Displaying items by tag: GCW343

South Africa: Peter Nelson has resigned as the chairman of PPC. He has been replaced by Jabu Moleketi. The changeover follows the demand in late February 2018 by Prudential Investment Managers, a large shareholder of PPC, that Nelson leave the role. Sydney Mhlarhi and Dawn Earp have also resigned as non-executive directors of the cement producer.

Moleketi is the Non-Executive Chairman of Brait as well as the Development Bank of Southern Africa (DBSA), Vodacom and Harith General Partners. He was the Deputy Minister of Finance (South Africa) from 2004 to 2008 and MEC of Financial and Economic Affairs in the Gauteng Provincial Government from 1994 to 2004. During his tenure as the Deputy Minister of Finance, he was the chairperson of the Public Investment Corporation. Moleketi holds a Masters in Financial Economics from the University of London and an Advanced Management Programme from Harvard.

Other personnel changes include the appointment of Noluvuyo Mkhondo and Antony Ball to the board as non-executive directors of PPC.

Mkhondo is an investment banking and corporate finance professional, having spent time at Goldman Sachs International and Anglo American in the UK where she was responsible for mergers and acquisition execution, investment evaluation and strategic long term financial planning. During her time at Goldman Sachs and Anglo American, she executed cross-border transactions in Consumer / Retail, Healthcare, Real Estate and Metals and Mining across the UK, Africa and the Americas. Mkhondo is a Chartered Accountant by profession, having begun her career in the Audit and Advisory Financial Institutions services Team at Deloitte in Johannesburg. In addition, she has an MBA from London Business School where she was a Mo Ibrahim Scholar.

Ball is the co-founder of Value Capital Partners (VCP). Prior to that, his notable business accomplishment was the founding in 1990 and building of Brait, a South African private equity business. Ball is a qualified Chartered Accountant.

Cuba: The government has allocated over US$26m to upgrade three of the country’s cement plants. Pavel Cansino Ávila, deputy director of the Cement Business Group, told the Cuban News Agency that the Santiago de Cuba plant, also known as the José Mercerón plant, will be replaced with a new plant. The new unit is scheduled to be built by 2021 and it will have a production capacity of 1.2Mt/yr. The Siguaney plant and the Nuevitas plant will also be upgraded in 2018.

In 2017 the six local cement plants were unable to meet a government order of 1.57Mt of cement. Failures occurred due to lack of maintenance budget for the plants, issues due to a lack of packaging materials and logistics issues with deliveries.

Chile: Hurtado Vicuna Group has asked its minor shareholders to support a merger between its subsidiaries Cementos Bicentenario (BSA) and Cementos Polpaico. Hurtado Vicuna holds a 57.1% share in Cementos Polpaico, according to the Diario Financiero newspaper. However, two of the company’s major shareholders, Volcan and Megeve, may oppose the merger. If successful the merger would create Chile’s largest cement producer. As part of its acquisition of Cementos Polpaico, Hurtado Vicuna agreed to sell some of BSA’s assets. This potentially could involve the divestment of BSA’s 26 concrete plants.

Algeria: Production overcapacity has reduced the profits of LafargeHolcim’s subsidiary in Algeria. A source at the cement producer told the El Watan newspaper that the cement market had been hit by overcapacity since July 2017. New capacity is expected to increase local production to a surplus of 20Mt/yr in 2020. LafargeHolcim Algeria aims to export 5Mt/yr but this will still leave an additional production capacity of 15Mt/yr that is expected to lead to a price war and the potential shutdown of plants. In its 2017 annual report the cement producer said that, “…profitability in Algeria diminished in the second half of the year, on the back of weaker cement demand and a shift from a sold-out to an over-supplied environment.”

Namibia: The Whale Rock Cement plant is set to start producing cement at its new grinding plant near Otjiwarongo in April 2018. Using the Cheetah Cement brand name the company had originally intended to start production in January 2018, according to the Namibia Press Agency. Clinker for the plant has been imported from Egypt. Previously, the imported cement was reported by local media as coming from China.

Originally the company intended to buy clinker from a local producer but the negotiations failed leading the cement producer to buy imports instead. Around 24,000t of clinker from a total of 40,000t have been transported from Walvis Bay to Otjiwarongo by 732 trucks. Once fully operational in August 2018 the plant is expected to create around 600 jobs. The company is a joint venture between China’s Asia-Africa Business Management and Whale Rock Cement.

Nepal: Arghakhachi Cement and Jagdamba Cement are planning to build new cement plants. Arghakhachi Cement is spending US$48m on building a new integrated plant, according to the Kathmandu Post newspaper. The new plant will be launched by mid-2018. The company already operates an integrated cement plant at Birpur in Kapilvastu.

Jagdamba Cement is planning to build a 1500t/day cement plant in eastern Bhairahawa. The new unit will create 400 jobs. The cement producer operates two cement-grinding plants at Bhairahawa and Birgunj. The company produces Ordinary Portland Cement, Pozzolana Portland Cement and Pozzolana Slag Cement products.

Switzerland: LafargeHolcim has launched a new five year plan, ‘Strategy 2022 – ‘Building for Growth,’ as it has reported an income loss of Euro1.46bn. It blamed the loss on a, ‘…detailed review of the asset portfolio, and specifically the country risk.’ Its net sales rose by 4.7% year-on-year on a like-for-like basis to Euro22.7bn from Euro23.4bn. Its sales of cement rose by 3.3% on a like-for-like basis to 210Mt from 233Mt.

“In 2017 we made good progress across all key metrics. The growth in sales and the over-proportional increase in earnings before interest, taxation, depreciation and amortisation (EBITDA) represent a good performance and give us a very good basis to build on. The fact that four of our five regions reported growing EBITDA is testimony to our global strength,” said group chief executive officer Jan Jenisch. He added that the new strategy is based by a new set of targets that centre on growth, improving profitability, increasing cash generation and better returns for shareholders.

Iran: Cement production fell by 0.9% year-on-year to 43Mt in the first nine months of the local financial year. Data from the Ministry of Industries, Mining and Trade showed that cement production in the November to December 2017 period fell by 8.8% to 4.29Mt, according to the Trend News Agency. The decline has been blamed on a recession in the construction industry, poor supplies of natural gas to industrial users and a drop in exports due to falling global oil prices. The country produced 54.1Mt of cement in the 2017 financial year that ended in March 2017, a fall of 6.6% from the preceding year.

Jordan/Saudi Arabia: Al Jouf Cement Company has activated a contract to export 72,000t/yr of cement to Jordan with effect from late February 2018. The company previously signed the deal with Saudi Industrial Export, according to Mubasher. The financial effect from the agreement is expected to show in the company’s results for the first quarter of 2018.

Argentina: Holcim Argentina plans to import 0.42Mt of clinker between May and December 2018 for US$27.5m. In a measure, agreed by the board of the subsidiary of LafargeHolcim, the cement producer will import the raw material via 10 ships, according to the El Cronista newspaper. The measure is intended to make up for a shortfall between production and local demand.