Displaying items by tag: GCW289

Indonesia: Farmers have blocked access to Semen Indonesia’s Rembang cement plant as part of on-going protests against the construction of the unit. Around 250 farmers protested at the site in support of a Supreme Court ruling in October 2016 and a local government order in favour of shutting down the plant, according to the Jakarta Post newspaper. The activists claim that activity has continued at the site.

However, Semen Indonesia denies that is has started operation at the plant saying that its workers are merely ‘taking care of its assets.’ The cement producer says it stopped construction soon after it received the governor's decision to revoke its permit. It added that it had spent US$337m on the plant and that it was 99% complete when the governor issues his decree. 3000 workers were also laid off at the same time.

India: Keerthi Industries has started operation of a 2.24MW waste heat recovery unit at its Keerthi cement plant at Mellacheruvu, Nalgonda district in Telangana. The cement producer says that the upgrade cost US$3.9m to buy and install, according to local press. Keerthi Industries operates a 0.6Mt/yr cement plant.

Ethiopia: Dangote Cement is building a bagging plant and a third silo at its Mugher cement plant. The US$19m bagging plant will have a capacity of 120 million bags/yr, according to the Ethiopian Reporter newspaper. It is scheduled for completion by July 2017. The silo should be completed by the third quarter of the year.

Deep Kamara, the managing director of Dangote Industries Ethiopia, also said that the company is considering building a second production line in the country. However, procuring spare parts is proving difficult for the plant due to shortages of foreign currency and delays in shipping new parts. The company is expecting help from the government and it needs to spend up to US$15m on spare parts for the plant.

The Mugher cement plant opened in 2015 with a cement production capacity of 2.5Mt/yr. Equipment at the plant was set on fire in late 2016 in a series of riots in the region.

Lesotho: Prime Minister Pakalitha Mosisili has officially opened AfriSam’s cement blending and packing plant in Maseru. The unit is the cement producer’s first cement plant in the country, according to the Lesotho News Agency. The plant can produce up to 0.2Mt/yr of cement and it has been built at AfriSam’s existing distribution centre.

Germany: Langley Holdings, the UK-based owner of Claudius Peters, has reported that its subsidiary’s revenue fell by 14% year-on-year to Euro106m in 2016 from Euro124m in 2015. Claudius Peters’ orders on hand rose by 13% to Euro50.3m from Euro57.7m. The plant engineering manufacturer noted that the industries it serves, including cement and gypsum, remain at a ‘low point’ in their business cycle and that capital investment is low.

“The division’s order intake did improve in the final quarter and with commodity prices coming off the bottom there are signs that the climate is improving, although it is too early to call a recovery. In all, the results were satisfactory in a still much subdued sector,” said Langley Holdings chairman Anthony J Langley. He added that poor markets in Brazil and Russia affected the division’s results. However, Claudius Peters China performed ‘quite well’ due to export projects with Chinese contractors and divisions in France, the US, UK, Spain and Italy did well.

Mexico: Cemex has grown its profit in 2016, reporting that its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) has risen by 6% year-on-year to US$2.75bn from US$2.59bn in 2015. On a like-for-like basis adjusted for investments, divestments and currency fluctuations it rose by 15%. Its net sales fell by 3% to US$13.4bn from US$13.8bn, although on a like-for-like basis they rose by 4%. Sales volumes of cement remained stable at 66.7Mt. The company hailed a 10-year high in net income for 2016 and said that sales had increased on a like-for-like basis in the fourth quarter due to higher prices and higher volumes in Mexico, the UK and Germany.

“2016 was a very good year for Cemex. Despite continued volatility and uncertainty in the markets, we were able to deliver strong underlying operational and financial results by remaining focused on the variables that we control,” said Fernando A Gonzalez, chief executive officer of Cemex.

By region Cemex saw its net sales rise in both real-terms and on a like-for-like basis to US$2.86bn from US$2.84bn. It said that cement volume growth during the quarter and full year 2016 was mainly driven by the industrial and commercial, formal housing and self-construction sectors. In the US net sales remained static at US$3.67bn but they rose on a like-for-like basis. The company said that construction spending for the cement-intensive segments in the industrial and commercial sector grew by 1% in 2016, reflecting growth in the lodging and office segments, offsetting a decline in energy, agriculture and manufacturing. It also noted growth in the infrastructure spending in the last quarter of 2016 following the US presidential election.

In South and Central America and the Caribbean net sales fell by 9% to US$1.73bn from US$1.89bn. Cemex noted a flat market for cement sales volumes in Colombia in 2016 and high competition in a ‘soft demand’ market. In Europe net sales fell by 5% to US$3.3bn from US$3.43bn. Here, cement sales volumes fell in Spain and Poland through the year. However, sales volumes rose by 7% in the UK due in part to higher sales of blended cement that resulted from fly ash scarcity. Sales volumes in Germany remained flat in 2016 but the market picked up in the second half of the year supported by the residential sector. Finally, the group’s Asia, Middle East and Africa division reported that its net sales fell by 7% to US$1.54bn for US$1.65bn with a significant dip of 14% in sales volumes of cement in the fourth quarter of the year although volume remained flat in the year as a whole. The Philippines suffered from poor weather towards the end of the year although Cemex noted that cement demand weakened in the second half of the year in conjunction with the transition to a new government. In Egypt, government infrastructure spending drove cement demand.

Italy: A recovery in sales volumes in Central and Eastern Europe has helped Buzzi Unicem maintain stable sales in 2016. Its net sales rose slightly to Euro2.67bn in 2016 from Euro2.66bn in 2015. Cement and clinker sales volumes remained flat at 25.6Mt. It also reduced its net debt to Euro942m from Euro1.03bn. The cement producer reported slowing sales growth in the US, a decline in Russia and a continued ‘marked’ fall in sales in Italy.

By region, the cement producer said that cement and clinker sales volumes fell by 6.2% year-on-year due to a reduction in exports. Volumes rose in Germany by 3.4% despite low prices and oil well cement demand picked up in the last quarter of the year. Poland reported a 11.9% boost in volumes, driven by the second half of the year, despite lower prices compared to 2015. In Russia sales volumes started to improve in the second half of the year hitting an overall decline of 1% as a decline in construction industry investment started to soften. Also of note, sales of oil well cement started to recovery towards the end of the year.

Cement sales volumes in the US started to decline throughout the year, eventually falling by 1.7%, with a notable weakness in demand in Texas, particularly in the Houston area. Again, oil well cement products declined over the year as a whole but showed signs of recovery in the final months of the period. Finally, Buzzi Unicem’s associate company Corporación Moctezuma saw its cement sales volumes rise slightly compared to 2015, supported by rising prices.

Pakistan: Pioneer Cement has signed contracts with Chengdu Design & Research Institute of Building Materials Industry (CDI) to build a new 8000t/day clinker production line at its cement plant in Chenki, District Khusshab in Punjab. The order also includes a 12MW waste heat recovery unit and a captive 24MW coal power plant. No value for the order has been disclosed.

Afghanistan: The Afghan government has cancelled a private contract to run the Ghori cement plant citing irregularities in the ownership of the company in 2016. It said it was not properly notified about a change in ownership and the company also owes it unpaid taxes and fees since it was privatised in 2006, according to Reuters. Zabihullah Sarwari, a spokesman at the Ministry of Mines and Petroleum, said that the government was notified of the sale of the original shareholding after it had been completed.

Local businessman Javid Jaihoon reportedly purchased the business from Afghan Investment Co (AIC), a group of investors including the brother of the former president Hamid Karzai. Jaihoon told Reuters that he had paid all the government fees relating to the company and that he has invested nearly US$60m in the plant.

Operation at the cement pant is expected to continue for the time being. The government now intends to put the company up for international tender.

Kuwait: Siwertell, part of Cargotec, has signed a contract with Acico Construction for its third road-mobile cement unloader. Similar to its last delivery in 2015, the road-mobile unloader will be a trailer-based, diesel-powered Siwertell 10 000 S unit. It will be fitted with dust filters and a double bellows system and like its predecessor will have a rated capacity of 300t/hr. Acico also operates a Siwertell 5 000 S unit, which was delivered in 2014.

The new unit will be built at Siwertell's premises in Bjuv, Sweden and delivered by the end of the first quarter of 2017. It will operate in Kuwait's second largest port, Shuaiba, located south of Kuwait City.

Acico Construction, part of Acico Industries Company, was founded in 1990 and has experienced sustained and steady growth. Its third Siwertell unit has been ordered so that the company can focus its operations on the increasing number of larger vessels, up to 10,000t, that it now handles. It also uses a two-year Siwertell Care maintenance support contract, signed in 2015, to cover Acico's first two road-mobile units. The agreement includes an ongoing training element for Acico maintenance staff, covering mechanical and electrical systems and instrumentation.