Global Cement News

Kenya: The East African Portland Cement Company (EAPCC) has reported a net profit of US$28m for its financial year that ended on 30 June 2013. In the previous year the company reported a loss of US$11m. Revenue grew by 8% year-on-year to US$108bn. The improvement was attributed to improved sales and cost cutting.

"The results were lifted partly by a tax credit of US$4.2m and a US$8.4m net gain from revaluation of free hold property," said EAPCC Managing Director Kephar Tande. He added that turnover grew while the cost of sales fell due to cost management and a rationalisation of operational activities. Speaking generally, Tande said that the EAPCC is relying on increased infrastructure projects in Kenya to lift demand and it has appealed to the government to remove duty exemption on imported cement meant for government projects.

In the current financial year to 30 June 2014 the EAPCC plans to invest US$5.9m on plant and equipment upgrades. Overall the cement producer intends to spend up to US$32m until 2015 on building a new packing line, acquisition of new clinker and grinding capacity and the creation of a new line of pre-cast concrete products.

Indonesia: Semen Padang is preparing to build a new cement packing plant costing US$0.92m near Pulau Baai port in Bengkulu, said marketing director Benny Wendry.

"We have already earmarked US$0.92m to build a packing factory for Semen Padang near the Pualu Baai port in Bengkulu in 2014," said Wendry. However the project is still awaiting approval from the board of directors. Wendry added that the state-owned cement producer intends to start in early 2014 with completion scheduled for 2015. Once operational the plant will produce 300,000 sacks of cement per year.

Semen Padang is also building a 3Mt/yr cement plant in West Sumatra that is scheduled for operation by 2016. The new plant will increase the company's cement production capacity to 10Mt/yr.

Saudi Arabia: Hail Cement Company has announced that a scheduled shutdown for its production line for kiln and raw mill maintenance will run from 26 October 2013 to 11 November 2013. The cement mills and packing plant will remain operational throughout this period. The financial impact this shutdown will be reflected in the income statement for the fourth quarter of 2013. The company's commitments to its customers are not expected to be effected.

Vietnam: Viettel Group, the leading telecom company in Vietnam operated by the Ministry of Defence, has signed an agreement with Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex), to buy a 70% stake in Cam Pha Cement. Viettel also purchased Cam Pha Cement's debts guaranteed by VCG in a deal with a total value of US$127m. Viettel currently holds a 21.3% stake in Vinaconex.

With the share sale, Vinaconex will cut its holding in the loss-making cement plant to 30% and avoid further losses from the unit. Vinaconex has paid US$114m worth of debts owed by Cam Pha Cement. Following the deal Cam Pha will sell its cement to military-run construction companies.

Cam Pha Cement made an accumulated loss of US$75m in 2012. The cement plant based in Quang Ninh Province has a production capacity of 2.3Mt/yr.

Mexico: Cemex has reported that its net sales rose by 3% year-on-year to US$4bn during the third quarter of 2013. Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 2% year-on-year to US$747. The Mexico-based multinational cement producer attributed the increase to increased prices and higher sales volumes in most regions.

"We continue to be focused on our company-wide efforts to improve our operating efficiencies and the value we generate from our asset base while delivering better value to our customers," said Fernando A González, Executive Vice President of Finance and Administration.

By region, Cemex noted that net sales fell in Mexico by 11% year-on-year to US$776m from US$875m. This was blamed on low government infrastructure spending and bad weather. Sales growth was seen in all other regions, and most notably in the group's Northern Europe and Mediterranean regions that recorded 6% (up to US$1.17bn) and 9% (up to US$375m) growth respectively.