MOROCCO: Addoha va céder 30% de sa filiale dans le ciment à l'Allemand HeidelbergCement

Le groupe marocain Addoha va finaliser la cession de 30% de ses parts dans le ciment en Afrique au groupe allemand Heidelbergcement, rapporte le quotidien l'Economiste. 

Selon la même source, la valorisation de l'opération de cessions se chiffrerait à 2 milliards de dirhams. Après cette opération, le groupe allemand, qui a annoncé son rapprochement avec Italcementi, la maison mère de Ciments du Maroc, deviendrait à la faveur de cette fusion, le numéro 2 du ciment dans le monde derrière Holcim-Lafarge. 

PAKISTAN: Cement export suffers massive decline in Jan

During the first half of current fiscal year country’s cement exports declined by a massive 25.68% to 3.01 Million Tons compared to 4.06 Million Tons during July to Dec., 2014. The North based mills registered decline of 25.09 percent as exports were restricted to 1.9 million tons in first six months of current fiscal compared to 2.54 million tons during same period last fiscal. The South based factories also suffered decline of 26.67% in exports as the quantities dropped to 1.11 Million Tons duly July to Dec of current fiscal compared to 1.52 Million Tons during same period of last fiscal. 

The industry despatched 3.44 million tons of cement in December 2015 compared with 3.11 million tons despatched in December 2014 showing growth of 10.53%. The local despatches were 2.98 million tons during December 2015 against 2.5 million tons during December 2014 depicting increase of 19.28%. The exports despatches showed decline by 25.39% as against 610,000 tons exports during December 2014, the industry exported 455,000 tons during December 2015.

The spokesman of All Pakistan Cement Manufacturers Association said that government has not been able to work with industry to arrest the decline in exports. He added that the Association has time and again drawn government’s attention towards illegal imports of under invoiced cement from Iran. The industry has urged that a proper vigilance and accountability system needs to be put in place to stop cement smuggling into the country.

Government should also impose 20% Regulatory Duty for import of cement in addition to custom duty in order to protect local industry.

CHINA: China Shanshui Cement defaults on 1.8 b yuan bond

Debt-laden China Shanshui Cement Group has defaulted on a mainland-issued bond, its second in two months, dealing a blow to rival Tianrui Group’s plan to take over the company as part of Beijing’s push for consolidation of the overcapacity-plagued cement sector.

Hong Kong-listed China Shanshui’s principal subsidiary Shandong Shanshui said it has defaulted on a 1.8 billion yuan (HK$2.13 billion) three-year bond carrying an annual interest rate of 5.4 per cent that matured on Thursday.

The development has pushed China Shanshui, the nation’s seventh-largest cement maker, closer to bankruptcy, as its earlier debt default triggered multiple lawsuits from creditors that have already seen some of its assets frozen or put into impending auctioning.

“The underlying cause of Shandong Shanshui’s debt problems is unresolved disputes over shareholders’ control, which restricted its fund-raising channels,” Shandong Shanshui said in a statement posted Thursday on chinabond.com.cn, the main platform for mainland bonds issuers’ information disclosure.

Since the estimated value of the company’s assets far exceeds its debt, it expects court-ordered assets sales to bring in less proceeds than claims made by creditors, it added.

In November, Shandong Shanshui defaulted on a 2 billion yuan debenture as a fight for control prevented the firm from obtaining the financing it needed.

Henan province-based Tianrui Group, which last April launched a hostile takeover by snapping up its shares in the open market and raised its stake to 28.2 per cent to become China Shanshui’s largest shareholder, has made a high profile take over attempt after ousting its whole board in two shareholders’ votes late last year.

That was after it amassed a 10.5 per cent stake in China Shanshui in February, by paying a hefty premium over the prevailing market price.

China Shanshui’s new chief executive Li Heping, who recently stepped down as chief executive of Tianrui Group’s Hong Kong-listed unit China Tianrui Group Cement, told the Post last month Tianrui Group will “take over all [of China Shanshui’s] companies, repay the debt, and rebuild the business.”

It succeeded in taking over more than 100 factories, except for five plants and its headquarters in Jinan, Shandong, since China Shanshui’s ousted ex-chairman and founder Zhang Caikui and his son Zhang Bin had “illegally occupied” the premises, the Tianrui-led new board said late last month.

It also said the Zhangs had “illegally retained” Shandong Shanshui’s seals, chops and books, so that the Jinan Administration for Industry and Commerce refused to approve the new board’s application to change Shandong Shanshui’s directors.

The shareholder brawl and subsequent ousting of the entire board, including directors representing Taiwan-listed Asia Cement, which has a 20.9 per cent stake, and state-backed China National Building Material, which owns 16.7 per cent, resulted in multiple debt defaults.

So far 17 creditors have filed law suits at various mainland courts alleging non-payment of debt amounting to 2.8 billion yuan, Shandong Shanshui said in a statement on January 12.

Some of Shandong Shanshui’s assets have been frozen under order of various courts, the company said last week. These include various bank accounts, land, properties and shares in subsidiaries frozen.

China Shanshui has 7 billion yuan of outstanding bonds issued on the mainland, according to director Stephen Liu Yiu-keung.

The board makeover also triggered the early redemption of a US$500 million offshore bond.

China Shanshui offered on January 14 to buy back the bond, saying it has received assurances from Tianrui Group that it would help China Shanshui raise sufficient funds to do so. Tianrui Group has declined to disclose where it will obtain the funding from.

Asia Cement and China National Building Material said in July they will consider to buy all the China Shanshui shares they did not already own, but have yet to make a formal offer.

ZIMBABWE: PPC Zimbabwe Q3 cement sales decline on reduced construction activity

Regional cement producer Pretoria Portland Cement says the completion of major infrastructure projects in Zimbabwe has led to double digit declines in local sales, while exports have been hit by weakening currencies in target markets.

PPC is constructing an $80 million cement plant in Harare, which will have capacity to produce 680,000 tonnes annually.

The company has cement manufacturing plants at Cementside in Bulawayo and Colleen Bawn in Matabeleland South.

The Harare project among others in Africa is expected to boost the demand of cement products.

“The conclusion of major infrastructure projects in Zimbabwe has led to double digit declines in local sales and cement exports have also reduced significantly on the back of exchange rate effects,” said PPC board chairman, Bheki Sibiya in a trading update for the quarter October to December 2015 released on Monday.

JAPAN: Sumitomo Osaka Cement seen with record profit on cheaper coal

Sumitomo Osaka Cement likely will report operating profit of around 17 billion yen ($142 million) for the nine months ended in December, up 11% year over year and a record for the April-December period.

Price drops for coal, a fuel for cement kilns, lifted profitability.

Sales are seen rising about 2% to around 176 billion yen as soft demand in Japan amid a construction worker shortage was offset by robust exports to elsewhere in Asia. Outside of cement, the Japanese company's sales were strong for lithium niobate modulators, which convert communications data, as well as for ingredients for sunscreens and parts for chip-building machines.

The company's high shipping costs in the year-earlier period due to problems with its cement storage facilities returned to normal, a boon to results.

Sumitomo Osaka Cement releases its nine-month earnings Feb. 9. It likely will maintain its full-year forecasts, looking to lift sales 2% to 240 billion yen and increase operating profit 8% to 24 billion yen.

GHANA:Cement manufacturers commend GRA on new tax

The Ghana Cement Manufacturers Association (GCMA) has commended the Ghana Revenue Authority (GRA) for instituting a freight on board (FOB) charge of US$60 per tonne on imported cement.

Cement importers used to pay US$26 per tonne, a rate which the GCMA said allowed cement importers to sell their cement at a cheaper price, to the detriment of local manufacturers of the product.

In a comment on the new FOB charge, the Chairman of the GCMA, Rev. Dr George Dawson-Ahmoah, who is also the Strategy and Corporate Affairs Director of Ghacem

Limited, said the association was grateful that the GRA had thoroughly investigated its concerns over the under-declaration of costs by bagged cement importers.

“We commend the GRA for playing a vital role in this adjustment and urge its sustenance in order to maximise revenue, as well as protect the local cement industry,” he said.

Rev. Dr Dawson-Ahmoah, who is also the Chairman of the Tema Branch of the Association of Ghana Industries (AGI), stated that the GCMA still maintained that the continued importation of bagged cement into the country was not necessary, stressing that with a current surplus capacity of over two million tonnes per annum, local manufacturing companies had the installed capacity to meet the local demand for cement.

He expressed concern that the country was gradually becoming an import centre.

“It is, therefore, imperative that policy makers heed the proposals by stakeholders, including the Ministry of Trade and Industry and AGI, regarding safeguard policies to protect the local industry to be able to perform its function as the engine of growth.” he said.

The GCMA had, since 2015, petitioned the Ministry of Trade and Industry and other agencies regarding what it described as unfair trade practices in the cement industry, particularly bagged cement imports from China.

Members of the association include Ghacem, Diamond Cement in Aflao, Savanna Diamond Cement in the north and Western Diamond Cement in Takoradi.