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Mykolaivcement reports US$5.47m loss in 2013 30 April 2014
Ukraine: Mykolaivcement has reported a loss of US$5.47m in 2013. Its revenue fell by 10% to US$46.6m from US$5.28m in 2012. In 2012 Mykolaivcement reported a loss of US$5.79m according to the Ukranian News agency.
The cement producer based in Mykolaiv, Lviv region also makes paving slabs and facade tiles, concrete, pavestone and other construction materials. In April 2013 Cement Roadstone Holdings held talks with Lafarge on the acquisition of the company. Lafarge Ukraine Holding owns 99.26% of shares in the factory.
Holcim Belgium to cut 48 jobs at Obourg cement plant 30 April 2014
Belgium: Holcim Belgium has announced plans to cut 48 out of 200 jobs at its cement plant in Obourg to restore profitability. By enhancing efficiency the management hopes to attract important investments.
Although cement demand in Belgium has remained stable in France and the Netherlands, which are supplied by the factory in Obourg, demand fell by 30%. In addition the plant at Obourg faces high fixed costs from taxes and an old production fleet.
The management believes the factory in Obourg may continue operating with 152 workers by improving flexibility and simplifying the organisation. Talks with trade unions will be started as soon as possible, the company added.
Vicat sales up 14% year-on-year in first quarter of 2014 29 April 2014
France: Vicat Group has announced its results for the first quarter of 2014, which show a 14% improvement to sales compared to the first quarter of 2013. The group highlighted improved conditions in Egypt, the United States, West Africa and Turkey, increasing sales in India and favourable weather conditions in its native France as among the reasons for the improvement.
Sales for the three months to 31 March 2014 were Euro536m, an increase of 9.2% (14% after adjusting for constant scope and exchange rates). Vicat's cement sector saw sales of Euro275m for the quarter, up from Euro256m in the first quarter of 2013, a year-on-year improvement of 7.4%(15.2% at constant scope and exchange rates). Cement sales volumes were up by 6% across Vicat's global operations.
"Vicat achieved strong sales growth in the first quarter of 2014. Our businesses benefited from mild weather conditions in France and were able to capture positive momentum in the Swiss, US and Turkish construction sectors," said Vicat's CEO Guy Sidos. "The return to growth in Egypt is a positive sign for our full-year performance and we are continuing to ramp-up our business in India, although prices are likely to remain volatile. The group is still gradually reaping the benefits of its investments over the last few years, using its strong market positions to maximise cash flow and continue reducing debt."
In Europe (excluding France) consolidated sales were Euro89m, 22.2% higher than the Euro72m seen in the first quarter of 2013. Switzerland was highlighted as a good performer, with 13% growth in cement sales, while Italy saw consolidated sales fall by 17.6% year-on-year due to a 19.2% fall in volumes.
In the United States, sales were Euro51m compared to Euro46m in the first quarter of 2013, a 9.5% rise year-on-year. The group said that business continued to pick up in the country, with cement sales picking up by 13.9% and volumes increasing by 3%.
In Turkey sales were Euro44m, 25.8% higher (at constant scope and exchange rates) than in the year-earlier quarter. In India sales came to Euro47m, 27.2% higher (at constant scope and exchange rates) year-on-year. In Kazakhstan sales fell by 14% to Euro9m (at constant scope and exchange rates), which resulted from comparison to unusually high sales in the first quarter of 2013.
In Africa and the Middle East Vicat's consolidated sales were Euro98m, a 12.9% improvement over the first quarter of 2013 when it took Euro87m. Egypt saw a 26.7% improvement year-on-year, while west Africa saw revenues up Euro11.6% due to a 14% improvement in sales volumes.
In the rest of 2014 Vicat expects the French market to gradually stabilise and the Swiss market to continue to be strong. Italy is likely to remain weak, while volume rises and price increasese are expected in the United States. In Turkey Vicat warns that further growth will be dependent on foreign exchange effects and potential after-effects of elections. It says that Egypt remains unpredictable but plans for gradual improvement to the security situation. West Africa is expected to be buoyant in terms of consumption but warns against increased competition that may dampen prices. In India, weak infrastructure development will continue to adversely affect volumes, as will chronic overcapacity in the nation's cement industry. In Kazakhstan, it expects its strong local position to continue to reap rewards.
Criminal investigation at Akhangarancement 29 April 2014
Uzbekistan: Uzbek media has reported the launch of a criminal investigation and financial audit of Akhangarancement, a cement plant that is 84% owned by Russia's Eurocement in Akhangaran, Tashkent province.
State investigators are focused on alleged tax evasion, theft of assets, reporting irregularities and illegal activities of managers. Akhangarancement's general director Denis Dotsenko has reportedly left the country.
According to local media, the investigation was motivated by illegal cement exports for the construction of the Rogun hydroelectric power plant and associated dam in neighbouring Tajikistan. The Rogun plant would significantly reduce water supply from the Syrdarya River, which is of vital importance for Uzbekistan's cotton production, its major export earner.
Colombia: Cementos Argos has reported that the acquisition of cement and concrete assets in Honduras and Florida and the recovery of the US construction market have resulted in 51.7% growth in net profits, from US$4.00m in the first quarter of 2013 to US$6.07m in the first quarter of 2014. Earnings before interest, taxes, depreciation and amortisation (EBITDA) were up by 12% and income grew by 18% compared with the same period of 2013. Cement sales in the US grew by 27%, while sales in the Caribbean and Central America grew by 27% in value and 11% in volume.