Displaying items by tag: growth

Oman: Huaxin Cement informed the Muscat Stock Exchange of its intent to buy a further 5.1% stake in Oman Cement on 3 July 2023. Zawya News has reported that this would increase the China-based group's stake in Oman Cement to 64.7%. It acquired its existing 59.6% in the producer for US$193m earlier in 2023, but subsequently revised the price to US$200m.

India: Ambuja Cements and its subsidiary ACC have transitioned to reporting their results in line with the (April - March) Indian financial year. As such, they have published 15-month results for 2022 and the first quarter of 2023. During the period, Ambuja Cements reported sales of US$4.75bn, up by 34% year-on-year from US$3.53bn. Its cement volumes rose by 28% to 68Mt, while its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 11% to US$714m. Meanwhile, ACC recorded sales of US$2.71bn, up by 38% from US$1.97bn in 2021. Its cement volumes rose by 31% to 37.9Mt, while its EBITDA fell by 30% to US$275m.

ACC announced its goal to become India's 'most profitable cement company.' To realise this, the company will implement a three-pronged strategy of capacity expansion, efficiency improvements and development of its distributor and dealer network. Under the capacity expansion heading, the producer will double its production capacity through the construction of new cement plants and the expansion of existing ones. In this, it will lay special emphasis on securing supplies of renewable energy and supplementary cementitious materials, including fly ash from its own power plant segment. The company noted that it recently secured access to 1Bnt-worth of new limestone reserves in Maharashtra, Odisha, Karnataka and Rajasthan. It will also seek to increase its coal production to avoid the rising cost of imports.

In the 2024 financial year, the government of India plans to invest US$11.4bn in the construction of new housing, roads and sanitation infrastructure nationally. Ambuja Cements has forecast an increase in domestic cement consumption of 6 - 8% to over 390Mt/yr. It expects Indian cement production to rise by 8 - 10% year-on-year to 390Mt in the 2024 financial year.

India: Birla Corporation says that it expects to sell 18.1Mt of cement during the 2024 financial year (1 April 2023 - 31 March 2024), up by 15% year-on-year from 15.7Mt in the 2023 financial year. That financial year, sales grew by 11% year-on-year. Looking ahead, the producer expects its new 3.9Mt/yr Mukutban cement plant in Maharashtra increase its sales. It said that it may also carry out future expansions at its Chanderia cement plant in Rajasthan.

The Hindu BusinessLine newspaper has reported that managing director and CEO Sandip Ghose said "Our strategy is based on prices not going up significantly. Volumes are going to move in a healthy manner unless there are any major dislocations, disruptions or hiccups going forward. I am very bullish on the India growth story." Regarding the company's Gujarat market in Western India, he said "Gujarat had gone through exponential growth in the past year, which boosted certain companies' profitability because of the bullet train, the expressway and other developments." Ghose forecast similar demand growth in Madhya Pradesh and Uttar Pradesh.

India: Shree Cement has announced four planned capacity expansion projects that aim to increase its installed cement production capacity by 20% to 55.9Mt/yr. The Telegraph newspaper has reported that the producer expects to invest US$670 - 730m in the expansion. The investments will go towards the establishment of new facilities in Karnataka, Punjab, Uttar Pradesh and West Bengal. The West Bengal project consists of a grinding plant in Howrah or Purba Medinipur District. The new phase of expansion is part of Shree Cement's strategy to reach 80Mt/yr of cement production capacity by 2030.

Vice chair Prashant Bangur said “Given the robust demand for cement in the country and Shree Cement’s aspiration to grow further, we are looking at four more units once the present phase of expansion is over.”

Shree Cement is currently expanding its Guntur, Andhra Pradesh, and Nawalgarh, Rajasthan, cement plants and building its new 3Mt/yr Purulia grinding plant in West Bengal.

India: Dalmia Bharat has announced a capacity target of 120Mt/yr by the end of 2031. The Business Standard newspaper has reported that the producer will make total investments of US$2.31bn in its on-going growth drive. The sum includes US$723m invested in the acquisition of Jaypee Group's 9.4Mt/yr cement business in December 2022. Dalmia Bharat's eventual investments in erecting new capacity are estimated at US$1.09bn, US$485m (44%) of it in its North Indian cement business.

CEO Puneet Dalmia said “We are executing the largest capital expenditure in our history.” Regarding the Jaypee Group deal, Dalmia said "The acquisition will give us access to Central India’s and North India’s markets and we would look for more acquisition opportunities in the mid segment. We expect the industry to consolidate further in the coming years. India will invest US$1Tn in infrastructure in the next decade, and that will create a sizeable demand growth for cement.”

Uzbekistan: Bekabadcement is carrying out a 'large-scale' upgrade to its 0.7Mt/yr Bekabadcement plant in Tashkent Region. The producer said that the upgrade involves a 20% capacity expansion of the plant's production line to 2500t/day. Austria-based Unitherm CemCon supplied burners for the upgraded line, while China-based Beijing Triumph International Engineering supplied heat exchanger components and a KC 4.1-0955 cooler. The upgrade also involves the installation of new kiln lining, and will transition the plant's cement production from wet to dry process. Germany-based Christian Pfeiffer previously upgraded the Bekabad cement plant's grinding unit in April 2023.

General director Vasily Korobkin "We see that (parent company) United Cement Group (UCG) is interested in the modernisation and development of the enterprise. The group adheres to international standards, so all plans for the development of the plant are built accordingly." He concluded "We expect to become a modern and successful enterprise in Uzbekistan which is capable of becoming a major player in the cement industry of Central Asia.”

Ireland/US: Shareholders have approved Ireland-based CRH's board recommendation to transition to a US primary listing on the New York Stock Exchange. The company says that it will effect its transition on or around 25 September 2023. This will entail delisting shares from Ireland's Euronext Dublin, while retaining a standard listing on the UK's London Stock Exchange (LSE).

CRH derived 75% of earnings from North America in 2022. It expects the US market to be a key driver of future growth due to the country's growing populace and construction needs.

CEO Albert Manifold said "We are pleased to see such strong shareholder support for the listing transition, as it marks an important milestone in our development and will enable CRH to fully participate in the significant growth opportunities that lie ahead.”

India: Star Cement plans to implement a capacity expansion drive in order to raise its total grinding capacity by 70% to 9.7Mt/yr from 5.7Mt/yr. Dow Jones Institutional News has reported that the producer expects to capitalise on projected growth in cement demand in East and Northeast India.

Nigeria: BUA Cement has secures a new loan worth US$500m from the International Finance Corporation (IFC). The producer informed the Nigerian Exchange (NGX) that it plans to use the fund for capital expenditure (CAPEX) investments in new projects.

India: Adani Group plans to grow ACC and Ambuja Cements' capacity to 140Mt/yr by 2028 under a joint expansion strategy. The Hindu newspaper has reported that new strategy includes capital expenditure with a value of US$5.58bn and new acquisitions. Investments will reportedly be split equally between the two subsidiaries. After completion of the current growth plan, the cement producers will 'pause for a while' prior to any subsequent expansion phase.

Adani Group said that it is proceeding with an operational merger of ACC and Ambuja Cements, without merging their distinct brands. The priority of the merger will be to increase efficiency in supply chains and logistics operations.