Displaying items by tag: HeidelbergCement
Germany: HeidelbergCement has reported a 26% decline in its 2014 net profit, reflecting a one-time loss and the absence of the prior year's gain. Operating income and revenues, however, increased on higher sales volumes and price increases in major markets. Further, HeidelbergCement announced higher dividend and said that it sees strong growth in fiscal 2015 results and sales volumes.
"We are confident about 2015. The outlook for the global economy is positive but there are still macroeconomic and geopolitical risks," said Bernd Scheifele, chairman of the managing board. "We will continue to benefit from the positive development in North America, the UK, Germany and Northern Europe. These countries generate almost 50% of our revenue. The results of the first two months in 2015 confirm our outlook."
In 2014 HeidelbergCement's profit plunged to Euro687m from Euro933m in 2013. The latest results were hurt by a non-recurring evaluation loss of Euro236m from the sale of the building products business, while 2013's results included Euro420m of non-recurring gains. Pre-tax profit fell by Euro91m to Euro931m. Operating income, however, grew by 5% on a reported basis and by 13% on a like-for-like basis to Euro1.6bn. Operating income before depreciation (OIBD) grew by 3% to Euro2.29bn, while its OIBD margin dropped to 18.1% from 18.3% in 2013. Revenue for the year totalled Euro12.6bn, up by 4% from Euro12.1bn in 2013. On a like-for-like basis, revenue growth was 8%. Cement sales volumes grew by 5% year-on-year to 81.9Mt.
HeidelbergCement expects to make Euro1.2bn of investments to upgrade and expand its capacities in 2015. New capacities of more than 5Mt/yr are set to be commissioned in 2015, primarily in Indonesia and sub-Saharan Africa. HeidelbergCement expects to significantly increase its revenue, operating income and net profit for the financial year in 2015. Cement sales volumes are also expected to grow, reflecting the positive development of demand and the commissioning of new capacities.
India: Jaypee Group is reportedly in talks with HeidelbergCement and JSW Cement to form a joint venture that will control the majority of its cement plants. The plan envisages a separate joint venture entity that will house around 20 – 22Mt/yr of Jaypee's operational plants in Uttar Pradesh, Himachal, Uttarakhand, Andhra Pradesh and Chattisgarh. The venture may exclude Jaypee's first cement plant in Rewa, Madhya Pradesh, which has approximately 3Mt/yr of cement production capacity.
HeidelbergCement completes sale of North American and UK building products business to Lone Star
13 March 2015US/UK: On 13 March 2015, HeidelbergCement completed the sale of its North American (excluding Western Canada) and UK building products business, Hanson Building Products, to Lone Star. The sale was originally announced on 24 December 2014. HeidelbergCement will receive more than Euro1.2bn, in addition to up to Euro95m payable in 2016, depending on business performance.
Reliance Infrastructure might sell Reliance Cement
13 March 2015India: Reliance Infrastructure, part of Anil Ambani-led Reliance Group, has decided to sell its cement business, Reliance Cement, to fund the acquisition of Pipavav Defence and Offshore Engineering, which it is acquiring for US$331m.
Reliance Cement is in talks with HeidelbergCement and Italcementi and has offered a 50% stake in the company. The prospective joint venture partner will also fund the company's cement capacity expansion, which is estimated to rise to 15Mt/yr by 2018. Details of the valuation of the possible deal are unknown. HeidelbergCement has operations in Damoh in Madhya Pradesh, Jhansi in Uttar Pradesh and Ammasandra in Karnataka. Italcementi is active in India via Zuari Cement.
Reliance Cement has a 5Mt/yr capacity cement plant in Maihar, Madhya Pradesh. As part of its expansion plan, it is setting up another 5Mt/yr plant in Maharashtra, which is set to be operational by 2017. It is also planning another 5Mt/yr of capacity to be operational by 2018, via a second line in Madhya Pradesh, a new plant in Karnataka or a new plant in Rajasthan.
HeidelbergCement adds new deputy chairman
18 March 2015Germany: The Supervisory Board of HeidelbergCement AG has amended the structure of its managing board with the addition of a new deputy chairman position. Dominik von Achten, managing board member in charge of the North America group, group purchasing and the competence centre materials, assumed the role on 1 February 2015. It was also announced that Bernd Scheifele would continue as chairman of the managing board for the next five years.
"HeidelbergCement is very glad that both Scheifele and von Achten, together with the management and employees of the company, will continue their successful work of the past years. This step will guarantee continuity in the years to come as well as a trusting and constructive cooperation between supervisory board and managing board," said Fritz-Jürgen Heckmann, chairman of the supervisory board.
HeidelbergCement has been reportedly showing interest in South Africa and Mozambique this week following the opening of new production capacity in West Africa. The Germany-based cement producer has beefed up its presence in the region with the inauguration of a 1.5Mt/yr clinker plant in in Togo and a 0.7Mt/yr grinding plant in neighbouring Burkina Faso. An additional 0.25Mt/yr grinding plant in the north of Togo is also planned for commissioning in late 2016. Other new projects in Africa include a new 0.8Mt/yr grinding plant in Tanzania that was commissioned in October 2014 and a new 0.8Mt/yr grinding mill at the Takoradi grinding plant in Ghana.
HeidelbergCement has repeatedly stated that it is considering production capacity expansions in other African countries. It currently operates in Ghana, Benin, Liberia, Tanzania, Sierra Leone, Togo, Burkina Faso and the Democratic Republic of Congo. Mostly it's a network of grinding plants with actual clinker producing plants in Tanzania, the Democratic Republic of Congo, Gabon and Togo. Its presence covers a band across central sub-Saharan Africa. Moving out of this zone into southern Africa would start to give HeidelbergCement a truly continental presence. However, from Dangote to PPC to Lafarge Africa other players are hard at work building their own cement empires.
The wild card here is how involved Chinese firms are in this process. Chinese companies like Jidong Development are building their own cement plants like the Mamba Cement plant in South Africa or Gweru in Zimbabwe, where upgrades are currently taking place. More commonly though Chinese companies like Sinoma are building new African cement plants such as a new PPC cement plant in the Democratic Republic of Congo or a new United Cement Company of Nigeria Limited (Unicem) cement line in Nigeria or several Dangote projects.
As part of the commissioning process for HeidelbergCement's new clinker plant in Togo, the Chengdu Design and Research Institute of Building Materials Industry (CDI, part of Sinoma) has emphasised that it will transfer the maintenance responsibility to local Togolese workers. The fact that the CDI's chairman made a point of saying this underlines tensions about both existing and changing international business influences in the region. Contrast this with the more sympathetic way in which Dangote's expansions in Africa that are portrayed by local media. Or look at this week's announcement by Egypt's ASEC Engineering and Management to help run a cement plant in Ethiopia. There is no need for calming statements from ASEC.
Finally, after all the discussion of the effect of oil prices on alternative fuels usage by cement producers it is worth noting what HeidelbergCement stated in its February 2015 trading statement. Principally, a drop in the price of oil is expected to present a positive impact on costs and market demand for the group. HeidelbergCement generates 86% of group earnings before interest, taxes, depreciation and amortisation (EBITDA) in net oil importing countries. In these places lower oil prices means potentially faster GDP growth and greater infrastructure spending. It is also worth considering the impact lower oil prices might have on the group's total oil and diesel bull of Euro250m/yr.
HeidelbergCement's full annual results for 2014 are due to be published on 19 March 2015. Maybe they will be more forthcoming about its intentions in Africa then.
HeidelbergCement inaugurates 0.7Mt/yr CimBurkina plant
09 March 2015Burkina Faso: HeidelbergCement has started production at its 0.7Mt/yr CimBurkina grinding plant in Kossodo, Burkina Faso. The plant will be supplied with clinker from HeidelbergCement's new 1.5Mt/yr plant in Tabligbo, Togo, which is currently under construction. The Cimburkina plant is a partnership with two local businesses.
HeidelbergCement's CimBurkina plant means that Burkina Faso now has three cement producers. India's Diamond Cement is the market leader with a 60% share while Morocco's CIMAF also has a considerable share. "Our goal is to capture 25% of the market and create a healthy competitive environment for balancing supply and demand," said CimBurkina's CEO Eric Goulignac.
HeidelbergCement is also considering entering South Africa and Mozambique to tap growing African demand.
HeidelbergCement inaugurates new clinker plant
09 March 2015Togo: China's Chengdu Design and Research Institute of Building Materials Industry (CDI) will transfer the maintenance responsibility of HeidelbergCement's 5000t/day clinker plant to the Togolese people, according to CDI's chairman. The plant is part of a US$250m cement production industrial complex. Delivered three months in advance, it was inaugurated on 6 March 2015 with a two-year period warrant.
"Over the two-year period, CDI will train the Togolese to conduct care and maintenance of the plant after the contract has ended," said CDI chairman of the board Jiao Feng. The plant is in Yoto, about 90km northeast of Lomé. "We must underline that twice as many Togolese than Chinese were used for the construction and the outcome is the endeavour of both parties," said Jiao.
HeidelbergCement appoints Dominik von Achten as deputy chairman
11 February 2015Germany: The Supervisory Board of HeidelbergCement has added the position of a deputy chairman to its managing board. Dr Dominik von Achten, member of the Managing Board in charge of the North America Group area, Group Purchasing and the Competence Center Materials, has been appointed Deputy Chairman of the Managing Board effective from 1 February 2015. At the same time, Dr Bernd Scheifele had his tenure as chairman extended until 2020.
HeidelbergCement reports higher fourth quarter revenue
10 February 2015Germany: HeidelbergCement's core profit rose by 1.7% in the fourth quarter of 2014 thanks to strong demand in the US and Asia. HeidelbergCement said that the weak Euro and the mild winter in Europe had also contributed to the profit increase. Operating income before depreciation (OIBD) increased to Euro625m in the three months to 31 December 2014. Revenue grew by 6.4% to Euro3.31bn. HeidelbergCement expressed optimism in view of the economic growth forecasts, but warned of geopolitical and monetary policy risks, which are difficult to estimate.