Displaying items by tag: Lafarge
Lafarge shows signs of revival in 2012
20 February 2013France: Multinational buildings materials producer Lafarge has shown signs of improved profitability in 2012 as its operating income rose by 12% to Euro2.44bn. Chairman and CEO Bruno Lafont has attributed the turnaround in the group's fortune's to cost reduction measures and continued growth in emerging markets. However the group's net income continue to fall in 2012, by 27% to Euro432m in 2012 from Euro593m in 2011.
"We have delivered on our objectives for 2012 and our results grew for the fifth consecutive quarter, driven by strong operational performance and growth in emerging markets, which generated close to 60% of our sales," said Lafont.
Sales rose by 3% to Euro15.8bn from Euro15.3bn. Earnings before interest, taxes, depreciation and amortisation (EBIDTA) rose by 7% to Euro3.45bn from Euro 3.22bn. The group reduced its net debt 5% to Euro11.3bn.
The overall volume of cement made by Lafarge fell by 3% in 2012 to 141Mt compared to 145Mt in 2011. Lafarge attributed this to the continued construction slowdown in Europe, increased local supply in Egypt, the current situation in Syria and the impact of the US divestments, mitigated by growth in Asia, Latin America and most countries of Middle East and Africa. EBIDTA for Lafarge's cement business rose by 6% to Euro2.96bn from Euro2.73bn. Overall results for the fourth quarter of 2012 were broadly similar to the year although both volumes and sales of cement fell suggesting that Lafarge's recovery remains fragile.
By region, in North America volumes of cement fell by 5% to 12.8Mt in 2012 from 13.5Mt in 2011. However volumes were down by 7% to 3Mt in the fourth quarter of 2012 due to tornadoes and bad weather.
In Western Europe cement volumes fell by 11% to 16.4Mt in 2012 from 18.4Mt in 2011. Notably sales volumes fell significantly in Spain and Greece, by 26% and 37% respectively. In Central and Eastern Europe cement volumes fell by 6% to 13.2Mt from 14.1Mt. Poland was singled out in this region, where sales volumes fell by 21% in 2012, following the completion of construction projects for the European Cup games in June and lower EU funding.
In the Middle East and Africa cement volumes fell by 3% to 45.2Mt from 48Mt. Sub-Saharan Africa, Algeria and Iraq were singled out for strong performance. Egypt's volume sales of cement fell by 5% and Syria reported 'sharp' declines. In Latin America cement volumes rose by 4% to 9.2Mt from 8.8Mt, led by Brazil, Honduras and Ecuador. In Asia cement volumes rose by 4% to 44.3Mt from 42.5Mt, led by strong gains in India, Indonesia, the Philippines and South Korea.
In its outlook Lafarge stated that it expects to see cement demand continue to rise by 1-4% in 2013 driven by emerging markets. The group also plans to reduce its net debt below Euro10bn as soon as possible in 2013.
UNICEM to double cement capacity to 5Mt/yr by 2016
13 February 2013Nigeria: Flour Mills of Nigeria plans to borrow up to US$500m to finance a 2.5Mt/yr upgrade at its 2.5Mt/yr UNICEM joint venture cement plant in Calabar, according to its chief finance officer. Flour Mills operates in the Nigerian cement market as Burham Cement and it shares its joint venture with Holcim and Lafarge.
In an interview with Reuters, Jacques Vauthier announced that the conglomerate had appointed financial advisers and banks to raise a term loan from the local market for the construction of the plant. He said that the details of the loan were still being finalised. The new cement plant will be completed by the first quarter of 2016.
Vauthier acknowledged the cement glut in 2012 and blamed it on cheap imports from Asia. He added that sales were picking up again and he expected its cement subsidiary Unicem to end 2013 with a year-on-year growth rate that is in double-digits.
This news story was updated on 11 November 2013 with the exisiting capacity of the UNICEM cement plant
Amr Reda appointed Lafarge Pakistan CEO
06 February 2013Pakistan: Lafarge Pakistan has announced the appointment of Amr Reda as the new Country CEO. Prior to joining Lafarge Pakistan he was the Regional Business Controller Lafarge Middle East and Pakistan and has served as member Board of Directors' Lafarge Pakistan since January 2007.
"We are fortunate to have Amr as the new CEO and I have full faith that he will take the company to the new heights of professionalism. We will together work for the benefit of all stakeholders of the Company," said outgoing Lafarge Pakistan CEO Major General Rehmat Khan. Khan will take a new role as Chairman Board of Directors of Lafarge Pakistan.
Hima to install US$3.2m bag filter upgrade at Kasese by May 2013
06 February 2013Uganda: Hima Cement has decided to spend US$3.2m to upgrade its bag filter technology at its Kasese cement plant in western Uganda. The move follows a history of complaints from local communities over dust emissions. The upgrade will be installed at the factory's old production line, which plans to bring stack emissions in line with global standards. It is expected to be completed by May 2013.
"We are confident that this time round the problem of emissions will become a thing of the past since the same technology was installed at our Bamburi Cement factory in August 2012," said David Njoroge, Hima Cement general manager.
The upgrade is the second attempt that Hima Cement has made at its old line in Kasese. Previously an electrostatic precipitator (ESP) failed due to frequent power cuts. In 2011 Kasese's new production line, which uses bag filter technology, was opened to increase cement production capacity from 300,000t/yr to 850,000t/yr.
Lafarge produces Aether clinker for first time
16 January 2013France: Lafarge has announced that it has completed a industrial-scale trial to make Aether®, its new generation clinker formulated for lower carbon cements and has 25-30% lower CO2 emissions than normal clinker.
The trial mobilised a team of around 100 people over a 10-day period at the group's plant in Le Teil, France. It allowed the production of 10,000t of Aether clinker and, according to a Lafarge press release, confirmed the feasibility of industrial-scale production using traditional raw materials.
The result of several years of research by Lafarge's research and development teams, the new clinker offers similar properties to OPC and can be produced in traditional cement plants after minor process adjustments. However, it has a lower overall environmental footprint, which is derived from having a lower limestone content in the raw mix, a kiln temperature in the region of 1300°C and lower-energy grinding.
Following sustained CO2 emission reductions since the early 1990s, Lafarge says that the Aether project will help it to reduce CO2 emissions per tonne of cement by 33% by 2020, one of its Sustainability Ambitions 2020 targets.
The first Aether products will be launched in 2014.
US$500m Lafarge investment in Brazil
14 January 2013Brazil: The French building materials giant Lafarge has announced a US$500m investment plan in Brazil. On 11 January 2013 Bruno Lafont, group CEO, announced the five year investment in a civil construction research centre in the country at a meeting with the Brazilian President Dilma Rousseff. The move follows a number of asset sales by the group.
The Brazilian research centre will be the group's fifth outside France. The others are in the Netherlands, China, Algeria and India. In the past five years Lafarge has invested US$1bn in Brazil.
Joint venture for Lafarge and Elementia in Mexico
09 January 2013Mexico: The French building materials giant Lafarge has announced a joint venture with new Mexican cement player Elementia, only a day after announcing that its UK joint venture with Tarmac received competition commission approval. The new joint venture formed will be held 47% by Lafarge and held 53% by Elementia, which will fully consolidate the venture's financial results.
The deal, announced on 8 January 2013, will see Lafarge contribute its two Mexican plants at Vito and Tula, which have a combined capacity of just under 1Mt/yr. Elementia will contribute its cement plant project, a 1Mt/yr installation, which is currently undergoing construction in central Mexico.
A Lafarge press release stated that the combination between Lafarge and Elementia would 'significantly' strengthen its position in Mexico. The transaction, which involves no cash and is subject to regulatory approvals, is expected to close in the second half of 2013, pursuant to the start up of the new Elementia plant.
Lafarge Tarmac starts trading after deal approved
07 January 2013UK: Lafarge and Anglo American have announced the completion of a 50:50 venture which combines their cement, aggregates, ready-mix concrete, asphalt and asphalt surfacing, maintenance services and waste service businesses in the UK. The joint venture will be known as Lafarge Tarmac and began trading today. The Lafarge Tarmac combination is expected to generate savings of Euro74m through improved operational, logistical and purchasing efficiencies and the introduction of value-added products across a wider geographic area.
Completion of the Lafarge Tarmac joint venture follows final clearance from the UK Competition Commission, based on the completed sale of a portfolio of Tarmac and Lafarge construction materials operations in the UK, which also occurred on 7 January 2013. The agreed sale of Tarmac's 50% ownership interest in Midland Quarry Products is subject to a right of pre-emption in favour of Hanson Quarry Products Europe Limited. As a result of this the completion of this transaction is pending.
"We have successfully united two high quality and complementary UK businesses to create the leading UK construction materials company with high quality assets, two experienced management teams and a portfolio of well-recognised, innovative brands," said Cynthia Carroll, Chief Executive of Anglo American.
"The closing of this transaction and the creation of a new British construction materials champion reinforce Lafarge's ongoing commitment to the UK market and its efforts to continuously improve its offering to customers, as well as playing a full role in developing the infrastructure needed for a growing economy," said Bruno Lafont, Chairman & Chief Executive of Lafarge.
Dangote and Lafarge record 1.47Mt unsold stock in Nigeria
02 January 2013Nigeria: Two major Nigerian cement producers, Dangote and Lafarge WAPCO, have ended the 2012 calendar year with 1.47Mt of unsold cement and clinker. Figures obtained from the two manufacturers show that Dangote had unsold stock of 950,000t while Lafarge had 520,000t.
"At Lafarge, the situation is so bad. We have 300,000t of unsold cement and 220,000t of clinker in our silos across our three plants (Sagamu, Ewekoro I and Ewekoro II). Before these pileups, we used to load 10 trucks per day but now that there are no sales and loaded trucks have nowhere to go. As a result we are losing 800t/day," said Lanre Opakunle, plant manager at Lafarge Ewekoro II.
Commenting on why the price of cement remained high in Nigeria despite the glut, Opakunle said that manufacturers are coping with rising energy inputs and high haulage costs. Fuel costs account for 31% of production cost in Nigeria compared to less than 10% in China.
In early December 2012 Dangote Cement announced that it was going to shut its 4Mt/yr Dangote Cement plant in Gboko, Benue State due to a glut of cement in the market.
IFC loans US$70m to Lafarge subsidiary in Iraq
02 January 2013Iraq: International Finance Coporation (IFC), a member of the World Bank Group, is providing a US$70m loan to help renovate a cement factory in Iraq.
The financing will allow Kerbala Cement Manufacturing (KCML), a subsidiary of Lafarge, to rehabilitate a state-owned plant near the city of Kerbala. KCML will undertake the work under a concession agreement with the government of Iraq. The financing is expected to aid Iraq's construction sector.
"This financing will help address the cement shortage that Iraq is facing and help the country meet supply gaps in its infrastructure," said Guy Ellena, IFC Director for Manufacturing, Agribusiness and Services in Eastern and Southern Europe, Central Asia, the Middle East and North Africa.
KCML is a joint venture between Lafarge and MerchantBridge, a London-based private equity group. The financing is being supplemented by a US$20m loan from Proparco, a development financial institution funded by the French Development Agency and private shareholders.