holdings, has finalised the sale of ASEC Minya Cement and ASEC Ready Mix to Misr Cement Qena for a total of US$128m.

ASEC Minya Cement is located in Upper Egypt. It began commercial operations in August 2013, with a capacity of 2Mt/yr. ASEC Ready Mix is a producer and distributor of ready-mix concrete. The company operates six batch plants in Upper Egypt with 382,000m³ of production in 2014.

At the time of sale, ASEC Cement held 46.5% of ASEC Minya Cement and 55% of ASEC Ready Mix. Qalaa and its subsidiary National Development and Trading Company (NDT) together own 70% of ASEC Cement.

"We are pleased to announce that the sale process closed today, putting in place another cornerstone in our strategy to deleverage at both the holding and platform company levels," said Ahmed Heikal, Chairman and Founder of Qalaa Holdings. "Both ASEC Minya and ASEC Ready Mix have established themselves as critical players in the vital Upper Egyptian market and we are honoured to have worked with an exceptional management team at each of them to build them into the companies they are today."

Egypt: Misr Qena Cement has denied that it has acquired a 46% stake of ASEC Cement Company and a 55% stake of ASEC Concrete, which has been published in local newspapers. Misr Cement said that the published news was based on an assumption and that it would announce the deal when it was finalised.

Egypt: Qalaa Holdings' revenue in the quarter that ended on 30 June 2015 grew by 33.7% year-on-year to US$267m.

In the first six months of the year, revenue rose by 37.8% to EGP US$515m. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rise by 169% year-on-year to US$72.2m in the first half of 2015. Qalaa's net loss after tax and minority interest improved by 55% to US$10.8m in the second quarter of 2015. In the first half of 2015, its net loss after tax improved by 53% to US$25.1m. This improvement comes despite charges of US$13.1m in the first half of 2015 related to discontinued operations.

Revenue growth was driven by strong performance at TAQA Arabia's fuel marketing arm, which reported 72% top-line growth in the second quarter of 2015 and 73%in the first half of 2015. In the cement division, ASEC Cement's Sudan subsidiary Al-Takamol made a strong contribution to Qalaa's top-line growth. Its revenue grew by 96% in the second quarter of 2015 and by 121% in the first half of 2015. Combined, the energy and cement divisions contributed some 70% of total revenue in the second quarter of 2015.

The first six months of 2015 saw ASEC Holding's sale of its 27.5% stake in Misr Qena Cement, which resulted in a gain from sale of investment equivalent to US$8.56m booked in the second quarter of 2015. The exit from Misr Qena Cement is one of several developments taking place during 2015 that play into Qalaa's risk reduction strategy and its ongoing deleveraging programme. Qalaa's ongoing restructuring efforts continue to reflect positively on its financial performance, with significant improvements at the EBITDA level and a continued narrowing of its bottom-line losses, which improved by 53% year-on-year in the first half of 2015.

Qalaa management has reiterated its strategy for 2015, with its underlining factors being the mitigation of financial risk by significantly deleveraging at the holding and platform company levels, as well as limiting operational risk through the divestment of non-core and non-essential assets while focusing resources on core business and ensuring they have the funding needed to deliver on growth plans.

"Qalaa has repeatedly stressed that deleveraging is one of the company's key strategic goals for 2015 and onward," said Qalaa co-founder and managing director Hisham El-Khazindar. "We remain on track with our divestment programme, the proceeds from which will be utilised to reduce total consolidated debt from the current US$971m, excluding debt associated with Africa Railways and a greenfield megaproject, to around US$639m by the end of 2015."

Egypt/Sudan: According to Daily News Egypt, Qalaa Holding for Investment has signed an agreement with Financial Holding International (FHI) to sell FHI some of Qalaa's units. This is in line with Qalaa's aim to exit from some of its non-basic businesses and to reduce its consolidated debts of US$105m.

Qalaa will sell FHI its stakes in MENA Homes, Grandview and Dina Farms Land Companies, which will be separated from Dina for Agricultural Investments. In return, Qalaa will buy FHI's stakes in several affiliated companies, including cement producer ASEC Holding, as well as Taqa Arabia and Mashreq Petroleum in the energy sector. Qalaa will also buy FHI's stakes in Nile Logistics International in the Transport and logistics sector, Dina Farms Supermarkets in the retail sector and United Company for Foundries (UCF) in the metallurgical industry sector. The deal is expected to be finalised by December 2015, after the customary conditions and requirements are met.

Abdallah El-Ebiary, managing director of Qalaa's cement division, said that the cement sector is a main strategic area for Qalaa and that it has no intention of exiting it, nor the transport and energy sectors. He added that FHI plans to build a new pulveriser mill at the ASEC Cement plant in Minya, Egypt within the company's plan to convert to alternative energy due to the energy deficit and gas crisis. The cost will be US$30.2m and it will be built in the fourth quarter of 2015. "The company's strategy for the next period is to diversify to new and cheap energy sources instead of the traditional and unavailable sources. The investment cost is at US$30.2m, with US$1.31m for a pulveriser mill and US$11.8m for alternative fuel production," said El-Ebiary.

Qalaa also plans to increase the production capacity of its Takamol cement plant in Sudan from 430,000t/yr to 800,000t/yr in 2016. Qalaa aims to establish a new coal mine for the plant. The plant is 51% owned by ASEC Cement and 49% controlled by the Sudanese Social Security Investment Authority (SSIA), the entity that manages all pension funds in Sudan.

Algeria: Qalaa Holdings, an investment company in the Middle East and Africa, has reported that its revenue in the first quarter of 2015 grew by 42.5% year-on-year to US$256m. Growth was driven mainly by operational improvements at ASEC Cement's Sudan subsidiary Al-Takamol, which recorded 157% year-on-year revenue growth. The energy and cement segments contributed 71% to its consolidated revenues.

Qalaa Holdings reported that its earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at US$36.2m, an eight-fold increase on the same period of 2014. It had a net loss after tax and minority of US$14.7m in the first quarter of 2015, a 51.6% year-on-year improvement. Foreign exchange charges rose to US$6.95m, compared to a gain of US$1.71m in the first quarter of 2014. Qalaa Holdings' cement and construction unit ASEC Holding recorded US$10.2m in foreign exchange losses due to its stake in dollar-denominated ASEC Holding Convertible.

Qalaa Holdings' plans for the future include several cement divestments. Negotiations are progressing for the sale of ASEC Cement's operations in Algeria, with an Algerian Holding Company in the cement industry being the natural buyer for Zahana Cement as it already owns 65% of the company. The greenfield plant in Djelfa, Algeria is being bid for by two Algeria-based industrial groups.