Global Cement News

Ireland: CRH expects the Eurozone's economic problems to deepen a slide in sales in the second half of 2012, preventing it from raising profits despite a recovery in the US construction market.

For its interim results for the six months ending on 30 June 2012 the Irish building materials group reported a 5% rise in sales revenue, to Euro8.59bn from Euro8.17bn in the same period in 2011. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 1% to Euro568m from Euro574m.

"The big question is whether Germany and some of the economies that are performing well can compensate and continue to deliver growth for the Eurozone overall," said chief executive Myles Lee.

"We just don't see how the Eurozone can get their act together in time to have a significant impact in the second half," chief financial officer Maeve Carton added.

Sales in the US, where CRH is the leading producer of asphalt for highway construction, rose 8% on a like-for-like basis in the first half compared with a 5% drop in Europe where bad weather added to governments' debt problems. But CRH noted that the rate of economic growth in the US is tailing off and forecast that sales growth in the second half in the region will be 'well below' the 8% sales growth in the first half.

First-half results were propped up by favourable weather conditions and improving construction markets in the US, with revenue, profit and margin growth across all three of its divisions in the first-half, said CRH. The company said that key European markets such as the Netherlands continue to struggle, while it is expecting a contraction in sales in Poland in the second half of 2012.

The company is seeking to cut costs by more than Euro2bn over a five-year period in response.

Switzerland/India: Engineering company ABB has secured an order worth US$18m in India to design, engineer and supply integrated automation and modern electrification systems for Century Cement's Manikgarh cement plant in central India.

ABB's delivery is part of a two-line expansion and plant modernisation project that will add production capacity of 2.8Mt/yr, more than doubling its current production capacity. The project also includes a 60MW thermal power plant onsite. providing a reliable on-site power supply that will improve energy efficiency. The turnkey project is scheduled to be completed by early 2014.

"Our proven experience in executing large and complex projects, minerals and cement industry expertise and leading automation and power technologies helped us to secure this important order," said Veli-Matti Reinikkala, head of ABB's Process Automation division.

ABB will deliver integrated power and automation systems using a plant-wide 800xA automation system to control, connect and optimise the performance of all processes and systems. The scope of supply includes medium-voltage switchgear, distribution transformers and other electrical equipment and power systems, intelligent low-voltage motor control centres, variable speed drives, instrumentation and collaborative production management systems. ABB will also provide design, engineering, project commissioning and other site services.

India: India Cements has reported a 39% drop in net profit for the quarter ending 30 June 2012. Profit fell to US$11.2m from US$18.4m in the same quarter in 2011. However, the company earnings before interest, taxes and amortisation (EBITDA) rose by 14%, to US$50.9m from US$40.1m.

The Chennai-based cement manufacturer's total income, which also includes revenue from Indian Premier League (IPL) franchise Chennai Super Kings, rose by 13.5% to US$218m from US$192m. Total expenses increased by 13% to US$167m from US$147m, mainly due to higher fuel consumption and transportation costs.

"Our primary focus this quarter has been on maintaining the margins despite increases in rail fares, power tariff revision in our states of operation, increases in wages and a substantial depreciation of Rupee against the US Dollar pushing up prices of imported coal," commented N Srinivasan, vice chairman of India Cements. He also added that in the reported quarter the company has continued to work on infrastructure connecting its coalmines to ports in Indonesia.

Cement production stayed stable for the quarter at 2.35Mt in 2012 against 2.32Mt in 2011. Cement and clinker sales also reported little change, with 23.8Mt in 2012 reported against 23.1Mt in 2011.

South Africa: The South African National Regulator for Compulsory Specifications (NRCS) has cleared imports from Pakistan producer Lucky Cement for use in South Africa.

Thomas Madzivhe, the NRCS's acting chief executive, said that complaints of non-compliance received about Lucky Cement imported from Pakistan had been fully investigated and the NRCS was satisfied the certification bodies had done all the necessary checks and tests and that the cement complied with South Africa's regulations. Madzivhe said that the NRCS suspected market access and competitive and market share issues might be a reason for the complaints.

Musa Ndlovu, the NRCS's acting executive for non-perishable products, said a directive had immediately been issued against Lucky Cement when complaints of non-compliance were received at the end of 2010, which meant this cement could not be sold in South Africa. Ndlovu added that the NRCS had carried out a full 28-day test on the cement but the results did not provide it with any tangible evidence to prove the product was non-compliant in terms of quality. The NRCS had only found evidence once of non-compliance but this was based on under-weight bags and not quality.

Brazil: Votorantim Cimentos has ordered 110 air cannons from Martin Engineering to aid material flow in two new plants currently nearing completion in Brazil. The two new plants are part of a massive US$988m investment by Votorantim. They are expected to produce approximately 8500t/day of clinker when they come online later in 2012.

110 Martin Hurricane Supreme Air Cannons are to be installed in the plants in Cuiabá and Rio Branco, covering preheater towers, additive silos and cyclones. Benefits of specifying the new technology for air cannon networks include reduced energy costs, improved system performance and increased uptime, with greater availability of compressed air for other processes within the plant.