Displaying items by tag: GCW319

Weather always seems like an excuse in cement company financial reports. It seems that it can pop up when a producer has nothing else to blame for its poor performance. Except, of course, when there has actually been some bad weather. With this in mind the weather is likely to have a rather larger presence in the next set of results for companies in the Caribbean and Florida in the aftermath of Hurricane Irma. The storm tore across the region in a rough north-western bearing, reaching Category Five hurricane status on the Saffir–Simpson scale with sustained winds of over 252km/hr. It caused loss of life and mass destruction to property and infrastructure.

Bottom lines flutter in the wind as construction markets upend in the wake of the weather. Yet cement companies have a more direct relationship with extreme weather events. Cement plants themselves are large industrial sites with staff and equipment that are vulnerable to the elements. This is covered by a company’s resilience strategy but it can include things like reducing non-essential staff levels, shutting down production and securing a site. Cemex USA, for example, set up telephone lines to help employees in need of assistance for both Hurricane Harvey in Texas in late August 2017 and Irma this week. Titan America shut down its Florida operations over the weekend ahead of Irma and then started reopening them on 12 September 2017.

To look at one facet of preparing a cement plant shutting a clinker kiln down with adequate notice, like for a maintenance period, is one thing. Yet doing it in an emergency is an entirely different proposition as the kiln generally needs time to cool down. Global Cement discovered what happens when a kiln is simply stopped when it visited the Cemex South Ferriby plant in the UK. The plant suffered a complete electrical outage following a tidal surge at the site. A 22m-long section of one of the kiln shells had to be replaced because it had been distorted by the sudden cooling.

Secondly, the concrete that cement is used to make plays a key role in what the Portland Cement Association (PCA) and others call resilient construction. Typically concrete structures and buildings survive extreme weather events better than other weaker building materials. Although a wide range of other factors such as building design, foundations and roofing construction are also important. Notably, much of the footage that emerged during the storm in Florida was shot from concrete buildings. As Cary Cohrs, former chairman of the PCA put it: "The greenest building is the one still standing." At the time of this push 2013 Cohrs and the PCA were lobbying to strengthen US building codes and standards. It is likely that the association will renew its efforts in the wake of Irma.

With the winds slackening, the clean up operation starts. Cemex USA’s Houston Terminal said it had reopened for business after Harvey despite being two feet under water a week earlier. As reports start to emerge about the scale of the devastation in the region following Hurricane Irma the insured losses have been estimated at US$20 – 65bn by analysts quoted by the Financial Times. Two things are certain though. One, bad weather is likely to make an appearance in the third quarter financial reports and, two, the rebuilding is going to need lots of cement.

South Africa: Lafarge South Africa has appointed Rossen Papazov as its country chief executive officer (CEO). Papazov will join the company with effect from 1 October 2017, according to Business Report. He has been the country head for Holcim in Azerbaijan for the last four years. Prior to this he originally joined Holcim in 2000 as its Business Development Manager for Bulgaria. He has also held roles in Belgium and Romania.

Sweden: Magnus Ohlsson has been appointed as the chief executive officer (CEO) of Cementa. Ohlsson has worked for Cementa and its parent company HeidelbergCement in various roles. Since 2014 he has been the Marketing Manager and Vice President of Cementa. He will continue to manage marketing in his new position. He succeeds Jan Gånge who will become the Finance Director and Deputy General Manager for HeidelbergCement Northern Europe.

US: The board of directors of Rockwell Automation has elected president and chief executive officer (CEO) Blake D Moret as its chairman with effect from 1 January 2018. Moret, aged 54 years, succeeds Keith D Nosbusch, who has served as chairman since 2005 and remains as a director. The company will continue to have an independent lead director.

Moret began his career in 1985 as a sales trainee, and subsequently served in senior positions across the organisation, including international assignments in Europe and Canada. He was promoted to senior vice president of Control Products & Solutions, one of the company’s two business segments, in 2011, and to president and chief executive officer in July 2016.

He holds a bachelor’s degree in mechanical engineering from Georgia Institute of Technology. He serves on the National Association of Manufacturers’ (NAM) Board of Directors and Executive Committee and on the boards of other industry and civic organizations and is a member of the Business Roundtable.

Sweden: SKF has appointed Kent Viitanen as its President of Bearing Operation. He was previously Senior Vice President, Group People, Communication and Quality.

Viitanen joined SKF in 1988 and has held a number of business unit and factory management roles in Sweden and internationally. The Group Quality function will also be integrated into Bearing Operations. He succeeds Luc Graux, who will take up a new role within Bearing Operations. Carina Bergfelt, in addition to her role as General Counsel and Senior Vice President, Legal and Sustainability, will take on the responsibility for People and Communication.

US: Jon R Tabor has been appointed as the chairman of Allied Mineral Products. He succeeds Jon K Tabor who becomes Chairman Emeritus of the refractory producer. Paul Jamieson, Corporate Vice President of Steel and Domestic Foundry, has been promoted to President.

In the role of chairman and chief executive officer (CEO), Jon R Tabor will retain responsibility for international and affiliate operations, Research and Development, Strategy, Finance, and the global scope of all other departments. Jamieson will take over Columbus-based Domestic Sales, Domestic Operations and Human Resources and report to Tabor.

Allied Mineral Products acquired the monolithic refractory and precast shapes producer Pryor Giggey in early 2017. It also plans to open a production plant in Russia.

Cambodia: The Cambodian government is planning to cap the number of cement production licences after the opening of two new cement plants that are expected to start operations by the end of 2017, according to Hort Pheng, director of the Industrial Affairs Department at the Ministry of Industry. Pheng made his comments to the Phnom Penh Post newspaper in relation to Chip Mong Insee, a joint venture between Chip Mong Group and Thailand’s Siam Cement Group, and Battambang Conch Cement, a joint venture between Battambang KT Cement and China’s Anhui Conch. The new plants will join the country’s three existing plants operated by Kampot Cement, Cambodia Cement Chakrey Ting and Thai Boon Roong in Kampot province.

“Despite investors coming to ask us for potential locations for cement plants, the ones in Kampot and Battambang are enough. The other provinces lack the quality of limestone needed for cement production,” said Pheng. He added that, once all five plants were operational, they would produce almost enough cement to meet local demand. However, the local construction industry is expected to still need to import cement. Cement plants will be allowed to expand to meet this excess demand.

The 5000t/day Chip Mong Insee cement plant in Kampot is scheduled to open in October 2017. It had a budget of US$262m. The 5000t/day Battambang Conch Cement plant in Battambang has reportedly encountered delays in its construction and it is uncertain whether it will be completed by December 2017. Once open the plant plans to supply the domestic market first, before considering exports to Vietnam, Laos and Thailand.

Myanmar: South Korea’s LG International has started test production at its plant in Myanmar. The plant is a run as a joint venture operation with local company Blue Diamond, according to the Korea Economic Daily newspaper. LG International spent US$40m to buy a 51% stake in the business in 2015.

India: Emami Cement plans to commission it 2Mt/yr Jaipur grinding plant in Odisha by March 2018. It has spent US$94m on the unit. Once completed the new plant will bring the company’s cement production capacity to 6Mt/yr, according to the Press Trust of India. It operates an integrated plant at Risda in Chhattisgarh and a grinding plant at Panagarh in West Bengal. The company also plans to increase the market share of its Emami Double Bull Cement product by 10% in all the regions of its operations by March 2019.

South Africa: PPC’s largest shareholder, the Public Investment Corporation (PIC), has supported an offer from Canada’s Fairfax Financial Holdings and local cement producer AfriSam. PIC views the bid as an opportunity to build a larger cement producer in sub-Saharan Africa, according to sources quoted by the Cape Argus newspaper. The investment body also hopes to make cost savings from the merger. PIC owns about 11% of PPC and it is the biggest shareholder of AfriSam with a 60% stake.