23 November 2015
Sindh to establish ‘zero-pollution’ cement plants 23 November 2015
Pakistan: Sindh, a Province of Pakistan, has claimed that it will establish cement plants based on new technology with 0% pollution and low energy consumption.
The Sindh government has signed Memorandum of Understanding (MoU) with Sinohydro Corporation and Deer International Group. It will bring US$250m of foreign direct investment, create 2500 new job opportunities, generate tax revenue of US$28.4m/yr, improve peripheral economic investment and offer top quality and cheaper cements to fulfil the demand of infrastructure projects. Chairman of Deer International Group, Qaim Ali Shah, said that since Sinohydro Corporation was the world's largest water conservancy and Hydro Power Construction Company, it could efficiently exploit the indigenous resources available at Sindh.
Caribbean Cement shareholder demands probe of operating lease to TCL 23 November 2015
Caribbean: Michael Subratie, a minority shareholder of Caribbean Cement Company (CCC), has asked the Jamaica Stock Exchange (JSE) to investigate whether the operating lease paid to parent Trinidad Cement Limited breaches accounting rules.
Subratie is contending that the operating lease over the cement plant's assets, which are owned by TCL, distorts its profits and stifles shareholder value, that it appears to contravene Generally Accepted Accounting Principles - GAAP - and should be replaced with a finance lease arrangement.
Caribbean Cement last paid a dividend in 2005, amounting to a total distribution of around US$9.34m at US$0.01/share. Subratie holds just over four million CCC shares in his own name and is now the tenth-largest shareholder of the operation with a 0.48% stake.
In 2014, Caribbean Cement paid US$377m to TCL as an operating lease. For 2015, it is projecting payments of US$364m. In 2015 – 2018, the plant expects to pay US$87m to TCL under the lease agreement. New rates will be negotiated for January 2019 to December 2028.
"The operating lease arrangement seems completely unfair to the minority shareholders as the true situation seems to be that of a finance lease as the equipment leased are permanent structures and equipment located at CCC in Jamaica," said Subratie. He is also contending that amounts already paid by Caribbean Cement, combined with the payments scheduled to 2018, more than equal the cost of equipment and structures.
Under operating lease contracts, the owner permits use of an asset for a particular period, which is shorter than the economic life of the asset, without any transfer of ownership rights. A finance lease is a commercial arrangement where the lessee pays a series of rentals or instalments for the use of the asset and has the option to acquire ownership.
Caribbean Cement has two operating lease agreements with TCL, covering kiln 5 and cement mill 5. Those structures were part of an expansion programme financed by TCL from external sources. The operating lease charge is accounted for on Caribbean Cement's financial statements as an expense. Without that expense, Caribbean Cement's earnings before interest, taxes, depreciation and amortisation (EBITDA) would be boosted by around US$31,386/yr.
TCL owns 74% of Caribbean Cement and, as the situation now stands, it is the only shareholder benefiting from payouts from the Rockfort plant, said Subratie.
thyssenkrupp launches new brand identity 23 November 2015
Germany: In the future, thyssenkrupp will use one common brand the world over. The redevelopment of the brand reflects the transformation of the technology company to a diversified industrial group.
"thyssenkrupp has changed in recent years. We are a different company today. We have become more diversified and, as a result, more stable," said Heinrich Hiesinger, CEO of thyssenkrupp. "However, we are not yet perceived everywhere as the high-performance industrial group we are and want to become even more. That's why we decided to redevelop the brand," said Communications Chief Alexander Wilke.
The new brand puts a stronger focus on customers. It communicates the company's positioning as a diversified industrial group and its aspiration to work in an integrated way, leveraging internal synergies and creating added value for customers, employees and shareholders. The new branding is based on a survey of more than 6000 customers, employees, applicants, investors, works council members, public figures and consumers.
The new brand condenses what thyssenkrupp stands for in a logo, a slogan and new colours. "But these are only the visible elements of our brand. At its core is our brand promise – because it places the focus on customers and says how we want to advance them," said Wilke. "The new brand does not mean that we have reached the end of our transformation. But it is designed to give a further boost to our change process both inside and outside the company," said Hiesinger.
Over 180 different brand identities currently exist side-by-side within the group. The single brand will create a unified image among customers and employees. thyssenkrupp will introduce the new brand gradually and in accordance with the company's financial situation. Service vehicles, trucks used by the logistics unit, office stationery, work clothes, among others, will only appear in the new brand look when they would normally have been replaced at the end of their service lives.
Lafarge Malaysia buys Holcim 23 November 2015
Malaysia: Lafarge Malaysia Bhd has bought Holcim Sdn Bhd from PT Holcim Indonesia in a deal worth US$71.2m.
"With this merger, our installed cement capacity will rise to 14.1Mt/yr from 12.9Mt/yr through the combined strength of three integrated cement plants, two grinding stations, over 40 ready-mix concrete batching plants and six aggregate quarries," said Lafarge in a statement. Lafarge Malaysia has now become part of LafargeHolcim.
ASEC Cement finalises sale of two units for US$127m 23 November 2015
Egypt: ASEC Cement, part of Egypt-based Qalaa Holdings, has finalised the sale of ASEC Minya Cement and ASEC Ready Mix to Misr Cement Qena for a total of US$128m.
ASEC Minya Cement is located in Upper Egypt. It began commercial operations in August 2013, with a capacity of 2Mt/yr. ASEC Ready Mix is a producer and distributor of ready-mix concrete. The company operates six batch plants in Upper Egypt with 382,000m3 of production in 2014.
At the time of sale, ASEC Cement held 46.5% of ASEC Minya Cement and 55% of ASEC Ready Mix. Qalaa and its subsidiary National Development and Trading Company (NDT) together own 70% of ASEC Cement.
"We are pleased to announce that the sale process closed today, putting in place another cornerstone in our strategy to deleverage at both the holding and platform company levels," said Ahmed Heikal, Chairman and Founder of Qalaa Holdings. "Both ASEC Minya and ASEC Ready Mix have established themselves as critical players in the vital Upper Egyptian market and we are honoured to have worked with an exceptional management team at each of them to build them into the companies they are today."
US Cement white cement plant project moving ahead in Texas 23 November 2015
US: The Brady City Council has voted to authorise two proposed sales tax rebate incentives for a US Cement proposed white cement plant and quarry that would be built in McCulloch, Texas.
The city sales tax rebate economic development incentive for the proposed plant would not exceed US$297,000 over nine years, or up to US$33,000/yr. The Brady Economic Development Corporation incentive would be a one-time payment of US$250,000, plus US$34,000 up to nine years, which would be a total package of US$556,000 over 10 years. The vote passed 4-1.
The council has authorised the city's Director of Community Services and EDC Director Peter Lamont to pursue negotiations with US Cement before it goes back to the city council for final approval. "I'm sure that there will be some back and forth on some of the qualifications," said Lamont. "Once we get all the language, terms and conditions and all the attorneys agree, it will be brought to the council for final approval."
Some of the qualifications are that US Cement generates a plant and quarry that improves the property value of its location by US$175m and provides 200 permanent, full-time jobs. There will have to be a 100ft buffer zone away from anything it doesn't own and the plant will have to purchase all of its natural gas from the city.
Those opposed to the cement plant are not against the plant itself, but where it will be located. There are 37 homes within 3000ft of the proposed plant and residents are worried about strobe lighting, blasting in the quarry, noise and dust pollution, truck traffic, emissions and a decrease in property values.
"We still have hope that Royal White Cement (the parent company of US Cement) will look for another piece of property," said Dale Matthews, an Austin-based attorney who is helping the opposition. "That there will be no approval of the incentive package if they insist on this location and find one that isn't disruptive to the people living here." Lamont said that finding another location will be up to US Cement and at present, there are no active offers of other properties on the table.