Displaying items by tag: GCW235
Sudan cement industry update
27 January 2016Sudan 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.
Steve Rowley to retire as president and CEO from Eagle Materials
27 January 2016US: Steve Rowley will retire as president and CEO of Eagle Materials on 31 March 2016. Dave Powers, Executive Vice President for Gypsum Wallboard at Eagle since 2005, will succeed Rowley as President and CEO. He will also be appointed to the Board of Directors.
"Steve has positioned Eagle for an exciting future. He has led the doubling of the scale of our cement business and has guided the growth of our gypsum wallboard business in achieving its nation-wide scope. He also has successfully led the company through the longest and most challenging construction market down-cycle in US history," said Larry Hirsch, Chairman of the Board. Health reasons were cited for Rowley's retirement.
Dave Powers, aged 65, holds over 35 years of experience in the building materials industry. He joined Eagle Materials (formerly Centex Construction Products) in 2002 as Executive Vice President, Sales and Marketing. In January 2005, he was promoted to his role as Eagle's Executive Vice President for Gypsum (and President, American Gypsum Company LLC).
Bheki Sibiya retires as chairman from PPC
27 January 2016South Africa: Bheki Lindinkosi Sibiya retired as Chairman of the Board of PPC on 25 January 2016 following the company's annual general meeting. He held the post since 2008. No successor has yet been announced.
PPC acknowledged that Sibiya had overseen the successful conversion of the company's mining rights and the initiation of its African expansion strategy during his tenure. It also mentioned his role in ensuring board continuity and preservation of corporate expertise during a 'challenging phase' in the company's history.
Other retirements announced include Mangalani Peter Malungani, who has served as Non-Executive Director of PPC since February 2009, and Zibusiso Kganyago, who has been a member of the board since October 2007.
Salukazi Dakile-Hlongwane has been elected as a Non-Executive Director of the Board. Dakile-Hlongwane is currently the Chairperson and co-founder of Nozala Investments Pty Limited. Her career includes posts at Lesotho National Development Corporation, African Development Bank (Abidjan-Cote d'Ivoire), the Development Bank of Southern Africa, FirstCorp Merchant Bank and BOE Specialised Finance. She holds a Bachelor's degree in economics and statistics from the National University of Lesotho and a Master's degree in development economics from Williams College in Massachusetts, USA.
Martin Riley appointed Senior Vice President of Tarmac
27 January 2016UK: Martin Riley has been appointed Senior Vice President of Tarmac. He will report to Ken McKnight, President Europe Heavyside. Riley was previously Managing Director, Aggregates and Asphalt at Tarmac. The appointment is part of the transition of the businesses acquired from Lafarge Holcim into the European Heavyside business of CRH.
In addition, the Tarmac Cement and Lime business will integrate into a new CRH business cluster consisting of UK Cement, Ireland and Spain, led by Oliver Mahon, Senior Vice President, who will also report to Ken McKnight. As part of this reorganisation the former CEO of Tarmac since 2013, Cyrille Ragoucy, will leave the business.
SCG Cement profit drops 22% in 2015
27 January 2016Thailand: The cement business of Siam Cement Group (SCG) reported a 22% decrease in profit in 2015 to US$286m from US$368m in the 2014. Its revenue fell by 3% year-on-year to US$5bn from US$5.2bn. It blamed the performance on poor market recovery in Thailand. Overall, SCG reported increased profits due to its chemicals business.
"As for the progress of SCG's investments in the Association of Southeast Asian Nations (ASEAN), we are continuing as planned and are able to accommodate and meet the market demand dynamics. The cement plant in Indonesia commenced commercial operation in November 2015, while the cement plants in Myanmar and Laos are expected to begin operation in the middle of 2016 and 2017, respectively. These investments are integral to the ability to support our market expansions and serve our ASEAN customers' demands," said Roongrote Rangsiyopash, President and CEO of SCG.
SCG expects that the ASEAN Economic Community will advance its businesses in key export markets in Cambodia, Laos, Myanmar and Vietnam in 2016. Positive economic trends are also anticipated in Thailand due to government stimulus policies and projects.
Uzbek cement plants to carry out energy-saving projects
27 January 2016Uzbekistan: Qizilqumsement and Bekabad Cement intend to conduct energy saving projects at their plants by the end of 2020, according to local press.
Bekabad Cement, in partnership with the World Bank, is upgrading its aeration system and the products transportation system at its cement silos. The upgrade will save more than 3MkW/hr of electric power per year. The plant is also installing a new cement ball mill with a capacity of 135 – 150t/hr. This is planned to reduce power consumption by 20%.
Qizilqumsement plans to reduce its gas consumption by 46.6Mm3, and power consumption by 57MkW/hr. A clinker silo will be built, the clinker plant will be upgraded and the closed circuit cement milling will be launched for mill #7.
PPC reports 3% drop in sales in first trading quarter of 2016
26 January 2016South Africa: PPC has reported that its cement sales fell by 3% for its first trading that ran from October to December 2015. Cement sales in its South African business declined by 1.6% while its international businesses recorded an 8% decline, according to a trading update.
The South African cement producer reported that coastal regions in South Africa achieved positive volume growth. However this was offset by declines recorded in Gauteng and inland regions. During this period, average selling prices fell by 4%.
In Zimbabwe the completion of major infrastructure projects in Zimbabwe has led to declines of over 10% in local sales. Cement exports have also reduced due to exchange rate effects. In Botswana cement sales fell due to competition and weak demand. In Rwanda sales fell due to high rainfall and limited exports. However, the company's new 0.6Mt/yr cement plant was reported to be performing 'satisfactorily' and the kiln has passed its performance test for output and heat consumption.
Sudan: The Minister of Investment Mudathir Abdul-Ghani has revealed state plans to increase cement production capacity from 3Mt/yr to 5Mt/yr. The aim is to achieve self-sufficiency and to build an export surplus according to local media. The announcement was given at a meeting with the managers of a cement plant in River Nile State.
Qatar National Cement Company profit increases by 10% in 2015
26 January 2016Qatar: Qatar National Cement Company has reported that its profit rose by 10% year-on-year to US$127m in 2015 compared to US$115m in 2014. Revenue increased by 11% to US$321m from US$288m. Gross profit increased by 6% to US$130m from US$123m.
Shanshui Cement defaults on US$270m bond
25 January 2016China: Shandong Shanshui defaulted on a US$270m three-year bond that matured on 21 January 2016. It is the second default for its owners, China Shanshui Cement, since November 2015. The move places Shanshui Cement at increased risk of bankruptcy and complicates plans by Tianrui Group to purchase the company. The previous debt default triggered multiple lawsuits from creditors that have already seen some of its assets frozen or put into impending auctioning, according to the South China Morning Post.
"The underlying cause of Shandong Shanshui's debt problems is unresolved disputes over shareholders' control, which restricted its fund-raising channels," said Shandong Shanshui in a statement. Since the estimated value of the company's assets far exceeds its debt, it expects court-ordered assets sales to bring in less proceeds than claims made by creditors, it added.