Global Cement News

India: JK Lakshmi Cement Ltd has informed the Bombay Stock Exchange that Shri Hari Shankar Singhania, chairman of the board of directors of the company and president, JK Organisation, passed away on 22 February 2013 at the age of 80.

Switzerland: Swiss-based multinational building materials producer Holcim has reported a 2.5% rise in cement sales to 148Mt in 2012 from 144Mt in 2011. In its media release Holcim mentioned that the increase came, 'despite declines in the European businesses.'

Holcim's net sales rose by 6.4% to Euro17.9bn in 2012 from Euro16.8bn in 2011. Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 3.1% to Euro3.30bn from Euro3.20bn. However, operating profit fell by 3.7% to Euro1.51bn from Euro1.57bn.

In cement deliveries were up in all major group regions except Europe, where only Russia and Azerbaijan posted significant increases in sales, partly also in connection with capacity expansion.

By region, Holcim singled out its Asia Pacific as its 'key growth' area. Sales of cement rose by 5% to 79.2Mt from 75.6Mt. Total net sales rose by 9% to Euro5.47bn from Euro5bn. Thailand and the Philippines were singled out as performing well, while Australia turned in a 'less dynamic performance than in 2011.'

In Latin America sales of cement increased by 3% to 24.9Mt from 24.2Mt. Total net sales rose by 9% to Euro2.29bn from Euro2.11bn. Amidst positive performance in most countries, Argentina witnessed a 'significant' downturn in 2012.

In Europe sales of cement fell by 2% to 2.3Mt from 2.4Mt. Total net sales fell by 3% to Euro2.16 from Euro2.23bn. As Holcim's annual report put it, 'the severe crisis dogging Southern Europe contaminated other countries, also affecting hitherto relatively stable economies such as France, the Benelux states and Germany, with repercussions for Switzerland'. Only Russia and Azerbaijan avoided this.

In North America sales of cement rose by 5% to 12Mt from 11.4Mt as the US economy recovered. Total net sales rose by 13% to Euro1.13bn from Euro1.01bn.

In Africa/Middle East sales of cement fell by 4.4% to 8.4Mt from 8.7Mt. Total net sales fell by 1% to Euro697m from Euro706m. Here, performance was impacted upon by the 'political uncertainties in North Africa and the civil war in Syria.'

In its outlook for 2013 Holcim anticipated an increase in sales of cement in 2013, led by its Asia Pacific, North America and Latin America regions. Margins are expected to improve as its cost saving programme, the 'Holcim Leadership Journey', continues.

Ireland: Irish building materials supplier CRH has reported a loss before tax of 5% to Euro674m in 2012 from Euro711m in 2011. Chief executive Myles Lee pinned the blame on weakening consumer and investor confidence within the Eurozone, although this was tempered by the recovering US market.

The group's sales revenue rose by 3% to Euro18.7bn in 2012 from Euro18.1bn in 2011. Earnings before interest, taxes, depreciation and amortisation (EBITDA) remained flat at Euro1.64bn compared to Euro1.66bn.

By region, CRH's Europe Materials division, which includes cement production, saw its sales revenue fall by 10% from Euro2.99bn to Euro2.69bn. EBITDA fell by 7% to Euro405m from Euro 436m. However, CRH's cement production volumes increased in Ukraine by 32% due to a new cement plant and an acquisition in Odessa. Ireland and Spain only comprised 5% of the division's EBITDA. Ireland saw a 17% decline in cement volumes and CRH declined to present any data about Spain other than a 30% decline across 'all sectors.'

America Materials saw its sales revenue increase by 13% to Euro4.97bn from Euro4.40bn. EBITDA increased by 7% to Euro566m from Euro530m.

In its outlook CRH expects its American operations to make progress in 2013, fuelled by the continued recovery of the US economy. Its European forecasts suggest only modest growth at best for 2013. American improvements and further profit improvement initiatives are expected to outweigh continued trading pressures in Europe.

India: Indian cement producers are poised to pass on a 5.79% increase in the freight rate to consumers following the Railway Budget. However a cement producer quoted by the Press Trust of India said that a final decision would be taken after the Union Budget.

"With the hike in freight charges, the impact will be US$2.41/t - US$2.78/t of cement production," said Shree Cements managing director H M Bangur.

An analyst tracking the cement industry said that cement makers never absorb the hike in freight costs and these are always passed through. In the budget Railway Minister Pawan Kumar Bansal raised the freight charges for cement, diesel, LPG, steel and iron-ore by up to 5.8%.

Nigeria: Edo Cement Company's new US$500m plant in Okpella, with a cement production capacity of 3Mt/yr, will be ready for commissioning in early 2014, the chairman of parent company BUA Group has said.

Alhaji Abdulsamad Rabiu made the announcement at the signing of a US$35m contract agreement between BUA Group and Siemens to build a new gas turbine power plant for the plant. The contract, which was signed with Siemens at BUA's London office, was for Siemens to supply three SGT 500 turbines manufactured by Siemens Industrial Turbo Machinery AB in Finspang, Sweden with a total capacity of about 45MW. These will supply power to the Edo Cement plant, which is currently under construction.

"I am particularly very impressed so far by the civil construction work done by Julius Berger. 70% of the cement plant equipment has been shipped and is currently on site and the pace of work is very comprehensive and impressive. By early 2014 the cement factory will be ready for use," commented Rabiu on the plant's progress.