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UNACEM profit up in second quarter of 2017 25 July 2017
Peru: Union Andina de Cementos (UNACEM) recorded a profit of US$17.0m in the second quarter of 2017, an increase of 26.8% from a profit of US$13.4m in the same year-earlier period. The firm's profit for the first half of 2017 stood at US$120.2m, up from US$110.4m in the first half of 2016. Net sales totalled US$143.2m in the second quarter of 2017, almost the same level recorded in 2016. The company’s cement sales fell by 4.5% year-on-year in the second quarter of 2017.
Castle to step down as PPC’s CEO
Written by Global Cement staff
24 July 2017
South Africa: PPC has announced that its CEO Darryll Castle will be stepping down to pursue other interests. In a statement PPC said that Castle will remain ‘available’ to the group for six months to ensure a smooth handover. Johan Claassen, the current managing director of PPC, has been appointed as the interim CEO.
PPC reported a 93% fall in full-year earnings in June 2017 due to a liquidity crisis precipitated by the cut in its credit rating to junk status.
Meanwhile, the resignation of Tito Mboweni, one of PPC’s independent non-executive directors has fuelled speculation in the South African press about the ongoing merger discussions between PPC and Afrisam. Some believe that there may be ‘irreconcilable disagreement’ between Mboweni and the wider board about the strategic direction of PPC with respect to Afrisam.
US: The Southern Trinity Groundwater Conservation District water district in Texas’ McLennan County is seeking an injunction against Lehigh Cement, alleging that the business is improperly pumping millions of litres of water from the Trinity Aquifer without necessary permits at its plant in Waco. It claims that the plant owes thousands of dollars for its water use over the past decade and possibly more in civil penalties for pumping water from a well without a permit.
The lawsuit asks Judge Vicki Menard to issue an injunction to block Lehigh from drawing water from a well on its property at 100 S. Wickson Road until the company obtains a permit.
Water district general manager Scooter Radcliffe said he hopes the matter can be resolved without the need for an injunction. "We are going to try to work with them the best way we can and try to get them to contact us so we can get this thing resolved as quickly as possible," Radcliffe said.
Vietnam proposes reduction in cement export tax 24 July 2017
Vietnam: The Vietnam Ministry of Planning and Investment (MPI) has proposed a reduction in its cement export tax to help ease the oversupply in the domestic market. In a recent report to the government, the MPI said that Vietnamese cement firms are seeking ways to deal with their large inventory.
Under existing regulations cement is subject to an export tax of 5% and does not receive value added tax (VAT) refunds, meaning Vietnamese cement products have become less competitive than those of China, Thailand, Indonesia and Japan. In response, the MPI has asked the government to slash the cement export tax and allow firms to benefit from VAT refunds for cement exports.
The General Department of Customs’ statistics showed that, in 2016, Vietnam exported 14.7Mt of cement and clinker with a total value of US$560m. At present, cement supply in the Vietnamese market is around 20% higher than demand.
The Vietnam Cement Association has forecast that the country’s total cement output might reach 108Mt in 2018 and 120-130Mt in 2020, leading to an unsold inventory of 36-47Mt.
Uzbekistan: President Shavkat Mirziyoyev has issues a decree detailing the construction of a new 1.2Mt/yr cement plant. The US$204m unit will be built at Bulakbashy, Andijan by 2019, according to the Trend News Agency. Shangfeng-Bridge of Friendship, a Uzbek-Chinese joint-venture, will manage the project. Investment for the scheme will come from foreign direct investment and loans, a loan from Uzpromstroybank and from Shangfeng-Bridge of Friendship directly. Tax and customs relief will also be offered to Shangfeng-Bridge of Friendship as part of the project.