BRAZIL: Pecém receberá R$ 220 mi com nova fábrica de cimento

A crise econômica pode inibir o ritmo de investimentos por algumas empresas, mas outras apostam na adversidade para crescer e ampliar mercados para o futuro. É justamente o que está acontecendo com o Grupo Polimix, com sede em São Paulo, que desembarca no Ceará para investir R$ 220 milhões na construção de uma fábrica de cimento no Complexo Industrial e Portuário do Pecém. A informação foi revelada pelo Jornal Folha de São Paulo, edição desta terça-feira (16/06).

As negociações para a construção da fábrica, que depende nesse momento apenas de licença ambiental, foram abertas durante a gestão do então governador Cid Gomes e consolidadas nesses primeiros cinco meses da administração Camilo Santana (PT). Camilo recomendou aos secretários das áreas econômica e política agilidade e menos burocracia nas reuniões, conversas e articulações com as empresas interessadas em se instalarem no Ceará.

O Grupo Polimix projeta iniciar as obras de construção da fábrica de cimento no Pecém dentro de 10 a 12 meses. Do total de R$ 200 milhões de investimentos, o grupo projeto, na primeira etapa, investir R$ 140 milhões para produzir 900 mil toneladas por ano. Há uma segunda linha já prevista, que dobrará a capacidade da fábrica, com aporte de mais R$ 80 milhões.

Sem receio com o cenário econômico, o Grupo Polimix decidiu manter a expansão de olho na futura retomada do crescimento. Principalmente no Nordeste, há muita carência por obras de infraestrutura que demandarão grandes quantidades de cimento”, afirma o diretor José Antero dos Santos, ao revelar que a empresa avalia linhas do Banco do Nordeste para financiar de 60% a 70% dos recursos para o projeto.

Com a Polimix, o Pecém receberá a terceira fábrica de cimento – outras, a Votorantim e a Apodi (um dos sócios é o empresário Ivens Dias Branco, do grupo alimentício M. Dias Branco), já se instalaram no Complexo Portuário, o que o transforma, no entender do presidente da Agência de Desenvolvimento Econômico do Ceará (Adece), Ferrúcio Feitosa, em pólo cimenteiro. O cimento usa um subproduto da siderurgia, a escória obtida nos altos-fornos.

VENEZUELA: En 2016 iniciará operación planta de cemento Yaracuy

La miniplanta de Cementos Yaracuy, uno de los proyectos más emblemáticos que el Gobierno bolivariano adelanta en la entidad, iniciará operaciones en una fase inicial durante el primer trimestre del año 2016. La obra se erige en el sector Barranco Amarillo, municipio Peña, con una inversión presupuestada de 15 millones de dólares.

El jefe del Ejecutivo regional, Julio León, constató el avance del proyecto y ratificó que la puesta en marcha de la factoría, en período de evaluaciones, iniciará el próximo mes de enero; se prevé que la planta sea inaugurada formalmente en julio de 2016 cuando 100 % operativa produzca 600 toneladas de mezcla por día.

Los 4.5 millones de sacos de cemento que producirá la factoría por año, cubrirán la demanda del sector público y privado, permitirán acelerar la ejecución de obras de infraestructura social, particularmente de la Gran Misión Vivienda Venezuela e impulsarán el desarrollo industrial de la entidad. En la construcción de la miniplanta, concebida en convenio India-Venezuela, trabajan especialistas experimentados y altamente capacitados en el área, con la tecnología más moderna del mundo y bajo el concepto del ecosocialismo. Contará con hornos verticales de 35 metros de altura que, gracias a la implementación de un innovador sistema, no emitirán gases contaminantes ni afectarán el ambiente.

JAMAICA: Caribbean Cement Lands Big Contracts

Caribbean Cement Company Limited (CCCL) has secured a deal to supply cement for use in stabilisation of a 46-kilometre stretch of the north-south leg of Highway 2000, which is currently under construction.

The local cement manufacturer is also on board projects that will see 640 hotel rooms being built by BahÌa PrÌncipe and 460 rooms for student accommodations being constructed at the University of the West Indies.

"We believe we have passed the rougher times," said recently appointed general manager, Alejandro Vares, at Caribbean Cement's annual general meeting on Tuesday.

"We are now on a path to improve profitability on a sustainable basis," he told shareholders.

Indeed, 2014 was the first full financial year in which the cement maker posted a profit after five years of drought - it racked up more than $8 billion in losses from 2009 to 2013. Moreover, earnings for the first three months of 2015 totalled $248 million, compared with $35 million in the corresponding quarter last year.

Export Market

This year's performance is expected to be supported by four per cent growth in the domestic cement market in 2015 and a second clinker supply deal to Venezuela, which runs to November. The contract requires the company to ship 240,000 tonnes of the cement input, compared with 100,000 tonnes in the first supply deal under the PetroCaribe Trade Mechanism.

Caribbean Cement also started 2015 with its products carrying an average price that is 7.5 per cent higher than it was at the beginning of last year - after three price increases in the first half of 2014 - while energy prices have slumped from year-earlier levels.

Still, the cement maker is sitting on unused capacity that it has been unable to utilise due to stagnant demand for cement, costly production, and a limited range of products.

Even with record production of clinker last year, it still had 40 per cent of its kiln capacity unutilised - just over 40 per cent of the company's cement milling capacity is being used.

Vares, who took over management of the company from Anthony Haynes in May, reckons that improving operational efficiency and lowering production cost, and, consequently, the price to consumers, can make CCCL's cement competitive enough for the export market, which could easily eat up the local manufacturer's unused capacity.

He hopes to increase kiln efficiency from 78 per cent in 2014 to 85 per cent this year to more than 90 per cent next year.

Lower prices on the existing products it makes could also squeeze out imported cement.

But Caribbean Cement also has to go after new markets. It is currently analysing the feasibility of exporting gypsum, according to Vares. The company has already lab tested a sulphate-resistant cement that is particularly useful in the development of seaports as the product is better at withstanding the effects of the ocean.

The cement maker's own ports, such as the Jamaica Gypsum & Quarries' pier, which was dredged last September to permit loading of 25,000-tonne shipments of clinker, also presents an opportunity for Caribbean Cement to explore handling other companies' shipments.

"We are talking with a few companies, but I am not authorised to discuss details at this time," said Vares regarding Caribbean Cement's flirtation with renting the capacity of its ports.

INDONESIA: Cement Sales Plunge Most in 6 Yrs, Hope on Infrastructure Projects

The latest data from the Indonesian Cement Association (ASI) show that cement consumption in Indonesia declined 3.8 percent (year-on-year) to 22.9 million tons in the first five months of 2015 (from 23.8 million tons of cement in the same period last year). This fall is the steepest decline in Indonesian cement consumption since 2009 when demand plunged nearly seven percent (y/y) amid the impact of the global financial crisis. The current decline is caused by the country’s economic slowdown and falling commodity prices outside Java.

A report from Mandiri Sekuritas also mentions that the entry of a new player (Semen Merah Putih) in Indonesia’s cement industry as well as the opening of new cement plants of established players have caused additional pressure on cement prices and may lead to an oversupply. Meanwhile, the central bank (Bank Indonesia) remains committed to its relatively high interest rate environment with the country’s key interest rate (BI rate) at 7.50 percent in a bid to combat high inflation, curb the wide current account deficit and limit capital outflows ahead of further monetary tightening in the USA. Higher borrowing costs curb property demand. However, Bank Indonesia has announced to lower down payment requirements for the purchase of property in an effort to boost the industry.

Cement sales are one of the key indicators to measure the state of the economy, particularly in the property and infrastructure sectors. The Mandiri Sekuritas report states that growth in Indonesia’s infrastructure spending was relatively flat at -0.6 percent (y/y) so far in 2015. However, Head of the ASI, Widodo Santoso, expects cement sales to rebound on the back of government-led infrastructure projects in the second half of 2015. These projects include the Trans Sumatra toll road, the Manado-Bitung toll road and the Medan-Kuala Namu toll road, as well as smelters, power plants, the Jakarta Mass Rapid Transit (MRT), railway projects and port development across the archipelago. Santoso eyes domestic cement sales of 62 million tons this year, up 3.5 percent from 59.9 million tons in 2014. Next year he expects cement demand to increase to 69 million tons.

Meanwhile, the ASI sees total cement plants’ capacity at 75 million tons in 2015 and at 92.8 million tons next year following the start of production of several large cement factories including Semen Padang and Tiga Roda.

In May 2015, Indonesian cement sales particularly declined in commodity-driven provinces such as South Kalimantan (-41 percent y/y) and East Kalimantan (-24 percent y/y).

Indonesia’s largest cement producer Semen Indonesia saw its market share decline from 44 percent to 43.3 percent so far this year, while the country’s second-largest producer Indocement Tunggal Prakarsa saw its market share fall from 30.5 percent to 29.2 percent over the same period.

INDIA: Wonder Cement to invest Rs 3200 crore to increase capacity to 10MT

Wonder Cement Ltd, a part of RK Marble Group, today said it has chalked out plans to invest around Rs 3,200 crore to increase cement production capacity to 10 million tonne in next five years from present 3.25 million tonne. 

"We have 3.25 MT per annum cement manufacturing capacity at our Bhatkotri village unit in Rajasthan and have invested Rs 1,600 crore to double the current capacity to about 7 MT by setting up a second production line. 

It is likely to complete by this year end," Wonder Cement executive director Jagdish Chandra Toshniwal told here. The company has ambitious plans to further expand the current capacity to 10 million tonne by setting up third production line at a cost of Rs 1,600 crore in next five years period, he said. 

The project will be funded through internal accrual of Rs 300 crore, promoters' contribution of Rs 500 crore and debt of around Rs 2,400 crore, Toshniwal said. 

Currently, the plant is running at full capacity selling 1,80,000 bags per day catering to northern states but 50 per cent of its volume is sold in Rajasthan, he said, adding that the company is also expanding its base in north Gujarat and western parts of Uttar Pradesh and Madhya Pradesh. 

Toshniwal pointed out that northern India has cement demand of 58 MT per annum and supply of 70 MT per annum. Despite surplus capacity, the company was able to sell its products due to superior quality. "The cement industry is evolving rapidly and as we prepare for the next phase of the company's growth. 

We are focusing our efforts on increasing our market share by creating a clearly distinctive positioning in the market place," he said. 

Some of the recent government initiatives such as development of 100 smart cities, housing for all by 2022 and post­monsoon commencement of several infrastructure projects are expected to provide a major boost to the sector, Toshniwal added.

PERU: Construcción inició el 2015 con cuatro meses a la baja

Según los productores de cemento el rendimiento en mayo también fue malo. Desde el Ministerio de Vivienda confían en que el sector repunte en el segundo semestre del año.

A inicios de año, desde el Ministerio de Vivienda, Construcción y Saneamiento se estimaba que la actividad constructora lograría un alza de 8% en el 2015, gracias a una serie de medidas reactivadoras, entre ellas la ley de alquileres que plantea el leasing inmobiliario y el alquiler-venta de viviendas.

Sin embargo, luego del primer cuatrimestre del año, la realidad dista de las expectativas de dicha cartera, pues –según el Instituto Nacional de Estadística e Informática (INEI)– en abril se contrajo 8,57% y en lo que va del año 7,31%.

Este resultado es explicado por la contracción de 3,75% en el consumo interno de cemento y de 20,06% en el avance físico de obras.

De acuerdo con el INEI, la disminución del consumo interno de cemento responde al menor ritmo de obras registradas como la construcción de conjuntos habitacionales y departamentos, centros empresariales, infraestructura hospitalaria y portuaria. Sin embargo, registraron aumento las obras en las empresas mineras y de construcción de centros comerciales.

Respecto al avance físico de obras, indicó que se redujo en los tres ámbitos del gobierno; el local, regional y nacional, lo cual explica la caída de 20,09% en la inversión pública en construcción.

Y el panorama para los siguientes meses no es muy alentador, pues la Asociación de Productores de Cemento (Asocem), informó que el despacho nacional de cemento tuvo su mayor caída del año en mayo con 8,4%, ya que en similar mes del año pasado se despacharon 850.000 toneladas de cemento pero en este año el despacho fue de 71.000 toneladas menos y se tuvo un total de 779.000 toneladas. Además, el despacho total cayó 8,2% y la producción en 5,7%.

Con el resultado de mayo, durante los últimos 12 meses (junio del 2014 y mayo del 2015), la producción, el despacho nacional y el despacho total de cemento decrecieron en 0,1%, 1,3% y 0,2%, respectivamente.

La baja demanda de cemento respondería a la débil inversión privada y al mal manejo del gobierno, dado que el gasto público acumulado entre enero y mayo del presente año fue 12% menor que el acumulado entre enero y mayo del 2014.

Para Asocem, el Gobierno Nacional incrementó su gasto en 38% pero los gobiernos regionales y locales tuvieron descensos de 30% y 41%, respectivamente.

RESPONDE VON HESSE

El ministro de Vivienda, Construcción y Saneamiento (MVCS), Milton von Hesse, puso paños fríos al tema, y aseguró que se mostrará un mayor dinamismo en el segundo semestre de este año con la puesta en marcha de la inversión pública en los gobiernos subnacionales y por el desarrollo de la Línea 2 del Metro Lima.

Von Hesse resaltó que la relevancia de este megaproyecto se sustenta en que es la obra de infraestructura más grande en la historia del país.

“Esta obra significará mucha subcontratación y mano de obra, mayor compra de cemento y fierro, así como mayor demanda de ingenieros, arquitectos y obreros, lo cual empezará a mover a nuestro sector”, anticipó.

Asimismo, estimó que las medidas que se tomarán, tras la delegación de facultades legislativas al Poder Ejecutivo, generarán un crecimiento del sector por encima de 5%. 

“El efecto reactivador que tendrán estas normas en el sector vivienda y la activación de grandes proyectos de infraestructura permitirán un crecimiento importante del sector”, proyectó.

CLAVES

El Banco Central de la Reserva de Perú (BCRP) redujo su proyección sobre el crecimiento del sector construcción de 5,7% a 1,9%.

En tanto que el Ministerio de Vivienda, Construcción y Saneamiento también redujo sus estimados de 8% o 9% a inicios de año a 5% en mayo. Según el ministro von Hesse, la ley del leasing no podría promulgarse mediante decreto supremo tal como lo dejó entrever Pedro Cateriano.

INDIA: Lower cement prices continue to reflect weak demand

Cement companies may be facing a dull quarter ending June, with low sales and capacity utilization levels.

Cement prices, which fell in the months of April and May, showed no sign of improvement in the first two weeks of June. Now, with the onset of the monsoon, dealers do not expect the situation to improve anytime soon.

The weak prices reflect weak demand. The subdued trend was seen on a pan-India basis, despite news reports suggesting that more government projects are being bid out. That may be because, as analysts say, hardly any new projects have gotten off the ground.

According to a report by Reliance Securities Ltd, the all-India average of cement prices during May was Rs.293/bag—marginally lower than a year ago and also lower than that in the previous month.

Some dealers say that cement offtake is weak as payment delays to contractors have brought some government projects to a standstill. Further, a subdued rural economy after unseasonal rains, low minimum support prices and low disposable income have hit rural demand, too.

Another reason has been the moribund real estate market with hardly any new launches since March.

The biggest month-on-month drop in prices has been in the northern region which posted an 11% cumulative drop over the last two months. All other regions, too, saw demand contracting, but for the southern region which seems to be holding up so far.

Any improvement in cement prices in the next 10-15 days will be due to dealers’ intent to lift prices to cushion the drop that is typical during the monsoon season.

The weak demand was reflected in the 2.4% drop in cement production during April, as mirrored in the core industries data published by the government. Cement companies may, therefore, be facing a dull quarter ending June, with low sales and capacity utilization levels.

Analysts say there could be a downward correction in the annual demand growth estimate for 2015-16, given that the first half is unlikely to see a significant uptrend from the year ago period, when prices gained on account of the delayed monsoon.

The only ray of hope is strong demand after the monsoon, given that fresh government orders, especially in the roads and power sector, are in the pipeline.

INDIA: ACC resumes limestone mining operations at Bargarh, Odisha

Cement major ACC has resumed limestone mining operations at Bargarh, Odisha, after about nine months. 

"The Company has resumed limestone mining operations at Bargarh with effect from June 17, 2015," ACC informed BSE today. ACC stopped mining at Bargarh in October following a government notice to suspend operations at this plant. 

The company stopped clinker production at Chaibasa, Jharkhand, and Bargarh plants but continued operations of cement grinding units associated with these plants. 

"The impact of the closure was not material since cement grinding continued with transfer of clinker from sister works/purchase of clinker," ACC said. 

The company resumed limestone mining operations at its captive mines of Chaibasa plant following terms of Mines and Minerals (Development and Regulation) Ordinance 2015. 

State governments were issued orders to stop mining following a Supreme Court judgement in the matter of Goa Foundation versus Union of India and Others and in Common Cause versus Union of India on deemed renewal of mining leases and subsequent amendment to The Mineral Concession Rules 1960. 

This judgement affected mining activity of all leaseholders whose mines are on deemed renewal.

INDONESIA: Indonesian president allows staple food prices to be capped

Indonesia's president has signed a decree allowing the government to cap prices of staple foods, cement and other basic goods during peak demand periods, a presidential spokesman said as the Muslim fasting month of Ramadan began on Thursday.

President Joko Widodo, who has also limited the rise in domestic petrol prices, is looking at ways to stimulate the flagging economy which is at its weakest since 2009.

"This regulation gives the authority to the government to set special prices ahead of, on, or after religious holidays or during periods of price volatility," Teten Masduki, presidential spokesman, told reporters.

Volatile food prices drove Indonesia's annual inflation rate to a five-month high of 7.15 percent in May, far higher than in other Southeast Asian economies.

The government is imposing extra measures to ensure prices for food and basic goods do not spike during Ramadan, usually Indonesia's biggest shopping season.

Earlier on Thursday, Indonesia's central bank kept its benchmark reference rate unchanged at 7.50 percent, saying the level is still consistent with efforts to contain inflation and make the current account deficit healthier.

"The goal is good - to ensure price stability - but to industry players this is an interventionist policy," said Eric Sugandi, an economist at Standard Chartered.

"People, especially the poor, may be happy with that but we have to look at the effectiveness," he added. "The losers will be the traders and industry players."

Cement and food firms that may be affected by any cap in prices include PT Semen Indonesia Tbk, PT Indocement Tunggal Prakasa Tbk, PT Indofood Sukses Makmur Tbk and PT Tiga Pilar Sejahtera Tbk and Cargill .

Widodo, who was inaugurated in October, has promised to make Indonesia self-sufficient in various foods and has committed to building more dams, modernising irrigation systems, increasing planting areas for foods and providing easier access to credit for smallholder farmers.

Domestic food prices of chilies, shallots and rice have fluctuated this year, with the government citing dry weather, food hoarding and speculators.

Widodo could be forced to backtrack on his promises to curb rice imports, however, with analysts saying the country may ship in as much as 1.6 million tonnes this year due to soaring prices at home and the threat of a strong El Nino.

Southeast Asia's biggest economy already sets price floors for farmers of staple foods and limits the export and import of some foods, including rice and sugar.

NIGERIA: Ashaka Cement profit falls on Insurgency, lengthy rainy season

Ashaka Cement Plc’s first quarter profit fell despite reduced production costs as the Northern Nigeria cement giant grapples with lengthy rainy rains and insurgency in the north of country that disrupts operations.

For the first three months through March 2015, Ashaka’s net income reduced by 53.45 percent to N889.01 million from N1.91 billion the previous year. Sales slid by 29.84 percent to N4.56 billion as the company seek organic growth through merger and acquisition.

Ashaka have had its operations disrupted by Boko Haram as the company is located in Gombe State, the hot spot of the insurgents.

Boko Haram has waged a six-year campaign to impose Islamic law, or Shariah, in Africa’s largest economy and biggest oil producer.

While Ashaka’s profits flounder due to political risk, it was able to reduce costs to the barest minimum.

Cost of sales reduced by 11.74 percent to N2.93 billion in 2015 as against 3.32 billion the previous year as the company increased the use of local coal in place of the expensive LPFO to power plant at factories.

This is a major cost cutting measure by cement makers in Africa largest economy.

Gross profit was down by 48.87 percent to N1.63 percent due to the sharp fall in sales. Gross profit margin reduced to 35.74 percent in 2015 compared with 48.74 percent the previous year.

Net margin, a measure of profitability and efficiency slid to 19.50 percent in the review period as against 29.50 percent last year.

Analysts say the lengthy rains witnessed in the second and third quarters of 2014 which culminated in slow construction activities resulted in weak demand for cement products.

Ashaka will be in growth spurt as it plans to invest in a significant expansion of its cement production capacity to about 4 million metric tons from the current approximately 1 million metric tons, according to the company’s website. The company will use its internally generated funds to finance the expansion plan.

The expansion in capacity will comprise debottlenecking of the existing line for additional 0.5 million metric tons and installation of a new line of 2.5 million metric tons of cement per annum, according to Suleiman Yahyah, Chairman of the board of Directors of the company, during the its Annual General Meeting held in the capital city Abuja.

“As part of the expansion project, a captive coal-fired power plant of 64 megawatts capacity will be built in order to allow a reliable and sufficient source of power for the existing plant and the new cement line”, said Yahyah.

The minority shareholders of Ashaka are part of pan- Africa entity as its parent company Lafarge Africa increased its stake in the northern cement company.

Lafarge Africa has increased its stake in Ashaka Cement through a Mandatory Tender Offer (MTO) to all minority shareholders of Ashaka Cement.

Ashaka’s EPS reduced by 53.52 percent to 33k in 2015 compared with 71k last year. Total assets increased by a mere 1.01 percent to N72.31 billion.

Analysts see the company rebound to growth if government can intensify its fight as against the insurgents.

Ashaka’s share price closed at 21.50 2:30 pm on the floor of the NSE while market capitalization was N48.14 billion.