Displaying items by tag: HeidelbergCement
HeidelbergCement India dips on weak third quarter
09 February 2015India: HeidelbergCement India has reported a net loss of US$1.59m in the third quarter of its 2014 - 2015 financial year, which ended on 31 December 2014. This compares to a net loss of US$1.07m in the same period of 2013. Its total income rose by 16.6% year-on-year to US$67.8m in the October - December 2014 quarter. Heidelberg Cement India said that pursuant to the sale of the Raigad plant in Maharashtra, which came into effect on 3 January 2014, the result for the quarter is not comparable with the same period of 2013.
Scancem applies to International Finance Corporation for Euro11m grinding plant in Guinea-Bissau
14 January 2015Guinea-Bissau: Maxime Cardoz and HeidelbergCement subsidiary Scancem has applied to the International Finance Corporation (IFC) for a loan of Euro11m to help finance Guinea-Bissau's first cement grinding plant. The project is estimated to cost a total of Euro22m.
The Cardoz Cimentos de Bissau project is 60% under the ownership of Cardoz and 40% by Scancem. Its location will be 1.5km from the port of Bissau, a plant location in an area which at present absorbs 50% of the country's cement consumption. A decision on the funding will likely be finalised on 27 February 2015.
Cement consumption in Guinea-Bissau is dependent upon imports, mainly sourced from Senegal via the country's sole port at Bissau and accounts for 80% of its international trade.
Back to business in 2015
07 January 2015The end of 2014 proved a good time to tidy up outstanding business for various organisations with links to the cement industry. Lafarge and Holcim received clearance from the European Commission for their proposed merger and they announced their executive committee, Holcim and Cemex concluded their transactions in Europe, the US Environmental Protection Agency (EPA) announced regulations for coal ash, HeidelbergCement found a buyer for its Hanson Building Products business and even PPC managed to appoint a new CEO.
The HeidelbergCement sale is of interest because the company has said it is using the proceeds to pay off debt rather than to make purchases. CEO Bernd Scheifele said in the press release that the intention was to improve the company's 'credit-worthiness.' This isn't directly related to the cement industry because Hanson Building Products produces concrete gravity pipe, concrete and steel pressure pipe and clay bricks in the US, UK and eastern Canada. Yet the potential cash bonanza is relevant. Remember, this is happening at the same time that Lafarge and Holcim have been offloading lots of their own assets to meet competition regulations in various territories.
When the initial public offering was made for Hanson Building Products in September 2014, analysts assumed that HeidelbergCement was positioning itself for a spending spree. The purchase price for Hanson Building Products agreed with a private equity firm was US$1.4bn. This could be used to buy five 1 Mt/yr cement plants at an average price of US$250/t for cement production capacity!
Unfortunately for HeidelbergCement its net debt rose from Euro7bn in 2012 to Euro7.5bn in 2013. This was the first time it had risen since 2007 when it hit a peak of Euro14.6bn. That year was when it agreed to purchase Hanson. It also marked the start of the 2007 – 2008 financial crisis. Similarly, ratios such as net debt to operating income before depreciation (OIBD) also rose in 2013. Although it looks from interim financial reports that HeidelbergCement's debt may have decreased again in 2014, it is probably not doing so at any great speed. Hence the Hanson Building Products sale.
For comparison with debt held by the other European-based cement producers, Lafarge's net debt stood at Euro10.3bn at the end of 2013, Holcim's net debt was Euro7.9bn, Italcementi's net debt was Euro1.9bn and Mexico-based Cemex's net debt was Euro14.8bn. Compared to most of these their operating incomes these company's have net debt to earnings before interest, taxes, depreciation, and amortisation (EBITDA) ratios (net debt/EBITDA) of between two and three-and-a half suggesting that they can pay back their debts within a few years if absolutely necessary. The outlier here is Cemex with a ratio of over six following previous acquisition bursts.
The implication here is that Lafarge and Holcim have chosen to sell their wares at a time when their European competitors are weakened. Meanwhile their Chinese competitors have only just started to directly expand outside of mainland China. Smart move.
US/UK: HeidelbergCement has announced that it has entered into a definitive agreement with an American affiliate of Lone Star Funds to sell its North American and UK building products business for an aggregate purchase price of US$1.4bn. HeidelbergCement said that up to US$100m will be payable in 2016, depending on the performance of the business in 2015. The deal excludes HeidelbergCement's Western Canada business. HeidelbergCement expects the transaction to close in the first quarter of 2015.
The sale of Hanson Building Products is consistent with HeidelbergCement's strategy of focusing on processing and refining raw materials for its core products of cement and aggregates and further downstream activities, according to a HeidelbergCement spokesperson. HeidelbergCement will retain its Hanson units in the cement, crushed stone, sand and asphalt businesses in the UK.
HeidelbergCement reopens Ukrainian cement plant
18 December 2014Ukraine: HeidelbergCement has reopened its plant in eastern Ukraine a month after shutting it. Separatists in the region wanted to impose their own agenda on the production process, the company said in November 2014. The situation has now changed and HeidelbergCement is about to sign a contact with a new security firm, according to CEO Bernd Scheifele. The re-launch of the production process was closely coordinated with the Foreign Office.
The conflict in Ukraine has led to serious infrastructure damage and thus the demand for building materials is high, according to Scheifele. The plant's capacity is 2Mt/yr of cement. The company generates Euro150m of revenue with its three Ukrainian sites, or a share of 1% of the total revenues. In 2014, however, turnover slipped by 30% due to the conflict.
Kerim Tunçay takes over as general manager of Union Cement Norcem
02 December 2014UAE: After more than 14 years with HeidelbergCement, Kerim Tunçay has been offered the position of general manager at Union Cement Norcem (UCN). Union Cement Norcem (UCN) is a joint venture between Union Cement Company (UCC) of Ras Al Khaimah, UAE and Norcem of HeidelbergCement. It was set up in 1980 to market and sell the American Petroleum Institute (API) certified oil well cement, concentrating on export markets.
Tunçay, who took charge of his new assignment from 1 September 2014, will be in charge of all domestic and export sales of cement and clinker of UCC in addition to the sales of oil well cement.
Born in Istanbul, Turkey in 1972, Tunçay has a Masters Degree in Business Administration from University of Saarland, in Saarbrucken, Germany and a Marketing Diploma from University of California, Berkeley. Trained as an International Trader Candidate, Tunçay started his career with the cement industry in 2000 at HeidelbergCement Trading (HCT) in Istanbul.
HeidelbergСement Ukraine appoints Kovaliova to board
03 December 2014Ukraine: HeidelbergCement Ukraine has appointed Olena Kovaliova as Deputy Chairperson of the Management Board to replace David Andreas Johannes von Lingen. The company's Supervisory Board decided to terminate von Lingen's authority on 25 November 2014 ahead of the original scheduled date of 31 December 2014, according to a company statement. Von Lingen had been in port for three and a half years. The Supervisory Board appointed Kovaliova as the Board Deputy Chairperson from 1 January 2015 for three years until 1 January 2018.
Tanzania cement output set to rise to 6Mt/yr
27 November 2014Tanzania: Tanzania expects to double its cement production to 6Mt/yr in the next few years as new plants are commissioned to meet demand from the construction sector, according to comments made in parliament by Deputy Minister for Industry and Trade, Janet Mbene. Tanzania's cement output rose by 18.9% in 2013 to slightly above 3Mt due to higher demand. Mbene said the rise in output would mean Tanzania would produce a surplus to be exported.
Cement producers currently operating in the country include Tanzania Portland Cement - a subsidiary of Heidelberg Cement, Tanga Cement – a subsidiary of Afrisam Mauritius Investment Holdings and Mbeya Cement – a subsidiary of Lafarge. Lake Cement and Lee Cement Factory are the two newest entrants in Tanzania's cement manufacturing and marketing sector with their core products under brand names of Nyati cement and Kilwa cement respectively. Dangote is also building a 3Mt/yr cement plant in Mtwara Region.
HeidelbergCement announces FRITZ & MACZIOL as ‘preferred supplier’
25 November 2014Germany: The IT logistic solution VAS, of FRITZ & MACZIOL, has become an integral part of the 'Logistic Efficiency Optimisation' (LEO) initiative initiative of HeidelbergCement.
Within the project, an integrated material-flow management will be introduced that will lead to a considerable cost reduction in the fields of logistics. Globally, several plants in the cement, aggregates as well as concrete businesses will be equipped with VAS. The implementation of VAS will lead to a significant optimisation of the dispatch and related logistical processes, as the increased level of automation will result in a much faster execution of many activities within the plants.
In this context, FRITZ & MACZIOL has also been announced as a 'preferred supplier' by HeidelbergCement. "FRITZ & MACZIOL reflects an ideal partner for us in the fields of IT logistics," said Tanja Hofmann, HeidelbergCement's group purchasing spokesperson.
HeidelbergCement currently runs the IT-Logistic solution VAS at four of its German cement plants. The solution will now be further implemented in its remaining German plants. At the same time both sides will work on the international roll-out.
HeidelbergCement closes Ukrainian plant because of separatists
18 November 2014Ukraine: HeidelbergCement has shut down one of its cement plants in eastern Ukraine because separatists in the region want to impose their own agenda on the production process, according to a HeidelbergCement spokesman.
The plant was not occupied, but the separatists reportedly have their own ideas of how to produce cement. The spokesman added that HeidelbergCement would not engage in talks with the separatists. The 500 employees at the site are currently busy cleaning the facility, but if no solution is arrived at, their jobs will be threatened.
The plant has 2Mt/yr of cement production capacity. HeidelbergCement generates a turnover of Euro150m from its three Ukrainian sites, or 1% of its total revenues. However, in 2014 its turnover has fallen by 30% due to the conflict. Earlier in 2014 CEO Bernd Scheifele voiced his concerns about the developments in the region. Due to the political escalation interest rates exploded and loans vanished, putting the company's local production in danger.