Displaying items by tag: growth

US: Denmark-based FLSmidth has acquired heavy-duty rubber products company Morse Rubber. Morse Rubber's competences include advanced moulding capabilities for rubber and composite mill liners, as well as screen media and various rubber and rubber ceramic wear components. FLSmidth says that the acquisition supports its growth strategy by strengthening its offering of mill liners, where FLSmidth has been capacity constrained in some regions.

FLSmidth's service line president Joshua Meyer said “With this acquisition we will be able to offer cost and quality competitive mill liners combined with local presence, local production and proximity to our North American and Latin American customers."

India: Indian industrial companies plan to increase their capital expenditure (CAPEX) investments by 14% year-on-year in the current, 2024, financial year, the Financial Express newspaper has reported. UltraTech Cement says that it will more than double its CAPEX investments to US$1.55bn during the year (1 April 2023 - 31 March 2024). Adani Green Energy, the renewable electricity subsidiary of Ambuja Cements' parent company Adani Group, has the highest planned investments of any Indian industrial company. It also plans to more than double its CAPEX spending, to US$1.69bn in the 2024 financial year.

Argentina: Loma Negra recorded sales of US$197m during the first quarter of 2023, up by 2.9% year-on-year from first-quarter 2022 levels. The company's earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 5.8% year-on-year to US$63m. Its net profit fell by 19% year-on-year to US$22.9m. Throughout the quarter under review, Loma Negra sold 1.54Mt of cement, up by 4.3% year-on-year.

Chief execuive officer Sergio Faifman said “We started the year in a very good shape, with solid operating result and cash flow generation, together with a very robust financial position. Despite the challenging macro scenario and the economic disorder in Argentina, cement demand remains strong, posting 3.1% growth in spite of the high base of comparison, and Loma Negra showed even higher growth figures." Faifman continued "We also completed our first issuance of corporate bonds with high success and with great support from the market, which demonstrates the confidence that investors place in our company. This gave us the possibility of refinancing our short-term debt in Argentinian Pesos and further strengthening our balance sheet. For the remainder of the year, we are cautiously optimistic that we will continue to see healthy dynamics in our markets, although at slower rates as we approach the presidential elections.”

India: Adani Group says that it will raise funds for its 2028 capacity expansion plan through internal accruals. The producer plans to double its cement capacity to 140Mt/yr by 2028, and also double its sales to US$8.5bn that year. The Financial Express newspaper has reported that the group says its internal accruals will be 'sufficient' to realise its aims. The group is reportedly 'on track' to commence the first phase of the planned expansion in early-mid-2023. It has also set out a cost reduction roadmap with a view to becoming India's most profitable cement company.

Chair Gautam Adani says that he anticipates a 'multi-fold rise' in all-Indian cement consumption due to forecast high economic growth and the government's infrastructure spending plans.

Canada: The Cement Association of Canada (CAC) said that it is 'confident that Canada will lead in building clean technologies for a sustainable future' following the publication of the government's Budget 2023 on 29 March 2023. The budget includes US$26bn-worth of green tax credits. US$19.2bn-worth of this is allotted to renewable energy. It also includes a final design for Canada's Investment Tax Credit for Carbon Capture, Utilisation and Storage (CCUS). CAC president and CEO Adam Auer said that, when finalised, the budget will help to 'close the gap' between existing Canadian legislation and incentives offered under the US Inflation Reduction Act and EU Green Deal Industrial Plan.

Auer said “With close to 60% of our emissions resulting from the immutable chemistry of making cement, deep investment in innovative and expensive technologies, like CCUS, are both vital and unavoidable. With Budget 2023, the government clearly affirmed its understanding of the final role this technology plays in our industry’s efforts to reach net-zero." He continued “We were also pleased to see references to carbon contracts for difference (CCfD). Canada’s cement companies, like many industries in Canada, are part of large multinationals, and divisions must compete within their companies for projects. Investing in net-zero projects requires predictability. The certainty that CCfDs can provide is the difference between attracting investment, building projects and creating clean jobs - or conceding the opportunity to our competitors."

China: Anhui Conch Cement plans to invest US$2.81bn in capital expenditure (CAPEX) throughout 2023. The investments will go towards building new capacity, upgrading to new technologies and increasing plants' energy efficiency. The Morning Star newspaper has reported that the producer currently faces high energy costs, against a backdrop of reduced cement demand.

Anhui Conch Cement recorded sales of US$19.2bn in 2022, down by 21% year-on-year from US$24.4n in 2021.

India: Ambuja Cements' parent company Adani Group says that the cement producer aims to more than double its sales to US$8.5bn in 2028. Ambuja Cements currently expects to record sales of US$3.61bn in 2023. It is targeting an earnings before interest, taxation, depreciation and amortisation (EBITDA) margin of 25% in 2028. Its EBITDA margin averaged 19% in the period from 2020 to 2022.

Dow Jones Institutional News has reported that Ambuja Cements' internal accruals are sufficient to fund US$5.58bn in capital expenditure (CAPEX) over the same period, according to the company. It says that it plans to double its capacity through CAPEX investments before 2028.

India: Credit rating agency Crisil expects the Indian cement sector's capacity to expand at a compound annual growth rate (CAGR) of 4 - 5% over the four-year period up to the end of the 2027 financial year on 31 March 2027. It would thus begin the 2028 financial year at 715 - 725Mt/yr in installed capacity, compared to 570Mt/yr at the end of the 2023 financial year. The industry's total investment in the expansion is expected to be US$14.5bn. Major multi-state producers are expected to contribute over US$7.25bn (50%) of investments towards the total sum.

Over the same period, Crisil expects all-India cement demand to rise at a CAGR of 6 - 7%.

UK: Breedon Group's sales were Euro1.57bn in 2022, up by 13% year-on-year from Euro1.39bn in 2021. Its earnings before interest and taxation (EBIT) rose by 16% to Euro166m from Euro143m. The group increased its cement volumes by 9.1% during the year, to 2.4Mt from 2.2Mt.

Breedon Group said "The outlook for the cement market is positive, underpinned by large ongoing infrastructure projects in the UK. In Ireland, housing and infrastructure are supported by the government’s development plans to accommodate a rapidly growing population."

Argentina: Loma Negra recorded sales of US$835m in 2022, up by 1.1% year-on-year from 2021 levels. The producer said that growth in revenues from cement was 'flattish,' however volumes rose by 9.7% to 6.72Mt from 6.13Mt. Its cost of sales was US$530m, up by 7.9% from US$491m. Meanwhile, earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 3.8% to US$217m.

Loma Negra's CEO Sergio Faifman praised the 'extraordinary' results, saying "2022 was a year of many challenges and opportunities. The favorable evolution of Argentina's gross domestic product (GDP) during the year and the great performance of the construction activity gave a strong boost to the cement demand, with national shipments that were very close to exceeding 13Mt, allowing the industry to widely surpass the record reached in 2015."