25 November 2015
Uzbekistan to increase cement production to 7.9Mt in 2015 25 November 2015
Uzbekistan: Uzbekistan plans to increase cement production from 7.5Mt/yr in 2014 to 7.9Mt/yr in 2015. Production is expected to reach 8.9Mt/yr by 2019. Within a programme of measures on structural reforms, modernisation and diversification of cement plants will take place in 2015 – 2019. Kyzylkumcement will invest US$30.7m to update equipment, while Bekabadcement will invest US$5.5m to modernise its milling technology.
Republic Cement plans expanded production 25 November 2015
Philippines: Republic Cement Services Inc (RCSI) is considering building production facilities in Visayas and Mindanao following a government drive to improve the country's infrastructure.
According to RCSI president Don Lee, the move is in response to announcements made by the Department of Public Works and Highways (DPWH) that more projects were needed in the regions. "At this point, DPWH is more aggressive in visions, projects and allocations of the budget in Visayas and Mindanao," said Lee. The Public Works department, he said, needs to ensure that the local industry has enough capacity to serve the country's development needs. "It is sending us a reminder to be faster in having more cement capacity in Visayas and Mindanao." Lee said that expansions by cement companies are critical for sufficient raw material supplies for energy, water, telecommunications and transport projects. Included in RCSI's upcoming expansions are an 800,000t/yr grinding plant in Norzagaray, Bulacan that is expected to be operational early in 2016.
Lee said that the Cement Manufacturers' Association of the Philippines had reported a year-on-year cement demand increase of 18% in the third quarter of 2015. "I think that for the full year, we're about 13.5 – 14%. We have one of the healthiest cement markets in the world, driven by construction in infrastructure, individual homes and mid-high rise constructions," said Lee.
Lee said he was also confident that Republic Cement would be able to post above industry growth. "With our new capacity coming on and new shareholders, we are in a good position to develop new projects and continue to invest ahead of demand. Our two new parents are financially healthy," said Lee.
RCSI is a joint venture between Aboitiz Equity Ventures Inc and CRH. The two companies secured 99.09% ownership of Lafarge Republic Inc, which operates the Republic Cement brand, for US$530m.
Cementos Argos expects US$2.61bn revenue in 2015 25 November 2015
Colombia: Cementos Argos has reported that it will reach US$2.61bn in revenue in 2015. Revenue was US$1.86bn in the first nine months of 2015, a 35% year-on-year increase. Colombia represented 88% of Cementos Argos' revenue in the nine months.
Switzerland: In the first nine months of 2015, LafargeHolcim reported a fall in net sales, adjusted operating earnings before interest, taxes, depreciation and amortisation (EBITDA) and cement sales volumes.
LafargeHolcim's net sales fell by 0.6% year-on-year on to Euro20.4bn at constant exchange rates and its adjusted operating (EBITDA) fell by 3.2% on a like-for-like basis to Euro4.02bn in the first nine months of 2015. In the third quarter of 2015, Latin America and Asia Pacific (excluding China and India) continued to see positive trends, while the Middle East and Africa experienced more difficult conditions. Overall net sales in the quarter fell by1.1% on a like-for-life basis to Euro7.22bn. Adjusted operating EBITDA was down by 8.9% on a like-for-like basis to Euro1.51.
Sales volumes in all product lines declined slightly in the first nine months of 2015 due to lower than expected demand in a number of markets impacted by an economic downturn, notably in Brazil and China, as well as a lack of infrastructure projects in India. In the third quarter of 2015, volume trends stabilised and countries such as Argentina, Mexico, the Philippines and the UK continued to perform well. In the US, where the market recovery is well under way, LafargeHolcim is increasing capacity through revamping and reopening plants. On a pro forma basis, consolidated cement volumes fell by 1.3% to 189Mt in the first nine months of 2015 as increased shipments in North America and Latin America were offset by declines in Europe and in China. Solid increases were, however, reported in many markets, including in Egypt, Mexico, Philippines, Canada and the US. In the third quarter of 2015, cement sales volumes grew by 0.2% year-on-year to 65.3Mt.
"In this quarter we kick-started the integration process to have the right organisational structure, action plans and people in place to ensure the success of the merger," said Eric Olsen, CEO of LafargeHolcim. "On 1 December 2015 we will present the new company's first three-year plan, including a clear roadmap on how we plan to achieve our new targets, one of which is a cumulative 2016 - 2018 free cash flow generation of at least Euro9.23bn. This plan will come into effect on 1 January 2016 and will become the benchmark against which we will measure LafargeHolcim's performance, including management incentive plans."
"The first nine months of 2015 and in particular the third quarter were impacted by the difficult economic context in some of our large markets and considerable negative foreign exchange fluctuations. In addition, the closing of the merger triggered both one-off costs and organisational changes, the benefits of which will start coming through in 2016. At the same time, we have also seen solid market trends that, combined with our commercial efforts, led to good performance in several countries such as Argentina, Mexico, the Philippines, the UK and the US. We have started laying solid foundations for the new company on which we will build the future success of LafargeHolcim. I am confident in our ability to deliver on the announced synergies and thanks to disciplined capital allocation and superior execution we will outperform our sector. We will maximise cash flow and create sustainable value with the focus on returning excess cash to shareholders while continuing to provide our customers with world-leading innovative products and solutions."
LafargeHolcim expects that the contrasted evolution of the global economy will continue. A number of markets including China, Brazil, France, India and Switzerland will remain challenging, others such as Argentina, Mexico, the Philippines, the UK and the US will likely see continuing positive trends. The group has estimated that cement volumes will be higher for 2015 in all regions except Europe.
According to Dow Jones, LafargeHolcim plans to raise Euro3.23bn in 2016 from selling off cement assets around the world. The company has started discussions with interested parties, including private-equity firms and industry rivals about some of the assets, with the proceeds set to be returned to shareholders through dividends or share buybacks, according to Olsen. "We have a position of number one, two or three in 70% of our markets," said Olsen. "Where we don't have that position, we are looking at divesting or swapping assets."
Largest ever cement contact for thyssenkrupp in Saudi Arabia 25 November 2015
Saudi Arabia: Germany's thyssenkrupp has won a contract from Yamama Saudi Cement Company, one of Saudi Arabia's biggest cement producers, to build two turnkey cement clinker production lines. The two lines with an overall cement capacity of 20,000t/day will be built at a new site around 80km east of the capital Riyadh. The value of the contract is in the high three-digit million Euro range. It is the largest cement contract ever secured by thyssenkrupp.
Jens Michael Wegmann, CEO of the Industrial Solutions business area of thyssenkrupp said, "Our partnership with Yamama is built on a longstanding tradition and dates back many decades. We are delighted that Yamama is once again putting its faith in our comprehensive experience in the turnkey construction of complete cement plants worldwide."
The main components include two mobile primary crushers for limestone (each 1800t/hr throughput), three crushers for additives (each 500t/hr), two crushers for correctives (each 100t/hr) as well as two circular blending beds for limestone, each with a capacity of 80,000t and various additive storage facilities. Four QUADROPOL QMR2 roller mills with a throughput of 425t/hr and two 35,000t capacity homogenizing silos will be used to grind and store the raw material.
The kiln lines comprise six-stage and two-string preheaters with PREPOL AS-MSC calciner, rotary kilns with POLFLAME-VN clinkering zone burners, and POLYTRACK clinker coolers. The clinker will be stored in three 10,000t capacity clinker silos and two 100,000t capacity clinker storage facilities. Four combi grinding units consisting of POLYCOM high-pressure grinding rolls, ball mills and SEPOL separators as well as downstream cement coolers will each produce 300t/hr of cement.
The cement will be stored in six cement silos each with a capacity of up to 25,000t. The line will also feature six cement packing and loading stations. Quality control and monitoring will be handled by a POLCID process control system and POLAB laboratory automation system.
Yamama Saudi Cement and thyssenkrupp have been working together since the 1960s when the company placed an order for an initial 300t/day rotary kiln. Six larger cement production lines have since been added.