WORLD: Holcim-Lafarge deal back on solid ground

Europe’s two largest cement companies Holcim and Lafarge have rescued a stumbling €41bn merger by reconciling differences over financial terms and management that nearly caused the collapse of one of the biggest deals in recent years.

The agreement ends several days of intense negotiations to salvage a tie-up aimed at creating enormous cost savings and a powerhouse in the cement and crushed rock industry.

What was initially agreed as a one-for-one share deal when it was announced last April will now be adjusted in favour of Holcim, after the Swiss company outperformed its French rival financially and saw the relative value of its shares enhanced by the strengthening of the Swiss franc.

Under the new arrangement, which could be disclosed as soon as Friday, Holcim will pay about 0.90 of its shares for each one in Lafarge, people familiar with the matter said.

In addition, Bruno Lafont, chief executive of Lafarge, is now set to become co-chairman of the combined group rather than its new head.

As the two companies have worked on integration matters, Holcim’s senior management has grown concerned in recent months over the 58-year-old Frenchman’s ability to meld two distinct business cultures and to deliver on the €1.4bn in annual cost savings promised by the two companies.

He will share the chairman role of the enlarged entity with Wolfgang Reitzle, Holcim chairman.

A new candidate to lead the group is not expected to be named on Friday, the people familiar with the situation added.

Private talks to salvage the €41bn merger were thrust into the spotlight on Monday after Holcim said the deal to create the world’s biggest cement company could “not be pursued in its present form”.

The Swiss group, whose value has surged since the deal was agreed last April, wanted its shareholders to get a bigger stake in the merged entity. They also protested the appointment of Mr Lafont as the head of the new company.

However, large shareholders on both sides remained supportive of the deal even as problems surfaced — motivated in part by the large cost savings promised.

In spite of the uncertainty in recent days, shareholders in Irish cement company CRH on Thursday rubber-stamped a €6.5bn deal to buy production facilities Holcim and Lafarge are selling to satisfy anti-trust rules.

After falling sharply on Monday, shares in Holcim recovered to SFr75.80 by the close on Thursday, marginally above their level at the end of last week. Lafarge shares, which also fell sharply on Monday, pared some losses by Thursday’s close, to €62.30.

SAUDI ARABIA: Saudi cement producers want to export to Egypt

Saudi Arabia’s cement producers have again asked the government to lift a three-year-old ban on their exports so they can supply Egypt with six million tonnes of cement, the chairman of the Gulf Kingdom’s cement makers was quoted on Wednesday as saying.

“We are ready to export six million tonnes of our cement surplus to Egypt following the signing of large contracts between that country and global companies this week,” Jihad Al-Rasheed, chairman of the national cement committee in the council of Saudi chambers of commerce and industry, told the Saudi Arabic language daily Al-Riyadh.

He said it was time for Saudi authorities to lift the export ban after the emergence of “golden” opportunities for the country’s cement manufacturers to export their products to nearby Qatar which needs large quantities of building materials for the planned play fields and other sport facilities for the 2022 World Cup in Qatar.

He added that other key markets which need Saudi cement include Kuwait, Bahrain, Sudan, Yemen and Ethiopia.

“Some Saudi cement plants were constructed in border areas with the aim of exporting their products to neighboring countries but the export ban has inflicted heavy losses on them and could also force them to lay off workers,” he said.

Al-Rasheed said cement firms in Saudi Arabia, the largest Arab economy, are trying to reduce a surplus of more than 20 million tonnes by supplying domestic projects.

But he added:”Most of the local government and private sector projects now have sufficient cement supplies…we want the Saudi government to lift the ban on cement exports in line with international trade rules.”

Saudi Arabia, the largest Arab cement producer, partially lifted the cement export ban in 2009 before enforcing it again in 2012 to ensure enough supplies for domestic projects.

According to Al-Rasheed, cement demand in Saudi Arabia stood at around 57.2 million tonnes in 2014 and is projected to grow to nearly 59.5 million tonnes in 2015.

QATAR: QNCC to raise production by 12 percent

Qatar's main cement maker, which claims catering to over 70 percent of the local demand, is gearing up to meet the growing appetite for this primary building material fuelled by the infrastructure projects.

With the operation of two new mills by the end of this year, the total cement production capacity of Qatar National Cement Company (QNCC) will be increased to over four million tonnes per annum, which will witness a nearly 12 percent jump from the existing capacity of the company.

The company's total production (in all categories of cement) increased to 3.5 million tonnes in 2014, up nearly three percent compared to 3.4 million tonnes produced during the previous year.

"Our two new mills are scheduled to begin operation this year. The first will commence production from October 15, 2015, while, the second one is expected to start by the year-end," said Salem Butti Al Naimi, Chairman and Managing Director of QNCC , adding, "the whole plant will start running at full capacity by early next year producing about 23,000 tonnes per day."

Al Naimi, speaking to this newspaper on the sidelines of QNCC 's Annual General Meeting (AGM) yesterday, said: "We are expecting the demand for cement in Qatar will continue to grow in the coming years, and we at QNCC are ready to meet any surge in demand. If the market needs more than our full capacity, we are ready to import from outside."

However, he restrained from giving any estimated peak demand for cent in the run-up-to 2022, saying: "We are not the only supplier in the market. The quantum of demand and growth rate will largely depend on the number of new projects awarded and the progress of the ongoing projects." 

He added that the demand for cement in Qatar is also influenced by many other factors, such as the weather conditions, Ramadan and summer working timings, when the demand for cement drops significantly. 

Keeping in view the rising demand for cement, the company, last year, had signed a letter of intent with a French company to further boost its production capacity. The contract was signed for the construction of QNCC 's Cement Plant Line 5.

Meanwhile, earlier in the AGM, shareholders approved all the agenda of the meeting, including the Board's recommendation to distribute dividends of QR4 per share (40 percent of the nominal value of the share) and a distribution of 10 percent bonus shares.

The shareholders of QNCC also gave the nod for the extension of the Company's duration, which is expiring on October 8, 2015, for additional 50 years. 

The company had reported a net profit of QR420.3m for the year ended December 31, 2014, which was down by nearly 3 percent compared to QR433.3m in 2013. The Earnings per Share (EPS) amounted to QR8.56 in 2014 compared to QR8.82 in 2013.

PERU: Unacem ampliará la planta de Condorcocha

Unacem tiene entre sus planes de expansión la ampliación de la planta de Condorcocha a partir del 2017 a fin de que ingrese en operación a finales del 2019.

Actualmente desarrolla los estudios de factibilidad de ingeniería de una nueva línea de producción que se constituirá en el lote Nº 5, el cual tendrá una capacidad de producción de un millón de toneladas de clínker y una capacidad de molienda de 1.2 toneladas de cemento.

Con la ejecución de este proyecto en la planta de Condorcocha, la capacidad de producción pasará de 1.8 millones a 2.8 millones anuales, a partir del 2019, mientras que la molienda de cemento se incrementará a 4.3 millones de toneladas.

En agosto de este año, Unacem espera iniciar la operación regular del nuevo molino de cemento y la ensacadora.

Asimismo, la empresa ha iniciado el desarrollo de la ingeniería de un secador de puzolana, que será instalado para aumentar la capacidad de molienda del nuevo molino, para cemento puzolámico, que también se espera que opere en agosto de este año.

Acotaciones. Al 31 de diciembre del 2014 y del 2013, Unacem tiene una contingencia posible por acotaciones de Sunat de cerca de S/. 60.2 mlls.

NEPAL: Largest Chinese FDI pledge comes in cement

In the largest foreign direct investment (FDI) pledge from the northern neigbour so far, China’s Hongshi Hodlings Group on Tuesday signed a joint venture (JV) agreement with Shivam Holdings Nepal to set up a Rs30 billion cement factory.

The Hongshi Holdings will invest Rs21 billion (70 percent) in the project while the Nepali partner will inject Rs 9 billion. Hongshi Holdings’ investment will be the third largest FDI in cement

industry after the Nigeria-based Dangote Group and Reliance Cements of India.

The JV will be named Hongshi-Shivam Cement Private Limited. An agreement to this effect was signed by Vishwonath Goel, chairman of Shivam Holdings, and Xu Youyuan, executive vice-president of Hongshi Holdings, in Kathmandu on Tuesday.

The Hongshi-Shivam JV will produce 6,000 tonnes (120,000 sacks) of cement per day. Initially the company will be manufacturing 33-, 43- and 53-grade cement.

Though the company has not revealed probable mining and manufacturing locations, its promoter said they plan to start production in three years.

“We aim to start production within next three years if the government clears the process and electricity is made available on time,” said Goel. “The new plant will employ more than 2,000 people directly.”

According to Youyuan, the plant will help Nepal become self-reliant in cement manufacturing ultimately. The annual demand for cement at present is estimated at 3.5 million tonnes while the country produces 2 million tonnes on its own.

The largest privately owned cement manufacturer in China, Hongshi Holdings has a footprint in 11 Chinese provinces and has annual production capacity of 70 million tonnes.

Six prominent Nepali business groups—Sharda Group, Lucky Group, Goel Group, Maru Group, Bhimsariya Group and Mundra Group—are part of the Shivam Holdings. The Nepali investors already have a separate venture that produces Shivam Cement.

Hongshi Holdings’ entry marks a new shift in Chinese investment in Nepal.

It shows Chinese investors are shifting towards large infrastructure projects with huge investments. Earlier, they were limited to hotels and restaurants.

In the past few years, Chinese FDI in Nepal has been growing along with a surge in tourist arrivals from the world’s most populous country. Chinese companies are now emerging as major players in Nepal’s energy sector, with the CWE Investment Company, a subsidiary of the China Three Gorges International Corporation, set to establish a company to develop the 750-megawatt West Seti project.

Along with investments in Upper Madi and smaller hydel projects, Chinese investors are also coming into the construction sector through a joint venture with a Nepali company and are involved in real estate projects. For Nepal’s tourism, China is the second largest source country after India.

Fittingly, Finance Minister Ram Sharan Mahat termed the Hongshi-Shivam JV as a new landmark in Nepal-China economic ties. “In the last three days, I’ve attended three major events. This indicates the strengthening of economic ties between the two neighbours,” Mahat said while addressing the signing ceremony. “This also signals that investment climate is improving in Nepal.”

Chinese Ambassador to Nepal Wu Chuntai said the largest FDI commitment from China will help continue promoting the friendship and partnership between the two countries. “We hope this agreement conveys a positive message to prospective Chinese investors,” said Chuntai.

With Chinese companies seeking timely clearance of the environment impact assessment process, construction of access road to the project site and support in land acquisition, Mahat assured the investors of full government support.

With the country looking for major infrastructure developments, mainly in hydropower and road sectors, cement has emerged as a lucrative sector for foreign investors. The Dangote Group has already pledged Rs70 billion to set up a cement plant while India’s Reliance Cement is investing Rs40 billion for another plant.

PERU: Despacho nacional de cemento cayó 4.9% en febrero por menor demanda, según Asocem

El gremio explicó que los gobiernos regionales y locales se encuentran aún en el primer trimestre de su mandato por lo que es de esperarse una menor ejecución del gasto público, lo cual se recuperará en el segundo trimestre.

El despacho nacional de cemento decreció 4.9% en febrero del 2015 con respecto a similar mes del año pasado, lo que equivale a 41 miles de toneladas (MT) menos y llegar a solo 775 MT durante el segundo mes del año, reportó la Asociación de Productores de Cemento (Asocem).

Mientras que el despacho total de cemento decreció 4.1% en febrero de 2015 con respecto a febrero de 2014. Se despacharon 797 MT de cemento en febrero del presente año, lo que significó 34 MT menos que en febrero del año pasado. La producción de cemento creció 4%.

El despacho nacional acumula su segundo mes consecutivo de descensos, tras haber decrecido 1.7% en enero del presente año.

“Esto se debe a factores climatológicos, un bajo gasto público y una débil inversión privada y con poca confianza en el gobierno, principalmente. Al igual que en enero, durante febrero se presenciaron fuertes lluvias en la sierra y selva”, explicó el gremio cementero.

Añadió que el efecto de las lluvias sobre la construcción es contractivo por lo que es de esperarse que se reduzca el consumo de cemento. 

Por otro lado, mencionó que el gasto público total del primer bimestre fue 23% menor que el primer bimestre del 2014.

Es así que el gobierno nacional incrementó el gasto en 27%, pero los gobiernos regionales y locales disminuyeron el gasto 42% y 61% respectivamente. La ejecución del gasto total representa 4.9% del presupuesto, hasta el momento, según datos del Ministerio de Economía y Finanzas (MEF) recogidos por la Asocem.

“Los gobiernos regionales y locales se encuentran aún en el primer trimestre de su mandato por lo que es de esperarse una menor ejecución del gasto público. Se espera un mayor gasto para el segundo trimestre”, indicó el gremio.

Asimismo, la inversión privada ha sido afectada por factores externos, como el rápido aumento del tipo de cambio, e internos.

“El gobierno está aportando incertidumbre al panorama nacional”, subrayó.

Para el gremio cementero, el gobierno ha dejado la política económica de lado y ha desviado su atención a reformas políticas que, si bien son importantes, la población no piensa que sea el mejor momento para evaluarlas.

Recordó que el 75% de la población no considera que el presidente Humala tenga un plan claro para el desarrollo del país, según una encuesta realizada por GFK.

SRI LANKA: Tokyo Cement completes amalgamation with Fuji Cement

Tokyo Cement Lanka, one of the premiere cement manufacturers in Sri Lanka has completed its amalgamation process with Fuji Cement Lanka, the company said in a stock exchange filing.

The Registrar General of Companies has issued the certificate of amalgamation on 13th March 2015.

Accordingly, all shares of Fuji Cement Lanka represented the stated capital of the company has been cancelled and Tokyo Cement Lanka will succeed to all the assets and liabilities of Fuji Cement Lanka.

The Company said the amalgamation would enable both companies to realize benefits of greater synergies between these businesses.

The registered office of the amalgamated company Tokyo Cement Company (Lanka) PLC will remain same and be at 469-1/1, Galle road Colombo3.

EGYPT: IDA proposes 12 cement licences in Upper Egypt this year

The Industrial Developmental Authority (IDA) is set to propose 12 new cement licences in several Upper Egypt governorates this year.

The IDA is also working on preparing new mechanisms and regulations for proposing cement licences, before submitting them to Prime Minister Ibrahim Mehleb within 10 days. Mehleb will approve them as soon as possible, said Ismail Gaber, Chairman of IDA, on the sidelines of the Economic Summit in Sharm El Sheikh.

The new mechanism includes determining the areas and places suitable for the cement industry, as well noting the environmental loads and their geographical distribution. The new mechanisms also include qualifying the companies willing to technically and environmentally acquire licences, and obliging investors to provide energy, whether gas or coal, according to Gaber.

The authority is preparing to propose the first batch of licences, to avoid the expected gap between production and consumption by 2020, said Gaber.

The production capacity of the current 22 cement factories is estimated at around 50m tonnes, while the expected consumption by 2020 is 80m tonnes, according to Ministry of Investment data.

Gaber added: “We have an expected gap after five years, amounting to 30m tonnes. We should begin proposals this year in order to avoid this, especially as it takes two or three years for cement factories to begin operations.”

“The first licences to be issued raise the production capacity of factories by 21m tons in 2018 and with the rest of the instalments, the gap will not appear,” he said. “Most of the new licences will go to the governorates of Minya, Sohag and Qena, Beni Suef and New Valley, and we will exclude Cairo, Alexandria and the Delta governorates in observance of environmental loads.”

Gaber also said: “The northern region is environmentally saturated, and I cannot issue new licences in it. The mechanisms and controls we put [in place] take into consideration factory distribution among all governorates of the state to reduce environmental damage.”

The licences are given to all factories; whether they are new or existing factories wishing to expand in Upper Egypt. The licences are not limited to adding production lines to existent factories.

Meanwhile, Arabian Cement Company (ACC) CEO Jose Maria Magrina said the Egyptian market does not need cement licences in the next five years. He said the existing factories are capable of meeting the market needs once they work in full capacity.

“The existing factories work with no more than 70% of their capacity as a result of weak gas supply, and produce more than 50m tonnes, and once they fully operate on coal, the gap will disappear,” he concluded.

INDIA: Jaypee Group in talks with Heidelberg, JSW to form JV for its existing, greenfield units

Jaypee Group is in talks with Heidelberg Cement, the world's third biggest cement maker, and Sajjan Jindal-led JSW Cement, to form a joint venture which will control the majority of its cement plants as part of an ongoing exercise to reduce debt.

The plan envisages a separate joint venture entity which will house around 20-22 million tonnes (MT) of Jaypee's operational units spread across Uttar Pradesh, Himachal, Uttarakhand, Andhra Pradesh, Chattisgarh and a new greenfield unit in Karnataka, which is expected to come on stream this year, said multiple sources in the know. Jaypee is open to becoming a junior partner in the proposed venture with a 49% shareholding but may even go down to 40% thereby ceding management control and a majority stake.

The rationale behind the exercise, said the people cited above, is to significantly bring down Jaypee's consolidated group net debt in one shot. The Delhi-based conglomerate's debt level, Rs 70,000 crore as of 31 March 2014, is still considered high even after a spate of asset sales from its cement, real estate and power portfolio. In cement alone, Jaypee has sold assets worth Rs 10,000 crore. For both Heidelberg and JSW - still largely regional players - the proposed deal gives an opportunity to ramp up their footprint nationally.

Interestingly, the JV may exclude Jaypee's first cement plant located in Rewa, Madhya Pradesh which has approximately 3 million tonnes of capacity. But it is likely to include the around 2-million tonne unit of separately listed Andhra Cement, which is controlled through a separate privately held entity, Jaypee Development Corporation. The 3 MT per annum Karnataka unit -- being set up in two phases - will be included added in the venture. The first phase of the Karnataka project is set to be operational by April, 2015 while the second by October, 2016.

Teams from Heidelberg, JSW are said to have begun visting Jaypee plants for technical dilligence. No binding financial offer has yet been made. The discussions are still at a preliminary stage and may not fructify into a deal just as yet, cautioned one of sources mentioned above. 

Heidelberg operates in India through its listed arm Heidelberg CementBSE 2.30 % India Limited while JSW Cement, a private company, is part of the diversified JSW Group. JAL is listed as is Andhra CementsBSE -0.53 %.

A Big 4 consulting and audit firm is be helping Jaypee in the valuation and structuring, according to the people cited. It is still not clear if a separate JV vehicle will get created or a merger will take place between existing entities. Most expect clarity on those issue to emerge in the coming weeks.

The Jaypee Group spokesperson said there are no plans to divest any more cement assets. "At Group level, Jaypee Group has taken disinvestment decision for Rs.22,000 crore. The news regarding JAL's discussion with Heidelberg or any other Group is purely a market speculation. JAL is not pursuing further divestment in Cement." 

JSW Group spokesperson responded to ET's written questionnaire by saying they do not wish to comment on speculative news.

"Heidelberg Cement has always kept a principle of not reacting to market speculation or rumours. India continues to be a high growth market and Heidelberg Cement remains committed towards its growth plans for the country and will look at all organic and inorganic paths of growth," the Indian spokesperson for the German MNC told ET 

Even after divesting assets of over 13 million tonnes to local peers UltratechBSE 0.05 %, Dalmia and Shree Cement, Jaypee Group remains the third largest cement player in the country with close to 23 MT of operational capacity. The cement business is part of flagship Jaiprakash Associates (JAL). JAL's standalone capacity is around 14.2 MT with the rest -- including the 5 million tonne Balaji Cement -- are housed in subsidiaries, JVs or group companies. 

Sources add, the combined enterprise value of the assets, inclusive of debt, is expected to be in between Rs 16,000 -Rs 18,000 crore ($2.6 billion- $3 billion).

IRAN:Exports Approximately 17.5mln Tons of Cement, Clinker in 11 Months

Iranian cement factories have exported over 17.5 million tons of their products to international markets in the first eleven months of the current Iranian calendar year (March 21, 2014- February 19, 2015), the trade ministry announced.

More than 67 percent of the exported bulk was cement and the rest clinker.

The Iranian factories have the capacity to produce 80 million tons of cement and clinker per year.

Iran’s share of world cement production in the year 2013 was 1.87%.

China with 2 billion and 300 million tons of cement production in 2013 ranked first, and India and the US with 230 and 77 million tons in that year ranked 2nd and 3rd respectively.

Iran exported cement to 24 countries including Iraq, Azerbaijan, Turkmenistan, Afghanistan, Russia, Kazakhstan, Kuwait, Pakistan, Qatar, Turkey, the UAE, Georgia, Oman, India, and China in 2013.

BANGLADESH: MI Cement to add new unit soon

M.I. Cement Factory Ltd looks to install new production unit soon to cater the growing demand for cement in the country.

"We have decided to set up another Packing Unit and 1,500 tonnes capacity OPC Silo to enhance the delivery capacity of our cement (Crown Cement)," Mohammed Jahangir Alam, chairman of M.I. Cement Factory Ltd, said.

"This will also help maintain the quality of our cement and thus keep the pace of increasing revenue," he said in the company's annual report.

Bangladesh is ready to get the wave of much anticipated development in terms of public infrastructure, communication and housing facilities, he said, adding that "So, the cement industry in Bangladesh is headed for a revolution."

High densities of people in cities, unplanned urbanisation and rapid economic development are likely to expand cities vertically rather than horizontally to achieve maximum utilisation of available space and ensure future food security by not urbanising fertile land, he continued.

"To achieve this, there is no alternative to cement," Mr Alam said on behalf of the company's board of directors.

Quoting a recent study, Mr Alam also said that the per capita cement consumption in Bangladesh was still lower at 107 KG, which is 210 KG in India, 265 KG in Pakistan, 310 KG in Sri Lanka and 570 KG in Korea, indicating future growth of cement consumption here.

The growing per capita income and socio-economic condition of the people are pushing them to change their choice and taste towards modern home, further increasing the demand of construction materials including cement, he said.

At present, the company's total production capacity is 5,800 tpd, which is amounted to 1.740 million tonnes, per year.

Listed on the bourses in 2001, the company has emerged as one of the leading manufacturers of cement in Bangladesh.

Mr Alam said that in the fiscal year 2013-14, the political unrest hampered the day to day normal business activities of M.I. Cement and lessened its cement delivery than expected.

However, the competitive environment prevailing in the market, the company always strives towards enhancing the revenue by satisfying the valued customers.

Thanks to the efforts, the company became able to increase its revenue by 17 per cent compared to the previous year despite the political unrest.

Cost of goods sold in the year ended on June 30, 2014 was Tk 6,731.73 million as against Tk 5,731.17 million in the previous year; this increase in cost of goods sold is mainly due to the fiscal year's higher sales volume comparing to that of the previous year.

Its operating profit increased to Tk 937.10 million from Tk 822.47 million of the last year, reflecting the effect of increase in gross profit, said the annual report.

In the year 2013-14, the company's turnover was Tk 7,990.64 million against Tk 6,829.70 million in the previous year, registering 17 per cent growth.

Till date, the company competes internationally to maintain 45 per cent of the cement export from Bangladesh and significantly contribute to the country's economy by earning foreign currency.

In the year ended on June 30, 2014, it contributed Tk 1,969,838,314 to the national exchequer as corporate tax, customs duty and value added tax (VAT) etc.

At the annual report, the board of directors also expressed their continued commitment to comply with all relevant safety, health and environment requirements.

IRAQ: Attock Cement allowed to set up unit

The Econo­mic Coordination Commit­tee (ECC) on Saturday allowed a local cement manufacturer to establish a production unit in Iraq. A glass manufacturer has also been allowed to increase investment in the UAE.

The ECC meeting, chaired by Finance Minister Ishaq Dar, approved the proposal submitted by the Finance Division for allowing Attock Cement Pakistan Limited (ACPL) to remit $24 million for the establishment of a cement grinding unit in Basra on account of equity investment, starting from March 2015 onwards. The proposed investment venture is expec­­ted to bring foreign exchange through dividends repatriation and growth in clinker exports.

As the ACPL intends to hire 50 per cent of its labour force from outside Iraq, the venture is expected to create employment opportunities for Pakistanis.

The ECC also allowed a proposal by the Finance Divi­­­sion to allow equity investment in the form of purchase of additional shares worth around $2.3 million in Ras Al- Khaima, UAE, by the Pakistani-based firm RAK Ghani Glass Limited.

The ECC also accorded approval for grant of Rs84m for payment of four-month salaries of employees of Printing Corpo­ration of Pakistan.

It also approved a proposal for allocation of gas from TAPI (Turkmenistan, Afgha­nistan, Pakistan, India) pipeline to the Sui Northern Gas Pipelines Limited. Therefore, 75pc (994mmcfd) of the imported gas from the TAPI project would be allocated for SNGPL in view of shortfall in the northern system, while 25pc (331mmcfd) of it would be allocated to SSGCL.

The ECC also accorded approval to a proposal for allowing import of liquefied natural gas (LNG) by fertiliser plants using SNGPL network with prior permission of the petroleum ministry.

EGYPT: Arabian Cement to use alternative energy in capacity increase

Arabian Cement is seeking to utilise alternative energy to increase its capacity to 100%, the company’s CEO Jose Maria Magrina told Daily News Egypt on the sidelines of the Economic Summit.

The company is currently running at approximately 80% of its capacity, with around 70% of the energy it uses is coal. In the meantime, 10% of its energy is reliant on alternative energy such as waste and biomass.

Arabian Cement is currently working on the completion of another installation that would allow utilisation of waste for the production capacity can reach 100%. The conversion will be completed within one month.

“We could increase production the moment we finish our complete conversion to alternative fuels,” Magrina said.

The company is seeking to increase its revenues by 10% this year, compared to the preceding one.

Magrina said the company is always looking for new investments, adding that it is expanding on concrete because the new city will need enormous amounts of concrete.

“In terms of capacity, we are not going to invest more,” he said.

The company was discussing the possibility of financing a facility it has in Brazil from Egyptian banks’ loans, but this has been shelved.

“We decided, because it is still small in comparison with our size as a company, to finance it ourselves,” Magrina said.

IVORY COAST: Une forte demande du ciment entraine la hausse des prix sur le marché

Le prix du ciment depuis quelques jours connaît une hausse en Côte d’Ivoire passant de 5000 Fcfa / sac à 6000 Fcfa/ sac sur le marché. 

Plusieurs revendeurs de ciment dans la capitale économique ainsi qu’à l’intérieur du pays ont procédé, ces jours-ci, à une augmentation du prix du ciment, a constaté Abidjan.net. 

De sources concordantes, cette situation s’explique par une forte demande du ciment sur le marché à l’heure actuelle. Et la production locale ne parvient pas à satisfaire cette demande. 

« Il s’agit d’un phénomène normal qui intervient à chaque fois que la consommation devient forte», commente un expert du marché du ciment.

A en croire le ministre du Plan et du Développement, Mabri Toikeusse, que le pays connaît effectivement une pénurie de ciment depuis quelques mois et cette situation pourrait s’aggraver. 

Pour lui, c’est un signe que le pays se développe ; car lorsque le secteur du bâtiment marche tout marche.

AFRICA: Lafarge Africa opte pour une politique généreuse des dividendes après une année 2014 riche en rebondissements

Le groupe Lafarge Africa, un regroupement des filiales nigérianes, égyptienne et sud-africaine du groupe français du même nom, spécialisé dans la production et la commercialisation des matériaux de construction, a indiqué vendredi 13 mars, qu'il proposait pour l'année 2014, un dividende de 3,6 nairas par action, contre seulement 1,6 naira par action pour la période correspondante en 2013.

Une politique de dividende qui peut, a priori, sembler inadaptée au regard des performances financières de Lafarge Africa durant l'exercice de référence. En effet, sa trésorerie a fortement reculé de 58,6% et est désormais de 14,6 milliards de nairas, contre 34 milliards en 2013. Ses revenus consolidés ont très légèrement reculé (-0,1%) au final, se fixent à 205 milliards de nairas en 2014.

Grâce à une baisse de ses coûts de vente, son bénéfice brut s'est inscrit en hausse de 1,7% à 68,5 milliards de nairas. Une perte de 1,7 milliard de nairas sur ses autres revenus opérationnels ont plombé ses performances, faisant chuter au final, le bénéfice net à 34,7 milliards de nairas, en baisse de 43,1%. Il faut cependant dire que cette fin d'année se présente comme une performance exceptionnelle, car au 30 septembre 2014, Lafarge Africa, en raison de nombreuses initiatives d'acquisition et dans un contexte difficile pour le marché du ciment au Nigéria, avait réalisé une perte nette intermédiaire consolidée de 128,4 milliards de nairas.

Ces différentes acquisitions attendent encore de délivrer de la rentabilité, en portant notamment sa capacité de production à 12 millions de tonnes par an, avec des perspectives de croissance sur le moyen terme, qui lui permettront de rajouter de 5,5 millions de tonnes supplémentaires par an dès 2017. Après avoir connu près de dix jours soutenus de hausse, l'action Lafarge Africa semble avoir été sanctionnée par les investisseurs du Nigerian Stock Exchange, malgré sa politique de dividende.

Vendredi en début d'après-midi, la valeur de son actions a chuté de près de 7%. Au regard de ces indicateurs, il ressort que même son ratio d'endettement a baissé à 7,7%, sa marge nette a aussi reculé, à environ 16% contre 29,6% en 2014. Une situation qui soulève peut-être des inquiétudes chez les investisseurs

BOLIVIA: Prevén importar cemento para atenuar la demanda

Con el objetivo de atenuar la creciente demanda cementera, Insumos Bolivia y la industria Itacamba anunciaron por separado la importación del producto.

Itacamba, además de incrementar su propia producción de 180 mil toneladas (2014) a 190 mil (2015), proyecta traer del exterior 5.400 toneladas de cemento equivalente a 107.000 bolsas mensuales. En total, dicha fábrica le apostará al mercado de Santa Cruz con una oferta de 240.000 toneladas este año. "Nosotros hemos decidido iniciar la importación de cemento con el compromiso de satisfacer la creciente demanda del mercado cruceño", informa Alexander Capella, Gerente General.

En cambio, el gobierno a través de "Insumos Bolivia" prevé seguir importando cemento de origen peruano, en el orden de 1,2 millones de bolsas este año (de 42 kg cada una), dado que el 2014 se internaron cerca de un millón de bolsas. El propósito es atender de manera eficiente una creciente demanda que se gesta a partir del segundo semestre del año.

Inversiones al respecto. Según ejecutivos de Itacamba, la importación de cemento estará vigente hasta cuando la Planta Yacuses entre en funcionamiento, cuyo inicio de operaciones está previsto a partir del segundo semestre del 2016.

"Cada vez se está construyendo de manera más industrializada, con una verticalización de las obras. El volumen de producción y la importación irán dirigidas a todos los sectores del mercado cruceño", precisa Capella.

Por su parte, Eduardo Kunstec comenta que la producción de Itacamba ha llegado a su tope del 90% de su capacidad, por lo que se optó por la importación del cemento y ante una creciente preocupación de su clientela.

Otras empresas. Pese a la preocupación del mercado, sobre todo cruceño, donde la demanda el 2014 fue sensible al desabastecimiento, las empresas como Coboce, Fancesa y Soboce este año han anunciado maximizar su producción para satisfacer esos 3.400 millones de toneladas año.

Yacuses

Apuran una inversión de $us 240 millones

Actualidad. Según los ejecutivos de Itacamba, la gran inversión se centra en la instalación de la primera planta cementera del Departamento de Santa Cruz con Yacuses, ubicada en Puerto Busch (a 50 kilómetros de Puerto Suárez), cuyo proceso de construcción ya comprometió $us 70 millones, equivalente a un 32% de avance en la inversión.

Objetivo. Es producir cemento por un volumen de 850 mil toneladas al año, no solo para garantizar la gran demanda de cemento del departamento del país, sino de todo el país. Actualmente genera alrededor de 1.200 empleos directos e indirectos .

MEXICO: Holcim estima crecimiento de 5% en el mercado mexicano de cemento en 2015

Impulsado por el PNI, mayor dinamismo de la vivienda y mayor entrada de remesas al país, el mercado de cemento en México podría crecer hasta un 5% en 2015; aunque la volatilidad del dólar, la disminución en los ingresos del petróleo y el recorte de gasto del gobierno federal, podrían limitarlo.

El mercado de cemento en México podría crecer entre un 3 y 5 por ciento a finales del presente año si se combinan tres factores: una correcta ejecución del Plan Nacional de Infraestructura (PNI), mayor dinamismo de la vivienda y mayor entrada de remesas al país, aseguróHolcim México. 

“Existen condiciones para pensar que este año será mejor que el 2014 en términos de demanda de cemento; sin embargo, también hay factores que pueden afectar su comportamiento. Tendremos que ir con cautela”, explicó Gustavo Gastélum, director de Relaciones y Comunicaciones Externas de Holcim México.

En el primer bimestre del año, agregó, se ha mantenido la tendencia de la recuperación del sector de la construcción que se observó a partir de la segunda mitad de 2014. No obstante, existen factores que pueden limitar dicho crecimiento, como la volatilidad del dólar, la disminución en los ingresos del petróleo y el recorte de gasto del gobierno federal.

“Por sectores, el mercado nacional de cemento presenta oportunidades, ya que la infraestructura, la vivienda y las construccionescomerciales e industriales tienen potencial de crecimiento”, destacó la empresa en un comunicado. 

En el sector de la infraestructura, el cual demanda entre el 30 por ciento y el 40 por ciento del consumo nacional total de cemento, existen tres rubros importantes en donde los proyectos pueden detonar el crecimiento: comunicaciones (carreteras, puertos marítimos y aeropuertos); energía (plantas eléctricas, hidroeléctricas) y abasto de agua (presas, acueductos).

“Han arrancado los proyectos de obras relevantes como el tren interurbano México-Toluca y la carretera Atizapán-Atlacomulco; los puertos en Veracruz, la central eléctrica de Chicoasén y la presa Santa María. El inicio del proyecto del aeropuerto es una buena señal que sin duda puede contribuir al crecimiento”, destacó Gastélum.

Agregó que otro de los sectores importantes que demandan cemento es el de la construcción de vivienda, en el cual se comercializa el 40 por ciento del consumo nacional. Este sector está compuesto por la autoconstrucción y la vivienda industrializada.

Si por un lado las remesas mantienen un flujo creciente hacia México y por otro las empresas desarrolladoras de vivienda terminan de recuperarse de la situación compleja por la que atraviesan el incremento en la demanda podría ser mayor, indicó el directivo.

El sector de las construcciones comerciales e industriales, es decir, centros comerciales, naves industriales y otras edificaciones no residenciales, el cual consume en promedio el 20 por ciento de cemento, ha tenido un buen desarrollo en los últimos meses.

“Aquí la volatilidad económica puede influir más, ya que es un segmento muy sensible a esta situación por el tipo de financiamiento que manejan y los riesgos inherentes a ello”, puntualizó el ejecutivo.

El sector de la construcción es un termómetro de la economía nacional que refleja el dinamismo de más de 60 ramas de la industria, finalizó.

GREECE: ΗΠΑ και Αίγυπτος στηρίζουν τα μεγέθη του ομίλου Τιτάν

Θετικές χαρακτηρίζει τις προοπτικές του ομίλου Τιτάν για το 2015 η διοίκηση της τσιμεντοβιομηχανίας και αυτό -όπως σημειώνει- παρά τις σημαντικές αβεβαιότητες και προκλήσεις.

Η συγκρατημένη αυτή αισιοδοξία αποδίδεται στη βελτίωση των λειτουργικών αποτελεσμάτων που αναμένονται στις δύο σημαντικότερες αγορές του ομίλου σήμερα, τις ΗΠΑ και την Αίγυπτο.

Στα καλά νέα της Τιτάν συμπεριλαμβάνεται το γεγονός ότι το διοικητικό συμβούλιο θα εισηγηθεί στη γενική συνέλευση στις 19/6/2015 τη διανομή μερίσματος για πρώτη φορά από το 2011, καθώς τα κέρδη χρήσης 2014 κάλυψαν τις σωρευτικές ζημιές παρελθουσών χρήσεων ποσού 51 εκατ. ευρώ.

Συγκεκριμένα θα προτείνει τη διανομή μερίσματος συνολικού ποσού 12,694 εκατ. ευρώ ή 0,15 ευρώ ανά μετοχή. Η πρόταση θα περιλαμβάνει επιπλέον και τη διανομή ειδικών αποθεματικών προηγούμενων χρήσεων, συνολικού ποσού 12,694 εκατ. ευρώ ή 0,15 ευρώ ανά μετοχή.

Αναφορικά με τις προοπτικές για την τρέχουσα οικονομική χρήση, η διοίκηση της τσιμεντοβιομηχανίας σημειώνει ότι παρά την παρατεταμένη κακοκαιρία των αρχών του έτους, η ανάκαμψη της αγοράς των ΗΠΑ συνεχίζεται απρόσκοπτα, στο πλαίσιο της ευρύτερης ανάπτυξης που σημειώνει η αμερικανική οικονομία.

Σύμφωνα με προβλέψεις της Portland Cement Association - PCA, η κατανάλωση τσιμέντου αναμένεται να αυξηθεί κατά περίπου 8% ετησίως από το 2015 έως το 2017, λόγω της τόνωσης της ζήτησης για νέες κατοικίες και των θετικών τάσεων που διαμορφώνονται για τα ακίνητα εμπορικού χαρακτήρα.

Ο ρυθμός αύξησης εκτιμάται από την PCA ότι θα είναι ακόμη υψηλότερος στις νοτιοανατολικές πολιτείες, όπου βρίσκεται το μεγαλύτερο μέρος των δραστηριοτήτων του Τιτάνα. Προκειμένου να ανταποκριθεί στην ανερχόμενη ζήτηση, ο όμιλος προχωρά σε επενδύσεις που αφορούν την αγορά εξοπλισμού και τη βελτίωση της απόδοσης των παραγωγικών του εγκαταστάσεων.

Στην Αίγυπτο, η ζήτηση δομικών υλικών εκτιμάται πως θα διατηρηθεί υψηλή, βασιζόμενη σε έργα τόσο δημόσιου όσο και ιδιωτικού χαρακτήρα. Ο όμιλος προσδοκά την ανάκαμψη της παραγωγής και των πωλήσεων εντός του 2015, ως αποτέλεσμα των επενδύσεών του με στόχο την εξασφάλιση, σταδιακά, της ενεργειακής επάρκειας των εργοστασίων του.

Στην Ελλάδα η ιδιωτική οικοδομική δραστηριότητα εξακολουθεί να μειώνεται, παρά τα εξαιρετικά χαμηλά επίπεδα στα οποία έχει διαμορφωθεί. Η κατανάλωση τσιμέντου εκτιμάται ότι θα κυμανθεί περίπου στα επίπεδα του 2014 λόγω της εκτέλεσης των έργων των οδικών αξόνων, όπως σημειώνεται - στον βαθμό που αυτά συνεχιστούν απρόσκοπτα.

Η κατασκευαστική δραστηριότητα στις χώρες της Νοτιοανατολικής Ευρώπης εμφανίζεται σταθερή, όμως η ζήτηση κινείται σε επίπεδα σημαντικά χαμηλότερα της δυναμικότητας των εργοστασίων του ομίλου. Βραχυπρόθεσμα δεν διαφαίνονται προοπτικές ουσιαστικής ανάπτυξης, καθώς η περιοχή εξακολουθεί να επηρεάζεται από την οικονομική αδυναμία γειτονικών χωρών της Ευρωζώνης.

Το 2014 ο όμιλος Τιτάν επέστρεψε στην κερδοφορία έπειτα από δύο ζημιογόνες χρήσεις. Ο ενοποιημένος κύκλος εργασιών το 2014 ανήλθε σε 1.158 εκατ. ευρώ, παρουσιάζοντας αύξηση 2,7%. Τα λειτουργικά κέρδη προ φόρων, τόκων και αποσβέσεων μειώθηκαν κατά 2,6%, στα 182 εκατ. ευρώ, ενώ τα καθαρά κέρδη μετά τα δικαιώματα μειοψηφίας και την πρόβλεψη για φόρους διαμορφώθηκαν στα 31 εκατ. ευρώ, έναντι ζημιών 36 εκατ. ευρώ το προηγούμενο έτος.

Θετική επίδραση στα λειτουργικά αποτελέσματα είχαν η συνεχιζόμενη ανάκαμψη της αγοράς των ΗΠΑ, η βελτίωση της ελληνικής αγοράς και η καλύτερη απόδοση των αγορών της Τουρκίας και της Νοτιοανατολικής Ευρώπης.

Οι κεφαλαιουχικές δαπάνες του ομίλου το 2014, εξαιρουμένων των εξαγορών και των ασωμάτων ακινητοποιήσεων, ανήλθαν σε 80 εκατ. ευρώ, σημαντικά υψηλότερες από τα συγκρατημένα επίπεδα των προηγούμενων ετών και κατά 33 εκατ. ευρώ υψηλότερες του 2013. Η αύξηση οφείλεται κυρίως στις επενδύσεις στην Αίγυπτο και στις ΗΠΑ.

Ταμειακές ροές 90 εκατ. ευρώ

Το 2014 ο όμιλος Τιτάν δημιούργησε θετικές ελεύθερες ταμειακές ροές ύψους 90 εκατ. ευρώ, έναντι 136 εκατ. ευρώ το 2013. Ο καθαρός δανεισμός στο τέλος του έτους διαμορφώθηκε στα 541 εκατ. ευρώ, έναντι 509 εκατ. ευρώ στα τέλη του 2013, αντικατοπτρίζοντας την επανεκκίνηση των επενδύσεων και τις αυξημένες ανάγκες κεφαλαίων κίνησης στις αγορές που παρουσιάζουν ανάπτυξη. Διαχρονικά συγκρινόμενος, ο δανεισμός του ομίλου βρίσκεται σε επίπεδα κάτω του ημίσεος του ύψους που βρισκόταν στις αρχές του 2009.

VIETNAM: Vietnam s’affirme à l’international

En plus de satisfaire la demande domestique, les entreprises nationales de ciment ont fait entrer le Vietnam dans la liste des pays exportateurs de ce produit - plus de 21 millions de tonnes 4 années consécutives -, après de nombreuses années d’importations. 

Selon le département général des Douanes, le Vietnam a exporté, en 2014, 21,1 millions de tonnes de ciment, pour 912,4 millions de dollars. Le Bangladesh est devenu le premier débouché du Vietnam avec 8,4 millions de tonnes de ciment et de clinker pour un montant total de 322,7 millions de dollars. Il devance l’Indonésie (123 millions de dollars), la Malaisie (62 millions) et les Philippines (44,2 millions). 

Selon M. Hoang Manh Truong de The Vissai, après 4 années d'exportation, ce groupe a exporté vers plus de 30 pays. Récemment, plus de 58.000 tonnes de clinker ont été exportées vers le Bangladesh, marquant la barre des 10 millions de tonnes de clinker exportées par ce groupe. 

M. Le Van Toi du département des matériaux de construction du ministère de la Construction, a souligné que ces 4 dernières années, les entreprises vietnamiennes de ciment ont progressé en matière d’étude de marché et de négociations de contrats. A noter que le prix du ciment à l’exportation est de 43,155 dollars/tonne, soit 2 dollars de plus qu’il y a 2 ans. Un prix égal à celui des autres pays de la région.

ZAMBIA: Dangote Cement rolls out this month

The US$400 million Dangote Cement Plc plant in Masaiti on the Copperbelt is scheduled to start operations this month-end, Group chief executive officer Aliko Dangote has said.

Speaking to journalists at Simon Mwansa Kapwepwe Airport shortly after touring the plant, Mr Dangote explained that floods triggered by heavy rain and bureaucracy in acquiring a permit from the Zambia Environmental Management Agency (ZEMA) caused delays in the commissioning of the cement plant, which was earlier scheduled to start operations before the end of last year.

Forbes lists Mr Dangote, 57, a Nigerian businessman, as Africa’s richest man with net assets worth US$21.6 billion.

“There was a delay of getting a permit from ZEMA, which actually made us start production late but I think we are overcoming that, hopefully we can start in two to three weeks or so.

“We are overcoming that but as you know, the rainy season this year has been intense but it has given us a lesson to protect ourselves next time we are in operation,” Mr Dangote said.

“So by and large, we are pushing and the team will try and deliver the factory by the end of this month. Our power is already on…we have power and we are making good progress,” he said.

Once operational, Dangote Cement Plant is expected to create 1,000 jobs, with a production capacity of 1.5 million tonnes annually.

Mr Dangote also said progress has been made on the cement plant in Lusaka.

He said Sinoma Engineering, the contractor engaged to construct the Dangote Cement Plant in Masaiti, will move on site to begin works in Lusaka.

“We have made good progress on the plant in Lusaka, we have already got permission to get into the land and start mining, so hopefully the same contractor might move there and build an identical plant with the one in Masaiti,” Mr Dangote said.

The cement plant in Chilanga will cost about US$420 million.

NIGERIA: AshakaCem Appoints Yahyah Chairman, Plans $1bn Expansion Programme

AshakaCem Plc, one of the major subsidiaries of Lafarge Africa Plc, has appointed Malam Suleiman Yahyah as its chairman. The appointment followed the expiration of the tenure of Alhaji Umaru Kwairanga, who has stepped down.

The cement manufacturing company in its notice to the Nigeria Stock Exchange (NSE), stated that “the board of directors has appointed Malam Suleiman Yahyah, OON, as the Board Chairman with effect from 12th March, 2015.”

Besides, the board also appointed as non-executive directors of the company with effect from 12th March, 2015, Mr. Anders Kristiansson; Mrs. Edith Onwuchekwa and Alhaji Rabiu Abdullahi Umar

The new appointments were approved by the stock exchange on Friday.

Yahyah, 51, who is also the chairman of Nigerian Aviation Handling Company (Nahco Aviance), Rosehill Group and Asokoro Island, is on the boards of many other companies.

In seeking the approval for the new appointments, the board of AshakaCem also informed the Nigerian Stock Exchange (NSE) that “the following directors and Board Chairman have resigned their appointments from AshakaCem Plc with effect from 10th March, 2015: Umaru Kwairanga -Chairman; John William Stull -Vice Chairman; Sen. Muhammed A. Muhammed; Kolawole Babalola Jamodu; Dr. Abubakar Ali Gombe; Lamido Abba Tukur; and Mrs. Hamra Imam."

THISDAY checks revealed that AshakaCem is pursuing an ambitious expansion programme estimated at about $1 billion, which will include the expansion of cement production from 1 million metric tonnes to 3.5 million metric tonnes, a 100-megawatts power plant and other ancillary projects.