TUNISIA: Carthage Cement: augmentation du CA de 375%

La production d'agrégats de la carrière de Djebel Ressas, par la société "Carthage Cement" a enregistré durant les neufs premiers mois de l'année 2014, une augmentation de 37,3% par rapport à la même période de l'année 2013 a indiqué Mena capital partners (MCP).

La production de Ready­Mix a quant à elle augmenté de 15,5% par rapport à 2013.

La production du clinker a atteint 975 287 tonnes et à partir desquelles une production de 772 420 tonnes de ciments a été réalisée.

Le Chiffre d'Affaire total de la société au 30 Septembre 2014 s'est élevé à 132,851 MD, soit une croissance de 375% par rapport à la même période de l'année 2013.

Pour l'activité agrégats, les ventes n'ont pas encore retrouvé leur rythme de l'année dernière, enregistrant une baisse de ­ 25,2% sous l'effet de la récession économique qui secoue le pays depuis la révolution, notamment l'absence des marchés publics d'infrastructure.

L'activité Ready­Mix, par contre, a enregistré une croissance de son chiffre d'affaires de 25,9% sur les neufs premiers mois de 2014 par rapport à la même période en 2013.

Les ventes des ciments se sont élevées au 30 septembre 2014 à 86,745 MD dont 22,634 MD à l'exportation.

Au terme du mois de septembre 2014 l'endettement de CARTHAGE CEMENT se situe à 511,249 MD.

ANGOLA: Importers Put in More Than 60 Tons of Cement

Cement importers in Cabinda province started to put this Tuesday in the local market 60 tons of the product to ensure the supply and end the shortage that has been rerecorded lately in the region.

Speaking to Angop, importer Mayomona Bumba Anderson said that with this offer and the quantities of cement that soon will come from the factories of New Cimangola and CimentFort in Luanda, the market in Cabinda will have enough product for the works in progress, both public and private ones.

Mayomona Bumba Anderson also said that importation agents defend the supply in Cabinda of the national product in order to reduce imports.

SAUDI ARABIA: Saudi Cement Q4 profit rises 9 pct, beats forecasts

Saudi Cement reported an 8.9 percent rise in fourth-quarter net profit on Wednesday, beating forecasts as cement sales increased.

The kingdom's largest cement company by market value made a net profit of 269 million riyals ($71.68 million) in the three months to Dec. 31, according to a bourse filing. This compares with a profit of 247 million riyals in the corresponding period of 2013.

Analysts polled by Reuters on average forecast Saudi Cement's quarterly net profit would be 259.8 million riyals.

The cement firm attributed its profit rise to higher cement sales and larger earnings from associated companies.

Saudi Cement made a profit of 1.08 billion riyals in 2014, down 4.4 percent on 2013. ($1 = 3.7527 riyals)

GUINEA-BISSAU: World Bank Group studies investment in cement plant in Bissau

The World Bank Group is analysing the possibility of financing a cement factory project in the capital of Guinea-Bissau, with a production capacity of 200,000 tons per year, according to Portuguese news agency Lusa.

The project is headed up by Senegalese businessman, Maxime Cardoz and by Scancem, a subsidiary of HeidelbergCement, a German cement and building materials company, which is one of the world’s largest cement manufacturers.

Those interested in building the plant requested a loan of 11 million euros, half the cost of the project and a decision is expected by the end of February.

The International Finance Corporation (IFC) – part of the World Bank Group which is examining the project – said in a document to which Lusa had access that the aim is to replace imported cement in the Guinean market, and notes that in the future the plant may supply cement to regions of neighbouring countries, such as southern Senegal and northern Guinea-Conakry.

CAMEROON: Dangote Cement Cameroun receives first delivery of raw materials and is set to launch production this month

Built on the banks of the Wouri River by Nigerian billionaire, Aliko Dangote (for a total investment of 50 billion FCFA), the cement factory will enter production in January 2015 and will soon start selling cement on the Cameroonian market, affirms project chief, Baba Abduhallï.

The cement factory has already received its first shipments of raw materials, particularly clinker and gypsum as well as pozzolan from a quarry in the city of Tombel where Dangote Cement Cameroon has approval to use for 5 years.

From the start, Dangote Cement Cameroon is planning to produce 1.5 million tonnes of cement, bringing national production to around 3.6 million tonnes, including 500,000 tonnes from the Moroccan company, Cimaf and 1.6 million tonnes for Cimencam, the Lafarge group’s subsidiary

ANGOLA: Autoridades executam estratégia para aumento do cimento nacional no mercado

A província de Cabinda vai receber, nos próximos dias, várias toneladas de cimento produzido no país pelas fábricas Nova Cimangola e CimentFort, deu a conhecer, nesta cidade, o inspector-geral do ministério da Construção, Manuel Fernandes Correia Victor.

Manuel Correia Victor esteve em Cabinda, sexta-feira, mandatado pelo ministro da Construção e coordenador nacional da comissão de cimento, no sentido de autorizar a entrada de cimento importado que havia sido interrompido devido a não publicação, até a presente data, da nova lei que vai regular a cotação de importação do mesmo durante o presente ano.

Assim sendo, disse que já estão programados a chegada, nos próximos dias, de quatro (4) navios que vão transportar grandes quantidades de cimento nacional para a província, cujas toneladas não avançou.

“Posso aqui adiantar que está já programado 4 navios que vão trazer cimento de produção nacional, sendo três com cimento da Nova Cimangola e um da Cimentfort isso para relançar o produto nacional no mercado e também promover o mesmo, assim como diminuir as importações, o que são objectivos do governo”, disse.

Mostrou-se ainda esperançado com a construção, brevemente, de uma fábrica de ensacamento de cimento nacional da CimentFort, que já tem avançado contacto com o governo da província para que esse produto nacional seja a prioridade para as obras na região.

No entanto, após a interrupção da entrada de cimento importado pelos três agentes importadores da província de Cabinda, devidamente credenciados, nomeadamente, Casa Mayomona, Bayuba Lda e Martinho Nguimbi, o produto começou a ser recebido no mercado local no final do dia de sexta-feira.

CAMEROON: Dangote - Production dès ce mois

La cimenterie basée à Douala finalise les tests de ses équipements.

La cimenterie Dangote, dont la production attendue est de 1,5 million de tonnes de ciment par an, promet ses premiers sacs pour ce mois de janvier 2015. Selon le directeur du projet, Baba Abduhallï, joint jeudi au téléphone par CT, l'usine est pratiquement prête et les tests sur les équipements sont en train d'être bouclés. La matière première, elle, est disponible depuis le mois dernier : « Nous avons déjà reçu la matière première : clinker, gypse, ainsi que la pouzzolane, qui nous vient de Tombel », indique-t-il. D'après la même source, c'est depuis environ deux semaines que l'usine conduit des « tests run », autrement dit des essais. « Nous sommes optimistes », relève-t-il.

L'entreprise rappelle que sa production aurait pu démarrer plus tôt, sans quelques soucis liés notamment au pic de congestion que le port de Douala a connu, il y a peu, lequel a, entre autres choses, « retardé l'arrivée d'équipements ».

Le projet a néanmoins progressé, visité de temps en temps par son promoteur, Aliko Dangote. C'est ainsi que le 27 novembre dernier, le milliardaire nigérian (première fortune africaine avec 21,6 milliards de dollars, selon le dernier classement Forbes) est venu « voir comment les travaux avancent » sur le site.

A l'occasion de ce passage en terre camerounaise, il a reçu un élu local au salon Vip de l'aéroport international de Douala, en l'occurrence Mouhamadou Yakoubou, 2e adjoint au maire de Douala II, et président d'association de jeunes. « Nous avons émis le vœu de voir de nombreux jeunes camerounais recrutés au sein de l'entreprise, et M. Dangote a donné des instructions à son staff dans ce sens. Des profils nous ont été demandés en ingénierie mécanique et en marketing », a confié Mouhamadou Yakoubou à CT.

ZIMBABWE: CEMENT MANUFACTURER PPC OPTIMISTIC

Cement manufacturer PPC Zimbabwe is positive its acquisition of an indigenisation certificate in 2012 will enable it to forge ahead of competition as the building industry improves.

Business Development and Corporate Strategy director Gavin Stephens said the company, asubsidiary of PPC South Africa, is in the process of implementing the indigenisation law. “We are in the process of implementing this ahead of the competition. It will give the community and employees shares in the company,” he said.

“While we have enjoyed a growth in market share we still have an extensive capacity,” he said. Since the country adopted multiple foreign currencies, the cement industry has enjoyed a solid recovery and good growth.

During the hyper-inflation period, cement sales dropped to 400 000 tons a year compared to an industry high of 1,1 million in 1999.

However fortunes have recovered for the industry and PPC is on a drive to grow the company in the region.

The company boasts of operating in emerging markets, where 70 percent of the world’s cement is produced, a factor that has allowed it to grow. Last year the parent company’s annual report commended the Zimbabwean operation for recording a fifth consecutive financial year of growth.

“Cement volumes were under pressure in South Africa and Botswana, while sales volumes in Zimbabwe continued to improve,” executive chairman Bheki Sibiya said.

“Sales volumes in South Africa were affected by poor economic growth, increased strike activity and above-average rainfall, whilst Zimbabwe enjoyed a fifth consecutive year of rising cement demand, albeit on a slower growth trajectory than prior years,” he said.

PPC has nine manufacturing facilities and three milling depots in South Africa, Botswana and Zimbabwe that can produce around eight million tons of cement products each year.

Investment at the company’s Bulawayo plant, which grew capacity from 650 000 tons to 1,1 million tons made the ability to maximise volume possible.

WORLD: Bankers ready debt as bids due on Lafarge Holcim assets

Bankers are lining up just over 1 billion pounds ($1.51 billion) of debt financing to back private equity firm KKR’s potential bid for the UK assets of cement makers Lafarge (LAFP.PA) and Holcim (HOLN.VX), banking sources said on Friday.

The UK assets are for sale alongside a number of other assets worth about 12 percent of France's Lafarge and Swiss peer Holcim's combined revenues, in order for a planned merger between them to go ahead creating the world’s top cement group with $44 billion in annual sales.

Binding bids are due January 12, the banking sources said.

Debt packages of just over 1 billion pounds for the UK assets equates to around 5.5 times Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of approximately 170 million pounds, including undrawn debt.

Holcim's French activities, Lafarge's German interests and other operations in Austria, Hungary, Romania, Serbia, Britain, Canada, the Philippines, Mauritius and Brazil are up for sale in a deal which could fetch 6 billion euros ($7.08 billion) in total.

The sale of the assets has attracted interested from a number of bidders including Irish cement maker CRH (CRH.I); Blackstone (BX.N), Cinven and Canadian pension fund CPP; and a team consisting of CVC and sovereign wealth funds the Abu Dhabi Investment Authority (ADIA) and Singapore's GIC. Meanwhile, Italy's Italcementi (ITAI.MI) and Turkey's Sabanci (SAHOL.IS) are expected to bid for some assets.

India’s Aditya Birla Group is expected to bid for continental European assets, two of the sources said.

Bankers are working on debt packages of up to 4.5 billion euros to back private equity bids for all the assets, equating to around 5.5 times EBITDA of approximately 725-730 million euros, including undrawn debt.

Lafarge, Holcim and KKR declined to comment. Aditya Birla Group was not immediately available to comment.

DOMINICAN REP: Cement-makers upbeat on falling prices

Dominican Cement Producers Association (Adocem) president Carlos E. Gonzalez on Tuesday urged the government and the private sector to take advantage of lower cement prices to boost housing construction.

He said lower oil prices spurs optimism in the cement industry, because it allows the government and the private sector more savings which can be channeled to Dominican Republic’s construction sector, taking advantage of other factors such as falling cement prices and the Mortgage Market Development and Trust Law 189-11.

"It's a unique opportunity for the consumer, because prices are so low, that is, in real terms the price of cement is now the lowest in the country's history," Gonzalez said, quoted by hoy.com.do.

He said as fuel prices, the electric and oil bills and transport costs fall, the government also saves funds, for which consumer and the State are expected to have more money to invest, which could be reflected in higher consumption.

The business leader also noted that Law 189-11 is an added incentive to provide more opportunities, for which he hopes consumers and the government are "clever and crafty" to take advantage of low cement prices and build houses.

Gonzalez stressed that an investment in housing improves the standard of living, generates a family asset and is an investment that boosts the Dominican economy because it positively impacts other sectors.

He said the cement industry saw the market with caution three months ago when it capped a two-year fall in prices. He said however that what happened in recent weeks with falling oil prices sparks a positive outlook.

Industry growth

The head of Adocem revealed that the country’s cement industry grew 18% in 2014, calling it a positive surprise because it was 16% in 2013, taking into account the domestic industry’s 60 percent production overcapacity.

The also president of Cemex Dominicana attributes the growth to the strong economy, which maintains a 7% growth, and the momentum in both the public and private construction sectors.

Gonzalez added that the Government’s school construction program and the development of public and private housing projects are also a big boost.

UK: Hope cement plant gets £14m upgrade

Hope is now two years old – it was January 2013 that Mittal Investments bought the bits of Lafarge and Tarmac that competition authorities required them to sell before they could merge. The biggest asset acquired was the cement works in Hope in the Derbyshire Peak District, which supplies approximately 15% of the UK’s cement consumption

To mark its second birthday, Hope has initiated several major capital projects designed to improve the plant’s operations.

These include:

• Completion of a multi-million pound system to increase the amount of sustainable waste-derived fuels the operation can accommodate; as well as being a ‘cleaner’ energy source this helps to make use of waste which would otherwise be landfilled;
• An internal overhaul of the landmark Hope chimney, which will involve the construction and use of a second temporary chimney for a number of months;
• Construction of a new storage facility to increase stock holding of cement clinker; this should help secure a consistent supply of cement to the construction industry;
• Improvements to the way the raw materials are fed into the twin kilns – the 70m long, 4.9m diameter rotating steel cylinders which are the heart of the cement-making process; and
• Maintenance and refurbishment of a large section of one of the two kilns.

Hope Works operations manager Ed Cavanagh said: “We are very excited to be involved in the largest investment programme on site for many years. This works has operated for more than 85 years and directly employs nearly 200 people, making a massive contribution to the UK construction industry, producing 1.5 million tonnes of cement at the site in 2014.

“The installation of the new kiln shell section is a spectacular piece of engineering involving several teams and very careful planning. We are delighted with the way that this individual project has evolved and look forward to seeing the others progress to schedule. Once this programme is complete, we will have an upgraded production plant, ready for the challenges of an increasingly busy time for building in the UK.”

INDONESIA: Cement Sales Growth in Indonesia Limited due to Politics & Commodities

Indonesian cement sales in 2014 reached 59.9 million metric tons, up 3.3 percent from domestic sales in the previous year but below the target that was set by the Indonesian Cement Association (ASI). The ASI targeted a sales growth rate of between 3.5 percent and 4.0 percent year-on-year. This sales target had in fact already been revised down from 6 percent (y/y) due to weak cement sales amid uncertainties brought about by Indonesia’s ‘political year’ (legislative and presidential elections) as well as weak global commodity prices.

Due to the fragmented outcomes of Indonesia’s legislative and presidential elections, several construction and infrastructure projects have been postponed until Southeast Asia’s largest economy could guarantee more political certainty. Due to the close battle between presidential candidates Joko Widodo and Prabowo Subianto (which needed a Constitutional Court case to be determined) political uncertainty lingered longer than initially assumed. The construction and infrastructure sectors account for most of the nation’s cement demand.

However, ASI Chairman Widodo Santoso said that Indonesia remains the top cement consumer among the 10-member Association of Southeast Asian Nations (ASEAN). He added that prospects for the cement industry are positive in 2015 and beyond as the Indonesian government is serious to invest in infrastructure projects, thus boosting cement demand. On Thursday (09/01), it was reported that the government intends to allocate IDR 55 trillion (USD $4.4 billion) for infrastructure development in 13 new industrial zones (through the National Medium-Term Development Plan 2015-2019 (RPJMN 2015-2019). As such, cement sales in Indonesia should grow in the range of 5 to 6 percent (y/y) in 2015.

According to ASI data, cement sales in December rose 1.7 percent (y/y) to 5.4 million tons in December 2014. However, compared to the preceding month cement sales declined by 7.2 percent (m/m) in the last month of 2014. Java, the most populous island of Indonesia, accounted for most cement sales (56 percent of the country’s total cement sales) in 2014.

Market leaders in Indonesia’s cement industry are listed companies Semen Indonesia, Indocement Tunggal Prakarsa, Holcim Indonesia, Semen Baturaja and privately-held Bosowa Corporation.

INDIA: Tamil Nadu to sell subsidised cement under Amma scheme

The Tamil Nadu government today launched its low-cost cement under the brand 'Amma', to cater the low and middle class customers in the state. The state administration has priced the cement at Rs 190, while the companies sell a 50-kg bag at Rs 370-385.

The scheme was launced at Tiruchy and will be expanded to other parts of the state before January 10, said the state government.

The state government will procure around two lakh metric tonnes of cement every month from manufactuers and will sell them through 470 stock points owned by municpal corporations, municipalities and panchayat unions. Tamil Nadu Cement Corporation will be the nodal agency for the scheme.

On September 29, 2014, the then Chief Minister and AIADMK' Supremo J Jayalalithaa had announced the launch of the cement scheme under 'Amma' brand. The state has earlier started low cost canteens, water, salt, pharmacy, fruits and vegetables shops and other schemes under the brand.

The schme has been named after Jayalalithaa who is popularly called as Amma by her partymen.

In her earlier statement, Jayalalithaa said the scheme is to guard common people from the increasing cement prices, and the state government has decided to procure two lakh tonnes of cement from private players every month. "The cement bags that would be sold by the state government will carry the names of respective manufacturers supplying them," said an official who attended the meeting.

For those constructing on a 100 sq ft area will get 50 bags and for the maximum 1,500 sqft, 750 bags will be provided. For renovation or repairing of a houses, around 10-100 bags would be distributed under the subsidised scheme.

Tamil Nadu's monthly cement demand is about 17-19 metric tonne of which 4-4.5 lakh metric tonne comes from Andhra Pradesh and Telangana. This is sold at almost Rs 80-100 per bag, at around Rs 370-380 per bag. The Tamil Nadu based companies have also increased their prices in recently.

The erstwhile united Andhra Pradesh contributed around 450,000 tonnes to Tamil Nadu’s average monthly consumption of 1.7-1.8 million tonne.

Earlier, when the scheme was announced, Jayalalithaa, the then Chief Minister, said, “Subsequently, supplies to Tamil Nadu had reduced to around 1,50,000-3,00,000 tonnes, creating a favourable situation for the private manufacturers to increase prices in the local market.”

The new scheme is aimed to benefit the lower and middle classes, wherein the state will procure 200,000 tonnes of cement from private manufacturers every month and sell them through all urban and rural local bodies at Rs 190 per bag, added the statement.

Beneficiaries are eligible for a minimum of 50 bags for 100 sq ft building space and a maximum of 750 bags for 1,500 sq ft cement can be bought by submitting state government the approved building plan.

Tamil Nadu Cement Corporation will be the nodal agency while the scheme will be implemented by Tamil Nadu Civil Supplies Corporation and Rural Development department through their 470 godowns. The scheme will also cover the state’s Green House and Central government’s Indira Awas Yojana, said the government.

PAKISTAN: Cement factory causing pollution

The people living in the vicinity of Kohat Cement Factory have complained that dust and fumes emitting from the factory kilns are causing serious diseases among them.

A jirga of local elders, in a statement issued here on Sunday, said that emissions from the two kilns of the factory had been causing serious health problems for the people.

They said that continuous blasts in the mountains near the factory had also caused cracks in the houses of local people but the factory administration was not ready to listen to their complaints and provide assistance for repair of the damaged house.

The elders said that the factory administration was made bound under an agreement that it would pay surface rent to the people on whose collective land the factory had been built, but no dues were paid to people since 1992.

The statement said that the agreement of providing 80 per cent jobs in the factory to local people as their due right was also being violated blatantly.

The jirga said that earlier the factory was run on electricity but later it switched to coal which polluted the air to dangerous levels.

IRAN: A force in cement industry

Iran is cementing its control over the Middle East and broader continent. Literally. A production capacity of 70 million tons of cement per year makes Iran the fourth largest manufacturer in the world and the largest in the Middle East. With the fastest cement industry growth rate on the planet, Iran will soon surpass the United States, currently the third largest producer.

The economic forces of supply and demand cannot fully explain Iran’s dominant position in the cement industry. It just so happens that the country is funding an insurgency in the world’s top cement importer, Iraq. For over a decade, the Quds Force, a special unit of the Iranian Revolutionary Guard, has trained and equipped Iraqi-Shia militias.

Iran is simultaneously contributing to Iraq’s destruction and its (re)construction. According to an official at the Iran-Iraq Joint Chamber, Iran currently supplies about half of Iraq’s total cement consumption. The underlying message that Iran is sending through its cement industry is ‘what war destroys, we rebuild.' 

It has tried to send this message in the Gaza Strip, too. Gaza’s dire construction needs (a shortage of 75,000 housing units before this past summer’s war) has made it a prime target for Iranian cement. In March 2014, Israeli naval commandos intercepted a Panamanian-flagged ship, likely Sinai-bound, carrying 100 containers of Iranian cement. Twenty of these containers also concealed various forms of ammunition, including surface-to-surface rockets. The containers originated from the southern Iranian port of Bandar Abbas.

Cement is both a lucrative economic and political opportunity for Iran. Parts of its cement industry are possibly government fronts masquerading as private companies. The Social Security Fund, an Iranian government institution, happens to be the main shareholder in Fars & Khuzestan Cement Company (FKCC), the country’s largest cement producer. In 2008, the British government listed a subsidiary of FKCC as an entity of potential concern for WMD-related procurement.

The Iranian cement industry’s political agenda predates the “Arab Spring.” In 2000, Iranian Minister of Industry, Gholam Redha Shafeay, announced plans to build a $200 million cement factory in Syria. Today, as the emerging third largest producer of cement, Iran is in a strong position to help President Bashar al-Assad rebuild Syria – a country where well over one-third of all homes have been destroyed.

Iran may also be cementing its influence over Syria from neighboring Lebanon. Last year, the pan-Arab Asharq al-Awsat newspaper reported that Hezbollah founded a new cement company in Lebanon with Iranian financing. This harkens back to Iran’s involvement in the reconstruction of Iraq after the 2003 U.S.-led invasion and of Lebanon after the 2006 Israel-Hezbollah war. Iran’s cement exports to Lebanon went from zero the year of the war to 13 million tons in 2013.

Iran exports cement to around 24 countries. The main importers of its cement are Iraq (63 percent), Turkmenistan (7 percent), and Azerbaijan (4 percent). Lately, Afghanistan has also become a larger purchaser. And this has Pakistani manufacturers worried. 

Aizaz Mansoor Sheikh, chairman of the All Pakistan Cement Manufacturers Association, blames U.S. sanctions for surplus Iranian capacity. The availability of cheaper Iranian cement threatens Pakistani manufacturers in Iraq and Afghanistan. Iranian cement is reaching Balochistan, a province in Pakistan’s southwest, through informal channels and is priced lower than locally-produced cement. Pakistani exports to Afghanistan have since declined by 10 percent.

Iran’s agenda may go beyond pricing Pakistani manufacturers out of the market. Balochistan, Iran’s target market, is home to around 650,000 Hazara. This Shia Muslim group has ties to 1 million Iranian Hazara, who have increasing reason to worry about their Pakistani brethren. Sunni militant group attacks against the Hazara in Balochistan have steadily risen. Since 2013, targeted violence has claimed the lives of hundreds of Hazara. Two of the most deadly bombings, which took place in January and February 2013, left at least 180 dead in the provincial capital of Quetta.

The cement industry is one example of how Iran’s dealings in global markets are not only economically, but also politically, motivated. The country’s cement industry thrives in Iraq, a country with a destabilizing Shia insurgency and the world's number one cement importer. Cement also provides Iran a foothold for military support to Assad in Syria and Hamas in Gaza. 

Iran is cementing its position in its neighborhood’s political and economic landscape, and Western sanctions have not been able to stop it.