Global Cement News
Search Cement News
Lafarge Malayan appoints new CEO and executive director
Written by Global Cement staff
31 January 2012
Malaysia: Lafarge Malayan has appointed Bradley Peter Mulroney as its president and chief executive officer and Malaysian Chen Theng Aik as its executive director.
Mulroney, aged 49, is a British national. He holds a Bachelor of Arts from the University of London and he initially started his career with Redland plc, where he rose to the rank of a general manager. Redland was acquired by Lafarge SA in 1996.
Aik, aged 45 is a Malaysian who was previously the senior vice-president, finance and chief financial officer of Lafarge Malayan.
Vietnam overcapacity to worsen in 2012 31 January 2012
Vietnam: The Vietnamese cement industry continues to suffer the effects of overcapacity and is struggling to export enough cement. The industry faced many difficulties in 2011, in part due to its stagnant real estate market. In 2012, however, eight new cement plants will go into operation with a combined capacity of 6.9Mt/yr. This will bring the total capacity of the country to 73Mt/yr, worsening the oversupply situation.
According to the Vietnamese Cement Association, the total demand for cement in 2012 will be about 60Mt/yr, of which 53Mt/yr will be for domestic consumption. Currently cement is exported to China, India and a number of Asia Pacific nations. Africa is also becoming a promising market. While China is reporting soaring consumption, India itself is facing overcapacity as demand weakens, threatening this export market for Vietnam.
Vietnam currently faces difficulty in supplying cement overseas. Its domestic infrastructure is poor and input costs, like those around the world, are increasing. There is also a poor perception of Vietnamese cement exports, which may be damaging trade.
New Java plant for Indocement 31 January 2012
Indonesia: PT Indocement Tunggal Prakasa has reported that it will build a US$500m cement factory with a production capacity of 3Mt/yr in the regency of Pati, Central Java.
Sahat Pangabean, Indocement's corporate secretary, said that the company was hoping that the process of licensing the plant would be completed within 2012 and that construction would start immediately afterwards. Sahat added that the company was currently in the process of conducting an analysis of the plant's potential environmental impact.
The project will be run by Indocement's subsidiary PT Sahabat Mulia Sakti and is expected to be operational in 2015.
Profits up in Saudi Arabia 31 January 2012
Saudi Arabia: Cement producers in Saudi Arabia have announced improved profits for 2011 and the fourth quarter of 2011. Companies have cited increased demand for cement and higher selling prices as reasons for their improved profits.
Yanbu Cement Company posted a net profit of US$40.9m for the fourth quarter of 2011 compared to US$26.6m for the same quarter of 2010, an increase of 54%. The company posted a profit of US$33.3m for the previous quarter. The company's net profit for the whole of 2011 was US$141.2m compared to US$114.8m in 2010, an increase of 23%. The 12 month gross profit was US$148.1m, up by nearly 20% compared to 2010. Yanbu's operational profit over the same period was US$139.8m, a year-on-year increase of 19.5%.
Meanwhile, Saudi Cement Company has announced that its net profit jumped by nearly 40% in the fourth quarter of 2011, rising to US$56.6m. The company said that the increase from a net profit of US$40.5m in the same period of 2010 was due to higher production and demand. It should also be noted that the company has added new production lines in the past year, which boosted the company's output and profit.
Eastern Province Cement Company (EPCC) also reported strong results, with a net profit for 2011 of US$97m, compared to US$91.5m for the same period of 2010. This is an increase of 6%. In the fourth quarter of 2011 the company's net profit was up to US$28.7m compared to US$22.1m for the same quarter of 2010, an increase of 28%. The net profit was up by 41% compared to the quarter ending 30 September 2011.
EAPCC strike ends 31 January 2012
Kenya: All the 1200 permanent employees of the East African Portland Cement Company (EAPCC) have reported to work, formally ending a two-week strike. The move follows reports of strong-arm tactics forcing employees to work.
It is estimated that the company lost US$9m during the strike period after union members demanded the resignation of two directors: board chairman Mark Karbolo and managing director Kephar Tande. The government had suspended the duo alongside six other board members over alleged mismanagement.
The workers went on strike after the government installed the same directors after a landmark court ruling ordering them to return to office. Following the ruling, Tande and Karbolo were instructed to open up the plant and normalise operations. Staff refused to work under the two top officials.
Tande said all the staff had resumed work and that money would not be deducted from their January salaries for the days they were on strike. "At least we have managed to bring all the staff on board and what remains now is the mammoth task of talking to Maasai elders from Kajiado county who had ordered the closure of all mines for gypsum, limestone and pozzolana that are used to manufacture cement," said Tande. The Maasai elders ordered all the mines closed and gave the government an ultimatum to return the suspended directors whom they claimed had been "victimised unnecessarily."
The return occurs after employees complained that armed police officers had forced them to work at gunpoint. Raising their concerns in court, a representative for some 778 employees told Justice Cecilia Githua that General Service Unit officers were forcibly removing them from their homes and taking them to the plant to work, even at night.