Global Cement News

China: China Sinoma International Engineering will increase its capital expenditure by 29% to US$1.81bn some of which may be spent on acquiring European companies.

The Chinese state-owned cement equipment manufacturer and cement producer has set aside US$80.5m to acquire mostly foreign cement equipment companies, said chief financial officer Yu Kaijun as reported by the South China Morning Post. "We are in talks to acquire some European cement equipment companies, including German ones."

In the cement equipment sector, Sinoma International would explore opportunities in Africa, the Middle East and Southeast Asia, said Sinoma chairman Liu Zhijiang. "It will secure its footing in long-term strategic markets, including Russia and South America and enhance its influence in India," he said.

In 2013 Sinoma International aims to secure more than US$4.83bn of orders for cement equipment with about two-thirds of these originating from outside of China. So far Sinoma International has secured US$1.61bn of orders since January 2013, mostly from abroad. Sinoma will also invest US$956m in expanding cement production capacity in China, a decrease from the US$1.13bn it spent in 2012.

Greece: Heracles Cement has terminated operations at its plant in Halkida, as part of a restructuring program of its production structure. The production unit at Halkida has been idle since July 2011.

The plant at Halkida was hit by a plunge in construction activity in Attica, with sales falling by 80% between 2008 and 2013. The company said it would seek every possible solution to minimise the effect of its decision to close down the unit on its 236 workers. Heracles Cement said the decision will burden its 2013 results by Euro57m but it expects a positive impact of Euro18m/yr in subsequent years.

The restructuring programme is aimed to help the Lafarge subsidiary cope with Greece's recession in its construction sector. Under the new structure, Heracles Cement will continue cement production from its two units in Volos and Evia, exploiting their comparative advantages, mainly their port facilities, to support the group's activities in Greece and in the wider Mediterranean region.

China: China Sinoma International Engineering, one of China's leading providers of cement engineering and integration services, has said that its net profit plunged by 51.3% year-on-year to US$123m in 2012.

In 2012 the company saw its total operating revenue drop by 17.6% year-on-year to US$3.42bn. For its cement engineering and integration services business, the operating revenue fell by 15.5% to US$3.09bn.

The company's revenue from the China market plunged by 23.6% year-on-year to US$1.98bn in 2012. Its overseas market decreased by 8.65% year-on-year to US$1.41bn. As the end of 2012, the Shanghai listed company had US$3.34bn in total assets, up by 8.57% year-on-year.

China: Anhui Conch Cement, the biggest cement producer in Asia by output, has announced that its net profit fell by 45.6% to US$1.03bn in 2012 from US$1.87bn in 2011. The drop was attributed to a decline in the price of cement and a general slowdown in the growth of cement market demand in 2012.

Operating revenue for the company dropped by 6.41% year-on-year to US$7.25bn in 2012 from US$7.83bn in 2011. By market region, Anhui Conch's East China region saw sales fall by 15% in 2012 to US$2.58bn. Its Central China region fell by 19% to US$1.97bn. Its South China region fell by 2% to US$1.39bn, its West China region rose by 59% to US$1.08bn and exports rose by 40% to US$223m.

In 2012 the company sold 187Mt of clinker and cement in 2012, a year-on-year growth of 18.3%. The cement producer added 20.8Mt of clinker production capacity and 28.3Mt of cement production capacity in 2012. At the end of 2012, the group's clinker production capacity and cement production capacity amounted to 184Mt and 209Mt respectively, with a total residual heat electricity generating capacity of 881MW. During 2012 the group also began its first overseas investment project with the start of construction of PT Conch South Kalimantan Cement in Indonesia, with a clinker production line of 3200t/day.

For 2013 Anhui Conch expects 'excessive' production capacity and structural adjustment in the cement industry to continue. However demand will remain stable and government pressure to increase environmental regulations and encourage industry consolidation should benefit the group. The group expects to increase its clinker and cement production capacity by 15.4Mt and 22.5Mt respectively in 2013. For its three major risks for 2013 the group included a volatile construction industry, fuel costs and the risks of further government environmental regulation.

Central African Republic: 92 Indian nationals are reportedly trapped at a cement plant in Bangui, the capital city of Central African Republic (CAR), which is witnessing massive unrest.

"Most of those trapped in violence are labourers from India who have gone to CAR for employment. Those trapped in the cement factory need help to reach a safe location," said Sunil Dhairiyani, manager Waheguru Travels' Cameroon branch in an interview with the Times of India. Rebels known as Seleka have taken control of the national capital and media in the former French colony with a pledge to topple President Francois Bozize who has fled the country.