Displaying items by tag: China

China: China National Building Material Company’s (CNBM)’s operating revenue grew by 10% year-on-year to US$3.03bn in the first quarter of 2017 from US$2.75bn in the same period in 2016. Its net profit grew by 50% to US$41m from US$27.6m. The result represents a turnaround in the company’s performance following stagnant growth in 2016.

Nepal: Hongshi Shivam Cement’s Sardi cement plant project in Nalwalparasi is likely to be delayed due to slow progress by the government in building a road to a nearby limestone quarry. The project was due to start production in May 2017 but the slow rate of investment by the Chinese firm’s state partner has caused this completion estimate to be revised, according to the Kathmandu Post. Other infrastructure requirements for the project that are slowing it down include a 40km road to the site and an electricity substation.

China: Anhui Conch Cement’s net profit has grown by 86% year-on-year to US$312m in the first quarter of 3017 from US$168m in the same period of 2016. Its revenue rose by 29% to US$1.98bn from US$1.54bn. It attributed the gains in profit to increases in sales volumes and prices.

Bangladesh: The China Building Materials Federation has expressed interest in investing US$2bn in the country’s infrastructure. A 12-person delegation from China met with the Bangladesh Investment Development Authority (BIDA) to discuss the proposal that includes developing the cement sector. Both sides have agreed to sign a memorandum of understanding on the potential investment.

Tajikistan: Cement producers exported around one third of the country’s cement production in the first quarter of 2017. Cement production in January to March 2017 rose by 12% year-on-year to 426,000t of cement, according to the Asia Plus news agency. The country exported 120,400t of cement to Afghanistan, 10,000t to Uzbekistan and 2700t to Kyrgyzstan in the period.

The country has 13 cement plants with a total production capacity of 4.7Mt/yr. Tajik-Chinese joint ventures Huaxin Gayur Cement, Chzhungtsai Mohir Cement and Huaxin Gayur Sughd Cement accounted for 38%, 28% and 16.6% of the local production in the first quarter of the year.

China: Japan’s Mitsubishi Materials has signed an agreement to sell its 66.7% stake in Yantai Mitsubishi Cement in Shandong to a subsidiary of China National Building Material (CNBM). No value for the sale has been revealed, according to Nikkei. Yantai Mitsubishi has a cement production capacity of 1.2Mt/yr. Mitsubishi Materials will also liquidate two of its Chinese cement admixture producers: one in Shandong and the other in Jiangsu.

The materials producer has blamed the decision on cement production overcapacity in the Chinese market and increasing environmental regulations. Mitsubishi Materials was ordered to halt production three times in 2016. It intends to focus on the US market where infrastructure spending is expected to boost the cement market.

China: China Shanshui Cement has obtained an injunction from the High Court in Hong Kong against its former management from posing as current managers, from entering the premises of, removing assets from or soliciting the employees of Shandong Shanshui. The injunction also prevents Mi Jingtian, Zhao Liping, Li Maohuan and Yu Yuchuan from each removing assets up to the value of US$20.5m from Hong Kong. The legal action follows an ‘illegal’ occupation in early April 2017 of the Jinan properties of its Shandong Shanshui subsidiary, during which representatives of Shanshui Cement were accosted by a hostile crowd.

China: BBMG’s net profit for the first quarter of 2017 expected to at least double to US$55m from US$21m in the same quarter in 2016. The cement producer says the jump in profit is due to bookings for its property development business, although it added that an increase in cement and clinker prices had also contributed. The company’s shares bounced in early April 2017 following the announcement of the Xiongan New Area special economic development zone.

China: Shanshui Cement has said that the Jinan properties of its Shandong Shanshui subsidiary have been illegally occupied by Mi Jingtian, the former deputy general manager of the company and his associates. When the representatives of Shanshui Cement attempted to repossess the unit they were held against their will for over two hours by a hostile crowd until local police helped them to escape. During the debacle some of the directors of Shanshui Cement were hurt. The assailants were also reported as having used pepper spray, smoke bombs and water cannons. Shanshui Cement has called upon the local authorities to investigate the occupation of the properties. Mi Jingtian along with Li Maohuan, Yu Yuchuan, Zhao Liping, Chen Zhongsheng and Liu Xianliang were all dismissed from Shandong Shanshui in early 2017.

China: A new special economic development zone in the north of Hebei province is expected to significantly boost demand for cement in the region. President Xi Jinping announced that that the new development named Xiongan New Area would be built southwest of Beijing, according to the ET Net News Agency. The development will be on the same scale as Shenzhen and Shanghai Pudong. Using these previous projects as a benchmark HSBC Global Research estimated that Shanghai Pudong uses around 6Mt/yr and that the region had used 133Mt since its creation in the early 1990s.

BBMG’s shares spiked following the announcement. The largest cement producer in the Beijing-Tianjing-Hebei area is widely expected to benefit from the project. After its restructuring with Jidong Cement it will hold 57% of cement production capacity in the region.