Displaying items by tag: Jobs

UK: Mineral Products Association (MPA) chief executive Nigel Jackson has written to the Chancellor, Rishi Sunak, welcoming his deferment of value added tax (VAT) and urging the extension of this deferment to Employer National Insurance (ENI), Corporation Tax and Business Rates. “What business needs now are fast and simple solutions that enable them to keep cash in their businesses and their employees in their jobs,” said Jackson. “Fixed costs are very high. Once the recovery starts the pent-up demand will be immense.”

Finland: Machinery manufacturer Metso Corporation has announced plans to consolidate its European warehouse operations, currently spread over Norway, Sweden, the UK, France, Spain, the Czech Republic, Turkey and Russia, into a single location. Metso Corporation customer logistics senior vice president Jarkko Aro said the move ‘would also enable considerable savings in end-to-end freight costs and reduced CO2 emissions.’ 40 employees are potentially affected. Metso Corporation has not disclosed any locations under consideration for the facility.

Nigeria: Chinese-owned FabCom has unveiled a new fibre cement board at a ceremony celebrating the fifth anniversary of its presence in Nigeria. The Sun has reported that the company will manufacture 5Mm²/yr at its fibre cement board plant in Ambuja, which will be operational before 1 January 2021. FabCom managing director Liuxing Wang praised the product’s environmental friendliness, noting its durability, sound insulation, fire and water resistance and multi-use workability. FabCom’s investments in Nigeria total US$190m and have created 200,000 jobs, the company says.

Argentina: Loma’s new line at its L’Amali plant in Olavarría Province, involving a kiln, two vertical mills and a bagging and palletising unit, will create 120 jobs, 80 of which will go to plant staff. The company had previously estimated that 220 people would work on the line. In a statement, it emphasised the importance of maximising gender parity in its recruitment process.

Loma Negra estimated that the upgrade will enlarge the plant’s capacity by 40% to 2.4Mt/yr from 1.7Mt/yr. The declaration follows the announced relocation of 45 staff members with the closure of the 1.5Mt/yr integrated Olavarría cement plant, also in Olavarría province.

Germany: The executive board of Humboldt Wedag (HWG), a subsidiary of KHD Humboldt Wedag International (KHD), is preparing to cut approximately 80 jobs. It has made this decision in response to a ‘difficult’ business environment in cement plant construction industry in the near future. It said that in light of this, ‘personnel capacities cannot be sufficiently utilised.’ The measures required to implement the reorganisation will be discussed with the works council soon.

Philippines: Apo Cement is preparing to temporarily lay-off up to 30% of its employees and 40% of its contractors. It has filed a formal notice detailing its intentions with the Department of Labor and Employment in Central Visayas, according to the Philippines News Agency. It says it has been forced into reducing its workforce in response to the on-going suspension of Apo Land and Quarry following landslides in September 2018. APO Land & Quarry supplies raw materials to CHP’s subsidiary Apo Cement, and it is indirectly 40% owned by Mexico’s Cemex.

South Africa: PPC has started a cost cutting campaign at its head office following poor cement sales so far in 2018. A source quoted by Business Report told the newspaper that staff redundancies had taken place already. The fall in sales has been blamed on poor local economic growth, the impact of a value added tax (VAT) increase on consumer spending and problems in the construction industry, including a fall in large infrastructure projects and private non-residential building.

Puerto Rico: Cemex Puerto Rico plans to stop clinker production at its Ponce cement plant. The site will move to grinding cement in January 2018, according to Sin Comillas. The cement producer has been unable to rule out job losses.

The changes come in response to poor cement sales that the company says are the worst in the territory since the 1950s. Cement sales have been falling since 2009 and Hurricanes Irma and Maria punished the market in the autumn with big declines in September and October 2017. At present Cemex Puerto Rico says that the local market only needs around a third of the country’s capacity. However, the Ponce plant has a production capacity of 1.2Mt/yr. The company has also cited high electricity costs as part of its decision.

HeidelbergCement released more detail on its plans to buy Italcementi last week. The main points were that Italcementi’s operations in Belgium will be sold, the Italcementi brand will be retained, its research and development (R&D) centre will assume responsibilities for the entire group and up to 260 job losses are expected in Bergamo. The integration plan is expected to be complete by 2020.

Following an update in HeidelbergCement’s preliminary financial results for 2015 in February 2016, this was more focused on the practicalities of taking over a company. Sales of assets in Belgium were expected from the moment the deal was announced in July 2015. Between them the two companies operate three of the country’s four cement plants, holding 73% of the market by cement production capacity. Selling up Italcementi’s Belgian subsidiary Compagnie des Ciments Belges will maintain the existing market balance. Once this is done, from a cement sector perspective, interaction from the European Commission on the deal should merely be a formality.

Interestingly, no plans to sell assets in the US were announced. This is more ambitious on HeidelbergCement’s part because the acquisition has far bigger implications in that country. Merging Italcementi’s Essroc subsidiary and HeidelbergCement’s Lehigh Hanson subsidiary will see HeidelbergCement become the new second largest cement producer in the US with around 16.4Mt/yr. LafargeHolcim had a relatively easy ride from the Federal Trade Commission (FTC) having to sell two integrated cement plants, two slag grinding plants and a series of terminals. As HeidelbergCement will become the second largest cement producer it seems unlikely that the FTC will be too demanding. However, post-acquisition the cement producer will own cement plants within 75 miles of each other in Pennsylvania and in Maryland and West Virginia. The FTC may take exception to this but perhaps HeidelbergCement is trying their luck to see if it can get away with it.

The decision to retain Italcementi’s i.Lab R&D centre in Bergamo, Italy raises questions about what will happen to the Heidelberg Technology Centre (HTC) in Leimen, Germany. The focus here is on making Bergamo the ‘product’ R&D division for the entire group. i.Lab was opened in early 2012 to fanfare, based in a building designed by architect Richard Meier and it cost Euro40m to build. How this fits with HeidelbergCement’s existing Global R&D team at the HTC remains to be seen.

Job losses of up to 260 personnel at Bergamo are regrettable but hardly unexpected. It may not be much comfort for any staff members facing redundancy but this figure is well below the figures bandied about in the media in late 2015 of first around 1000 and then nearer 500. Another 170 personnel will also be offered relocation packages taking the impact of the reorganisation up to about 400 of Italcementi’s 2500 workforce in Italy.

Looking at the wider situation with the acquisition this week, HeidelbergCement announced a record contract for Norcem, its Norwegian subsidiary, to supply 280,000t of cement over three years for an infrastructure project. Then, Carlo Pesenti, the chief executive officer of Italcementi, was reported making comments about the business’ expansion plans in Thailand and the Association of Southeast Asian Nations (ASEAN). Projects in Myanmar and Cambodia look likely once the acquisition is complete. Finally, the ratings agency Moody’s was drumming up attention for a market report by pointing out the implications for the multinational cement producers in India if a proposed rise in infrastructure spending gets approved. In summary HeidelbergCement and Italcementi are unlikely to benefit due to their southern Indian spread of assets and local production overcapacity.

HeidelbergCement may not be getting it all its own way but the acquisition of Italcementi remains on track so far. All eyes will be on how the US FTC responds to the deal.

India: UltraTech Cement Ltd has reported that the tenure of S Rajgopal, Independent Director of the company, ended upon the conclusion of the annual general meeting of the company held on 28 August 2015.