03 January 2018
Italcementi completes acquisition of Cementir Italia 03 January 2018
Italy: HeidelbergCement’s subsidiary Italcementi has completed its acquisition of Cementir Italia following approval by the Italian competition authority. The competition body gave clearance to the acquisition in November 2017 subject to certain conditions, including the divestment of some plants. Italcementi will reveal which units it intends to sell by mid-2018. The acquisition cost Euro315m.
“For Italcementi, the acquisition is a unique opportunity to grow and consolidate its position in the Italian market. We see strong recovery potential in Southern Europe and especially in Italy over the coming years. With this acquisition we are very well positioned to create value through synergies, efficient processes, and the offer of high-quality and innovative products,” said Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement.
Italcementi and Cementir Holding entered into an agreement to buy Cementir Italia, and its subsidies Cementir Sacci and Betontir, in mid-September 2017. Cementir Italia’s business includes five integrated cement plants and two cement grinding units with a total cement capacity of 5.5Mt/yr, as well as a network of terminals and concrete plants, all operating in Italy. Minimum annual run-rate cost synergies of Euro25m are expected to be achieved by 2020.
HeidelbergCement warns of knock to profit in 2017 before boost in 2019 following US tax reform 03 January 2018
US: HeidelbergCement expects its profit to be negatively effected in 2017 following reforms to the US tax system. Following a change in the rules from 22 December 2017 the federal corporate tax rate has been reduced from 35% to 21% from the start of 2018. In addition, the regulations regarding the utilization of loss carryforwards were changed. This has affected deferred tax assets on losses and interest carried-forwards that are expected to reduce the group’s balance sheet by Euro200m in its annual report.
However, the company still expects a ‘significant’ increase of 2017 group share of profit before one-time effects. In addition in 2019 the major reduction of the effective tax rate in the US is anticipated to have a positive effect on group net profit and cashflow.
Sinoma signs waste heat power plant deal with Asia-Africa Business Management in Namibia 03 January 2018
Namibia/China: Sinoma Energy Conservation has signed a contract with China’s Asia-Africa Business Management (AABM) to build a 4.5MW waste heat power plant. The power unit will support a 2500t/day cement production plant that AABM and local company Whale Rock Cement plan to build as a joint venture. The cement plant project was first announced in 2015.
Nepalese cement grinding plants hit by clinker shortage 03 January 2018
Nepal: Production at 13 cement grinding plants have been distrupted by a restriction on Indian clinker imports at Birgunj. Imports at the border town stopped on 22 December 2017 following complaints by local residents about air pollution, according to the Kathmandu Post. Cement plants in the so-called Parsa-Bara industrial corridor have resorted to using inventory supplies or clinker sourced from alternative locations.
UltraTech Cement rebuked by Maharashtra Pollution Control Board for terminal near Pune 03 January 2018
India: The Maharashtra Pollution Control Board has complained about a terminal operated by UltraTech Cement at Peth Naygaon near Pune. Local residents petitioned the pollution board with claims that the trucks to the unit have been carrying raw and packaged cement without any cover, according to the Pune Mirrow newspaper. Following a study the pollution board then made an official complaint under the Air (Prevention and Control of Pollution) Act 1981 and the Environment (Protection) Act 1986. Local police are investigating the matter.