Global Cement News

Denmark: FLSmidth has signed a contract worth approximately Euro85m with a company in the Middle East to supply a complete 6000t/day cement production line. The country and precise location of the plant were not announced.

The contract comprises complete equipment supplies and includes a combined limestone and clay crusher, a gypsum crusher, a circular stacker and reclaimer store, a stacker and side scraper store for additives, an ATOX vertical raw mill, a CF silo, a double-string preheater tower, a ROTAX kiln, an FLSmidth Cross-Bar cooler, an OK mill and equipment for the packing and dispatch of cement. FLSmidth will also supply automation equipment.

"FLSmidth has a long history in the Middle East and is maintaining its leading role in serving the rapidly-expanding cement market," said Group CEO Jørgen Huno Rasmussen. "The growing economy and increasing infrastructure investment in the region continue to offer opportunities. This project confirms that the slowdown from the 'Arab Spring' is lifting."

The company added that the cement plant would feature state-of-the-art equipment including the latest technology to ensure an environmentally-friendly and energy-efficient production process.

Colombia: Colombia's Grupo Argos has announced that its consolidated net profit in the first quarter of 2012 was US$125m, a fourfold increase from that seen in the first quarter of 2011. The group said that it had seen a surge in growth in its most significant business areas, namely cement and electricity. The group, which has a 61% stake in Cementos Argos, said that its earnings before interest, taxes, depreciation and amortisation, were US$250m.

Iraq: The board of directors of Pakistan's Lucky Cement Company has decided to set up a greenfield cement grinding plant with a production capacity of 0.87Mt/yr in Iraq under a joint venture. The board also decided to invest US$15m in the cement plant, which is estimated to cost US$30m as 50% share of its equity. The technical and financial evaluation of the proposed project has already been carried out.

Mexico: Mexican cement giant Cemex has reported that sales growth in its operations in the United States, Central and South America and the Caribbean helped it to narrow its first-quarter loss in 2012.

"The favourable performance in most of our regions leads us to believe that we are in the initial stages of a turnaround," said Fernando Gonzalez, Cemex's executive vice president of finance and administration, who added that the quarter marked Cemex's sixth consecutive quarter of top-line growth.

Sales rose by 4% year-on-year in the January-March 2012 period to US$3.5bn. Higher sales in the US helped compensate for weaknesses in Mexico and Europe, although the US operations were still a drag on operating earnings before interest taxes, depreciation and amortisation (EBITDA).

Cemex said its operating EBITDA rose by 7% on the year to US$567m. On a like-to-like basis for its ongoing operations and adjusting for currency fluctuations, operating EBITDA increased by 10%.

Cemex's net loss for the quarter was US$26m, narrower than a loss of US$229m loss a year earlier.

Japan: Cement sales in Japan increased by 2.1% year-on-year in the year to 31 March 2012 to 41.91Mt, according to figures released by the Japan Cement Association. Sales were up for the first time in six fiscal years on the back of earthquake reconstruction and rebuilding.

Sales grew particularly in the Tohoku region due to very strong reconstruction demand in areas devastated by the March 2011 earthquake and tsunami. The Greater Tokyo area also contributed to the rise, seeing an increase in urban redevelopment projects.

In March 2012 alone domestic cement sales rose by 8.7% compared to 2011 to 3.64Mt, the fourth straight monthly rise.