16 January 2015
Steppe Cement reports 18% growth in cement production in 2014 16 January 2015
Kazakhstan: Steppe Cement produced 1.61Mt of cement in 2014, up by 18% from 1.37Mt in 2013. Its revenue was US$114m in 2014, up by 7% from US$106m in 2013.
In 2014, cement consumption in Kazakhstan was estimated to have increased to 8.5Mt, 4% higher than in 2013. Steppe Cement's market share increased from 17% in 2013 to 19% in 2014, broadly in line with its expectations. Kazakhstan imported 1.1Mt, a 26% fall on 2013, while exports amounted to 500,000t, 150% higher than in 2013.
Devaluation of the Kazakh Tenge combined with reduced cement prices helped local cement producers to gain market share. Steppe Cement's margins fell due to lower cement prices, the devalued Tenge and inflation. However, some of the cost increases should be compensated by the reduced operating costs of the plant's Line 5 following upgrades to increase its capacity.
Tajikistan plans for construction of six new cement plants 16 January 2015
Tajikistan: Tajikistan's Ministry of Industry and New Technologies plans to open six new cement plants in the next two years. Currently the country has 10 cement plants. The additional capacity will reportedly turn Tajikistan from a cement importer to an exporter.
Construction began on a 1.2Mt/yr capacity Tajikistan-China joint venture cement plant, Tajchina, which is expected to start production in 2015. Additionally, plans have been made for other cement plants in the Dangara, Bobokon, Gafurov and Isfara Districts and in Istiklol City. The country's largest cement plant at present is Huaxin Gayur Cement Co, a joint venture between a subsidiary of Huaxin Cement Co and Gaur Limited Liability Company.
Semen Indonesia may drop Myanmar investment plan 16 January 2015
Indonesia: State-run Semen Indonesia may cancel its plans to invest in Myanmar if the company and its local partner fail to reach an amicable agreement over the partnership deal. Semen Indonesia's corporate secretary Agung Wiharto said that his company was facing another difficult round of discussions with its partner in Myanmar.
"Negotiations are ongoing, but we still haven't reached an agreement with our local partner on certain problems, including share price and the size of the stake to be acquired," said Wiharto. He added that if the prices demanded by the local partner were too high, Semen Indonesia would either seek a different Myanmarese company to cooperate with or move the expansion plan to another Asian country such as Vietnam, Cambodia or even Bangladesh. "We want a more reasonable price, as we will not only acquire a stake, we will also provide expertise, technology and human resources," said Wiharto.
Semen Indonesia announced in 2014 that it had decided to postpone its plan to acquire a cement company in Myanmar in 2015 after it missed its deadline to conclude negotiations in the middle of the year. Wiharto added that, to date, the potential partner had not yet determined the portion of its shares to be sold to Semen Indonesia.
While Semen Indonesia had planned to acquire a majority stake in its potential partner, Wiharto said that his company would be satisfied even if did not become a controlling shareholder. He declined to disclose how much investment Semen Indonesia had prepared for the expansion, simply saying that the cement producer had 'enough internal cash to fund the required capital.'
Pending LafargeHolcim and Sika deals forge ahead despite SNB’s abandonment of Swiss Franc cap 16 January 2015
Switzerland: On 15 January 2015, the Swiss National Bank (SNB) abandoned the Euro1.20 cap on the Swiss Franc, causing market turmoil. However, deals involving domestic companies Holcim and Sika are expected to survive the impact of the shock decision.
Bigger deals are insulated against the effects of the sudden surge in the value of the Swiss currency because the companies involved are able to to buy insurance to protect them against such moves. However, some bankers said that the volatility introduced by the SNB decision to scrap the cap after three years could dampen deal-making in the longer term.
Holcim also said that it remained committed to a planned merger with France's Lafarge despite the move by the SNB that knocked almost Euro2.95bn (3bn Swiss Francs) off Holcim's market value.
"Regarding a possible impact on the combination with Lafarge, what we can say is that we remain committed to the merger," said Holcim spokesman Eike-Christian Meuter. According to Reuters, a spokesman for Lafarge said that it also remains committed to the merger.
Holcim was one of the companies caught up in a 10% all-in Swiss blue chip stocks on fears over the impact on their exporting power. Holcim slumped 20% at one point.