Global Cement News

India: UltraTech Cement, an Aditya Birla Group company, has reported a net profit of US$112m for the last three months of 2012, a drop of 3% compared to US$115m in the same period in 2011. The company blamed subdued demand and higher costs caused by increases in railway freight and diesel prices. Net sales for the quarter rose by 6% to US$904m from US$850m.

During the quarter, UltraTech reported that imported coal cost around US$100/t but that the benefit of this low price was partly offset by the depreciation in the Indian Rupee. New clinker plants at Chhattisgarh and Karnataka are expected to be operational by early 2013-2014 and will add 9.2Mt/yr to UltraTech's capacity. Once completed UltraTech's total capacity will reach 62Mt/yr.

In its outlook, the company said that the surplus scenario in the industry is likely to continue over the next three years. "Input costs are likely to increase in line with general inflation with margins remaining range bound,'' the company said.

India: Dalmia Cement has prepared a US$335m investment plan to ramp up the company's cement manufacturing capacities by the end of 2014. With this expansion the company's total capacity will grow from 17Mt/yr to 21Mt/yr. The move will also help strengthen the company's presence both nationally and in the north east of India.

The company intends to set up a 2.5Mt/yr greenfield unit at Belgaum, Karnataka, for a cost of US$242m and expand its two plants in north-east for US$93m, according to Puneet Dalmia, CEO & managing director of Dalmia Cement. Completion of the proposed expansions is expected to boost the company's bottom line by 10%. The firm, which also owns 45.4% stake in OCL India, will commission its new unit under OCL India by December 2013.

India: Shree Cement has reported a fall in profit for its cement business of 24% to US$34m in the last three months of 2012 from US$45m in the same period in 2011. Total income for the company's cement business fell by 6% to US$207m from US$221m.

Since Shree Cement's previous financial year ending on 30 June 2012 lasted 15 months, figures for the six month period to 31 December 2012 were derived by aggregating the quarters ending 30 September 2011 and 31 December 2012. For the half year to 31 December 2012, Shree Cement reported a gain in income for its cement business of 19% to US$428m in 2012 from US$359m. Profits for the cement business for the half year rose by 24% to US$77m from US$62m.

Overall the Indian cement producer's financial results were bolstered by the company's power business. It reported a rise in net profit of 267% to US$40.5m in the last three months of 2012 from US$11m in the same period in 2011. Its total income increase by 20% to US$271m from US$226m.

Brazil: The chairmen of China Triumph International Engineering (CTIEC) and Votorantim Group have met to discuss working together on future projects. Peng Shou, chairman of CTIEC, visited Raul Calfat, CEO of Votorantim Group. Votorantim is the parent group of Votorantim Cimentos, Brazil's largest cement producer.

In the meeting the two companies exchanged ideas on the cement industry in China and Brazil and reached a consensus on advancing strategic cooperation, starting with cement and cogeneration projects. The companies decided to promote future communication and exchanges of technical information.

Votorantim Group is a conglomerate engaged in industries including power generation, papermaking, food, metal smelting and cement. It achieved business revenues of US$12bn in 2011. Its subsidiary Votorantim Cimento has over 50 cement production lines in countries and regions like Brazil, the US, Canada and Africa and is further expanding production capacity.

Afghanistan: The Afghan Ministry of Mines has announced that the management of three cement factories, including the Herat Cement Factory, in Afghanistan will be put out to tender by the end of March 2013. The operation of the Herat Cement Factory was previously contracted to an Iranian company but the ministry terminated the contract.

"The Iranian company could not address the articles in the contract and its commitments in due time. Following review and discussions, the Ministry of Mines terminated the contract with this company," said Ministry of Mines spokesman Ahmad Tamim Asi.

The Herat cement plant has a production capacity of 3000t/day. However, according to the ministry the company failed to meet this in 27 months because it did not have the essential technical and financial facilities to excavate the raw materials needed to produce the cement.

The ministry also said that in the next Persian year of 1392 (March 2013 to March 2014), the cement factories of Jabul Saraj in Parwan province and Ghori in Baghlan province will also be put up for bidding in order for the factories to produce more and meet domestic cement demand. Afghanistan currently imports much of its cement from its southern neighbour Pakistan, which has a cement overcapacity.