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South Valley Cement to convert to coal for US$14m 01 February 2016
Egypt: South Valley Cement has signed a contract with Sinoma CDI to convert its plant to coal burning for US$14m. The contract is expected to be complete by April 2017. In August 2015 South Valley Cement signed a US$38m contract for Sinoma to build a grinding line for the plant.
Egypt: Denmark's FLSmidth has signed a contract with Arabian Cement Company (ACC) for operation and maintenance of the production lines at their cement plant near Suez. The contact covers five years of operation and maintenance of two production lines with a capacity of 6000t/day each. FLSmidth has been operating and maintaining the two lines since 2008 and 2010, respectively. Both lines were built by FLSmidth.
The scope of supply includes operation and maintenance of two clinker production lines, one coal mill, two alternative fuel handling and dosing installations, four cement mills and six packing lines. The operation and maintenance of the mills and packing lines is an addition to the current scope.
"Arabian Cement Company was our first operation and maintenance customer and we have supplied operation and maintenance services at their plant since 2008. The demonstrated performance over the past nearly eight years was the main motive for ACC to expand and continue the cooperation with us. The prolongation of the operation and maintenance contract illustrates the strength of our productivity enhancing 'Design-Build-Operate'-model, where we offer to design, build and operate customers' plants," said Group Executive Vice President, Cement Division, Per Mejnert Kristensen.
No value for the deal was disclosed. The contract will contribute beneficially to FLSmidth's earnings until the contract expires in early 2021.
Turkey: The Turkish Cement Manufacturers' Association (TÇMB) has signed a two-year labour agreement with the CIMSE-IS union. Under the terms of the deal workers wages will rise by 10.5% from 1 January 2016, according to CIMSE-IS and Reuters. Subsequently, workers will receive a raise on 1 Janaury 2017 based on an individual factory basis. Adana Çimento, Aslan Çimento, Unye Çimento, Mardin Çimento, Bursa Çimento and Bolu Çimento are members of the union.
US: Eagle Materials has reported that its earnings from its cement business rose by 11% year-on-year to US$41.8m in the third quarter of 2015. The earnings increase was attributed to a 4% increase in average net cement sales prices and record quarterly cement sales volumes.
Cement revenues for the third quarter rose by 9% to US$97.1m. Cement sales reached 1.2Mt, a rise of 1% year-on-year. Eagle also reported that its cement businesses in Texas and Oklahoma was impacted by heavy rains in October and December 2015 which resulted in lower sales volumes in both of those markets. Additionally, in Texas, increased demand for construction grade cement continues to offset much of the impact from lower oil well cement demand.
Asia Cement expects loss in 2015 29 January 2016
China: Asia Cement expects a loss for 2015 due to lower product selling prices and foreign exchange losses from US Dollar-denominated loans. The producer reported a net profit of US$120m in 2014. Its financial results for 2015 will be released by the end of March 2015.