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Russia: Russia's Federal Antimonopoly Service (FAS) has made a decision to extend the consideration period for Holcim's application for the right to direct the following businesses: OAO Lafarge Cement (Moscow), FIANT LLC (Moscow), Lafarge Aggregates & Concrete LLC (Republic of Karelia), Drilling and Blasting Company LLC (Republic of Karelia), Bolshoy Massiv Quarry LLC (Republic of Karelia) and Tekhnobud Klesovsky Quarry of Non-Metallic Minerals LLC (Ukraine). The right to direct the businesses would stem from Holcim's acquisition of 66% of the shares in Lafarge.
Lafarge is licensed for the production, storage and application of industrial explosive materials, being engaged in the activities provided for by Article 6 of the Federal Law on Procedures for Foreign Investments in Business Entities of Strategic Importance for the National Defense and State Security. Therefore, Lafarge qualifies as a business entity of strategic importance for the national defence and state security. Therefore, the deal applied for requires prior approval as provided for by Russia's investment law.
Buzzi Unicem and Wietersdorfer deal completed 01 August 2014
Italy/Slovenia: Buzzi Unicem has completed a strategic agreement with Austria's Wietersdorfer & Peggauer, which was initially announced in February 2014. Under the terms of the deal, W&P Cementi, Wietersdorfer & Peggauer's Italian subsidiary, has acquired Buzzi Unicem's 0.3Mt/yr cement plant in Cadola, Belluno Province, Italy. W&P Cementi has also won the right to purchase Buzzi Unicem's 0.4Mt/yr cement plant in Travesio, Pordenone Province, Italy within the next five years for Euro22m. At the same time, Buzzi Unicem has paid Euro22m for a 25% stake in W&P Cementi and a 25% stake in Salonit Anhovo, Wietersdorfer & Peggauer's Slovenian subsidiary.
Lafarge plans to increase cement production capacity 01 August 2014
Zambia: Lafarge Cement Zambia plans to double its cement production capacity from its two local plants to meet the growing demand, according to CEO Emmanuel Rigaux. In 2013, the domestic market for cement grew by 17%, largely driven by the continued increase in government infrastructure projects, mining expansion activities and to a smaller extent by individual home building projects.
"Lafarge Zambia is planning to double its capacity in Ndola and Chilanga through debottlenecking and construction of a new line," said Rigaux. "This will enable us to remain the market leader and preferred supplier of construction solutions in Zambia." Rigaux said that in 2013 production volumes improved by 105,000t to 1.18Mt from 1.07Mt in 2012, representing 9% growth. Volumes are expected to continue to improve on the back of strong growth in the construction industry in both domestic and export markets. Rigaux said that domestic sales volumes grew by 18% in 2013, while export sales volumes declined by 25% due to increased focus on the domestic market.
"The second half of 2013 saw a sharp improvement in operational and industrial results both at both our Ndola and Chilanga plants," said Rigaux. "Lafarge Zambia also implemented targeted cost reductions and logistical optimisations, which enabled us to improve our operating margins." Rigaux said that Lafarge Cement Zambia's financial position and cash flow remained solid with strong cash position and no external debt.
Germany: HeidelbergCement has reported that its profit for the second quarter of 2014 declined to Euro233m from Euro368m in the same period of 2013. However, earnings before interest and income taxes (EBIT) grew to Euro527m from Euro511m in 2013. Revenues for the quarter were Euro3.57bn, down from Euro3.59bn in 2013. HeidelbergCement's cement and clinker sales volumes rose by 4% to 22.3Mt compared to 21.4Mt during the second quarter of 2014.
HeidelbergCement announced that it plans to start a process to divest its building materials unit in September 2014 and expects to conclude the sale quickly. Potential buyers include private equity funds, not industrial enterprises, according to Bernd Scheifele, HeidelbergCement's CEO. Scheifele added that HeidlerbergCement would consider buying assets to be sold by Lafarge and Holcim, except for assets located in the UK and Germany.
Italy: Cementir Holding has confirmed that its 2014 earnings before interest, tax, depreciation and amortisation (EBITDA) will exceed Euro180m after posting annual growth of 26.4% in the first half of 2014.
Cementir reported EBITDA of Euro78.4m in the first half of 2014, up from Euro62m in the same period of 2013. Revenues inched up to Euro473m from Euro472m, with sales in Turkey, Scandinavia and the Far East offsetting weaker sales in Italy and Egypt. Net profit rose to Euro20.5m from Euro7.4m in the first half of 2013.
The exchange rates on the foreign markets affected sales in Euros. The currency depreciations to the euro, on the other hand, helped Cementir to cut its operating costs by Euro29.3m from the end of June 2013 to Euro386m at the end of June 2014. Cementir's net financial debt went up by Euro30m from December 2013 to Euro355m at 30 June 2014, as a result of plant maintenance, dividend distribution and changes in working capital.
For 2014, Cementir expects the growth trends in Scandinavia, Turkey and the Far East to continue, while it is difficult to predict the performance in Egypt due to the political and social unrest.