INDIA: Ambuja Cements March sales up 12.43% at 2.17 mn tonnes

 Ambuja Cements Monday said it sold 2.17 million tonnes of cement in March this year, up 12.43 percent over the same month last year.

The company had sold 1.93 million tonnes in the same month last year, it said in a statement.

Production of the company during March was 2.19 million tonnes against 1.95 million tonnes a year ago. 

Both sales and production of Ambuja Cements' during the January-March period of the current year stood at 6.09 million tonnes.

The corresponding figures in March 2011 were 5.55 million tonnes and 5.59 million tonnes, respectively. 

EMIRATES: GCC cement firms rebound into profit in 2011

Cement companies in Gulf oil producers rebounded into profits in 2011 after suffering from lower earnings in the wake of the 2008 global fiscal distress that halted many construction projects in the region.

Sales revenue swelled by 14.2 per cent to $4.57 billion last year from around $4bn in 2010 while net profits edged up by 2.7 per cent to $1.47bn from about $1.44bn, Kuwaiti-based Global Investment House (GIH) said.

The combined assets of the companies in the six-nation Gulf Cooperation Council (GCC) also rise by around 4.4 per cent to $14.85bn from about $14.22bn in the same period, GIH said in a study.

“The GCC cement sector witnessed a turnaround after two years of decline in top line following the credit crisis wave that halted major real estate activity and construction projects affecting cement and building materials companies.”

The report showed the UAE , Saudi Arabia, Oman, and Kuwait overturned the declining revenues in 2010 and all four countries reported increasing sales for 2011 except Qatar. The UAE which has seen lower sales revenue since 2008, enjoyed a 5.9 per cent increase in sales to reach $940 million.

Oman also witnessed a 12.8 per cent rise in sales revenue, which reached $342.3m, the second highest revenue in Oman’s cement history. However Oman reported a 39.4 per cent decrease in net profits in 2011.

Kuwait reported a 5.4 per cent increase in revenue to reach $66.9m and posted a 47.1 per cent drop in net profits as compared to 2010.

Qatar was the only GCC country reporting lower sales and profits while Saudi Arabia posted a healthy 22.6 per cent increase in sales revenue and a 25.2 per cent growth in net profits, according to the report.

“The financial strength of the GCC cement companies continued to remain strong to weather any problem in the cement market as assets and equity increased by 4.5 and 4.4 per cent respectively last year,” GIH said.

“On the other hand, debt grew by 2.7 per cent to $2,497m… but debt to equity ratio fell to 22.5 per cent in 2011 from 22.8 per cent in 2010 .”

The report noted that the UAE, the second largest cement producer in the GCC, witnessed a 5.3 per cent decline in cement prices to reach $49 per tonne. It said the fall was a result of the excess supply and low demand due to slowdown in real estate and construction projects.

“In addition, new cement companies have flooded the UAE market, bringing more pressure to cement sector. The UAE continues to face pressure on its cement industry which is shown in the stifled profits,” the report said.

“The UAE is a strong economy backed by higher oil prices and strong development plans….time will heal the cement industry slowdown as the real estate activity picks up and more liquidity flows into the economy.”

BRAZIL: Big Brazilian Companies Eye Major Portuguese Cement Maker

Two Brazilian industrial titans are circling a big Portuguese cement maker in the latest sign that the euro zone's recession is cutting the value of companies based in struggling European countries and making them takeover targets, especially for corporations based in booming economies like Brazil. 

Camargo Correa SA, Brazil's second largest construction company, on Friday bid €2.48 billion ($3.32 billion) for the 68 percent stake it doesn't already own in Cimpor-Cimentos dePortugal SGPS SA, a publicly traded Portuguese cement company with global operations.

The offer by Camargo, which is Cimpor's largest shareholder, comes to about €5.50 per share, a premium of 10 percent from Friday's closing price. By late Monday Cimpor-Cimentos shares had risen to nearly the Camargo offering price.

Meanwhile, Votorantim Participaçõ es SA, another large Brazilian industrial company that holds a 21 percent stake in Cimpor, is mulling whether to exercise the right to buy into a Camargo Correa-Cimpor deal twithout having to put in a larger bid, according to published reports.

Analysts believe Votorantim will exercise that right, allowing it to increase its stake in Cimpor to over 30 percent.

"A competing offer (from Votorantim) is unlikely. We think that the end game might be that Votorantim and Camargo are interested in sharing Cimpor's assets and for that Camargo and Votorantim would need two-thirds of the votes in a shareholders' meeting," Nuno Estacio of Brazilian investment bank Espirito Santo, wrote in a research note quoted by Reuters.

Estacio believes Votorantim might end up with Cimpor's international assets further down the line, in exchange for yielding that company's Brazilian operations to Camargo Correa, and other concessions.

The two companies focus on Cimpor reflects Brazil's surging industrial growth and the extent to which cash-rich Brazilian companies have the resources to grow through international acquisitions.

But the focus on Cimpor also follows recent merger and acquisition activity involving two other Portuguese companies, highway operator Brisa Auto-roads of Portugal and energy company Galp Energia, and underscores how willing owners of companies in struggling economies are to cash out, Reuters said.

Portugal's state-owned banks and pension funds, which are deleveraging as a result of the austerity mandate included in a recent bailout package, have large stakes in Cimpor.

State-run CGD bank has said it will sell its 9.6 percent stake in the cement maker at the price Camargo is offering, even though that is lower than the €6.50 share price of early 2010, when Camargo Correa first bought into Cimpor. Various analysts have a valuation of Cimpor that is closer to €6 per share.

The equity markets were judging the deal as fait accompli. Shares of Cimpor rose to as high as €5.50 on news of the deal before settling at €5.47, a tight spread between the market and announced deal price that suggests investors are highly confident the deal will be done.

PHILIPPINES: Cemex, Lafarge Raise Cement Prices

Local cement manufacturers are raising prices by P5 per 40-kilogram bag since last week as increases in fuel prices have not shown any sign of abating and the peak of the construction season is starting.

Trade and Industry undersecretary for consumer welfare Zenaida C. Maglaya said that based on last Friday’s Price Monitoring report, prices of two brands of cement – Republic (Lafarge) and Rizal (Cemex) increased by P5 from P200 to P205 per bag now.

However, the price of Holcim Philippines Inc. dropped P5 to P195 now from P200 per bag the previous month.

In June last year, Holcim raised its prices by 6% in Luzon or P10 per kilogram bag to P200 per bag.

The local cement industry is dominated by the three global cement firms Lafarge, Cemex and Holcim.

Cost of power and coal accounts for 40 percent of a cement company’s total production expenses. Most of the cement firms source their coal supply from Semirara Coal Corp. but majority of their supplies is imported from Indonesia.

Construction activities are seasonally higher during the summer months, which normally starts early in the year and peaks in May.

Last year, construction activities were fueled by the private sector spending as government did not spend much for infrastructure projects.

The Aquino administration, however, has started accelerating investments and implementation of major infrastructure projects this year.

Government infrastructure projects and private sector investments in property developments, including housing and commercial establishments, are expected to boost demand for construction materials, including cement.

CARIBBEAN: Carib Cement workers in limbo

Workers at Caribbean Cement remain off the job this afternoon as discussions continue at the labour ministry over an industrial dispute.

Some 200 employees are on work-to-rule to protest the board’s decision not to sanction a wage offer from the management.

The talks are being held between the National Workers Union (NWU) and the management of Carib Cement.

According to NWU Vice President Granville Valentine, the Board’s action comes after the union and the management of Carib cement had reached an agreement following prolonged negotiations.

POLAND: HeidelbergCement expands cement capacity in Poland

German cement maker HeidelbergCement completed the capacity expansion project at its cement plant in Górazdze, Poland, with the commissioning of a new cement mill. The new mill, which is the largest ball mill in Europe, has a capacity of 1.4 million tonnes per year and ideally complements last year's increased kiln capacity. In 2012, total cement capacity in Poland rises to 5.6 million tonnes.

Górazdze is HeidelbergCement's largest, most modern cement plant in Europe. In 2011, the clinker capacity was expanded from 3.1 to 4.0 million tonnes per year. By using state-of-the-art technology, HeidelbergCement reduced specific energy consumption and CO2 emissions per tonne of cement and increased the use of alternative fuels. With the installation of the new ball mill, the cement grinding capacity is increased in line with the expanded clinker capacity.

In the next three to four years, strong cement consumption is anticipated for Poland. Domestic demand will increase, in particular, as a result of the further development of infrastructure investments and the growing demand in residential construction.

AFRICA: ZIMBABWE: Lafarge plans to spend $4,5 million

Lafarge Cement Zimbabwe plans to spend $4,5 million on capital expenditure during 2012 in a move aimed at improving the plant’s efficiencies.

In a trading update for the first three months ending March, managing director Jonathan Shoniwa said: “This is expected to result in better plant rehabilitation and improved efficiencies.”

He said cement demand in the first three months was up 31% and the market remained predominantly retail as the construction sector’s contribution was stagnant at 18%.

In the first quarter revenue was up 32% to $16 million. The company is projecting full-year revenues of $60 million up from $50 million last year.

“Profit margins at 13% are expected to improve further following the reorganisation and anticipated increased efficiencies,” he said.

“We recorded minimal exports for the quarter as the main strategy is to focus on the more profitable domestic market.”

Shoniwa said cash generation was expected to improve in line with improved operating margins and working capital management.

During the year ended December 2011, Lafarge recorded a 19% increase in turnover of $49,7 million.

The company remained bullish as it anticipated demand for cement to remain strong.

Profit before tax was up 35% to $5 million from $3,7 million recorded in the previous year.

The profit before tax margin increased to 10% from 9% in 2010.

Profit for the year amounted to $3,5 million up from $2,7 million the previous year.

Last year, the company’s finance costs increased by 64% to $0,7 million as the business increased short-term borrowings to bridge working capital constraints during a major plant shutdown period.

TANZANIA: Cement industry offers big promise

The increasing demand for cement in the East African economic bloc could attract up to Sh320 billion ($200 million) in investment in the next two years, according to industry players. 

Forecasts by the Tanga Cement Company Limited (TCC) show that cement consumption in the region would hit 17 million tonnes by the year 2014, in order to cater for increasing the demand caused by infrastructure development.

As governments keep earning more from natural resources coupled with the desire to put up world-class state of the art structures and infrastructure, they are expected to spend more in the cement sector. 

Statistics show that currently the region produces close to a total of 11 million tonnes against the consumption capacity of 8 million. 

TCC managing director Erik Westerberg told The Citizen this week, that the increasing demand for better houses in the country was an additional catalyst for cement consumption.

“The country’s cement industry has outpaced the growth rates of other sectors in Tanzania on the backdrop of such factors as rising demand from the housing sector, increased activity in infrastructure and construction recovery,” Mr Westerberg said.

He said the trend provided good opportunities for investors to direct their money in the sector, however, he cautioned that a conducive environment must be put in place.

Mr Charles Shonayi, a research analyst at the South Africa-based Frost and Sullivan, said growing urbanisation in East Africa would also increase the demand for cement, adding that infrastructure development and new housing were still very significant.“Cement manufacturers in East Africa should consider investing in energy-efficient manufacturing technologies,” he stated. 

The underdeveloped mortgage sector in EAC indicates that demand for new housing was likely to accelerate in the coming years as a result of rising disposable income and improved access to credit, which would have more people moving to better and larger housing.

Kenya is the largest market for cement in East Africa with an annual production of 53 per cent of the region’s total capacity. Tanzania and Uganda contribute 30 per cent and 15 per cent respectively.

TAIWAN: Taiwan Cement cautiously optimistic

Taiwan Cement Corp (台泥) expects demand to pick up gradually this year, after earnings declined more than 20 percent in the fourth quarter because of government efforts in Taiwan and China to curb property speculation, top executives said yesterday.

“We are cautiously optimistic about the business outlook [this year] after a below-trend fourth quarter when the unfavorable macroenvironment softened demand and pushed down selling prices,” Leslie Koo (辜成允), chairman of the nation’s largest cement producer, told an investors’ conference.

Political uncertainty over the leadership reshuffle in China is likely to settle by the end of the first half, allowing public construction works to resume, he said, adding that the landscape elsewhere is also expected to become clearer in the second half.

The Taipei-based company, which has been expanding its operations in China, posted NT$2 billion in net income last quarter (US$67.69 million), a fall of 22.2 percent from the third quarter and 24.1 percent year-on-year, the company’s report showed.

For the whole of last year, net profit rose 7.3 percent to NT$8.62 billion, or earnings per share of NT$2.33, as the company expanded its capacity to become the sixth-largest in China, spokesman Edward Huang (黃健強) said.

The company also aims to become the third largest through organic growth and acquisitions, Huang said.

Gross profit margin last quarter fell to 16 percent, from 17.9 percent three months earlier, but annual margin improved to 17.4 percent last year, from 11.2 percent in 2010, Huang said.

“China’s plan to increase social housing will offset the pain of continued efforts to curb property speculation,” he said.

Beijing’s moves to strengthen infrastructure facilities in rural areas should also help boost demand for cement, Huang said.

Overall capacity in China grew rapidly to 60 million tonnes last year, from 40.4 million tonnes in 2010, with plants in the southern provinces of Guangdong and Guangxi contributing 45.5 percent, he said.

“The company is on track to raise the target to 100 million tonnes a year in 2016,” Huang said.

Sales saw concrete improvement this month after emerging from the low season in the first two months, although selling prices remained weak, Koo said.

In Taiwan, the introduction of anti-dumping tariffs has benefited the company’s sales and lifted its gross margin to 9.8 percent, the report showed.

In the export market, the company expects strong demand from emerging economies, given limited supply from main rival countries, such as China, Japan and Thailand, Koo said.

“We have signed [sales] contracts for this year, with selling prices increasing 20 percent from last year,” Koo said.

Taiwan Cement closed up 0.44 percent at NT$34.55 yesterday, while the benchmark TAIEX gained 0.77 percent.

PAKISTAN: Cement sales likely to hit record high this month

LAHORE: Cement manufacturers have expressed the hope that domestic cement consumption will reach a record high at around 2.5 million tons this month, but at the same time they complain about thin margins for the industry.

The cement makers expect domestic supplies to cross two million tons in northern parts of the country and 500,000 tons in the south. Previously, the record was reached in March 2010 when sales hit 1.993 million tons in the north and 317,000 tons in the south, totalling 2.31 million tons.

However, industry representatives say that despite the growth they are perplexed and forced to continue production even with losses as the cost of shutting down plants is higher due to loans acquired at high rates from banks.

A senior executive of one of the largest cement manufacturers said increases in electricity tariff in the form of monthly fuel price adjustment pushed up production cost substantially. The recent tariff hike would increase the cost of cement by Rs20 per bag in near future, he said, adding “it has become impossible to continue running the factories in the face of high input cost.”

“Increasing prices of diesel, coal and electricity are major factors behind the high production cost, but these have not been passed on to the consumers,” he claimed.

“Cement is a capital-intensive industry,” said analyst Intezar Mehdi. “Most of the industry added to their capacity in the past decade when interest rates were low and now they are servicing those loans at a rate which is three times higher,” he added. He said though the breaking of the monthly sales barrier of 2.31 million tons called for celebrations, the industry earned an average of Rs6 per 50kg bag in the past 10 years, which was quite low.

VIETNAM: Cement factories bent with debt burden

Dau tu has quoted its sources as saying that the Song Da Group is meeting troubles with the big debt incurred by one of its subsidiary – the Ha Long Cement Joint Stock Company.

The cement factory was built in 2008, when the real estate market boomed and the demand for cement for civil engineering works increased dramatically. Everyone would think of set up a cement factory at that time, especially when there was profuse limestone supply source.

If the construction plan had been implemented on schedule, the debt payment would not have been beyond the Ha Long Cement Factory’s capacity. However, as the construction work was late by one year, the factory missed the best opportunities to sell products when the market was still hot.

The Ministry of Finance was assigned by the Prime Minister to guarantee for the cement factory to borrow foreign loans. The ministry then acted as the guarantee for the Song Da Corporation, the holding company of Ha Long, to buy the loan, which then re-lent to Ha Long 3335 billion dong.

However, Ha Long has been taking loss, 78 billion dong in 2009 and 500 billion dong in 2010, while it now has to pay the principal to the foreign banks. Dau tu has reported that the accounts payable is 400 billion dong a year.

Misfortune has also come to the Cam Pha Cement Plant which became operational in January 2009 with the chartered capital of 2 trillion dong. Four years ago, when inaugurating the plant, the leaders of Vinaconex, the parent group of Cam Pha, believed that Cam Pha would be the goose that lays golden eggs.

Cam Pha really had every reason to hope for a bright prospect, because it can take full advantage of the well known brand “Vinaconex” or the parent group, it had modern production lines, mines and specialized port.

However, by November 2011, Cam Pha had incurred the loss of 1200 billion dong, while the loss would be 1600 billion dong, if counting on the loss due to the exchange rate fluctuations.

In an effort to calm the shareholders down, Vinaconex is considering selling Cam Pha’s shares. However, who will buy the shares?

Dau tu has quoted its reliable sources as saying that the investors who are interested in Cam Pha shares only agree to pay less than 10,000 dong, or below the face value for every Cam Pha’s share.

One of the interested investor is Vicem, the Vietnam General Cement Corporation. Luong Quang Khai, Deputy General Director of Vicem, has said that the corporation’s principle is taking full advantage of the existing factories; therefore, it is considering buying Cam Pha’s shares.

Meanwhile, Thoi bao Kinh te Vietnam has reported that Vicem would have to pay 4700 billion dong in debt in 2012. 

In 2011, Vicem’s profit was modest at 540 billion dong, while the profit on investment capital was 1.97 percent, and the profit on stockholder equity 4.35 percent.

Dau tu newspaper in late 2011 once reported that four cement plants could not pay debts to foreign banks, including the Hoang Mai, Dong Banh, Thai Nguyen and Tam Diep. Therefore, the national accumulation fund for debt payment would have to use 30-40 million dollars a year to pay debts for the cement plants. 

The Ministry of Finance has anticipated that more cement factories would meet difficulties in pay debts in the next 3-5 years.

IRISH: Cement plant workers go on strike over pay

Up to 100 workers at Irish Cement Ltd have gone on strike.

They have been manning pickets at the entrances to the plants at Castlemungret in Co. Limerick and Platin in Co. Meath, since early this morning.

Management at Irish Cement have expressed their disappointment at the escalation of the industrial action.

The workers have said they are protesting at the company's failure to implement a Labour Court recommendation that they be paid thousands of euro they say they are owed by the firm.

Irish Cement management has said that the Labour Court suggested a pay cut of 6%.

The company has said it has "repeatedly attempted" to talk with unions on reductions in pay rates "which include bonuses reflecting peak output levels". 

Employees are represented by the Irish Cement Group of unions which includes SIPTU, the TEEU and Unite.

The firm said in a statement: "Pay rates have remained unchanged since 2008 and currently are 60% higher than the average industrial wage for unionised staff, despite the unprecedented deterioration in the Irish construction sector which now operates at 20% of the 2007 peak output.

"The company is deeply disappointed that protracted attempts at meaningful dialogue on this issue with the group of unions have failed, including an intervention by the Labour Court in the past week. The Labour Court suggested a pay cut of 6% which was subsequently rejected by union ballot."

The company's management condemned as "irresponsible" the work-to-rule actions by unionised workers in recent weeks.

They said theis arcions had "systematically rendered both plants inoperable and attempted to undermine supplies of cement to customers".

They said: "Pay rates are unsustainable and are impacting negatively on the competitiveness of the company in the markets in which it operates and also on its capacity to export. Management continues to urge unionised staff through their representatives to commence meaningful engagement with the company so as to achieve the long overdue and necessary reductions required in remuneration as a matter of priority."

AFRICA: Dangote Cement plans London listing

Aliko Dangote, Africa’s richest man, plans to list his $11bn cement business on the London Stock Exchange next year and loosen his personal control over the company.

The Nigerian industrialist, who has capitalised on the continent’s booming demand for building materials, told the Financial Times he intends to free-float a 20 per cent stake in Dangote Cement to finance its rapid expansion. It will be the first listing of one of Mr Dangote’s companies outside Nigeria.

“We want to list in London next year,” he said in an interview in Lagos. “By then the upside to our business will be much bigger than today.”

Already the largest cement producer in sub-Saharan Africa, Dangote Cement is more than doubling capacity this year to 21m metric tonnes, and wants to reach 43m tonnes in 2015. Besides Nigeria, where it has three plants and 70 per cent market share, the company has contracts to construct factories in eight African countries, from Senegal to South Africa to Ethiopia.

The expansion comes at a time of fast growth in Africa, with the IMF forecasting that regional economies will expand by 5.75 per cent this year. This is boosting spending on infrastructure and housing and driving demand for cement.

Dangote Cement’s net profit in 2011 is expected to be $790m on revenues of $1.5bn, according to guidance filed at the Nigerian Stock Exchange. Mr Dangote, whose net worth is $12bn according to Forbes, said he wanted to quadruple profits within four years and turn the business into the world’s most profitable cement company.

Morgan Stanley and JPMorgan have been appointed as co-leads for the London share issue. Mr Dangote said that the company was on track to meet the stringent corporate governance requirements for a premium listing, and that he would give up his current role as chairman.

“My plan is to have different faces [on the board],” he said. “The face of the chairman will not be Aliko Dangote, it will be somebody else, a professional who is well-respected within investment circles.”

At the same time, Mr Dangote’s conglomerate, Dangote Group, is changing focus. It plans to sell 80 per cent stakes in its food business, which include salt, sugar, flour, rice and pasta.

Besides cement, the group will concentrate on three other main sectors, Mr Dangote said. The mining arm will focus on coal, iron and bitumen. The petrochemical business will produce methanol, polyethylene, and fertiliser.

The infrastructure business plans to produce and sell 2,000MW of electricity in Nigeria – about half of the country’s current capacity – when power sector deregulation is completed, and to build a $1.5bn port, “the biggest deep-sea port in West Africa”, near Lagos.

INDIA: Cement prices rise 50% in Bihar as supplies fall

In past few months, cement prices in the eastern state have jumped almost 50% due to fall in production from one of the biggest suppliers, even as construction activity continues to boom across the state.

The eastern state, which does not have any major cement producing plant and relies on supplies from plants located in Satna, Madhya Pradesh, is grappling with an unprecedented rise in cement prices, which have surpassed that in Gujarat, one of the largest cement consuming states in India.

Compounding the situation is the shutdown of a unit of Prism Cements in Satna, which has a significant share in the Bihar market.

Replying to queries from ET, a Prism Cement spokesman said, "Clinker production in Unit II at Satna will be temporarily suspended as there has been damage to the blending silo. Cement production and dispatches shall continue.

Also, operations, both for clinker and cement, at Unit I at Satna continue to be normal." Prism has the capacity to make 5.6 million tonnes a year.

Hari Kishore Singh, a cement stockist in Patna, said he is currently selling cement at about Rs 365-385 for a 50 kg bag. The price of the same bag used to cost Rs 230-250 two months ago.

"There is a supply shortage in this peak construction season, so prices have gone up. Companies are making good profits," Singh told ET.

Ishan Kumar Jain, who owns Sarvottam Cement Stores in the city's Zero Mile area, says this price rise is unprecedented. "We used to see an increase of Rs 30-40 on a bag around this time every year as construction activity goes up before the monsoons...but this is unusual."

Sensing opportunity, Prism's competitors such as ACC and Ultratech, which have units close to Bihar, especially in Satna belt, have shifted focus to this market.

"This is the first time that there has been such a quantum rise in prices and most of the plants in MP are now rushing to sell in Bihar," said a senior executive of one of the companies who asked not to be identified.

Over the past two years, the state's demand for cement has been rising steadily by about 25-30%, double the country average. Prices in other fast growing states such as Gujarat have grown barely 8% in the same period.

The state's deputy chief minister and finance minister Sushil Modi says cement demand is at an all-time high because of the flurry of construction activity and infrastructure projects across the state, which is gaining pace now. "This is evident from tax collections from the cement industry, which has grown significantly over the months," he says.

Unlike other commodities, cement is a regional product, which cannot be transported over large distances to be sold in lucrative markets, as the freight element accounts for a major part of total cost. This prompts most companies to sell within a radius of 300 km of their plants.

Most of the cement sold in Bihar comes across the border from neighbouring states such as Madhya Pradesh and Jharkhand, which have large players such as UltraTech, ACC, Heidelberg, Prism, Century and Birla Corp, apart from a host of smaller players.

Refusing to talk about cement demand in specific areas, ACC chief commercial officer Jayanta Datta Gupta said, "With the large allocation of funds to the infrastructure projects as proposed in the Budget and reasonably good demand in housing sector in semi-urban and rural areas, we expect cement demand to grow between 9 -10% in the current year."

While prices in rest of the country have also firmed up, the average increase in the traditionally strong cement consuming states of Gujarat and Maharashtra has been about 10-12% and mainly as a pass-through for important cost elements such as rail freight and coal. Typically, freight and coal together account for almost half of the total cost of making cement.

"There has been a sharp rise in cement price in Bihar, but most of it is largely due to infrastructure projects that typically start before any elections," said Nikhil Saboo, a cement analyst with Kolkata-based SKP Securities.

The prices are also likely to stay firm as there is slow pace in capacity additions across India, which is coinciding with peaking of interest rates and improvement in demand from housing segment. "Typically, the November-May period is considered to be the peak season for cement consumption before it slows down in monsoon," said Emkay Global analyst Ajit Motwani.

"Also, labour for construction in various infrastructure projects is available only till April. After that, it is difficult to get work done as most labourers shift to agriculture," he added.

ESPAÑA: Situacion del sector

Los cimientos del cemento se cuartean. El desplome de los sectores de construcción e inmobiliario, el extremo endurecimiento del mercado financiero y crediticio, y las restricciones presupuestarias de las Administraciones públicas han colocado entre la espada y la pared a los grupos cementeros y del hormigón españoles (Portland Valderrivas, Molins, Balboa y La Unión, entre otros) y a las filiales de los mayores conglomerados mundiales de estas actividades que operan en España.

La situación es mala en todas estas empresas y crítica en las menos diversificadas. La demanda de cemento en España ha pasado del cielo al infierno en cinco años. El techo del consumo lo marcó 2007 con 56 millones de toneladas, y el suelo —hasta ahora—, 2011 con una demanda de 20 millones; pero el deterioro sigue y las expectativas para 2012 sitúan la demanda por debajo de los 17 millones de toneladas. Hay que remontarse a 1967, dicen en la patronal Oficemen, para encontrar cifras semejantes. “Vivimos un recrudecimiento de la crisis sin precedentes”, señalan en la patronal.

Buen ejemplo de lo que está pasando es Portland Valderrivas, principal responsable de una caída del 64% en las ganancias de su matriz FCC en 2011. La cementera se ha comprometido a reducir su capacidad de producción para adaptarla a las previsiones de demanda del mercado español en los próximos años (30 millones de toneladas). Para alcanzar tal objetivo, la compañía va a cerrar parcialmente dos de sus ocho plantas españolas dentro de un proceso de reestructuración que contempla 500 despidos, la sexta parte de su plantilla en España. La reestructuración tiene un coste estimado en 50 millones de euros.

La situación es mala en todos los grupos y crítica en los menos diversificados

El plan de choque de Portland, que cerró el ejercicio 2011 con una pérdida neta de 327,5 millones y 311 millones de saneamiento, se denomina Plan NewVal, abarca el periodo 2012-2013 y fija como meta alcanzar en dos años un incremento de 60 millones en su ebitda. Juan Béjar, fichado en su día por FCC para desatascar la filial de infraestructuras que comparte con Bankia, Globalvía, ha sido elegido de nuevo (hace mes y medio se le nombró presidente de Portland) para sacar del atolladero, en este caso en sus negocios del cemento, al grupo matriz.

Portland Valderrivas, que tiene un 22% de cuota en el mercado español, quiere reducir a lo largo de este año en 300 millones su deuda bruta de 1.300 millones y para ello tendrá que desinvertir o ampliar capital. La compañía puso hace varios meses el cartel de “se vende” a su filial estadounidense Giant Cement Holding, por la que pretende ingresar 700 millones de dólares, pero aún no ha encontrado comprador y las expectativas son poco favorables.

El grupo está preparando además un nuevo plan de negocio hasta 2016 que debería facilitarle la renegociación de créditos pendientes, que quiere dejar concluida antes del verano, con las entidades financieras. Portland Valderrivas tenía a finales del pasado ejercicio 1.054 millones de deuda neta. Parte de esa deuda, según el informe de gestión de su matriz FCC, se hallaba vencida a 31 de diciembre por el incumplimiento por parte de su filial Giant de algunas ratios fijadas en los contratos de financiación, lo que le ha obligado a reclasificar como pasivo a corto plazo 238 millones de euros de deuda. Además, ha tenido que reclasificar como pasivo corriente 988 millones, y también por incumplimientos, de créditos sindicados que utilizó para la compra de Uniland (se incorporó al grupo en 2006). De esa deuda, Portland y otras sociedades del grupo garantizan 226 millones.

Cementos Molins, el otro gran grupo doméstico, ha eludido los números rojos en 2011 (ganó 24,3 millones), pero redujo su beneficio anual nada menos que en un 64% (aunque el descenso, según la compañía, es solo del 39% si se excluyen 26 millones de extraordinarios en sus cuentas de 2010). Sus resultados han estado lastrados por sus negocios en Túnez, por la inestabilidad política social en este país en el último año, y por las sociedades que operan en España, que acusan profundamente la situación de los mercados, lo que lastra sus indicadores y sus resultados.

Cementos La Unión se ha visto abocada por el desplome del mercado nacional a poner en marcha expedientes de extinción y regulación de empleo en febrero, y Corporación F. Turia, a recomponer su asociación con la helvética Holcim tan solo unos meses después de haberse separado. El grupo extremeño Gallardo, con el agua al cuello en varios de sus negocios, no ha logrado colocar su cementera Balboa, por discrepancias en la valoración tras haber suscrito la venta, a la brasileña Companhia Siderúrgica Nacional (CSN). Las cuentas de Tudela Veguín también están damnificadas por la situación del mercado doméstico.

Gripe en las multinacionales

A los gigantes mundiales del cemento tampoco les va bien en España. Holcim ganó un 77% menos en 2011 y ha tenido que provisionar 641 millones en sus cuentas debido, en buena parte, a la depreciación de sus activos y al deterioro de su actividad en España. Su filial española presentó en enero un ERE que afecta a 140 empleados, al 40% de su plantilla, y prevé, dentro del ajuste que ha diseñado para el mercado nacional, el cierre de la mitad, una veintena, de sus plantas de hormigón.

La mexicana Cemex también se ha visto golpeada por la crisis en España, donde sus ventas cayeron un 20% en 2011. “Los volúmenes siguieron disminuyendo durante el último trimestre del año”, señala la multinacional, “afectados por una menor demanda en todos nuestros sectores y regiones, especialmente en Cataluña y Levante”.

La francesa Lafarge atribuye los 3 millones de pérdidas registrados en sus cuentas al cierre del cuarto trimestre de 2011, frente a unas ganancias de 62 millones en igual periodo de 2010, al impacto de las depreciaciones y de la caída de la demanda de cemento en España y Grecia. Países donde espera nuevos descensos en volumen de ventas del 15% y del 12%, respectivamente, y que van a centrar parte de los esfuerzos requeridos por un anunciado plan de ahorro de costes global por importe de 500 millones de euros. El grupo se propone también realizar desinversiones por un importe conjunto de 1.000 millones de euros.

La cementera de origen portugués Cimpor registró en 2011 una disminución del 18,1% en su beneficio, que se situó en 198 millones, con significativas caídas de sus ventas en Portugal y España. Atribuye el descenso de sus ganancias a la pérdida de valor de sus activos en España —donde controla la firma Corporación del Noroeste y está reestructurando sus negocios y reduciendo su capacidad de producción—, al refuerzo de provisiones fiscales en Brasil y al aumento de los márgenes financieros.

Una situación, en suma, la del sector del cemento que pone en riesgo la continuidad de algunas fábricas y la permanencia de miles de puestos de trabajo. Como reflejaba hace siete días un lector de este periódico, A. Velasco, en la sección Cartas al Director, “indigna” y “preocupa” que el consumo de cemento haya caído a niveles de los años sesenta, es decir, que hayamos retrocedido 50 años. “Esta es nuestra desgracia”, escribe, “haber consumido en el último decenio tanto cemento que no podíamos digerir y hoy sufrimos una indigestión que nos ha puesto en ayunas (sirva el símil sanitario)”.