Displaying items by tag: growth

India: UltraTech Cement recorded consolidated sales of US$1.74bn in the third quarter of the 2022 financial year, up by 5.8% year-on-year. Its net profit in the quarter was US$229bn.

The Business Standard newspaper reported that the producer maintained a strong cement volumes growth trajectory, with 13% year-on-year cement sales growth throughout the first nine months of the 2022 financial year.

Brazil: The Brazilian National Cement Industry Association (SNIC) has recorded cement sales of 64.7Mt by Brazilian cement producers in 2021, up by 6.6% year-on-year from 2020 levels. Home construction work, property development and infrastructure building all contributed to the rise. Capacity utilisation rose to 69% from 65% across the country’s 94Mt/yr, 91-plant cement network.

Kazakhstan: Steppe Cement sold US$83.4m-worth of cement in 2021, up by 16% year-on-year from its US$71.7m-worth in 2020. Its sales volumes totalled 1.69Mt for the year, up by 2.4% from 1.65Mt in 2020. It exported 202,000t of cement, down by 57% from 86,500t. The company said that production limitations prevented it from fully meeting demand, and it concentrated on local markets. Regarding its outlook in 2022, Steppe Cement said “We have a healthy cash balance and are continuing our capital expenditure (CAPEX) programme to increase the production capacity of the company by 5% by mid-2022.”

Dow Jones Newswires has reported that Kazakhstan’s 2021 full-year cement consumption was 11.6Mt, up by 23% year-on-year from 9.4Mt in 2020. A rule change to pension withdrawals permitting allocations for home improvement and construction bolstered demand growth. Exports fell by 20% to 1.6Mt from 2Mt, while imports rose by 33% to 800,000t from 600,000t.

India: Axis Bank subsidiary Axis Securities has predicted a 4 – 6% year-on-year drop in Indian cement sales volumes during the third quarter of the 2022 financial year, which ended on 31 December 2021. The Hindu newspaper has reported the reasons for the predicted drop as extended monsoons, especially in the south of the country, and a construction ban in the National Capital Region due to pollution. Monthly sales grew slightly year-on-year in December 2021.

Axis Securities has also forecast a revival of demand in the fourth-quarter, driven by infrastructure and housing projects. Overall, it expects national demand for cement to grow by 8 – 9% in the 2022 financial year.

India: Ratings agency Crisil has forecast 11 – 13% year-on-year growth of cement sales volumes in the 2021 financial year. The Press Trust of India has reported that the agency predicted that high demand and increased fuel costs would precipitate a rise in cement prices to record levels before April 2022.

In December 2021, petcoke prices rose by 80% year-on-year, while the price of imported coal had more than doubled. This has increased cement producers’ costs by 40%.

India: Dalmia Cement plans to invest US$75.2m in a 2.6Mt/yr expansion to its Bokaro grinding plant in Jharkhand. The company says that the work will increase the plant’s capacity by 70% to 6.3Mt/yr from 3.7Mt/yr. US$33.2m will go towards the installation of new solar power plant. The company will also set up a waste management facility at the site, using US$1.06m of the investment.

Managing director Puneet Dalmia said “As we are further investing in the Eastern India market to participate in its economic growth story, we are also taking our corporate responsibility seriously by placing the utmost importance on environmental protection and social impact. We are confident that the employment generated through our investments and the skill enhancement in our social initiatives will help create a progressive ecosystem where we help people become independent and self-sufficient. We are excited and look forward to partnering with the state to achieve our business, social and sustainability goals.”

China: Australia-based FCT Combustion has announced a formal alliance with air pollution control partner Enelco Environmental Technology (EET). Together the companies will target the Chinese cement, steel, glass and other markets. EET has become the exclusive China representative of FCT Combustion, with which it shares its capabilities and resources in the service of Chinese customers.

The two companies have set up a joint office in Nanjing, Jiangsu province. A workshop in Bengbu, Anhui province will support its work. FCT Combustion and EET also plan to launch local technical support, engineering and procurement teams for customers in China.

FCT Group chief executive officer Adriano Greco said “We have great respect for our growing customer base within China and believe that it is important to establish a locally based business unit so that we can deliver the best outcomes and customer experiences, providing customer service and engineering according to the local culture and language, as well as local procurement to offer the most cost-effective solution.”

India: Sagar Cements says that its subsidiary Jajpur Cements is on track to commission its new 1.5Mt/yr Jajpur grinding plant in Odisha in December 2021. The Hindu BusinessLine newspaper has reported that the company invested US$41m in the plant’s construction. Sagar Cements acquired Jajpur Cements in May 2019 for US$16m. It had previously aimed to complete the new grinding plant’s construction by March 2021.

In October 2021, another Sagar Cements subsidiary, Satguru Cement, commissioned its new US$80.6m 1Mt/yr Indore integrated cement plant in Madhya Pradesh. The completion of both projects will bring Sagar Cements’ total installed capacity to 8.25Mt/yr. the company said that the new facilities will help in its rationalisation of freight expenses and help it to diversify its sales outside of existing markets.

Spain: Cementos Molins has secured a renewal of its sustainability-linked loan until December 2026 and increased its limit to Euro300m. The loan is linked to reductions in Cementos Molins’ CO₂ emissions.

Chief financial officer Jorge Bonnin said “This innovation, together with the robust financial position and the strong cash generation, enables the development of the profitable and sustainable growth strategy through markets consolidation and development in new markets.”

Mexico: Cemex has successfully closed a US$3.25bn syndicated credit agreement. The group said that it used the proceeds to repay its previous US$2.65bn facilities agreement. The new agreement will require repayment in November 2026. As the facility is worth 23% more than its previous one, the company said that it will have a stronger liquidity position than previously, resulting in a favourable company risk and credit rating situation.

CEO Fernando Gonzalez said "This new credit agreement represents a major milestone in our path to investment grade as it is our first major syndicated unsecured bank agreement since 2009. It showcases Cemex’s continued access to diversified funding sources while further aligning our financing strategy to our leadership in addressing climate change.” He added “We are starting a new chapter for the company where we shift our strategic balance a bit more towards growth and the advancement of our Climate Action goals.”