Global Cement News

Kenya: Firms interested in buying out troubled ARM Cement have until 28 February 2019 to make final offers to the PricewaterhouseCoopers (PwC), the company’s administrator. PwC says 25 companies have so far expressed their interest in taking over ARM. 23 have signed non-disclosure agreements that allowed them to receive additional information about the cement manufacturer. By mid-December, PwC reported at total of 14 non-binding offers (NBOs).

“We reviewed these NBOs and shortlisted a number of parties whose offers best suited the objectives of the envisaged transaction to proceed to the next round of conducting their due diligence, with a view to submitting binding offers,” reported PwC.

While the administrators did not name the shortlisted companies, they are believed to include Nigeria’s Dangote Cement and Oman’s Raysut Cement, which went public with its US$101m buyout offer.

Chile: Cementos Melón ended 2018 with a 9% growth in profits to US$13.7m. Its net income rose by 4.5% to US$289m. Its earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 2.9% to US$43.2m.

Nigeria: Ashaka Cement, a subsidiary of Lafarge Africa, is set to inaugurate a 16MW power plant project in a bid to improve the reliablilty of its energy supply. Managing Director Rabiu Abdullah Umar said that the company would invest US$30.5m in the project. “We are helping to remove ourselves from the (national) demand for energy and providing our own solution,” he said. “This means a minimum of 16MW of electricity will now become available to the public grid for the people in the region to enjoy.”

New Zealand: Fletcher Building is expecting to declare lower earnings in the half year to 31 December 2018 due to a regional slowdown, particularly in Australia. Its earnings before interest and tax (EBIT) for the six month period was around 10% lower than the same period of the 2017-2018 financial year. It is expected to be in the range of US$432-467m.

In a report Fletcher Building said, “While the company continues to target a result at the top end of this range, it is prudent at this stage in the year to highlight that the 2019 financial year EBIT will be impacted by the outage at the Golden Bay Cement plant, the slowdown in the Australian residential market and the reduction in land development earnings compared to last year.”

India: KCP has commenced commercial cement at the new 1.7Mt/yr line at its Muktyala plant in Andhra Pradesh. With this expansion, the total capacity of the plant has reached 4.3Mt/yr. The company has also started up its 0.5Mt/yr grinding plant project in Naidupeta, Nellore District, Andhra Pradesh.