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Brazil: Votorantim Cimentos intends to temporarily suspend production at its cement plant in Ribeirao Grande, Sao Paulo from August 2015. The plant will operate as a distribution centre from this time. The decision has been blamed on current Brazilian financial climate.
A total of 128 workers are to lose their jobs, of which 83 have already been suspended, according to Valor Econômico. The company has also confirmed it is working with the workers union for the region to try to relocate the dismissed workers.
Union Cement first half profit falls to US$14.9m 24 July 2015
UAE: Union Cement has reported an 8% decline in its profits for the first six months of 2015 to US$14.9m from US$16.2m in the sale period in 2014. Union Cement's revenue fell by 3.7% to US$85.7m in the first half from US$88.9m. The cement producer attributed the decline to falling sales volumes during the reporting period.
Cement producers in South Korea face cartel probe 24 July 2015
South Korea: The Korea Fair Trade Commission (FTC) has continued its investigation into whether cement producers colluded to raise cement prices. The antitrust watchdog conducted an on-site probe into cement producers including Tongyang Cement & Energy and Hanil Cement in mid July according to industry sources cited by the Maeil Business Newspaper and the FTC. If a fine is levied a legal battle may follow regarding whether the Sampyo consortium, chosen as the preferred bidder to acquire Tongyang Cement & Energy, should pay the fine imposed by the FTC on Tongyang.
Upon the request from the ready-mixed concrete industry, the regulator started an investigation into alleged price-fixing in the South Korean cement industry in April 2013, but it has yet to reach a conclusion. The latest site visit is believed to have been organised to obtain further evidence on suspicions of price-fixing.
The combined sales of the seven cement makers that account for about 88% of South Korea's cement market are estimated at be up to US$855m/yr. Suspicions of cartel-like activity date back to 2011 and this may be reflected in potential fines if any price-fixing is proved.
Emami Cement to build cement plant in West Bengal 23 July 2015
India: Emami Cement plans to build a 1.5 – Mt/yr capacity cement plant in Panagarh, Bardhaman, West Bengal, according to the Palestine News Agency. The plan also includes a 10MW captive coal-fired power plant. Land has been allotted by the West Bengal Industrial Development Corporation (WBIDC). The estimated cost of the project is US$65.7m.
UNACEM posts market growth in the first half of 2015 23 July 2015
Peru: UNACEM has boosted its first half net income by 23% on higher prices and lower costs, according to Business News Americas.
UNACEM posted a US$47.8m profit and its sales rose by 6% year-on-year to US$896m in the first half of 2015. The company cut its operating costs by 8% in the first half of 2015 and its sales costs by 2.1%. Cement production fell by 1.6% to 2.71Mt in the first half of 2015, while clinker production fell by 6.3% to 2.58Mt. Exports jumped by 36.6% to 590,863t during the period.
UNACEM, which competes in Peru with companies including Cementos Pacasmayo and Gloria Group's Cementos Yura, said that it increased its domestic market share to 51.2% in the first half of 2015 from 49.9%. UNACEM expects to benefit from a growing contribution from its US$553m acquisition in 2014 from Lafarge Ecuador.
UNACEM has 7.6Mt/yr of installed cement capacity. Peru's cement production rose by 1.4% to 10.7Mt in 2014, according to cement producers' association Asocem. Exports from Peru rose by 37.4% to 306,277t in the same period.