Displaying items by tag: Investment

Zimbabwe: Labenmon Investments and China-based West International Holding have partnered for the construction of the planned US$1bn Magunje cement plant in Mashonaland West. The plant will have an integrated capacity of 900,000t/yr, and additional clinker capacity of 1.8Mt/yr. The Zimbabwe Mail newspaper has reported that it will also be equipped with 100MW captive power plant. Construction of a building materials production complex in neighbouring Karoi will commence in parallel with the Magunje cement plant project. Construction of the Magunje plant will generate 5000 jobs in the local area, according to West International Holding. The partners expect the plant, when operational, to help to close a local supply gap.

Iraq: Al-Diyar Al-Iraqia for Investments Company and Northern Region Cement have concluded a deal under which the former will acquire a 49% stake in the cement producer’s business in Iraq. Argaam News has reported the value of the deal as US$44m. Northern Region Cement said that the new strategic partnership would help it to further expand its investments in the promising market. It will use the proceeds of the deal to repay loans and for ‘external investments.’

Northern Region Cement plans to build a US$139m, 1.32Mt/yr integrated cement plant at an unspecified location in Iraq.

Australia: Adbri says that the cost and timing of its on-going expansion of its Kwinana grinding plant in Western Australia remain ‘on track.’ To date, the producer has invested US$161m in the expansion, towards a projected cost of US$385-420m.

In an accompanying trading update, Adbri said that it expects its full-year earnings before interest, taxation, depreciation and amortisation (EBITDA) to be US$208 -212m in 2023, ‘moderately’ above its previous outlook. In 2022, its earnings before interest and taxation (EBIT) amounted to US$106m. The company has forecast total capital expenditure investments for 2023 of US$208-215m. It previously expected to invest US$221-235m during 2023.

India: UltraTech Cement has signed a memorandum of understanding (MoU) with the government of Bihar for the investment of US$120m in the state.

Press Trust of India News has reported that the Bihar government has asked the government of India to grant the state special status in order to advance its industrial development.

Belgium: China National Building Material subsidiary Sinoma International Engineering won a contract to build a new clinker line for Holcim Belgique on 8 December 2023. Yicai Global News has reported that Sinoma International Engineering will design the line, supply its mechanical and electrical equipment, procure steel structures and provide technical services under a contract worth Euro218m. The supplier expects to commission the line within 38 months of commencement of the project.

Holcim Belgique operates the 1.7Mt/yr Obourg cement plant in Mons. The plant is upgrading to net zero CO₂ cement production under the GO4ZERO project, as part of which Holcim Belgique previously announced plans to install a new kiln in the place of the plant’s existing ones.

Uganda: Holcim subsidiaries Bamburi Cement and Cementia Holding have negotiated a price of US$120m for Hima Cement with buyer Sarrai Group. Business Daily News has reported that the price is 14% higher than the company’s previous valuation. The parties said that the agreed price takes into consideration ‘multiple factors,’ including Hima Cement’s performance in 2022 and forecast performance for 2023.

Kenya: East African Portland Cement Company (EAPCC) has announced plans to build a new clinker plant in Kajaido. The Nation newspaper has reported that it will cost US$200m to build. EAPCC plans to use local pozzolana, along with limestone and coral transported from Kenya’s Coast Province, in cement production at the plant. The producer says that it will clarify the timeframes of the project in 2024.

France: Cemex’s venture capital unit Cemex Ventures has invested in construction value chain CO₂ emissions monitoring software developer Vizcab. Vizcab aims to help enable built environments to conform to stricter environmental regulations.

Head of Cemex Ventures Gonzalo Galindo said “Vizcab's exhaustive solution enables cooperation between different stakeholders to manage carbon strategies throughout a project's lifecycle, a critical challenge in our complex and interconnected industry. This solution also implements the use of building materials with sustainable attributes, such as Cemex's Vertua portfolio of products.”

South Africa: PPC recorded consolidated sales of US$335m during the first half of the 2024 financial year, up by 21% year-on-year from US$277m during the first half of the 2023 financial year. Meanwhile, its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 47%, to US$58.1m from US$39.6m. The group increased its cement sales volumes by 4%, and currency effects further helped to offset a 16% rise in its cost of sales. Cement volumes fell in South Africa, however PPC noted a locally ‘resilient performance’ despite a challenging market there and in Botswana, a ‘strong recovery’ in Zimbabwe and a ‘continued positive trajectory’ in Rwanda, via its subsidiary CIMERWA.

PPC said “The key focus for PPC will remain on its southern Africa businesses, including South Africa, Botswana and Zimbabwe. This includes continuing to improve its profitability and enhance returns through further operational efficiencies and cost containment measures. Without a significant increase in infrastructure spending and South African gross domestic product, South Africa's cement demand is expected to remain subdued and sustainability is therefore dependent on both capital discipline and margin management. Notwithstanding, PPC South Africa remains well positioned to benefit from an increase in cement demand, with additional capacity readily available to capture an upswing in demand without significant additional capital expenditure being required.”

India: SRMPR Cements has launched its Portland pozzolana cement (PPC) for the first time, in Tamil Nadu. The Hindu BusinessLine newspaper has reported that the company controls 420,000t/yr of cement production capacity across three facilities in Tamil Nadu and neighbouring Andhra Pradesh. It invested a total US$27m in its production facilities and warehouses. SRMPR Cements will sell its PPC in 50kg bags. It also plans to launch ordinary Portland cement (OPC) in the future. It said that its products will help to meet ‘massive’ demand from public construction projects.

CEO Ohm Prakash said that the producer has already concluded deals with 100 different regional retailers of cement.