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Philippines cement sales growth back on track in Q2 31 July 2013
Philippines: Cement sales in the second quarter of 2013 have increased by 8.8% to 5.35Mt from 4.92Mt in the same period in 2012, according to data from the Cement Manufacturers Association of the Philippines (CeMAP). CeMAP commented that it expects the industry to grow as there is an increase in building construction, infrastructure projects and farm-to- market roads, which will now be built using cement.
The increase in sales marks a return to the growth seen in the fourth quarter of 2012 when sales rose by 8.5%. In the first quarter of 2013 sales growth fell to 3%.
Filipino infrastructure spending is expected to grow in 2013. The government has budgeted around US$6.9bn, around 2.5% of the country's gross domestic product, for projects. CeMAP has not yet forecast how much sales will grow by the end of 2013.
Jammu and Kashmir to expand Pulwama plant 31 July 2013
India: The state government of Jammu and Kashmir intends to set up a 1000t/day cement plant at its existing site at Pulwama, according to its official spokesman. The plant will be built in a 12 hectare site at government's existing cement plant at Khrew in Pulwama. The new plant will fill the gap in demand in the local market. According to a preliminary survey, the state requires 3Mt/yr but it only has an installed cement production capacity of 1.5Mt/yr with demand growing at 10%/yr.
Croatia: HeidelbergCement is interested in bidding for the Croatian cement plant Nasicecement, according to HeidelbergCement's regional director Branimir Muidza.
"We are still very interested in the acquisition and we are carefully monitoring the situation of Nasicecement's pre-bankruptcy settlement. If an opportunity arises we are ready to invest," said Muidza to SeeNews. HeidelbergCement has previously held a 8% stake in Nasicecement.
In February 2013 Nexe Grupa, who own Nasicecement, revealed that it had submitted a motion for the opening of a pre-bankruptcy settlement procedure. Its subsidiaries did likewise. Acquiring Nasicecement could compliment HeidelbergCement's strategy in the Balkans as it holds cement plants in Hungary and Bosnia & Herzegovina.
Holcim simplifies Indian business to cut costs 31 July 2013
India: Multinational buildings material producer Holcim has released plans to simplify its structure in India by merging Holcim India with its subsidiary Ambuja Cements. Both Holcim's Indian subsidiaries, Ambuja and ACC, have seen net profits fall in the second quarter of 2013.
Holcim intends to increase its shares in Ambuja to 61.39% and Ambuja will acquire Holcim's 50.01% stake in ACC. Both Ambuja and ACC will continue to operate as separately with their own brands. However, the restructuring will allow for closer back-end cooperation between the companies as well as simplifying the group structure.
"This transaction further improves Holcim's holding structure in India, strengthens the platform for future growth and is expected to generate synergy benefits of US$150m/yr. These benefits, which will be realised in a phased manner over two years, will be shared by both companies equally through supply chain, shared services and fixed costs optimisation. The transaction is expected to be neutral on Holcim's EPS in the first full year following the completion of the transaction and accretive thereafter," said Holcim CEO Bernard Fontana.
In a two stage deal, Ambuja will first acquire, through a purchase, a 24% stake in Holcim India for a cash consideration of around US$600m, followed by a stock merger between Holcim India and Ambuja. As part of the merger, Holcim will receive 584 million new equity shares in Ambuja resulting in an increase of its ownership in Ambuja from the current 50.55% to 61.39%.
The transaction is subject to Ambuja's shareholder and regulatory approvals in India.
Russia: Eurocement Group has reported that it has produced more than 11.5Mt of cement in the first six months of 2013, a year-on-year rise of 5%, in its 16 cement plants in Russia, Ukraine and Uzbekistan. Cement shipments have increased by 7% in the period.
The Russian-based cement producer announced plans to upgrade all of its production facilities to make cement using a dry-process by 2018. Currently only 25% of its plants use the dry process. Eurocement also plans to increase its annual cement production capacity by 4Mt/yr.
According to Russian newspaper Kommersant, half of Russia's regions are not meeting housing construction targets due to a lack of building materials. The country needs more than 20 new cement factories, according the government, but companies are refusing to build new plants due to a lack of potential returns on investment. Eurocement responded to the claims by saying that it is cheaper to modernise existing plants.