AFRICA: Nigeria: Dangote Cement: expensive at the price?

Dangote Cement just became a company that’s too big for investors to ignore. Its flotation on the Lagos stock market on Tuesday gave it a capitalisation of $14bn and made it the largest African-listed company south of the Sahara and north of Johannesburg.

Index fund managers trying to match the performance of the Nigerian stock market index will have to buy it. But that doesn’t mean that it’s good value.

Dangote is Nigeria’s dominant cement producer and it now makes up around 25 per cent of the capitalisation of all listed companies in Nigeria. Plenty of investors do think it is cheap, according to reports of strong demand emerging from Nigeria. But there are sceptics who question some of the aggressive assumptions behind the valuations.

The shares listed at N135 on Tuesday and closed at the same price after a flurry of trading. Based on Dangote’s own results projections, that puts the shares on a prospective multiple of 8.4 times 2011 earnings.

This looks cheap if you compare it to its main domestic rival Wapco, which is owned by Lafarge of France and trades on a forecast 2011 price/earnings multiple of 11.1. PPC of South Africa, meanwhile, is on 13.1.

But Dangote is a tricky creature to value. “There are too many moving parts,” is how one investor put it to beyondbrics.

One reason is that Aliko Dangote, the company’s founder and one of Africa’s richest men, is only part way through an ambitious drive to expand his company’s capacity from 11m tonnes of cement a year to 26m tonnes.

Based on those plans, Dangote forecasts that its turnover will rise from N226bn ($1.5bn) this year to N398bn in 2011 and N511bn in 2012.

The positive notes on the stock from analysts seem to outnumber the negative ones. But in one of the more downbeat missives, African Alliance Securities analysts say Dangote’s earnings forecasts are based on “very optimistic” assumptions about its future fortunes.

COLOMBIA: Utilidades de Cementos Argos crecieron 73%, al sumar 461.000 millones de pesos

Aunque en parte fue producto de la venta de un activo, el Ebitda ( caja de la operación) se acercó a los 415.000 millones de pesos.

A nivel consolidado, los ingresos de Cementos Argos para los primeros nueve meses de 2010 ascendieron a 2,2 billones de pesos, aunque comparados con el mismo periodo de 2009 presentan un descenso del 17 por ciento en pesos, este año no es una base totalmente comparable con los primeros 9 meses de 2009, pues éstos últimos tienen 98 mil millones de pesos generados por la venta de activos carboníferos (El Hatillo y Cerro Largo), a la multinacional brasileña Vale.

Al homologar las bases de los ingresos consolidados de Cementos Argos sin la distorsión de la venta de activos carboníferos, la variación positiva de los mismos es de 14 por ciento en pesos.

La utilidad operacional consolidada ascendió a 174 mil millones, aunque con un decrecimiento del 32 por ciento en pesos.

En los tres primeros trimestres de 2010 las utilidades netas de Cementos Argos crecieron 73 por ciento, al sumar 461.000 millones de pesos

La empresa reportó un aumento 5 por ciento en las ventas de cemento en Colombia y en concreto del 40 por ciento, también en los tres primeros trimestres de 2010, por la demanda para obras de infraestructura. "Es un nivel pocas veces visto. El tercer trimestre fue excepcional", dijo un experto en el tema para ejemplificar la demanda de concreto por las obras de infraestructura que vive el país.

La demanda de cemento en el sector de vivienda no ha crecido de manera importante por el poco dinamismo de la construcción, pero se espera un buen 2011 porque ya hay reactivación en el número de licencias.

El hecho de tener operaciones móviles y cerca a obras como Hidrosogamoso y Ruta del Sol contribuyen a mejorar el resultado de Cementos Argos en Colombia porque puede garantizar contratos de proveedor.

UAE: Oman's Raysut Cement to buy UAE firm

Raysut had said was planning acquisition

Company did not disclose size of deal

DUBAI, Oct 28 (Reuters) - Raysut Cement RAYC.OM, Oman's largest cement producer by market value, will buy the United Arab Emirates' Pioneer Cement Industries, the company said in a statement on the Omani bourse on Thursday. Raysut's chief financial officer said on Sunday the company was holding acquisition talks with several companies and was expecting to reach a deal within a month. [ID:nLDE69N01C]

"This project will serve the strategies and goals of the company and will add more value to the shareholders and investors of the company," Raysut said in the statement.

The company did not give details of the size of the deal. Pioneer Cement Industries is based in Ras al-Khaimah, a northern emirate in the United Arab Emirates federation.

Analysts had previously said Raysut was looking for an acquisition with a potential value of between $150 million and $200 million and had cited Ras Al Khaimah Cement RKCC.AD (RAK Cement) as a likely candidate.

Shares in Raysut traded down 0.2 percent at 0844 GMT.

Raysut said last week its nine-month profit before tax was 19.03 million Omani rials ($49.42 million), down from 24.2 million rials a year ago. 

THAILAND: Thai Siam Cement cuts 2010 cement export target

Has cut its 2010 cement export target to 7 million tonnes from 7.5-8.0 million tonnes to focus more on domestic market after demand improved, President Kan Trakulhoon told reporters

* But expects cement demand growth for the Thai sector as a whole to be 5 percent rather than 5-10 percent after flooding in several central and northeastern provinces

* Expects to conclude financing details for petrochemical complex project in Vietn

am in early 2011

HIMALAYA: Hetauda cement resumes production

BHIMPHEDI: Hetauda Cement Industry has resumed production from today in a gap of one month.

The industry halted cement production for the last four weeks though it had stored necessary raw material and limestone after its clinker machines required maintenance. The furnace in the factory also needed repair.

According to industry management, it took more days than the expected to carry out repair works as technicians had to be brought from India.

It said that special bricks made of modern technology were brought from India to repair the furnace. 

UGANDA: High cement prices hurt construction

The construction industry is feeling the strain of a recent price rise in the cost of building materials, which some fear could have negative effects on the country’s fastest growing sector.

The Uganda Bureau of Statistics (UBOS) reports that cement prices went up by 11.2% between July and August this year, following on the trend set by steel bars and paint, whose costs also rose by 3% and 1% respectively.

Consequently the same UBOS report indicated that the price rise caused an increase in construction costs. Non-residential buildings such as shopping arcades and office buildings were the most affected, registering a 0.9% increase in cost.

The cost of putting up a residential building also saw a 0.5% rise. Supplies of materials also saw a dip with cement alone dropping by 8% in August, compared with a 22% increase the month before.

UBOS attributes the dip to decreased imports of cement, due to the appreciation of the dollar against the shilling. The dollar is now trading at Shs 2,251.

Experts fear that the increase in the cost of construction materials could have a ripple effect as this has been the fastest growing sector in the economy, with growth rates of over 13% per annum, over the last two years alone.

The Managing Director of Sadolin Paints Chris Nugent said that the recent increase in prices is bound to affect other areas of construction.

“We know for a fact that this will affect investments in other areas of construction,” he said. However, he maintained that plans to build a $5million (Shs11billion) factory in Namanve were still on track, as it was planned to increase production by 50%.

One of those directly affected by the recent price increase is Ronald Ssegawa of Rona Estates in Ntinda, who says the increase in prices is pinching deeper into his pockets.

“The final cost of cement, which is now at Shs 24,000 a bag, if you are buying in bulk, has affected our output. It was at Shs 21,000 per bag when we started early this year so the cumulative cost is digging into our margins,” he said.

Ssegawa also warns that the increase has serious consequences on those who borrow money to build homes or who operate within small budgets. “If you are unfortunate enough to stall midway, you could find your costs have doubled by the time you resume construction,” he said.

For their part, cement manufacturers, Tororo Cement, admitted in July when the statistics were collected that their prices had gone up as a result of high operating costs.

However, Tororo Cement Marketing Manager K. Banargi said they were planning to announce lower prices in the next two weeks. “We are going to reduce our prices even further due to the increasing competition in the market. We want to be the most affordable product in the market,” he said.

PAKISTAN: DG Khan Cement

DGKC has made a relatively better start to the fiscal year, as its bottom line swung to green in 1QFY11 after three straight quarters of losses.

However, compared to the same quarter last year, the companys profit fell massively on the heels of lower cement off-take and higher production costs.

Companys average retention price was relatively higher than the previous year, but unfortunately, the monsoon saga resulted in lower cement off-take and in turn lower revenue.

Supply chain distractions, stemming from damaged roads and rail links, along with a dreary pace of construction activities across the country pushed the total dispatches down to around 0.92 million tons in 1QFY11, down from 1.17 million tons in the same period last year. 

Local dispatches plummeted by 27 percent to 0.709 million tons. Export dispatches, however, remained relatively stable, registering 3 percent growth, according to a company official.

Margins didn benefit from the impact of higher prices on the back of higher cost of production that surged by around 30 percent. Production costs increased due to higher coal prices--which reached $130 per ton from around $103 per ton in the same period last year, lower capacity utilization and gas curtailment. 

Despite lower profitability during the first quarter, the outlook is not all doom and gloom for the largest cement manufacturer in the north, since proximity to submerged areas might help the company realize higher cement sales from next quarter onwards.

The industry expects to experience record volumetric sales after the spring harvest, anticipating demand to grow by 7 to 10 percent in FY11. Moreover, the companys margin may also improve as cement prices are on the rise, on one hand, and Waste Heat Recovery plant will increase cost efficiency, on the other.

NEPAL: Hetauda cement resumes production

BHIMPHEDI: Hetauda Cement Industry has resumed production from today in a gap of one month.

The industry halted cement production for the last four weeks though it had stored necessary raw material and limestone after its clinker machines required maintenance. The furnace in the factory also needed repair.

According to industry management, it took more days than the expected to carry out repair works as technicians had to be brought from India.

It said that special bricks made of modern technology were brought from India to repair the furnace.

MALTA: Increase of cement excise duty ‘a terrible shock’

The immediate excise duty of EUR9 per tonne on imported cement is a “bolt out of the blue”, and has come as “a terrible shock” for all stakeholders involved in the construction industry, Vince Farrugia, the director general of the Chamber which represents Small and Medium Enterprises (SMEs) in Malta, told The Malta Business Weekly. 

Following the announcement made by Finance Minister, Tonio Fenech, when presenting next year’s budget earlier this week, to increase the excise duty on cement with immediate effect, Mr Farrugia said that whereas in other countries governments are coming up with schemes and incentives to boost development, the construction industry in Malta is being severely hindered by such ill-timed increases. “This will indirectly lead to increases in property prices, at a time when the construction industry, which finds itself in a grave situation, has yet to fully recover from the economic recession.”

Mr Farrugia described the decision “as illogical and will increase property prices by as much as eight to 10 per cent”, adding that roughly “12 per cent of the country’s workforce is employed in one way or another in construction, which is only three per cent less than the amount of people employed in the tourism industry. Something needs to be done and fast to remedy the current dismal situation regarding construction in Malta”. 

However, Michael Falzon, the president of the Malta Developers’ Association, offered a different view to the increase, despite commenting “that it is only the government who stands to gain by the increase”. 

Mr Falzon said that based on his calculations the EUR9 cost on cement is actually minimal, when compared to the annual turnover of the industry. 

The cost, which he calculated based on the total cement imports of the previous year, amounts to around EUR3m per annum, he said. Although it is an increased cost that nobody would have liked, it is marginal when compared to what the construction industry makes in a year.

The reasoning offered in the budget is the polluter pays principle, but while an environmental impact is undeniable, Mr Falzon said that this, in his opinion, is a good pretext for something which would be better described as a revenue raising exercise.

He added that according to statistics, Malta imports around 300,000 tonnes of cement annually.

INDIA: Prism Cement slides after weak Q2 results

Prism Cement fell 1.33% to Rs. 59.15 at 11:23 IST on BSE, after net profit tumbled 88.9% to Rs. 4.60 crore on 14% rise in net sales to Rs. 749.70 crore in Q2 September 2010 over Q2 September 2009.

The company declared its results after market hours on Wednesday, 27 September 2010.

Meanwhile, the BSE Sensex was up 62.53 points, or 0.21% at 20,067.90.

On BSE, 60,108 shares were traded in the counter as against an average daily volume of 3.35 lakh shares in the past one quarter.

The stock hit a high of Rs. 59.70 and a low of Rs. 58.95 so far during the day. The stock had hit a 52-week high of Rs. 65.90 on 15 October 2010 and a 52-week low of Rs. 36.50 on 3 November 2009.

The mid-cap stock had outperformed the market over the past one month till 27 October 2010, declining 0.42% compared with the Sensex's 0.56% fall. It had also outperformed the market in past one quarter, gaining 18.95% as against 10.66% rise in the Sensex.

The company has an equity capital of Rs. 503.36 crore. Face value per share is Rs. 10.

The board of Prism Cement declared an interim dividend of Re 1 per share for the year ending March 2011.

INDIA: Ultratech Cement

UltraTech's performance for the second quarter reflects the first financial results post the amalgamation of Samruddhi Cement Limited with the Company. The results include the performance of Samruddhi with effect from 1st July, 2010 which was the Appointed Date for the amalgamation. 

The results for the corresponding Quarter of FY10 have been re-casted to include Samruddhi's performance for like-for-like comparison.

Based on re-casted figures, for quarter ended September 2010, Net Sales fell 9% to Rs.3,215 crore. Profit before Interest, Depreciation and Tax fell 60% to Rs. 476 crore, while Profit after Tax is crashed 82% to Rs. 116 crore.

The Company produced 8.61MMT (8.36 MMT) of grey cement. The combined cement and clinker sales of grey cement was 9.10 MMT (8.64) MMT.

A subdued demand on account of monsoons, capacity additions, fall in realisation coupled with increase in costs has impaired the Company's performance. The prices of imported coal rose from US$ 76/Mt to US$ 110/Mt substantially escalating the Company's energy cost. These factors have put the Company's margins under pressure.

The Scheme of Amalgamation (the Scheme) of Samruddhi Cement Limited (Samruddhi) with the Company has been sanctioned by the Hon'ble Bombay High Court on 11/06/2010 and by the Hon'ble Gujarat High Court on 01/07/2010. The Scheme became effective from 01/08/2010 and is operative from the Appointed Date i.e. 01/07/2010. The results for the period ended 30/09/2010 are inclusive of Samruddhi from the Appointed date i.e. 01/07/2010.

Upon effectiveness of the Scheme, the authorised Share Capital of the Company increased to ` 2,800,000,000, consisting of 280,000,000 equity shares of ` 10/- each.

In terms of the Scheme, shareholders of Samruddhi have been allotted 149,533,469 equity shares of ` 10/- each of the Company as fully paid-up in the ratio of 4 (four) equity shares of the Company of face value ` 10/- each fully paid-up for every 7 (seven) equity shares of Samruddhi of face value ` 5/- each fully paid-up.

The ESOS Compensation Committee has on 07/09/2010 allotted 920 equity shares of ` 10/- each of the Company to option grantees pursuant to the exercise of stock options under the Company's Employee Stock Option Scheme - 2006.

The paid-up equity share capital of the Company increased from 124,487,079 equity shares of ` 10/- each to 274,021,468 equity shares of ` 10/- each as a result of the allotment of equity shares in terms of the Scheme of Amalgamation (the Scheme) and exercise of stock options under the Company's Employees Stock Option Scheme - 2006.

The Company's wholly-owned subsidiary 'UltraTech Cement Middle East Investments Limited' has completed the acquisition of ETA Star Cement and has acquired management control of its operations in the UAE, Bahrain and Bangladesh.

Directors

The Board at its meeting held today inducted Mr. Adesh Gupta, Whole-time Director and CFO of Grasim Industries Limited as an additional director of the Company with immediate effect.

Outlook

The demand for cement is expected to grow around 10% on the back of a good monsoon and the government's initiatives to boost rural demand, infrastructure and housing. These aspects augur well for the Company.

Ultratech Cement: Re-casted Results

	Quarter ended
	30thSept,2010	30thSept,2009 (LFL)	30thSept,2009
Net Sales	3,215	3,538	1,541
PBIDT	476	1,184	501
PAT	116	631	251

EEUU: Cement company hit with $350,000 fine

CalPortland violated air standards at plant in Marana, EPA says

A major Arizona cement manufacturer will pay a $350,000 fine for reportedly violating federal air-quality regulations.

The deal between CalPortland Co. and the U.S. Environmental Protection Agency claims that the company did not obtain the proper permits for major modifications it made last year in its operations at its plant near Marana.

According to the EPA, the changes resulted in a significant net increase in coarse particulates.

But the fine, which EPA air-enforcement officer Doug McDaniel said is on the "high side" of those imposed by his agency, is only part of the deal. It also requires the company to choose between two options designed to reduce future pollution.

One involves CalPortland completing construction of what EPA calls a new "state-of-the-art" kiln in the next 42 months.

At that point, the company would have to shut down operation of four older kilns.

If the company does not want to go ahead with the new kiln, it is required to upgrade the pollution-control equipment on its existing kilns.

"That's a decision they have to make," said McDaniel.

Company Vice President Scott Isaacson said that question remains undecided.

"We're obligated to make that decision very promptly after the (federal) court has done its work and there's public comment on this," he said.

Isaacson said the issue surrounds plans by the company to make changes in its operation, changes that required a permit from the federal agency.

"The permit was issued by EPA based upon faulty information we provided," he said. That erroneously issued permit allowed the company to increase its pollution beyond what would have been allowed had CalPortland provided the EPA with the correct information.

"This settlement will result in cleaner air for communities affected by the CalPortland facility," Deborah Jordan, director of the EPA's Air Division for the Pacific Southwest region, said in a prepared statement.

"To safeguard the public health, all cement plants need to be properly permitted and keep their air emissions within the limits set by federal law."

Isaacson said CalPortland is glad "to have this matter behind us."

According to the EPA, cement kilns emit coarse dust and dirt which can cause major health problems.

Those include impaired breathing, lung damage, cancer and premature death.

The agency says that the elderly, children and people with chronic respiratory problems are particularly sensitive to such pollution.

The consent decree, which was filed in U.S. District Court in Tucson, also includes possible additional penalties.

The company could pay up to $37,500 a day for exceeding applicable standards.

INDIA: Builders will take to streets over cement price

CHENNAI: Protesting against the unprecedented 100% hike in the price of cement in the last one month, builders across the state have decided to stage a one-day strike on Thursday and take out a rally from the Rajarathinam Stadium in Egmore to the state secretariat. 

At a joint press meet on Wednesday, Confederation of Real Estate Developers' Association of India(CREDAI) Tamil Nadu chapter president T Chitty Babu and Builders' Association of India (BAI) past president Radhakrishnan said that though the builders would shut down operations on the day the workers would be paid salary. The hike in the prices of cement and other raw material had already hit the construction sector badly. "The cost of construction has gone up by about 40% in less than two months and almost 40% of works across the state have come to a halt," said Chitty Babu. 

Meanwhile, builders from Tamil Nadu, Goa, Maharashtra and Karnataka have come together to import cement from Pakistan, Iran and Ukraine. A group of builders from Kerala has already brought 20 containers of cement from Pakistan, each weighing 20 tonnes, to Cochin port. While domestic brands cost Rs 290 to Rs 300 per 50 kg bag, Pakistan cement's landing cost at Cochin port was only Rs 190 a bag, said CREDAI national vice-president Prakash Challa. 

Recently, the ICICI Bank published a report saying cement manufacturers had cut down production by 30-50%. It had resulted in an artificial scarcity of the commodity in the market, builders pointed out. 

The Tamil Nadu government, with a view to reining in the cement lobby and insulating the government-sponsored Kalaignar housing scheme from the effects of the price hike, was initially interested in joining hands with builders in importing cement. It also said it would buy cement from other states. But it later backtracked after the cement lobby assured the government that it would supply cement at Rs 210 per bag for all government-sponsored schemes.

AFRICA: Nigeria: Dangote Cement Lists 15.5 Billion Shares On NSE

Dangote Cement Plc, on Tuesday, listed its 15,494,019,668 billion ordinary shares of 50 kobo each at N135.00 per by way of introduction on the floor of the Nigerian Stock Exchange (NSE). The demand for the shares superceeded the 100 million shares that was offered for sale as investors demanded close to 200 million shares.

In his remark at the listing ceremony, the NSE Interim Administrator, Mr. Emmanuel Ikazoboh said the listing will add N2.1 trillion or 25 per cent to market capitalisation of the Exchange, adding that the event was historic because it is the biggest issue by a single company to be listed on the NSE.

According to Ikazoboh," History is made today in the anal of the nation's capital market with the listing by Introduction of Dangote Cement Plc's entire Issued Share Capital of 15.5 billion Ordinary Shares of 50k each at N135.00 per share"

Ikazoboh disclosed that the development will boost investors confidence on NSE, urging Nigerian entrepreneurs to come and take advantage of the market by listing their companies on the Exchange.

"I am also calling on those companies that undertook private placement few years back and promised to list their shares on the Exchange after the exercise, to come and do so as the market is eagerly awaiting them"

However, he congratulated the president of Dangote group, Alhaji Aliko Dangote for his unwavering belief in the nation's stock market, stressing that he has singularly contributed more than any Nigerian to the growth and development of the market. "In 2008,10 billion Ordinary Shares of Dangote Sugar Plc was listed on the Exchange at N18 per share; this was followed in 2008 with the listing of Dangote Flour Plc's five billion Ordinary Shares at N15.00 per share. Both companies have remained investor delight ever since", he said.

In the same vein Aliko Dangote said this is the first stage, promising that the company will continously improve on corporate governance in tandem to global practice.

Dangote noted that investors interest will be protected, adding that no additional trade will be made till the next 18 months before any sales can be made. According to him: "The proposed merger is conceived with the goal of consolidating the cement producing entities of Dangote Industries Limited in Nigeria under a single entity presenting a robust platform for the enlarged DCP to optimize on available growth. opportunities having regard to the present state of the Nigerian cement industry.

This is expected to significantly increase production capacity, boost turnover and profitability and eventually lead to an enhanced dividend payout and capital appreciation for the investors." "Our reason for listing any of our companies is to take care of shareholders. So far we have given dividend of over N23 billion this year," he said.

INDIA: Buy Ambuja Cements; target of Rs 142: Anand Rathi

Anand Rathi Securities is bullish on Ambuja Cements and has recommended buy rating on the stock with a target of Rs 142, in its October 21, 2010 research report.

"Ambuja’s net profit declined 44% Y-o-Y, lower than our and consensus estimates. Decline in realizations and increase in power & fuel cost led to the drop. We estimate CY11 earnings to be strong, driven by recent price recovery, savings on clinker purchase and strong volume growth."

"Realisation fell 10% Y-o-Y and 6% Q-o-Q to ~Rs 3,595/ton. Cement dispatch volumes rose 7% Y-o-Y to 4.35 million tons (down 19% Q-o-Q). Domestic volumes increased 7.6% Y-o-Y, while exports declined 32% Y-o-Y."

"EBITDA/ton, at Rs 650, fell 39% Y-o-Y and 42% Q-o-Q mainly due to a drop in realisations. The benefit of lower raw material cost (down ~ Rs 300/ton Y-o-Y due to no clinker purchases) was offset by higher power & fuel cost at Rs 1,025/ ton (up ~ Rs 265/ton due to higher clinker production and fuel prices). ‘Other expense’ at Rs 780/ton (up ~Rs 100/ton) increased due to higher maintenance and selling & distribution cost."

"New clinker units at Chhattisgarh and HP have achieved 50% utilisation levels. Two grinding units (Maratha & Bhatapara) will commence by 4QCY10, taking capacity to 27m tons. A transporters’ strike at its HP plants (3.1m tons) since 7th Oct, stalled production and dispatches. Ambuja expects demand to pick up towards the yearend. It expects medium-term demand and realisations to improve."

"At our target price of Rs 148, the stock would trade at 7.5x CY11 EV/EBITDA, in line with its ten-year average. The target price implies a PE of 14x CY11 and an EV/ton of USD 160," says Anand Rathi Securities research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

AFRICA: Egypt: Suez Cement nine-month net profit dips 8.5 pct

Egypt's Suez Cement (SUCE.CA) posted an 8.5 percent fall in nine-month net profit to 906.7 million Egyptian pounds ($157 million), the company said on Thursday.

Suez, Egypt's largest listed cement company and a subsidiary of Italcementi (ITAI.MI), said its consolidated net sales in the period fell 2.1 percent to 4.69 billion pounds while operating income slipped 10 percent to 1.256 billion pounds.

INDIA: “Rise in cement, steel prices will not hit housing scheme beneficiaries”

The rising prices of cement and steel in the open market will not affect beneficiaries of the Kalaignar Housing Scheme, Chief Minister M. Karunanidhi said on Tuesday.

Pointing out that the scheme was being implemented in all 12,618 village panchayats simultaneously with each dwelling unit of 207 sq. ft, Mr. Karunanidhi, in a statement, said that the government was providing cement and steel at nominal cost to the beneficiaries through village panchayats.

Sixty bags of cement at Rs.210 a bag were being given. Steel — 155 kg for each house — was being supplied at an average rate of Rs.36 a kg.

Besides, District Collectors were taking steps for the supply of bricks at a reasonable rate by holding negotiations with owners of brick kilns. Efforts were on to provide other construction materials, including sand at rates determined by the government or less than market rate.

Training was being given to construction workers and financial assistance to women self-help groups through the Tamil Nadu Corporation for the Development of Women.

Deputy Chief Minister M.K. Stalin, who conducted a recent trip to the Tiruvannamalai district, informed him that two lakh houses would be completed by December-end and the entire number of three lakh houses by January, the Chief Minister said, giving an account of various welfare measures taken by him over the years in the area of low cost housing for vulnerable sections of society.

EEUU: Cement plant announces furloughs again

For the second straight winter, Ash Grove Cement Co. will furlough some workers at its manufacturing plant in Montana City, as the company continues to see soft demand for its products.

Plant manager Dick Johnson said 33 workers will be sent home after their shifts on Friday, Dec. 3.

It’s unclear exactly when the workers will be called back, “but we’re pretty sure it won’t go much later than the first of March,” Johnson said.

The Overland Park, Kansas-based firm announced furloughs at all eight of its cement manufacturing plants (Montana City is the company’s smallest) as well as at a grinding plant in Inkom, Idaho. All told, around 500 of the privately-held company’s 2,500 employees will be affected, with some plants sending workers home as soon as Nov. 22 and others not shuttering until late December.

“The economic downturn affecting the entire cement industry has not abated in 2010,” spokeswoman Jacqueline Clark said in a statement announcing the furloughs.

The temporary layoffs won’t cut as deeply as they did last winter, when 50 of the plant’s 79 employees were sent home.

“While we’re down, we’re going to do some maintenance this year,” Johnson said, so more workers will stay on the clock while the plant isn’t in production.

Johnson said the first nine months of 2010 were essentially a “spitting image” of 2009 from a business perspective for the company. As happened a year ago, inventories have built up that the company has enough cement on hand to meet demand through the winter without making more.

Last year’s mild winter was good news for furloughed workers, who anticipated being off the job until mid-March, but in fact were called back a month earlier.

According to the company, the Portland Cement Association, the cement industry’s national trade group, doesn’t anticipate a significant increase in demand until 2013.

BRASIL: Brasileña CSN, con planes de cementera en Colombia

La Compañía Siderúrgica Nacional (CSN), el mayor grupo siderúrgico diversificado del Brasil, tiene planes de invertir unos 2.000 millones de dólares en los próximos tres años

Esto con el fin de expandir sus negocios de cemento en América Latina, dijo a Reuters su presidente ejecutivo.

CSN ingresó el año pasado al mercado de cemento con la apertura de una fábrica en Volta Redonda (Río de Janeiro), y desde el 2011 comenzará la nueva ola de inversiones.

"Una planta cementera cuesta unos 250 dólares por tonelada; entonces el plan es producir 10 millones de toneladas, lo que equivale a unos 2.000 millones de dólares", dijo su presidente ejecutivo, Benjamin Steinbruch.

"Brasil va a ser primero, Brasil va a ser la mitad y la otra mitad dividida entre Colombia (así como) Argentina, Uruguay o Paraguay, uno de los tres. Y de ahí, tenemos Chile y Perú también", agregó el ejecutivo, quien asiste en Buenos Aires a un congreso del Instituto Latinoamericano del Hierro y Acero.

En diciembre, CSN fracasó en su intento por comprar la cementera portuguesa Cimpor, con la que buscaba una posición relevante en el mercado mundial de cemento. En el 2007, un brazo siderúrgico participó en la puja por el control de la colombiana Paz del Río, pero fue vencida junto a Arcelor Mittal y Gerdau, por la brasileña Votorantim.

En los primeros seis meses del año, CSN vendió el 99 por ciento de las 377.000 toneladas que produjo y tiene planes de construir tres nuevas plantas de cemento en Brasil para elevar la capacidad de producción a unos 5,4 millones de toneladas para el 2014.

"Estamos produciendo 150.000 toneladas por mes y vamos a aumentar a 250.000 toneladas para finales de este año", detalló. La empresa está apostando a cubrir parte del insaciable apetito por cemento y construcción de Brasil con un aumento de su producción en alrededor del 36 por ciento para este año, especialmente con los Juegos Olímpicos 2016 y la Copa Mundial de fútbol del 2014.

150 mil toneladas mensuales de cemento está produciendo, actualmente, la Compañía en el Brasil.

COLOMBIA: Utilidades de Cementos Argos crecieron 73%, al sumar 461.000 millones de pesos

Aunque en parte fue producto de la venta de un activo, el Ebitda ( caja de la operación) se acercó a los 415.000 millones de pesos.

A nivel consolidado, los ingresos de Cementos Argos para los primeros nueve meses de 2010 ascendieron a  2,2 billones de pesos, aunque comparados con el mismo periodo de 2009 presentan un descenso del 17 por ciento en pesos, este año no es una base totalmente comparable con los primeros 9 meses de 2009, pues éstos últimos tienen   98 mil millones de pesos generados por la venta de activos carboníferos (El Hatillo y Cerro Largo), a la multinacional brasileña Vale.

Al homologar las bases de los ingresos consolidados de Cementos Argos sin la distorsión de la venta de activos carboníferos, la variación positiva de los mismos es de 14 por ciento en pesos.

La utilidad operacional consolidada ascendió a  174 mil millones, aunque con un decrecimiento del 32 por ciento en pesos.

En los tres primeros trimestres de 2010 las utilidades netas de Cementos Argos crecieron  73 por ciento, al sumar 461.000 millones de pesos

La empresa reportó un aumento 5 por ciento en las ventas de cemento en Colombia y en concreto del 40 por ciento, también en los tres primeros trimestres de 2010, por la demanda para obras de infraestructura. "Es un nivel pocas veces visto. El tercer trimestre fue excepcional", dijo un experto en el tema para ejemplificar la demanda de concreto por las obras de infraestructura que vive  el país.

La demanda de cemento en el sector de vivienda no ha crecido de manera importante por el poco dinamismo de la construcción, pero se espera un buen 2011 porque ya hay reactivación en el número de licencias.

El hecho de tener operaciones móviles y cerca a obras como Hidrosogamoso y Ruta del Sol contribuyen a mejorar el resultado de Cementos Argos en Colombia porque puede garantizar contratos de proveedor.

BRASIL: ENTREVISTA-CSN quer investir US$2bi em cimento na América Latina

BUENOS AIRES (Reuters) - A CSN planeja investir 2 bilhões de dólares nos próximos três anos para expandir seu negócio de cimento na América Latina, disse à Reuters o presidente-executivo da empresa, Benjamin Steinbruch.

A CSN entrou no negócio de cimento no ano passado, com a abertura de uma fábrica em seu complexo siderúrgico em Volta Redonda, no Rio de Janeiro. Em 2011, a companhia iniciará uma nova rodada de investimentos.

Do total de aportes na área de cimento, a CSN já tem aprovado orçamento de cerca de 1 bilhão de dólares para expansões e novos projetos no Brasil. A empresa espera aprovar o valor restante, para negócios fora de seu país, na próxima reunião do Conselho em outubro ou novembro, disse Steinbruch.

"Uma fábrica de cimento custa de 200 a 250 dólares por tonelada. Então vamos investir 2 bilhões de dólares para alcançar 10 milhões de toneladas (de capacidade)", disse ele em Buenos Aires.

"O Brasil será o primeiro, cerca de metade desse valor será (investido) no Brasil e a outra metade vai para Colômbia; e Argentina, Uruguai ou Paraguai, um dos três, e então vamos avaliar Chile e Peru também", afirmou Steinbruch.

Em dezembro, a CSN fracassou em sua tentativa de comprar a cimenteira portuguesa Cimpor, por meio de uma oferta hostil de aquisição, com a qual buscava uma posição relevante no mercado mundial de cimento.

Nos primeiros seis meses do ano, a CSN vendeu 99 por cento das 377 mil toneladas que produziu de cimento e tem planos de três novas fábricas no Brasil para elevar sua capacidade no país para 5,4 milhões de toneladas em 2014.

O executivo disse também que a companhia está buscando possíveis aquisições no setor de siderurgia na América Latina, mas somente tomará decisão de investimento se encontrar uma "boa oportunidade".  

Em mineração, Steinbruch comentou que a CSN espera para o início de 2011 a listagem em bolsa de seu negócio de minério de ferro. Segundo ele, negociações com sócios asiáticos da unidade de minério Namisa "estão indo bem". A intenção é fundir esse ativo com a mina Casa de Pedra para elevar o valor dos ativos de mineração do grupo antes da Oferta Pública Inicial (IPO, na sigla em inglês).

"O desafio é decidir quais o termos que vão reger a parceria", disse Steinbruch sobre os sócios da Namisa.

Com a listagem da operação de minério de ferro, Steinbruch espera que a CSN eleve o valor do negócio e levante recursos para aquisições.

Ao deter a maior parte dos ativos que poderão formar a nova unidade de mineração listada, a CSN deve diluir a posição dos sócios asiáticos na Namisa. Alguns deles são as siderúrgicas coreana Posco e a japonesa Nippon Steel.

O consórcio asiático, chamado de Big Jump, pagou cerca de 3 bilhões de dólares pela participação de 40 por cento na Namisa no final de 2008.

"O problema é que eles têm 40 por cento de participação na Namisa e, claro, isso vai encolher quando acontecer a fusão com Casa de Pedra... Isso vai mudar os termos da governança da parceria e isso tem que ser discutido", disse Steinbruch.

Analistas estimam que a CSN possa levantar até 3,5 bilhões de dólares com a venda de uma participação da unidade minério de ferro no IPO, o que deve incluir a mina Casa de Pedra, a Namisa e algumas ligações logísticas entre áreas produtoras e porto.

A unidade de minério de ferro da CSN é a operação de crescimento mais rápido do grupo e está incentivando a expansão do conglomerado, segundo analistas.