Displaying items by tag: Poland
Poland: A blueprint for the rest of Europe?
21 October 2015Gorazdze Cement has been approved this week by the local authorities to buy Duda Kruszywa and Duda Beton. Aggregate and concrete acquisitions are outside the remit of this column, but Poland still deserves attention as a European country that has seen construction growth in recent years.
Approval by the Polish Competition and Consumer Protection Office (UOKiK) for the Gorazdze purchase is relevant due to cartel fines that were issued to seven cement companies, including Gorazdze Cement, in 2013. At that time Lafarge had its fine absolved, Gorazdze's was reduced but the other producers had to pay 10% of their annual turnover. As part of the Duda purchase, Gorazdze is expected to sell a concrete unit in Olszowa to avoid market overlap.
Polish cement production hit a high of 18.6Mt in 2011 according to Polish Cement Association (SPC) data. In its annual report for 2011, Lafarge attributed the surge to European Union (EU) funding for infrastructure projects and a deficit in housing. The multinational cement producer reported a 27% increase in domestic sales that year. Since then production fell to a low of 14.5Mt in 2013 before picking up. Cement production for the first nine months of 2015 is a little ahead of 2014 year-on-year.
Poland's cement production capacity is 16.8Mt/yr. The industry comprises 11 cement plants that are run by eight producers. As mentioned in the Global Cement Lafarge-Holcim Merger report, the country already has two cement plants from a CRH subsidiary, Grupa Ożarów. This is pertinent because the country offers a view of how LafargeHolcim might act in competition with CRH in a national environment.
In 2014 CRH noted that cement volumes grew by 6% in the country and its Europe Heavyside sales increased by 4% year-on-year to Euro3.93bn. In the first half of 2015 CRH reported selling 'non-core' businesses from its Europe Heavyside division in Poland amongst other territories. It also reported that whilst a solid general economy and construction growth helped sales, it was under price pressure in all of its main product lines.
Interestingly, LafargeHolcim announced in late September 2015 that it was implementing a new three-year strategy in Poland. The plan is to offer its clients logistic, design and consulting services in addition to cement, concrete and aggregate sales. The choice of Poland to test this strategy in with its clear competition from CRH is instructive as this situation is now duplicated in several markets throughout Central and Eastern Europe. Lafarge too reported a 'competitive' environment in its first quarter results for 2015 before the merger with Holcim completed. Yet it noted that its cement volumes had contracted compared to the same period in 2014. This is in contrast to the SPC data for the first quarter of 2015 that suggests that cement production rose slightly compared to the same period in 2014. However, Lafarge did expect construction activity to pick up for the rest of 2015 due to infrastructure tenders based on a new EU infrastructure plan. SPC data on cement production suggests that this may be correct. LafargeHolcim's and CRH's cement plants are in slightly different parts of the country which may also explain reported differences in sales volumes in 2015.
So, we have a picture of CRH streamlining its business in Poland to help grow profits. LafargeHolcim, meanwhile, is broadening its offer with 'soft' businesses to complement its heavy divisions. The results will be worth watching.
Poland: The Polish Competition and Consumer Protection Office (UOKiK) has approved the acquisition of Duda Kruszywa and Duda Beton by Gorazdze Cement provided that Gorazdze sells the concrete unit in Olszowa to avoid limiting market competition. Both Duda Kruszywa, which is an aggregate producer, and Duda Beton, a producer of ready-mixed concrete, are currently owned by the Opole-based firm JD.
Cement production creeps up in Poland
07 October 2015Poland: Cement production in Poland increased by 1.3% year-on-year to to 1.58Mt in September 2015, while sales edged up by 0.1% to 1.66Mt, according to Poland's Cement Producer Association. In the first nine months of 2015, production grew by 1.4% year-on-year to 11.9Mt and sales were up by 1.8% to 12.2Mt.
Poland to act as test bed for LafargeHolcim services
29 September 2015Poland: LafargeHolcim is implementing a new three-year strategy in Poland. Going forward, the company will not only sell cement, concrete and aggregates but will also offer its clients a range of services including logistics, design and consulting services amongst others.
If the strategy proves to be successful it will be implemented in other countries where LafargeHolcim is present. Because the company will be focused on the new strategy, it is not planning any major acquisitions in Poland, apart from the possible takeover of an aggregate mine.
Polish cement production falls by 2.3% in August 2015
11 September 2015Poland: Cement production in Poland decreased by 2.3% year-on-year to 1.47Mt in August 2015, while sales increased by 0.7% to 1.47Mt, according to the Poland's Cement Producer Association. In the first eight months of the year, cement production grew by 1.4% year-on-year to 10.3Mt, while sales grew by 2.1% to 10.5Mt.
Poland: Cement production in Poland increased by 1.6% year-on-year to 1.65Mt in July 2015, while cement sales were up by 1.7% to 1.71Mt, according to Poland's Cement Producer Association. Year-to-date cement production grew by 2% year-on-year to 8.84Mt while year-to-date cement sales rose by 2.3% to 9.04Mt.
Polish cement production up in June 2015
16 July 2015Poland: Cement production in Poland increased by 4.1% year-on-year to 1.55Mt in June 2015, while sales were up by 7.2% to 1.59Mt, according to the country's Cement Producer Association. Production in the first half of the year was up by 2.1% year-on-year to 7.19Mt and first half sales have risen by 2.5% to 7.33Mt.
Polish cement production up by 2.9% in May 2015
09 June 2015Poland: Cement production increased by 2.9% year-on-year to 1.62Mt in May 2015, according to Poland's Cement Producer Association. In the 12 months that ended on 31 May 2015, cement production grew by 1.5% year-on-year to 5.64Mt.
Poland: Cement production declined by 3.9% year-on-year to 1.39Mt in April 2015, according to Poland's Cement Producer Association. In the first five months of the year, Poland's cement production grew by 1% year-on-year to 4.02Mt.
Lafarge appoints new director of Malogoszcz cement plant
22 April 2015Poland: Lafarge has appointed Jacek Patyk as new director of the Malogoszcz cement plant. He will replace Miroslaw Majchrowicz, who will be in charge of Lafarge's cement plant in Beocin, Serbia