Global Cement News

Denmark: Danish cement plant manufacturer FLSmidth has reported that its profit fell by 9% to Euro175m in 2012 from Euro193m in 2011. However, its revenue rose by 21% to Euro3.33bn from Euro2.75bn. Earnings before non-recurring items, depreciation, amortisation and amortisation (EBITDA) rose by 9% to Euro370m from Euro339m.

FLSmidth commented that in 2012 in the cement industry, capacity utilisation outside China remained relatively subdued at around 75%. Overall, the global cement market was affected by macroeconomic uncertainty and slow growth, but there were several local areas, where the economy grew and where cement demand outpaced supply.

In its cement division FLSmidth reported a fall in revenue of 3% to Euro584m in 2012 from Euro565m in 2011. It commented that the global market for contracted new kiln capacity (excluding China) amounted to an estimated 40Mt/yr in in 2012, compared to 46Mt/yr in 2011. This is the lowest level since 2002 and FLSmidth stated that it expects the market for new cement kiln capacity to have hit 'bottom' in 2012.

"We expect 2013 to be a trough year in terms of EBITA margin – particularly in Cement and Mineral Processing, where execution times are typically up to two to three years. The explanation is simply that we will now be executing orders taken at trough margins during the years of global financial crisis. Fortunately, we have seen market conditions improve since then, and we therefore expect margins to increase again in 2014," commented CEO Jørgen Huno Rasmussen in his outlook for 2013.

Italy: Buzzi Unicem has announced that its revenue for 2012 rose by 0.9% to Euro2.81bn. The positive impact of currency exchange rates helped compensate for falling cement volumes. The firm said in a statement that it expected a recurring earnings before interest, tax, depreciation and amortisation (EBITDA) of about Euro450m in 2012, in line with its previous estimates.

The company will shortly start a squeeze-out procedure on its German unit Dyckerhoff, of which it owns already 96.6%. The procedure will be completed in 2013 and lead to delisting of the German firm.

UK: The Mineral Products Association (MPA), which represents UK cement producers, has became the first national cement industry body to publish its greenhouse gas (GHG) reduction plans to 2050.

Outlining an ambitious target of reducing GHG emissions by 81% by 2050 relative to1990, the Kyoto Protocol baseline year, the UK cement industry has set out for the first time the actions that it, and others, need to take to exceed the UK Government's own aim of 80% GHG reduction. Some of these carbon-reducing measures are already within the capability of the UK cement companies, but others like the decarbonisation of the electricity sector and carbon capture and storage are not in the industry's control and others, including the government, will have to be relied upon to play their roles.

The MPA said that the targets were 'ambitious but achievable' and that the industry would look to use every means possible, within strict environmental controls and technical standards requirements, to meet its goals.

Ukraine: Ukrcement, the Ukrainian cement association, expects cement production to drop by 7% in 2013, a decrease of up to 684,000t, compared to a production of up to 9.28Mt in 2012. In an interview with Ukranian News, executive director of the association Petro Lopatiyev attributed the slowdown in production to an 'unfavourable' situation in the construction market.

According to the association, in 2012 cement production fell by 7% compared to a production of 9.77Mt in 2011. Clinker production fell by 16% to 6.28Mt. Exports of cement from Ukraine fell by 5.2% or 8964t to 164,548t in 2012, compared with 2011.

In 2012, imports comprised 1% of the market with a volume of 94,516t. However, Ukrcement fears that cement may be dumped in the Ukranian market from the neighbouring territory Transdniestria. The breakaway Moldovan territory has a stagnant constuction market and a lower cost of cement production than Ukraine. The association wants the Ministry of Economic Development and Trade to hold an anti-dumping investigation.

In other developments Ukrcement has called for a switch to European standards of cement production from 2014. At present, Ukraine has two cement production standards: the Ukrainian one called ДСТУ Б В.2.7-46:2010 and one identical to a European standard called ДСТУ Б EN 197-1:2008.

The Ukrcement association was created in 2004 during a reorganisation of the Ukrainian cement industry. There are over 15 enterprises engaged in cement production with a total production capacity of over 20Mt/yr.

India: Heidelberg Cement India has received approval to set up a waste heat recovery (WHR) power plant at its clinker plant at Narsingarh, Damoh District in Madhya Pradesh. The proposed plant will produce approximately 12.15MW of power from the available waste heat of pyro-processing system of all three lines at the unit. The project cost is estimated to be in the range of US$26.9m to US$27.8m and it is expected to be operational in January 2015.