UAE: RAK Cement buys back 3.8% to subscribed capital

Ras Al Khaimah Cement Co said on Wednesday it has purchased 3.816 per cent of the stake or 30 million shares at Dh0.83 per share.

The purchase was done through Al Ramz Capital, the company said in a statement posted on Abu Dhabi Securities Exchange’s website.

RAK Cement is capable of producing 960,000 tonnes of clinker and 1 million tonnes of cement per year, and employs 150 employees, according to the website. The plant is connected to a terminal inside the adjacent Saqr Port, which has the capacity to load ships up to 40,000 deadweight tonnage (dwt).

JAMAICA: Caribbean Cement Offers Discount On Cash Purchases

Caribbean Cement Company Limited said Tuesday that it will give a 1.5 per cent discount to cash purchases on cement.

It is additional to the 0.5 per cent discount implemented since last October, the company said.

Caribbean Cement cited the 20-month inflation of 7.13 per cent as a signal that it was offering savings to its customers. However, 12-month inflation has been tracking below four per cent since April 2015, and is currently at 3.7 per cent, according to data released last week by STATIN on price adjustments in January. Additionally, prices deflated in the month of January by 0.4 per cent.

"We commit to continue our drive, which started twelve months ago, to put significant resources and efforts towards the further improvement of our efficiencies and competitiveness," said the company's release. This has allowed us to offer this additional discount to our customer base."

The price of cement otherwise remains unchanged. Credit purchases will not attract the discount.

"In addition, customers purchasing from our depots will pay a portion of the costs for freight. These partial freight costs are subject to change, and they are dependent on factors such as oil prices and the depreciation of the Jamaican dollar," said Caribbean Cement.

CANADA: CEMENT PORT-DANIEL COULD RECEIVE MORE MONEY

The cement Port-Daniel-Gascons, Gaspesie, already funded with half a billion dollars of public funds could still receive more money from the government Couillard.

The Minister of Natural Resources, Pierre Arcand, hinted Wednesday that the expensive project could receive money from the Green Fund.

This controversial project, which will create the largest emitter of greenhouse gases (GHG) in Quebec, Cement McInnis, would be eligible for funding from the Green Fund is investing in greener technology. This proposed $ 1 billion is already funded at $ 450 million by the state.

Currently, it is anticipated that the petroleum coke and coal will be the main fuel for the cement. Later, after a break-in period, the company plans to use biomass from logging residues.

“Our desire is that the proposed Cement McInnis is a green project, with less use of oil and coal”, said the Minister of Natural Resources, Pierre Arcand, in a press briefing at the end of the meeting of the Liberal caucus Wednesday morning.

“There is the possibility of eventually have natural gas, biomass, and in a future world, there are carbon capture opportunities. ”

However, in the short term, the most practical solution would be the use of natural gas, Mr. Arcand has said, while referring to the $ 3.8 million in Quebec in the Bourque project, a company deposit Petrolia located in the Gaspé.

The minister suggested that the government was pressuring Cement McInnis to reduce its carbon footprint, in line with greenhouse gas reduction targets (GHG) emissions in Quebec and the commitments made by Canada at the last UN Conference climate change in Paris.

The Green Fund to the rescue?

“We will do whatever is necessary for the cement plant in Port-Daniel obviously emit the least greenhouse gases to be,” said the minister.

By doing this, so do not rule out the possibility of injecting more public money into adventure through the Green Fund. “In terms of energy efficiency, green Fund can certainly serve,” Mr. Arcand said.

Recall that the Green Fund was established by the government with the revenue from the carbon exchange. It is used to finance greenhouse gas reduction projects and more generally “sustainable development measures, including on strategic issues related to the fight against climate change, waste management and water management “can be read on the green Fund website.

This is not the first time McInnis Cement finds himself in the hot seat. The project was announced with great fanfare by the Marois government in 2014 and soon after coming to power, the Liberals had questioned then confirm.

The project funding half from public funds or from Investissement Québec and the Caisse de dépôt et placement.

NEW ZEALAND: Holcim's $50m cement terminal 'minion' opened at Timaru's port

The "minion" has been brought to life.

Holcim New Zealand's new $50 million cement terminal at Timaru's port was officially opened on Thursday afternoon.

The 30,000 tonne storage dome – the first of its kind in New Zealand – has unloaded two ships since December and is set to be an important gateway for cement for the South Island and lower North Island.

The company's aim is for 18 in-bound ships a year to Timaru with the Holcim-owned Milburn Carrier II shipping out-bound orders from its berth at the reconstructed No 2 wharf.

Another $50m Holcim dome in Auckland is under construction and on track to be opened by mid-2016.

Economic development minister Steven Joyce and Rangitata MP Jo Goodhew cut the ceremonial ribbon in Timaru in front of a 70-strong crowd including dignitaries, Holcim staff and customers.

Holcim New Zealand country manager Glenda Harvey said the so-called "minion" had been made a reality on time and within budget.

"This is an historic day for our company. Thank you to everyone for the teamwork required to achieve it."

Fifty people worked on the Timaru terminal's construction and six full-time employees had been on-site since the last quarter of 2015.

Holcim will now become PrimePort Timaru's single largest bulk customer.

Harvey said the terminal had "understandable" teething issues unloading its first shipment in December but things were back on track.

"We're obviously in a bit of a trial phase but the second shipment has been done in half the time so I am happy with where we are at."

Goodhew said having Holcim come to Timaru was a vote of confidence in the South Canterbury region.

"The first time I saw the dome I knew it was going to be there but I still thought it was bit of a spaceship," she said.

The company's sponsorship of local events and scholarships had shown Holcim had a genuine interest in being a part of the community and Goodhew said she hoped that continued.

Joyce said South Canterbury remained "durable" as its export-focused industries helped it get through a difficult time for dairying.

"Some would say it [South Canterbury] holds up the Canterbury economy," Joyce said. "I wouldn't say that but some would."

The minister, who had a dildo thrown at him at Waitangi earlier in the month, twitched as a passing car tooted during his speech.

"I had to make sure the window wasn't open," he said. "I'm slightly twitchy these days."

INDIA: UltraTech leading race to acquire Jaypee’s 20 mt cement capacity

Aditya Birla Group’s UltraTech Cement Ltd is front runner in the race for Jaiprakash Associates Ltd’s entire 20 million tonne cement capacity, according to two persons familiar with the situation.

UltraTech is offering an enterprise value of around Rs.18,000 crore for these assets, according to one of the two persons.

UltraTech is one of three bidders for Jaiprakash’s assets,Mint reported on 19 February.

The other bidders are private equity firm KKR & Co. and Dalmia Cement (Bharat) Ltd.

“UltraTech is in the advanced stage of acquiring Jaiprakash Associates’ cement assets. The company is working on various modalities for this acquisition,” said the first person, who spoke on condition of anonymity.

The person added that UltraTech would fund the deal largely through loans and a little bit of equity. An announcement in this regard is expected in a fortnight.

Jaiprakash Associates declined comment.

UltraTech didn’t respond to an email seeking comment.

UltraTech Cement had earlier agreed to buy two cement assets in Madhya Pradesh with a combined capacity of 5 million tonnes from Jaiprakash Associates for Rs.5,400 crore. The stand-alone deal was put on hold, and the two assets folded into a larger transaction under which the latter is seeking to divest its entire cement capacity.

Lenders to the debt-laden Jaypee Group have been pushing for a sale of the conglomerate’s cement assets in a bid to reduce the group’s overall debt.

According to bankers involved in the deal, a significant portion of the enterprise value would involve transfer of the debt currently on Jaiprakash Associates’ books.

Regulatory issues, though, can hamper the deal.

On 19 February, Mint reported that the cement deal cannot be completed before a proposed amendment to the Mines and Minerals (Development and Regulation) Act, 1957, is cleared.

The MMDR Act currently does not allow a company to transfer rights to an allotted mine to another company or subsidiary.

Given that limestone is a key raw material in the cement-making process, it is difficult to execute the sale of cement capacity without selling the related limestone mines as part of the deal.

The UltraTech Cement-Jaiprakash Associates deal may also run into anti-trust issues as UltraTech’s acquisition of Jaypee’s assets will expand its presence in the northern and central India markets.

The first person admitted that the Competition Commission of India (CCI) could oppose a deal. He added that multiple options are under consideration to address both CCI- and MMDR-related issues.

These include “either acquiring the cement division and then divesting, according to the CCI requirements, or buying out Jaiprakash Associates, if it demergers all its non-cement assets,” this person said.

According to a December 2014 investor presentation on the website of Jaiprakash Associates, the conglomerate has interests in engineering and construction, cement, real estate and hospitality businesses under it. In addition, Jaiprakash Associates holds a 60.72% stake in Jaiprakash Power Ventures Ltd and 71.64% in Jaypee Infratech Ltd.

“We are confident that all issues will be sorted out shortly,” said the second person.

The Jaypee Group had estimated debt of Rs.75,000 crore at the end of financial year 2015, according to the 21 October edition of Credit Suisse’s House of Debt report. UltraTech’s finances are far stronger. As of March 2015, UltraTech Cement had consolidated debt of Rs.9,829.14 crore and a debt-to-equity ratio of 0.47, allowing room for it to raise more debt.

If closed, the deal will help UltraTech strengthen its position as the market leader.

“Regulatory clearance would be a hurdle. However, the deal will help UltraTech achieve its 100-million-tonne, long-term cement capacity target easily,” said Amey Joshi, associate director (corporate) at India Ratings and Research Pvt. Ltd, a Fitch Group company.

After the acquisition, UltraTech’s capacity will jump 30% to 85 million tonnes from the current 65 million tonnes.

“UltraTech has been pushing for this deal for two reasons— one, there may not be such a large asset up for sale again, and second, if someone else acquires these it could threaten UltraTech’s market-leader position,” said a senior cement analyst at a domestic brokerage firm, who did not want to be named.

KENYA: Kenya's Portland cement issues profit warning

East African Portland Cement expects its profit to slide by more than a quarter in the financial year ending June 30 citing year-earlier gains on land sales, it said on Thursday.

"The unrealised fair value gain on investment property and the gain on disposal of land will not recur this financial year," Portland said in a statement. 

The company's pre-tax loss widened to 745.02 million shillings ($7.33 million) in the first half on higher finance costs and foreign exchange losses. Portland has foreign currency-denominated debt, meaning it faces higher repayments when the shilling weakens.

It said demand for cement was expected to remain strong due to numerous, ongoing infrastructure projects, but cautioned that an oversupply in the local market would weigh on prices in the short to medium term. 

In response, Portland said it would control costs and expected a technical support agreement it has entered into with Lafarge Holcim to boost its operations.