Global Cement News

Pakistan: Lafarge Pakistan has announced the appointment of Amr Reda as the new Country CEO. Prior to joining Lafarge Pakistan he was the Regional Business Controller Lafarge Middle East and Pakistan and has served as member Board of Directors' Lafarge Pakistan since January 2007.

"We are fortunate to have Amr as the new CEO and I have full faith that he will take the company to the new heights of professionalism. We will together work for the benefit of all stakeholders of the Company," said outgoing Lafarge Pakistan CEO Major General Rehmat Khan. Khan will take a new role as Chairman Board of Directors of Lafarge Pakistan.

Saudi Arabia: Arabian Cement has said its chief executive, Ali Al Khuraimi, has resigned for personal reasons. A new CEO will be appointed as soon as possible, the cement maker said in a statement posted on 2 February 2013 on the Saudi bourse website.

Italy: Italcementi has reported that its revenue fell by 3.8% to Euro4.48bn in 2012 from Euro4.68bn in 2011. It blamed the fall on the continued effects of the economic crisis on demand for construction materials in Western Europe.

Sales volumes of cement and clinker principally fell in the group's Central & Western Europe region, by 16.1% to 16Mt in 2012. Volumes also fell by 4.5% to 14.9Mt in the group's Emerging Europe, North Africa and Middle East region. North America grew by 0.3% to 4.2Mt and Asia grew by 8% to 10.1Mt. Notably sales volumes increased across all regions in the fourth quarter of 2012.

Revenue by business line for cement and clinker fell by 3% to Euro2.90bn in 2012 from Euro2.99bn in 2011. Revenue by geographical area for the group's two declining regions represented 76% of the group's total of Euro4.48m in 2012.

In its press release the Italian based multinational cement producer added that it reduced its net financial debt by approximately Euro100m in 2012 to Euro1.99bn, helped by cash flow improvements and an investment policy focused on industrial and environmental efficiency. It added the during 2012 the group introduced measures to rationalise its production network. These include the '2015 Project' for the Italian market, announced in December 2012, which will have a positive annual effect of approximately Euro40m when fully implemented.

France: Ciments Français has reported that its revenue has fallen by 2.5% to Euro3.73bn in 2012 from Euro3.82bn. It has attributed the decline to the impact of the economic crisis on construction material demand, particularly in industrialised countries.

In its press release with the results Ciments Français commented that its sales increased in most emerging countries, especially those in Asia. During the fourth quarter of 2012, the trend improved significantly in the cement and clinker sector with stable sales, following decreases over the first three quarters.

By volume the group sold 39.3Mt of cement and clinker in 2012, a decrease of 2.7%. By region sales volumes fell by 8.8% to 9.3Mt in 2012 in the group's Western Europe region. Sales also fell in the group's Emerging Europe, North Africa and Middle East region, by 4.5% to 14.9Mt. Volumes remained steady in North America at 4.2Mt and increased in Asia by 8.8% to 10.1Mt. Notably, the group preformed significantly better in the fourth quarter of 2012 for volumes sold of cement and clinker with all regions doing better compared to the same quarter of 2011.

By revenue the group's cement and clinker business fell by 1% to Euro2.51bn in 2012 from Euro2.54bn in 2011. The cement and clinker business comprised 67% of the group's total revenue in 2012. Geographically, the group's Western Europe region comprised 43% of the group's revenue, the single largest area in terms of location.

France: Vicat Group has reported Euro1.16bn in consolidated sales for its cement division in 2012, a slight rise of 1.6% from Euro1.14bn in 2011. The French multinational cement producer commented that it had benefited from growth in emerging markets and a recovery in Turkey and the United States. Overall, sales rose by 1.2% to Euro2.29bn from Euro2.27bn.

Sales in the US rose by 18.7% to Euro196m from Euro165m. This was mirrored by the cement division, which had sales of Euro91.2m in 2012. Prices remained on average lower than in 2011. In Turkey, India and Kazakhstan sales rose by 27% to Euro442m from Euro348m. Cement sales for this division were Euro376.6m, led by continued growth of 10.9% in Turkey and with new plants coming on line at Bharathi Cement in India and Jambyl Cement in Kazakhstan.

In less well performing regions, Vicat noted that cement sales fell in France by 11.6% to Euro392m in 2012. It blamed the decline on a fall of 13% in volumes due to adverse weather, completion of major projects and a more 'challenging' industry environment. However it did record a slight increase in selling prices in 2012. In Africa and the Middle East sales fell by 11.3% to Euro364m from Euro411m. Cement sales were Euro342m. Major sales decline was noted in Egypt, where sales fell by 27% in 2012 due to volume contraction. Operations were effected by a fuel shortage until October 2012 and the poor security situation. Political unrest in Mali caused problems for the Group's West African results.

Sales in Europe outside of France rose by 2% to Euro411m from Euro403m. Cement sales were Euro175.6m for this region. Notably cement sales in Switzerland rose by 5% over the year and close to 18% year-on-year in the fourth quarter. Overall the group's business contracted by 15% in Italy in 2012.

For its outlook Vicat expects to benefit gradually from investments made over the since 2007 as global economic conditions recover.