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Cemex intends to raise USD1bn from asset sales by end of 2012 29 September 2011
Mexico: Lorenzo Zambrano, the chairman and chief executive of Cemex, has announced that he expects the company to raise USD1bn from asset sales by the end of 2012. This is part of a continuing strategy to lower its debt, including USD180m in 2011.
In a webcast meeting with investors Zambrano said that the highly leveraged Cemex doesn't want to own assets that produce less than a 10% return on capital. "We will only sell assets that will improve our return on capital and help us to deliver our balance sheet," he stated.
Cemex's heavy debt load, USD18.4bn in total debt plus perpetual notes as of 30 June 2011, coupled with a slow recovery in key markets has contributed to investor pessimism that has knocked Cemex's share price down sharply. Zambrano added that Cemex hadn't anticipated the extent of the effects of the recession in the US, one of its largest markets along with Mexico, but that he expects Cemex's US operations to be profitable in 2012.
Oman Cement upgrades with USD67m loans 28 September 2011
Oman: Oman Cement Company has obtained two loans totalling more than USD67m from BankMuscat to finance a series of upcoming modernisation projects.
The first loan of USD38m will be used to finance its kiln upgrade project and pollution control equipment improvements. The company announced in March 2011 that this would be carried out by two Chinese companies. The second loan of USD30m will pay off an existing loan of the same amount the company currently has with Bank Sohar. A statement released to the Muscat Securities Market (MSM) explains that these loans would 'hopefully reduce the cost of financing its projects.'
Outlining the reasons behind the loans the company's chief financial officer, Deepak Dikshit, stated that the loan to pay off the Bank Sohar loan will be paid back in semi-annual instalments over five years. Dikshit said that the loan for the modernisation works has a two-year moratorium and is also payable in semi-annual instalments over a period of 'effectively seven years.'
Anticipating completion by February 2012, the company will be employing CNBM International Engineering to carry out a USD30m contract to modernise the 29 year old plant, extending its life by another 25 years and increasing its capacity from 2000t/day to 2700t/day.
Oman Cement Company also signed a USD8.5m deal with Sino Environment Engineering Company to modernise the company's pollution control systems to ensure that emissions fall below 10mg/nm3, with work expected to be completed by the end of January 2012.
Indian firm ERCOM Consulting Engineers has been appointed the consultants to the projects.
Holcim grows capacity in Ecuador 27 September 2011
Ecuador: Holcim expects to increase production capacity at its plant in the capital Guayaquil by 54% by 2012. The company will spend USD120m on expansion work and new machinery to boost cement production to 5.4Mt/yr from 3.5Mt/yr.
The machinery includes a new mill with production capacity of 250t/hr. The company is also building two warehouses for clinker and cement storage. The expansion project is currently 85% complete and will be ready to operate by the start of 2012.
Holcim decided to carry out the project based on the steady growth of public and private infrastructure projects in the country during the last few years, according to administrative manager Giancarlo Muñz. Current demand for cement in Ecuador is around 5Mt/yr, which is supplied by Holcim, Lafarge, Guapá and Cementos Chimborazo.
Cement production up in Romania in first half 26 September 2011
Romania: Cement production in Romania were up by 8.1% year-on-year in the first half of 2011 to 3.18Mt. Domestic cement sales increased by 2.4% to 2.95Mt according to data released by the Romanian Association of Cement Producers (CIROM). Romania's cement market is dominated by the local units of Lafarge, Holcim and HeidelbergCement.
Pakistan sales up year-on-year 26 September 2011
Pakistan: The sales of Pakistani cement firms surged by 7% to 5.23Mt in the first two months of the 2011/12 fiscal year (which started on 1 July 2011) from 4.91Mt in the 2010/11 fiscal year, according to statistics from the All Pakistan Cement Manufacturers Association (APCMA).
The growth in overall dispatches is attributed to the 14% year-on-year upsurge in local dispatches that have reached 3.68Mt, up from 3.24Mt a year earlier. Cement exports fell by 7% to 1.55Mt from 1.67Mt/yr over the same time frame.