Global Cement News

Brazil: A large report by Sindicato Nacional da Industria do Cimento (SNIC) has revealed that home consumption of cement has risen by 104% in Brazil since 2006. The report, carried out by Galanto Consultoria, showed that Brazilian families are carrying out more home improvement, resulting in a surge in demand for many building materials.

DIY consumption of cement rose from US$14m in 2002-2003 to US$28.8m in 2008-2009. Interestingly, the use of bricks fell from 6% to 4.6%, wood from 5.7% to 3.9% and tiling from 6.4% to 5.9% of total materials used over the same period. The president of SNIC, Jose Otavio Carvalho, said that DIY applications now represent 18.23% of the total consumption of cement in Brazil.

Overall cement consumption in Brazil has risen by 34% to U$1.7bn in 2011, up from US$1.3bn in 2006. The major regional consumer is the south east with a 40.2% share followed by the north east with a 25.5% share of national consumption.

SNIC estimates that Brazil produced 63.6Mt of cement in 2011, just shy of national demand of 64.6Mt. Imports made up the shortfall. The industry's installed capacity was estimated at 78Mt/yr at the end of 2011, with SNIC predicting an increase to 111Mt/yr by the end of 2015.

Egypt: Arabian Cement Company (ACC) is expanding its operations in Egypt, with the official opening of its second production line at its plant located in Suez governorate.

During a press conference attended by General Ismail Al Nagdy, President of the Egyptian Industrial Development Authority (IDA), and Fidel Sendagorta, the Spanish Ambassador in Egypt, ACC showcased the benefits of converting to an alternative fuel system, which it is planning to implement on both production lines. This will help it to reduce its gas consumption to make the plant more environmentally-friendly.

ACC said that the second production line has created 850 jobs, making ACC an employer of around 1700 workers both directly and indirectly. Operation of the second line has doubled ACC's production capacity to 5Mt/yr.

"We are extremely pleased to announce opening our second production line, which will increase our production capacity, bringing us one step closer to becoming among the largest cement producers in the market. We have already finished the commissioning of the second line and are now ready to produce high quality cement products," said Jose Maria Magrina, ACC's CEO.

"ACC has been successfully operating in the Egyptian market since 2007 and is currently the second largest Spanish investor in Egypt. As a leader in the cement sector, we are constantly keen to implement the latest techniques in our production process. By using alternative fuel in our plant, we contribute to limiting the harmful effects of the cement industry on the environment."

Using alternative fuel will reduce the consumption of natural gas, saving the company 436m3 of gas for every tonne of refuse derived fuel (RDF). ACC has obtained the required license from the Egyptian Environmental Affairs Agency (EEAA) to use alternative fuel made from waste materials in the kilns of the plant. It is expected that RDF will be introduced to the plant by the end of 2012. This will save the operation around 60,000t/yr of CO2.

Saudi Arabia: Saudi Cement Company (SCC) said that its net profit for the three months to 31 March 2012 surged by 54.4% year-on-year to US$86.8m from US$56.2m in the year to 31 March 2011.

The company attributed the increase to higher sales volumes as a result of rising local demand. Its operating profit increased to US$87.8m for the first quarter of 2012 from US$58.1m a year earlier.

Bahrain: Cemena Holding Company has outlined plans to expand its business during its AGM, which focused on Cemena's profitability, returns and plans to diversify its offering. Shareholders were updated on the company's activities and financial performance for 2011 and the milestones reached during the year. The company, which was set up in 2008 by Gulf Finance House, also highlighted its new business strategy and hailed efforts of the management in achieving gross revenues of US$46.4m in 2011.

Shareholders were updated on the planned expansion of Falcon Cement Company's (FCC) production capacity, (Bahrain's first cement plant) bringing it up to a capacity of 3500t/day. The company said that the expansion of FCC will help it to meet Bahrain's growing demand for cement, where there is an increasing number of infrastructure projects.

"With the return of the growing demand for cement and building materials locally and in the region, Cemena successfully closed 2011 in profit," said Cemena chairman Hisham Alrayes. "This is a result of the tireless efforts of the team and the trust and confidence that our shareholders have in our vision."

Alrayes added, "Libya (is) stabilising (enabling) us to progress on our Libya Cement Plant. We are confident that we now have a strong platform for growth and expect to witness another strong cash flow performance in 2012."

Turkey: Four Turkish cement producers have released annual financial results for the 2011 calendar year. Bolu Cement saw its total revenue increase by 22.2% to Euro79.7m and a net profit increase of 44.7% to Euro8.8m, ensuring profits in each of the last three years.

Meanwhile, Adana Cement saw a total revenue of Euro144.7m in 2011, up by 6.7% year-on-year. It extended its profit run to four consecutive years, although this slumped by nearly a quarter to Euro33.7m.

Cimsa Cimento saw a fifth consecutive year of strong results, with revenue and net profit both up. Revenue hit Euro352m, up 12% year-on-year and net profit was up by 19% to Euro54m.

Baticim Bati Anadolu Cimento also saw an increase in its revenue, a 10.6% increase to Euro158.4m and a near-70% increase in net profit, which rose to Euro11.1m from a low base.