Global Cement News

Australia: Wagners’ sales revenue grew in its 2017 financial year due to ‘strong’ growth in cement volumes as well as better utilisation of its transport, quarry and pre-cast assets. Its sales revenue rose by 20.2% year-on-year to US$170m in the year that ended on 30 June 2018 from US$142m in the same period in 2017. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 25.4% to US$37m from US$29.5m. Its cement sales volumes rose by 14.8% year-on-year.

“We have experienced strong cement sales as a result of increased concrete consumption and increased activity in the renewable energy projects in South East Queensland. We have also seen significant improvement across the balance of the construction materials and services business compared to the previous financial year,” said chief executive officer (CEO) Cameron Coleman.

India: The Competition Commission of India (CCI) has approved UltraTech Cement’s acquisition of Century Textiles & Industries. UltraTech Cement said that the CCI had approved the proposed combination under sub-section (1) of section 31 of the Competition Act, 2012. Century Textiles, the cement production subsidiary of BK Birla Group, holds three integrated plants in Madhya Pradesh, Chhattisgarh and Maharashtra respectively with a combined production capacity of 11.4Mt/yr and a 1Mt/yr grinding plant in West Bengal. The takeover has been arranged via a demerger process whereby Century Textiles’ shareholders will be given shares in UltraTech Cement.

Bolivia: Empresa Publica Productiva Cementos de Bolivia’s (ECEBOL) new plant at Caracollo in Oruro is planning to enter the testing phase in late August 2018. The new 1.3Mt/yr plant is scheduled to start commercial operation in early 2019, according to the La Razón newspaper. The cement producer is also building a new plant at Potosí but this unit is not expected to open until 2020. Once both plants are operational the company expects to meet up to 30% of the country’s demand for cement.

China: Sinoma International Engineering’s sales revenue rose by 14% year-on-year to US$1.47bn in the first half of 2018 from US$1.29bn in the same period in 2017. Its net profit increased by 45% to US$94.6m from US$65.1m. The subsidiary of China National Building Material (CNBM) said that signed new contracts in the cement sector with a value of US$1.26bn in the reporting period, including seven cement production lines and two grinding units.

China: Tianrui Cement’s sales revenue rose in the first half of 2018 due to an average price rise year-on-year of 22%. Its revenue grew by 13.8% to US$629m from US$553m in the same period in 2017. Profit increased by 17% to US$82.6m from US$71.6m.

Cement sales volumes fell by 4.7% to 13.3Mt from 12.6Mt due to government imposed production limits in Henan province and a decrease in infrastructure and property investment. In Henan and Anhui the company’s cement sales fell by 7.1% to 10.3Mt but it Liaoning and Tianjin it rose by 4.5% to 3Mt. the cement producer also reported that its cost of sales rose by 12.3% to US$721m due to rising coal prices and other input costs.