Displaying items by tag: Gloria Group

Peru: The Directorate for Research and Promotion of Free Competition (DLC) of the Peruvian National Institute for the Defence of Competition and Protection of Intellectual Property (INDECOPI) has launched administrative proceedings against Gloria Group subsidiary Yura. The El Comercio newspaper has reported that nine Yura employees face allegations of participating in, planning and executing anti-competitive conduct. Logistics partner Racionalización Empresarial is also subject to the investigation.

Bolivia: A group of retired workers who used to work for Sociedad Boliviana de Cemento (Soboce) have asked for a 10% share in the cement producer. They have made their request to the company’s largest shareholder, the businessman and politician Samuel Doria Medina, according to the La Razon newspaper. They were allocated a 10% share in the business in 1975. However, the pensioners allege that Doria Medina cancelled their shares using false documentation. Doria Medina holds a 49% share in the company. He sold the other 51% share for US$300m to Holding Cementero, the largest shareholder of Consorcio Cementero del Sur, which is part of Gloria Group in 2014.

Peru: Cal & Cemento Sur (Calcesur) plans to add a sixth production line to its cement and lime plant in Puno at the end of October 2018. The upgrade will increase the unit’s production capacity to 1Mt/yr from 0.63Mt/yr, according to the Gestion newspaper. The company says that following the expansion the site will be the largest lime plant in Latin America.

The subsidiary of Gloria Group has targeted a 12% year-on-year growth in sales in 2019. It plans to sell lime to the mining sector in northern Chile and it is also focusing on Ecuador and Bolivia. The company plans to launch lime-sand bricks in 2019 for local demand and in Chile.

The cement and lime producer also plans to launch its Tipo LH cement product at the end of October 2018 and to sell cement in 25kg bags. At present, the company sells 42.5kg bags.

Data from the Peruvian cement association (ASOCEM) presents a potential bounce in the fortunes of the local industry in March 2017. Cement production rose slightly year-on-year to 0.79Mt. This is the first monthly rise since July 2016. The first quarter of 2017 as a whole is down by 4.5% year-on-year to 2.35Mt but any fillip is surely welcome.

Graph 1: Cement production in Peru, 2012 – 2016. Source: ASOCEM.

Graph 1 shows that production peaked in 2014. Although it has fallen since then it is still above the level in 2012. Cementos Pacasmayo blamed the overall fall in 2016 on a strong end to 2015 associated with El Niño prevention investments although, given that its production volumes also fell in 2015, albeit slightly, it may be being optimistic in its analysis. It also blamed the widening fallout from the Brazilian Petrobras corruption scandal for delaying investment by the Peruvian government on an infrastructure drive.

Graph 2: Cement and clinker imports to Peru, 2014 – 2016. Source: ASOCEM/SUNAT.

Another point to examine in ASOCEM’s latest release is the import figures as can be seen in Graph 2. Overall cement and clinker import volumes have hovered around 10 – 15% of local production but the ratios have changed since 2014, with a focus on ground cement. Cementos Pacasmayo provided one possible reason in its fourth quarter report for 2016 with the news that it had started replacing imported clinker with its own clinker as it increased production at its new Piura plant. Most of this cement has been coming from Vietnam through 2015 and 2016. Coincidentally, Vietnam’s General Department of Vietnam Customs has reported this week that local exports of cement and clinker are up by 11% to 4.82Mt for the first quarter of 2017 and that Peru is one of the top destinations. Also of note in February 2017 was a significant cement import of 30,800t from China following no imports from that country in 2016 and most of 2015.

Recent production and import trends aside, the Peruvian cement industry’s industry base hasn’t changed much since last time this column coved it (GCW183, January 2015). The country has three main producers – UNACEM, Cementos Pacasmayo and Grupo Gloria – who operate 49%, 43% and 8% respectively of the local 11.4Mt/yr production capacity. They each operate production units in north-south geographical bands in the country with Pacasmayo in the north, UNACEM in the central coastal region near to Lima and Gloria’s subsidiaries in the south.

As mentioned above, Cementos Pacasmayo has been increasing production at its newer Piura plant since mid-2015. Gloria Group purchased Cementos Otorongo, a project to build a cement plant in the south, from Votorantim in mid-2016 and Cemex was reported as having gained government approval for a grinding plant project in Lima in early 2016. On the financial side, UNACEM’s income fell by 4% to US$573m in 2016. Cementos Pacasmayo’s sales fell slightly to US$381m and its earnings before interest, taxation, depreciation and amortisation (EBITDA) for its cement operations fell by 4.6% to US$118m.

Like lots of African countries the outlook for the construction industry in Peru is good in the medium term with plenty of scope for development and a growing economy despite a contraction of 6% in the construction industry in 2016. The Gross Domestic Product (GDP) growth rate hit a low of 2.4% in 2014 but it has since started to pick up again. Once or if the Kuczynski administration starts spending on infrastructure then all the signs should point to growth in the cement industry. Given the amount of clinker sloshing around the world if any producers actually start opening terminals or grinding plants this would suggest they are confident of a return on investment.

Peru: Consorcio Cementero del Sur (CCS), a subsidiary of Gloria Group, has signed a contract to buy all of Brazil’s Votorantim’s shares in Cementos Otorongo for US$4m and those of Votorantim’s subsidiary Corporación Noroeste. Cementos Otorongo is planning to build a cement plant in southern Peru for US$125m, according to the Gestión newspaper. Cementos Otorongo submitted an environmental impact study on the project in 2011 for proposed sites in La Joya, Arequipa and Mollendo, Islay. The planned plant will have a production capacity of 0.65Mt/yr.

This story was corrected on 18 August 2016 following clarification from Votorantim.

Peru: UNACEM has boosted its first half net income by 23% on higher prices and lower costs, according to Business News Americas.

UNACEM posted a US$47.8m profit and its sales rose by 6% year-on-year to US$896m in the first half of 2015. The company cut its operating costs by 8% in the first half of 2015 and its sales costs by 2.1%. Cement production fell by 1.6% to 2.71Mt in the first half of 2015, while clinker production fell by 6.3% to 2.58Mt. Exports jumped by 36.6% to 590,863t during the period.

UNACEM, which competes in Peru with companies including Cementos Pacasmayo and Gloria Group's Cementos Yura, said that it increased its domestic market share to 51.2% in the first half of 2015 from 49.9%. UNACEM expects to benefit from a growing contribution from its US$553m acquisition in 2014 from Lafarge Ecuador.

UNACEM has 7.6Mt/yr of installed cement capacity. Peru's cement production rose by 1.4% to 10.7Mt in 2014, according to cement producers' association Asocem. Exports from Peru rose by 37.4% to 306,277t in the same period.

Ecuador: Peru's Gloria Yura Cement plans to invest US$230m in the construction of a new cement plant in Ecuador, according to the minister of Industry and Productivity in Ecuador, Ramiro Gonzalez.

Peru: Cementos Yura, a Gloria Group subsidiary, has invested US$50.0m in machinery and equipment for a new cement plant. The company is building capacity to meet the demand of large construction projects in Southern Peru. In the first half of 2014, Yura reported US$39.2m in profit, down from US$39.9m in the same period of 2013. Yura's domestic market share fell from 22% in the first half of 2013 to 21.7% during the same period of 2014.

Peru: Yura has ordered a vertical roller mill from Loesche America for installation at a cement plant in Arequipa.

The subsidiary of Gloria Group has chosen a Loesche Mill Type LM 56.2+2 C/S to be part of a clinker and pozzolana dry-grinding plant. The product rates will be exceeding 170t/hr of cement with a fineness of 5000cm²/g Blaine. The gearbox has an installed capacity of 4000kW.

Loesche will be responsible for the complete import portion of the grinding plant in between mill feeding hoppers and cement silo inlet. Additionally, Loesche will deliver a compact LOMA hot gas generator, the set of main drive motors, a set of instruments for process control loops and the dust emission monitoring. Delivery is expected to take eight months.