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News Myanmar

Displaying items by tag: Myanmar

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Anhui Conch repairs balance sheet in 2016

24 March 2017

China: Anhui Conch returned to rising sales revenue and profit in 2016 after a problematic year in 2015 beset by a poor market for cement. Its revenue rose by 9.7% year-on-year to US$8.12bn in 2016 from US$7.40bn in 2015. Its sales volumes of cement and clinker rose by 8% to 277Mt. Its net profit rose by 14% to US$1.24bn from US$1.09bn. The group says that its adoption of a flexible marketing strategy for different regions and plants and a focus on lowering production costs delivered sales growth and operating savings. However, its full year results are in contrast to its ones for the first nine months of 2016, in which it reported small declines in its revenue and net profit.

During the year the cement producer finished building six clinker production lines at Yingjiangyunhan Cement and Yiyang Conch Cement and it completed 18 cement grinding plants at Wenshan Conch Cement and Ganzhou Conch Cement. In addition to purchased the assets of Anhui Chaodong Cement. Outside of China the group completed lines in Indonesia and Myanmar, started buildings projects in Indonesia, Cambodia and Laos and started early work on new projects in Russia and Myanmar. At the end of 2016 the group says it has a clinker and cement production capacity of 244Mt/yr and 313Mt/yr respectively. It also reported that it had completed 15 waste treatment projects by the end of the year to feed cement plant kilns with domestic waste.

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Mawlamyine Cement ordered to repeat environmental impact assessment

06 March 2017

Myanmar: Mawlamyine Cement has been ordered to conduct an additional environmental impact assessment at its Kyaikmayaw cement plant in Mon State. The government has requested that a third party conduct the study at the site, according to the Daily Eleven newspaper. Issues with coal use, transportation of finished products via river and emissions have been raised by the Environmental Conservation Department. The cement producer has also been asked to include residents in the assessment to ensure transparency of the process.

Mawlamyine Cement is a joint venture between Thailand’s Siam Cement Group and Pacific Link Cement Industries. The 1.8Mt/yr plant was built for US$400m and was scheduled to start production in late 2016.

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Loesche receives first order in Myanmar

01 March 2017

Myanmar: South Korea’s Yojin Construction & Engineering has placed an order for two cement mills from Loesche for installation in Myanmar. The order for a cement and slag mill is Loesche’s first in the country. The mills will be used at a grinding plant owned by Yojin Myanmar Engineering in Thilawa. They will each produce 75t/hr of cement with a fineness of 3300 Blaine. Operation is scheduled for mid-2017. Yojin is building its new grinding plant in the Thilawa Special Economic Zone south-east of Yangon. The site has an ambition to produce 1Mt/yr of cement.

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Siam Cement Group Building materials Division’s sales fall by 4% to US$4.9bn in 2016

25 January 2017

Thailand: Siam Cement Group’s Building Materials division’s sales revenue fell by 4% year-on-year to US$4.9bn in 2016. Its profit fell by 17% to US$241m. It blamed the falling sales and profit on increased competition, falling earnings before interest, taxation, depreciation and amortisation (EBITDA) and increased depreciation expenses. Overall, across the group’s chemical and packaging division, sales revenue fell but profits rose in 2016 driven by the chemical business.

Roongrote Rangsiyopash, the president and chief executive officer of Siam Cement Group, said the company is focusing on expansion strategies within the Association of Southeast Asian Nations (ASEAN) region. Its 1.8Mt/yr cement plant in Myanmar started commercial production in early 2017 and a cement plant in Laos is undergoing commissioning.

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Star Ferro sets up subsidiary in Myanmar

31 October 2016

Myanmar: Star Ferro and Cement's subsidiary Star Cement has incorporated a subsidiary called 'Star Century Global Cement' in Myanmar. It said the new company has been created to provide ‘engineering, technical, financial, management and skilled and other services relating to prospecting and exploration of mines and minerals’ in the country. It also intends to offer technical consultancy services for exploration, mining, process, engineering and operating data.

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Foreign workers charged at Siam Cement-CITIC Heavy Industries plant project in Myanmar

10 October 2016

Myanmar: Five foreign workers at Mawlamyine Cement, a cement plant being built by Siam Cement and CITIC Heavy Industries, have been charged for violating visa regulations. The workers failed to report the initial arrival of 11 of their colleagues’ to the local immigration authorities, according to the Myanmar Times. Four Chinese and one Thai citizen have been charged with violating three sections of the Registration of Foreigners Rules of 1948 which require the registration of foreigners with relevant immigration officials within 24 hours of arrival at a hotel.

Siam Cement and CITIC Heavy Industries signed a deal in 2013 to build a 5000t/day plant for US$197m. The plant is expected to become operational later in 2016.

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SCG launches Masonry Cement to Myanmar

26 August 2016

Myanmar: SCG has launched Masonry Cement, its first bespoke product for the Myanmar market. The brand of cement is targeted for applications in plastering and bricklaying, according to the Myanmar Business Today newspaper.

“This Masonry Cement is specialised for the Myanmar market. Based on customers’ choices, they can use this cement or our former cement products. This new product has strength in bonding cement. Some unqualified cements provide less bonding in plastering. This new product will reduce waste and expenditure,” said Attapong Sathitmanotham, SCG’s Myanmar Country Director.

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Myanmar state cement plant at Kyaukse to receive upgrade

20 June 2016

Myanmar: The state-run No. 33 cement plant in Kyaukse, Mandalay will be upgraded to produce up to 5000t/day of cement in a partnership with Myanmar Conch Cement. The plant was established in 1983 and has been running under the Ministry of Industry with a capacity of 300t/day. The upgrade is expected to be finished in three months, according to Myanmar Business Today.

The agreement with Myanmar Conch Cement will give the government profit from 2.71% of production in the first year and from 5% in the following 19 years. “In profit sharing, the government owns its net profit without investment for production and staff payment. The partnership company will pay for it,” said U Saw Aung, General Manager of Technology at the Development Department of the Ministry of Industry.

Domestic demand for cement in Myanmar is around 8Mt/yr with half of this figure imported from abroad.

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HeidelbergCement to use Italcementi presence in Thailand for future expansion

11 April 2016

Thailand: Thailand will continue to be Italcementi Group's production base in the Association of Southeast Asian Nations (ASEAN) and as its springboard for expanding into Myanmar after HeidelbergCement acquires a 45% stake in the company in July 2016. Carlo Pesenti, the chief executive officer of Italcementi, made the comments about the future direction of the business in an interview with the Nation newspaper.

"HeidelbergCement, which will be the major shareholder of Italcementi when the deal is complete this July, has a policy to maintain the business in Thailand and its business plan to expand into Myanmar, because HeidelbergCement does not have a presence in Thailand,” said Pesenti. “Thailand is our production hub and business arm for expanding in ASEAN."

Italcementi Group holds a 49% stake of Asia Cement in Thailand. Asia Cement and its subsidiary Jalaprathan Cement have cement production capacity of 5Mt/yr. Asia Cement has set aside an investment budget of up to US$14m to maintain its three clinker and cement plants in Thailand. However, the company it waiting for the acquisition of Italcementi by HeidelbergCement before it can decide about expansion plans in Cambodia and other territories.

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Protestors oppose Hpa-an cement plant project

30 March 2016

Myanmar: Hundreds of protestors have gathered in Hpa-an to object against a revived proposal to build a 5000t/day cement plant in Mi Karen and to develop a nearby limestone quarry. The project was originally put on hold in 2014 pending a public consultation, according to the Irrawaddy newspaper.

Protestors held a 'no cement' prayer vigil demanding that the project be scrapped. Local residents fear that the proposed cement plant will require land to be confiscated to build it as well as citing environmental and public health concerns.

Hpa-an has two existing cement plants in Myaingkalay with a combined cement production capacity of 4900t/day. These are run by the government and the military’s Union of Myanmar Economic Holdings Limited (UMEHL) respectively.

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