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Nigeria: Dangote Cement’s earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 2% year-on-year to US$817m in 2016 from US$834m in 2015. However, its sales revenue rose by 25.1% to US$1.95bn from US$1.56bn and its sales volumes of cement rose by 25% to 23.6Mt from 18.9Mt. The cement producer reported a particular increase in sales volumes, revenue and earnings outside of Nigeria and it said that its export sales have turned Nigeria into a net exporter.
“We exported nearly 0.4Mt into neighbouring countries and in doing so, we achieved a great milestone by transforming Nigeria into a net exporter of cement. This is a remarkable achievement, given that only five years ago, Nigeria was one of the world’s largest importers, buying 5.1Mt of foreign cement at huge expense to our balance of payments. We will increase our exports substantially in 2017,” said chief executive officer Onne van der Weijde. He added that despite some local and temporary disruptions in Ethiopia and Tanzania, the cement producer strengthened its market share in every country. Operations are also due to start in the Republic of Congo and Sierra Leone in 2017.
By region, Nigeria’s economy entered into a recession in 2016. Dangote Cement increased its domestic sales volumes by 11.1% to 14.8Mt from 13.3Mt, although it said that its fourth quarter was hit by a price increase in September 2016. Despite the poor economic situation in the country it said that overall cement sales grew by 5.7% in 2016. Outside of Nigeria it increased its cement volumes by 54% to 8.64Mt from 5.61Mt, aided by the opening of a plant in Tanzania.
CRH grows sales and profits in 2016 01 March 2017
Ireland: CRH’s sales revenue rose by 4% year-on-year to Euro27.1bn in 2016 from Euro23.6bn in 2015. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 41% to Euro3.13bn from Euro2.22bn. The group attributed the growth in sales and profits to positive sales in the Americas and Europe and benefits from its first year of full ownership of some assets purchased from LafargeHolcim in 2015.
"2016 was a year of significant profit growth for CRH, with margins and returns ahead of last year in every division. We benefited from positive momentum in the Americas and also in Europe, particularly in the Northern and Eastern regions where we operate," said chief executive Alfred Manifold.
By region, the group’s Europe Heavyside division reported boosts in sales revenue and operating profits. However, its cement operations grew sales volumes in several countries where it faced price pressure and production overcapacity including Ireland, Spain and France. In Germany the group noted that sales volumes grew in its first full year of full ownership due to growth in residential building but that prices remained under pressure. Weak activity in Poland also affected pricing and reduced sales and operating profits.
Outside of Europe, the Americas Materials division also grew its sales and profits. Demand in North American cement markets increased as declines in Western Canada were offset by increases in Quebec and the US. In Brazil it reported that cement consumption fell by 12% in the southeast region and competition remained high. Finally, the group’s new Asia division said that cement demand grew in 2016 due to the private sector and government infrastructure spending. Its operating profit was also boosted by higher prices and lower input cost, including a lowered price of imported clinker. In China the group said that prices fell by due to a poor construction market and production overcapacity.
CRH to sell cement plants in Germany 01 March 2017
Germany: CRH has agreed to sell one integrated cement plant and one grinding plant in Germany to an unnamed party. These assets were purchased as part of a group of sites acquitted by CRH from LafargeHolcim in 2015. The transaction is subject to approval by the German Competition Authority (Bundeskartellamt). No exact value for the transaction has been released but the Irish building materials company has placed a sale including these assets and others including a clay business in Northern Europe and a concrete business in Belgium, the Netherlands and Luxembourg for Euro400m. CRH currently operates two integrated cement plants in Germany at Wössingen and Karsdorf.
Haver & Boecker to launch Quattro System Monitoring 28 February 2017
Germany: Haver & Boecker plans to launch its Quattro System Monitoring product at the Interpack 2017 exhibition, taking place at Düsseldorf in May 2017. The mineral processing and packaging technology company will also feature its newly developed Roto-Packer RVT packing system and Elementra inline packer. Its subsidiary Newtech Bag Palletizing will also be present at the event with its Terram 1000 palletizer.
The Quattro System Monitoring is a ‘smart system’ that allows real-time production and maintenance information on packing machines can be viewed on a variety of devices either locally or remotely via a secure connection. The company says that the system, ‘allows machines to be operated more profitably and processes to be laid out and planned more intelligently.’ The product can also be retrofitted to existing machines.
Haver & Boecker will also be running a parallel event at its headquarters in Oelde in May 2017 to invite customers to live machine demonstrations.
HeidelbergCement appeals against investigation by European Commission into purchase of Cemex Croatia 28 February 2017
Croatia: HeidelbergCement has appealed against an investigation by the European Commission into the proposed joint purchase with Germany’s Schwenk Zement of Cemex Croatia. The cement producer asserts that by considering Schwenk and itself rather than Duna-Dráva Cement (DDC), a subsidiary that both companies own equally, the commission has given the transaction a ‘Union dimension,’ according to the Official Journal of the European Union. Although DDC is based in Hungary, within the European Union (EU), it imports cement into Croatia (in the EU) from Bosnia & Herzegovina, a country outside of the union. The appeal was made in late December 2016 but only reported in late February 2017.
The European Commission revealed that it was investigating the proposed acquisition of Cemex Croatia by HeidelbergCement and Schwenk in October 2016. The commission was concerned that the transaction would merge the biggest producer in the area with the biggest importer, potentially reducing local competition.