Global Cement News

India: Madras Cements has reported increased net sales of 18% in the third quarter of its 2012-2013 financial year. The Indian cement producer made US$137m in the quarter ending 31 December 2011 which rose to US$162m in the same quarter in 2012.

'Sustained focus on containing costs' and improving efficiency were responsible for the positive results according to the CEO of Madras Cements, A.V. Dharmakrishnan. The growth in sales revenue came despite a sixteen day strike by dealers in Kerala which constitutes nearly 25% of the company's market.

Net profit for the quarter ending 31 December 2012 rose year-on-year by 9% to US$15.6m from US$14.2m. Revenue for the company's cement segment rose by 18% to US$159m from US$135m.

Also of note in the producer's results was that transportation and handling costs rose by 37% year-on-year in the quarter to US$33.3m due to higher railway freight charges and a diesel price hike.

Cameroon: The government of Cameroon and the German group GPower Cement has signed a partnership agreement to build a cement plant in the south-western town of Limbe. US$60.9m has been invested in the project with a target annual production capacity of 800,000t/yr. Construction of the plant will begin in June 2013 and is expected to produce its first cement bag by late 2015.

The initiative joins other projects underway such as those of Nigeria's Dangote Group (1Mt/yr) and Addoha from Morocco (500,000t/yr) in the commercial city of Douala. Cameroon's local producer and Lafarge's subsidiary Cimenteries du Cameroun (CIMENCAM), which has two factories in Douala and Figuil, has begun plant construction works on the outskirts of the capital, Yaoundé, to supply the Central, Southern and Eastern regions of the country.

Cameroon, which has been facing recurrent cement shortages for more than a decade, has opted for massive imports, with potential domestic demand being 8Mt/yr, while domestic production is currently estimated at just 1.6Mt/yr.

Turkmenistan: Turkish company Polimeks Insaat Taahhüt ve San. Tic. A.Ş. has commissioned a 1.4Mt/yr cement plant in the east of Turkmenistan, an official Turkmen source has said. President Gurbanguly Berdimuhamedov of Turkmenistan and President Viktor Yanukovich of Ukraine flew by helicopter to the venue for the opening ceremony of the cement plant.

The plant in Garlyk in the Lebap region will produce Portland cement, oil well cement and sulphate-resistant cement. Raw materials will be taken from a nearby quarry and when operational the plant is expected to employ 800 people.

In October 2011, Polimeks launched a similar plant in the west of Turkmenistan, in the area of the city of Jebel in the Balkan region. Its cost is estimated at Euro180m.

India: UltraTech Cement, a subsidiary of the Aditya Birla Group, has started a US$297m capacity expansion project with the help of International Finance Corporation (IFC), the multilateral lending arm of World Bank Group. About US$100m of the project comprises loans from the IFC.

The proposed project comprises a brown field expansion at UltraTech's operational integrated plant in Chhattisgarh and the investment for the necessary infrastructure to support the expansion. In a recent statement IFC said that the project is a key component of the company's cement capacity expansion strategy in the eastern part of India. Located on 389 hectares of land, existing operations were commissioned in 1995. The existing facilities and ongoing expansion include expanding the clinker capacity up to 6.5Mt/yr, the cement line up to 6.5Mt/yr and taking a coal-fired captive power plant up to 80MW.

Currently, UltraTech has 12 integrated cement manufacturing plants, 15 grinding units, five bulk terminals and more than 100 ready mix concrete plants spanning India, United Arab Emirates, Bahrain, Bangladesh and Sri Lanka with a capacity of 52Mt/yr

India: South India's largest cement producer by volume, India Cements, has reported that its revenue fell by 54% to US$4.84m in the quarter ending on 31 December 2012. The producer reported US$10.4m in the same period in 2011.

However, the company's revenues rose by 14.82% to US$200m in the quarter. The company's earnings before interest, taxes, depreciation and amortisation (EBIDTA) remained steady at US$36.1m. .

"Considering the problems we had in the quarter the performance is good. Almost all costs went up sharply. For example, freight and handling costs are up 25% year-on-year," said vice chairman and managing director N Srinivasan. "For us, the EBIDTA is steady at around 18% sequentially when there was substantial drop in margins for competitions."

Srinivasan added that India Cements' expansion into many locations also helped to increase capacity utilisation in the quarter, which was about 70%. The company is looking at strong growth in some of the markets like Gujarat. It is also contemplating adding one more production line in its Mahi plant in Rajasthan, which currently has a capacity of 1.3Mt/yr. The proposed expansion may entail an investment of up to US$130m.