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Votorantim Cimentos income hits US$801m in 2012 03 April 2013
Brazil: Votorantim Cimentos saw its net income nearly double in 2012, reaching US$801m in 2012 compared to US$413m in 2011. Its sales revenue rose by 9% to US$4.69bn in 2012 from US$4.30bn in 2011.
"The combination of a favourable market alongside the opening of new factories and mills allowed a 4% increase in sales volume in Brazil, reaching 24Mt," said Votorantim Cimentos in its 2012 results report.
Votorantim's profit was boosted in 2012 by a US$132m gain recognised on stake swap in which Votorantim Cimentos gave its stake in Portuguese cement maker Cimpor to InterCement in exchange for assets in Spain, Turkey, Morocco, Tunisia, China and India, and a deposit in Peru. Additionally the company obtained US$141m in non-cement operating revenue, mainly from tax benefits.
The firm finished 2012 as the world's eight largest cement producer, with a total production capacity of 52.2Mt/yr, including 34 cement plants and 22 grinding plants, according to the report.
Ha Giang Cement chairman prosecuted for fraud 03 April 2013
Vietnam: The chairman of Ha Giang Cement JS Company has been prosecuted in a fraud case for an amount in excess of US$344,000.
Viet Nam News reports that police investigations dating back to September 2012 show that Vu Duy Chanh signed contracts to buy two mills without the approval of Ha Giang Cement's management board approval. Chanh then used the contracts as security for bank loans. One of the contracts was reportedly falsified to buy a fictitious machine while Chanh illegally used and sold the secondary machine at a diminished price.
China: Shanghai's municipal government has announced that it will stop cement production when air pollution reaches 'heavy' or greater levels. The plan may affect at least three cement plants in the Shanghai area. The move follows a similar plan in Beijing that was introduced in 2012.
According to the plan, emergency measures will be taken when the PM2.5 air quality index rises above 200µg/m3 for 18 hours and looks likely to continue. PM2.5 refers to the measurements of particulate matter smaller than 2.5μm and the World Health Organization considers the safe daily level to be 25µg/m3. The average density of PM2.5 in Shanghai for the first three months of 2013 was 73 µg/m3. China's daily limit is 75µg/m3 and its yearly limit 35µg/m3.
Other emergency measures include alerting the public, restricting production in highly-polluting industries and reducing the number of vehicles on the roads. In addition power plants will be required to use high-quality coal to reduce pollution, vehicles transporting construction materials and waste will be ordered off the roads and any construction work causing dust will be shut down.
Hima loses limestone rights in Uganda 03 April 2013
Uganda: Hima Cement has lost its mining rights to limestone deposits in Uganda following a High Court decision. The court transferred the rights to limestone deposits in Kasese, western Uganda, from the subsidiary of Lafarge to the East African Gold Sniffing Company.
The court ruled that Hima's lease was for 21 years, ending on 31 December 2011, and it had already lapsed without any renewal in accordance with Section 47 of the Mining Act. East Africa Gold Sniffing contested a decision by the Ministry of Energy that restored Hima's mining rights after Hima managed to secure an exploration licence over the same area. The ruling means that mining of limestone and processing of cement must cease until and if an appellate court overturns the decision.
Lafarge considers expansion drive 03 April 2013
Malaysia: Lafarge Malayan Cement, Malaysia's largest cement producer, is considering an expansion drive to help meet buoyant domestic demand. Lafarge Malaysia has a 40% share of the local market, in which the total industry production averages 20Mt/yr.
"We will probably expand... (but) it needs to be finalised by our board and I can't discuss it in advance," said Lafarge Malaysia president and chief executive officer Bradley Mulroney in an interview. He added that as market leader, the company has to make sure that it has sufficient capacity to maintain its position.
Lafarge Malayan Cement holds three integrated cement plants, a grinding plant and it operates five quarries. In 2012 the company reported a 10% growth in net profit while revenue grew 7% to US$887m.
Lafarge's rivals in the sector include YTL Cement Bhd, Tasek Corp Bhd and Cement Industries of Malaysia Bhd (CIMA). Both YTL Cement and CIMA have planned capacity expansions of around 1.5Mt/yr. According to Bank Negara Malaysia, the construction sector will grow by 15.9% in 2013, helped by various projects under the government's Economic Transformation Programme (ETP).