Global Cement News

Hungary: Lafarge and Strabag have successfully finished a test run at a Euro250m cement plant that they have jointly completed near Kiralyegyhaza in south west Hungary, according to Lafarge Cement Magyarorszag managing director Frederic Aubet. Mr Aubet said the test run results show the plant to be one of the most environmentally friendly in Europe.

The plant, which will turn out 0.75Mt/yr of clinker and 1Mt/yr of cement, will be fully commissioned by 2015.

Spain: Fomento de Construcciones y Contratas (FCC) closed 2011 with an attributable net profit of Euro108.2m, down 64.1% year-on-year. The slump was explained by the poor performance of FCC's cement producer Cementos Portland Valderrivas. Total sales went down by 1.3% to Euro11.76bn, while earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 8.3% to Euro1.25bn. Net debt stood at Euro6.28bn at the end of 2011, down 19% from a year earlier.

Ireland: The Irish cement group CRH, which has cement interests in many key growth markets, has released financial results for 2011 that show an improvement in all of its fiscal indicators. Sales came in at Euro18.08bn for the year, compared to Euro17.2bn in 2010, a 5% improvement. Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at Euro1.65bn, up by 3% compared to 2010 when its EBITDA was Euro1.61bn. CRH's operating profit for 2011 was Euro871m, a 25% improvement compared to 2010 and its pre-tax profit was Euro711m, up by a third compared to the Euro534m it made in 2010.

CRH's Chief Executive Myles Lee said, "The positive profit outcome for 2011 demonstrates the advantages of CRH's product and sectoral end-use balance and the benefits of the extensive reorganisation and restructuring measures implemented in response to the exceptionally difficult markets of recent years. Assuming no major economic or energy market dislocations, we expect to generate further like-for-like revenue growth in 2012 with the achievement of targeted price increases a key priority. This combined with benefits from acquisitions completed in 2011 leads us to expect further progress in the year ahead."

US: Holcim (US) Inc. has decided to permanently close its cement making operations at its Catskill facility, according to a New York State Department of Conservation Environmental Notice Bulletin. The company is also set to permanently close its Artesia plant in Mississippi. Both plants had previously been mothballed due to the stagnating US economy and low cement demand.

Holcim Vice President of Corporate Communications Robin DeCarlo said that the state of the economy had not improved. She said that this, along with a decrease in demand for cement across the US, had led Holcim to decide to permanently close the plants.

Speaking of the Catskill plant, DeCarlo said, "Nothing has really changed with the plant from the mothball status to the close. We still have staff there, we are still looking at our equipment and are maintaining our permits, so not much has changed."

DeCarlo said that there are no plans for Catskill at this point and that a timeline on the completion of the closures remains unclear. The announcement to cease operations at Catskill was reported to the Department for Environmental Conservation (DEC) for the sole purpose of changing Holcim's solid waste permit. This will allow it to dispose of its raw materials, according to DEC Region 4 spokesman Rick Georgeson.

Indonesia: Indonesia's second largest cement producer PT Indocement has announced plans to build a 2 x 30MW power plant in Pati, Central Java. The plant, which will cost around US$200m, will guarantee a power supply to Indocement's new cement factory, which is to be built in Pati later in 2012.

The new cement factory will cost around US$300m, according to Indocement's corporate secretary Sahat Panggabean. It will have a capacity of 2.5Mt/yr and will be operational by mid-2015. This will take Indocement's domestic cement capacity from 18.5Mt/yr up to 21Mt/yr.