Global Cement News

Pakistan: Cement exports by sea from Pakistan increased by 133.7% from 144,000t in July 2017 to 340,000t in July 2018. The increase in exports via sea offset a decrease in overland exports to Afghanistan and India. Pakistan’s exports to Afghanistan and India decreased by around 44.9% and 44.4% respectively in July 2018. Hence, overall exports increased by 9.3% in July 2018 to 0.53Mt from 0.48Mt in July 2017.

China: Asia Cement (China) said that its profit attributable to owners for the six months that ended on 30 June 2018 surged by a factor of 10.7 to reach US$139.3m compared to the same period of 2017. Revenue amounted to US$718.8m, an increase of 47% from a year earlier.

Meanwhile, China Resources Cement (CRC) announced that its net profit for the first six months of 2018 was US$2.0bn, a rise of 145.5% year-on-year. CRC’s turnover amounted to US$2.36bn, an increase of 40.4% from a year earlier.

The Chinese government has once again reiterated that it will continue to strictly prohibit cement companies from adding new capacity, despite improving profits. Years of efforts to cut excess capacity in the sector have helped to improve the industry's profits, but signs are emerging that some factories are increasing new capacity, according to Ministry of Industry and Information Technology, which released a joint statement with the state economic planning agency. It said that expansion projects to produce more cement, won't be approved. In addition, factories' plans to replace out-dated capacity with new capacity must comply with government rules.

India: The Madras High Court has pulled up Chettinad Cement Corportation (Chettinad) for encroaching upon public land to construct railway track to its factory at Ariyalur. It has ordered a probe by an IAS officer. Justice SM Subramaniam also ordered a probe into the role of government officials, who may have colluded with the factory management to squat on government land without permission.

"Such industries cannot encroach upon the government land, which is not only a water body, but also used as a pathway by the villagers and the people of that locality,” said Justice Subramaniam.

The court passed the order while dismissing a plea moved by Chettiand against the action of the sub-collector against the encroachment. The court further directed the district administration to evict all such encroachments made by the company on the land and water bodies within two weeks.

China: Energy Engineering Group Guangdong Power Engineering is seeking US$100m of project financing for a cement plant that is being built by the Bangladesh-based Deshbandhu Group, according to company secretary Duan Qiurong.

On 2 August 2018 it was announced that Energy China had signed a contract with Deshbandhu to construct a cement plant with a daily production capacity of 1500t/day. Duan said that the company will be responsible for the project's financing. The funding will mainly come from China’s policy banks and international policy banks along with the Bangladesh government and international bank consortia.

Australia: James Hardie Industries increased its net profit by 58% year-on-year to US$90.6m in the three months to 30 June 2018. Adjusted earnings before interest and tax (EBIT) were up by 21% to US$107.1m. Net sales were up by 28% to US$651m.

CEO Louis Gries said, "Our North America Fibre Cement Segment delivered solid top line growth of 10% for the quarter. Volumes increased by 5%, with our interiors business having only marginal growth and our exteriors business returning to growth above our addressable market. While we have returned to growth above our market index in our exteriors business, increased traction will be required to hit our 2019 financial year targeted range.”

“Within our Asia Pacific Fibre Cement Segment, net sales increased 15% for the quarter, primarily due to the strong growth in our Australian business,” added Gries. “Furthermore, EBIT increased 7% for the quarter, driven by the strong performance of our Australian business, partially offset by the performance of our New Zealand business.”