Global Cement News

Philippines: Lafarge Republic has signed a deal with the provincial government of Bataan and GNPower Mariveles Coal Plant to buy coal ash from the latter company's 600MW power plant.

Lafarge Republic, formerly Republic Cement, said the deal will start once the power plant begins producing coal ash. It will expire in November 2019. The company didn't provide financial details of the deal.

In a transaction announced in June 2012, Cemex Philippines said it will buy for around US$1 each ton of coal ash to be produced by the 200MW power plant of Korea Electric Power in the central province of Cebu.

Portugal: Cimpor has blamed a Euro206m loss in the first half of 2012 on the worsening economic climate in Spain. By comparison, the company's net profit for the six months ending on 30 June 2011 was Euro138m.

The Portuguese producer recorded a loss in net operating income for the period of Euro140m compared to a gain of Euro198m in 2011. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 15.3% to Euro267m from Euro316m.

Overall cement and clinker sales for the company fell by 6.3% to 12.9Mt from 13.8Mt. Sales in Spain declined by 34.5% to 0.82Mt from 1.25Mt. Sales in China fell by 29.1% to 1.36Mt from 1.92Mt. Sales in Turkey fell by 12% to 1.28Mt from 1.45Mt. Cimpor attributed its decline in Turkey to a severe winter and its decline in China to difficult market conditions. Other major markets in Portugal and Brazil reported increases of 3.7% to 2Mt and 4.2% to 2.77Mt respectively. Despite the sales increase by volume, turnover fell in Portugal for the half-year.

In July 2012 Cimpor was taken over by Brazilian industrial conglomerate Camargo Corrêa Group.

Ireland: Irish Cement, a CRH subsidiary, intends to cut 50 jobs at its Castlemungret plant due to a decline in demand for cement. Management has opened talks with workers and unions on a restructuring programme. Irish Cement has been in production at the Limerick site since 1938.

"Management at Irish Cement has met with employees at the company's manufacturing facility at Castlemungret in County Limerick. The company advised workers and union representatives that the unprecedented deterioration in market conditions, combined with a sustained decline in the demand for cement products, have led to the need for a significant restructuring plan to be put in place at the Limerick facility," said a company spokesman.

According to the release the move follows almost five years of decline in the Irish construction industry, with activity now nearly 80% below peak levels in 2007. Currently there is little visible indication of any market improvement in the foreseeable future.

Denmark: FLSmidth has acquired Teutrine GmbH Industrie-Technik, a German company specialising in mobile solutions for repairs, refurbishments and installation services for the cement and minerals industries. The value of the takeover was not disclosed.

Teutrine mainly carries out maintenance and repair services at sites where it offers mobile solutions within repair (welding), refurbishment (machining, grinding, hard facing and overhauling), replacement (parts replacement, alignment, lifting) and upgrades (equipment replacement, alignment, lifting). The company's key markets are found in Europe and the Middle East.

"The acquisition of Teutrine is a significant addition to our service concept in relation to repair and refurbishment services as well as replacement and upgrade services for all the major equipment on a cement plant," said FLSmidth group CEO Jørgen Huno Rasmussen.

Teutrine was founded in 1973 by Antonius and Annemarie Teutrine. In 2009 the ownership was transferred to Gabriele Teutrine, CEO and successor to the founders. The company has 45 employees. Teutrine will be integrated in FLSmidth as part of the Plant Operation & Equipment Services within the Customer Services division.

Taiwan: Taiwan Cement Co (TCC) will invest US$300m annually in China over the next three years to achieve an annual production of 100Mt by 2016. Chairman Leslie Koo made the announcement, adding that TCC's investment in 2012 will focus on second-phase plant construction in Anshun, Guizhou Province in China. To maintain a regional lead in the market, TCC intends to steadily improve production capacity in China and strengthen market share through mergers and acquisitions.

In his announcement Koo pointed out that, due to the EU debt crisis and China's macroeconomic controls, the cement market sagged in the first five months of 2012. Due to the easing of the debt crisis since June 2012, faster approvals of infrastructural projects and restored high-speed railway construction in China, the cement industry will likely see operations rebound in the second half. In addition public construction projects in Taiwan are also pushing demand for cement.