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Tanga Cement warns of profit drop in first half of 2017 03 November 2017
Tanzania: Tanga Cement has issued a profit warning for the first half of 2017. It expects its operating profit before interest and tax for the six months that ended on 30 June 2017 to be 125 - 135% lower than that achieved in the same period in 2016. The cement producer blamed the competitive local market leading to lower prices. It also attributed the profit loss to new competitors using imported clinker.
Workers launch global union network at HeidelbergCement 03 November 2017
Germany: Union delegates representing workers at HeidelbergCement have created a trade union network. Forty delegates from Europe, Middle East and North Africa, North America, Asia-Pacific and South Asia met in early November 2017 in Bremen. The meeting was organized by IndustriALL Global Union with support of the Friedrich Ebert Foundation, also involving IndustriALL‘s sister organisation Building and Wood Workers’ International.
“With the creation of the HeidelbergCement union network, we open the door to social dialogue if management is willing, and we hope union activists will contribute seriously to the promotion of workers’ rights and interests in the company. To this end, the steering committee will be in close interaction with the national unions. Finally, we strongly believe that HeidelbergCement will only win through workers’ active participation and engagement,” said Matthias Hartwich, director for materials industry at IndustriALL.
The meeting discussed recent developments in the cement sector and sustainability issues. The experience of global and national unions interacting with management at another big cement giant company, LafargeHolcim, was also raised. At the end of the meeting, delegates unanimously adopted a Bremen declaration and elected a steering committee for the network, which will coordinate the work in between its global meetings. No representative of the group’s global management attended the event despite being sent invitations.
Titan benefits from US market so far in 2017 02 November 2017
Greece: Titan Cement’s sales and operating profit have all benefited from growth in the US so far in 2017. The group’s net sales grew by 1.8% year-on-year to Euro1.14bn in the first nine months of 2017 from 1.12bn in the same period in 2016. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 4.6% to Euro215m from Euro205m.
In the US sales grew by 14% to Euro667m in the year to date, despite a poor third quarter due to disruption by hurricanes and other weather events. In the group’s Greece and Western Europe region, sales fell by 3% to Euro190m and earnings fell also. However, sales rose in Southeastern Europe by 10.5% to Euro173m although rising fuels costs dented its earnings. Market conditions remained ‘challenging’ in Egypt with demand for building materials in 2017 estimated to be about 8% below the previous year’s levels and prices still impacted by the low value of the Egyptian Pound. Overall, the group’s Eastern Mediterranean region saw its sales fall by 39% to Euro114m and earnings fell by 66% to Euro11.1m. Further issues were reported in Turkey due to competition but joint venture operations in Brazil saw faint improvements in the third quarter of the year.
Shree Cement wins coal auction in Chhattisgarh 02 November 2017
India: Shree Cement has won a coal linkage auction in Chhattisgarh. The coal will be used at the company's captive power plant at its Raipur cement plant.
Sweden: Denmark’s FLSmidth has completed its acquisition of Sandvik Mining Systems’ projects business except for the transfer of assets in South Africa, which is awaiting merger control clearance. The acquisition includes continuous surface mining and minerals handling technologies and competences that strengthen the group's core minerals business. The purchase is intended to increases FLSmidth’s coverage of the full mining value chain.
"With this acquisition we will be able to increase the productivity of the complete ‘Pit to Plant’ operation by better integrating upstream mining with downstream processing. The acquisition also allows us to digitalise the full value chain and enables a better utilisation of existing leading technologies by obtaining direct access to all key processes and equipment," said Manfred Schaffer, Group Executive Vice President, Minerals Division of FLSmidth.
The acquisition includes the part of Sandvik Mining Systems that is closest to the mine, which excludes Sandvik's conveyor component and its Finland based businesses. It includes all products for continuous surface mining, inpit crushing and minerals handling technologies and related intellectual property, including reference lists, drawings and data for installed base. The deal includes the transfer of over 200 employees from Sandvik. FLSmidth will also provide project management services to Sandvik on the majority of ongoing projects to be delivered during 2017 - 2019 period and parts and services for the installed equipment.
The closing of the acquisition in South Africa is expected to occur in early 2018.