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Eagle Cement builds profit on higher sales volumes 13 November 2017
Philippines: Eagle Cement’s net profit rose by 8% year-on-year to US$64.4m in the first nine months of 2017 from US$59.7m in the same period in 2016. It attributed the growth to higher sales volume despite tight competition, according to the Manila Bulletin newspaper. Its net sales revenue grew by 12% to US$219m from US$196m. This was due to over 20% growth in the sales volume of bagged and bulk cement even though the price of cement has fallen, in part because of imports. The cement producer is set to commission a third production line at its Bulacan plant in 2018.
Appeals to Italian competition regulator deferred until June 2018 13 November 2017
Italy: Appeals by Italian cement producers to the judiciary of Lazio against fines imposed by the Italian Competition Authority (AGCM) has been deferred to June 2018. Italcementi, Buzzi Unicem, Colacem, Cementir, Sacci, Holcim, Cementirossi, Barbetti, Cementeria di Monselice, Cementizillo, Calme, Moccia, TSC and the Italian Cement Association (AITEC) were penalised more than Euro184m in July 2017 for allegedly coordinating sales prices and agreeing market share from June 2011 to January 2016, according to the ANSA news agency. The majority of the fine was levied on Italcementi and Buzzi Unicem at around Euro84m and Euro60m respectively. Itacementi started appealing against the sanctions in August 2017.
Adelaide Brighton investigates deliberate underpayments 13 November 2017
Australia: Adelaide Brighton is investigating a series of transactions to a small number of customers who may have underpaid for the products supplied to them. The cement producer says it is investigating the situation ‘fully’ with the aid of the forensic accountants KPMG. It added that it is possible that an employee of the company is involved.
The company believes, that, based on the evidence so far, it appears that there may have been deliberately hidden underpayments by customers over a sustained period. This may have a negative impact on the company’s 2017 earning before interest and taxation (EBIT), currently estimated to be up to US$11m, less the impact of any recoveries that may be made. Adelaide Brighton has reported the situation to its auditors and will co-operate with relevant authorities as the investigation proceeds.
Chinese ambassador denies links with Sinocem Costa Rica 13 November 2017
Costa Rica: Tang Heng, the Chinese Ambassador to Costa Rica, has confirmed that Sinocem China has ended all commercial relations with Sinocem Costa Rica. The statement was made due to an investigation into alleged irregularities and lobbying involving the owner of Sinocem Costa Rica, Juan Carlos Bolanos, and certain officials of state-owned bank Banco de Costa Rica, according to La Nación newspaper. According to Heng, Hangzhou Sinocem Building Materials said in July 2017 that Sinocem China had stopped supplying cement to Sinocem Costa Rica as the latter allegedly purchased cement from other Chinese cement suppliers and continued to use the Sinocem brand on packaging without its permission.
Belgium: The European Parliament and Council have reached a provisional agreement to revise the European Union (EU) Emissions Trading System (EU ETS) for the period after 2020. This revision is intended to help the EU on track to achieving its commitment under the Paris Agreement to reduce greenhouse gas emissions by at least 40% by 2030. The deal between the parliament and council follows more than two years of negotiations, following the European Commission's proposal to revise the EU ETS in July 2015.
The main improvements agreed by parliament and council include changes to the system in order to hasten emissions reductions and strengthen the Market Stability Reserve to speed up the reduction of the current oversupply of allowances on the carbon market. Additional safeguards have been proposed to provide European industry with extra protection, if needed, against the risk of carbon leakage. Several support mechanisms have also been added to help industry meet the innovation and investment challenges of the transition to a low-carbon economy.
Cembureau, the European Cement Association, said that it had hoped, “…for a stronger signal towards best performing plants that their investment efforts will be honoured through a full protection against carbon leakage and is still concerned about the impact of a cross-sectoral correction factor.” However, it added that it was pleased that the EU had withstood attempts to differentiate between sectors in applying the rules of the ETS scheme.
Environmental campaign group Sandbag criticised the amendments for not going far enough to cope with a gap between allowance supply and emission. “The logic of the Paris Agreement is that all countries need to step up ambition to cut emissions. With the ETS hobbled, the EU and Member States must now immediately look to how emissions can be cut rapidly before 2020 and in the period up to 2030. Accelerating coal plant closures and supporting the efforts of industry to decarbonise, is essential,” said Sandbag’s managing director Rachel Solomon Williams.
Following the political agreement between the parliament, council and commission, also known as a trilogue, the text will have to be formally approved by the parliament and the council. Once endorsed by both co-legislators, the revised EU ETS Directive will be published in the Official Journal of the Union and enters into force 20 days after publication.