01 May 2015
Eurocement supports LafargeHolcim merger 01 May 2015
Russia: Eurocement has publically supported the merger between Lafarge and Holcim. In a statement the Russian producer and minority shareholder in Holcim said that it found the development potential of the merged company 'very positive'.
In late March 2015 Eurocement announced that it planned to vote against the LafargeHolcim merger unless the financial terms of the deal were altered. Subsequently in mid-April 2015, it then proposed its chairman Filaret Galchev to the board of directors of LafargeHoclim but Holcim said the proposal was submitted too late to be considered. Eurocement owns a 10.82% stake in Holcim.
Philippines: Holcim Philippines has targeted an investment of US$40m over a three-year period to increase cement production capacity. Despite strong domestic demand for cement, revenue fell by 10% in the first quarter of 2015 due to rising costs.
The investment will mainly finance the 'debottlenecking' of existing facilities by bringing production capacity up to 10Mt/yr by 2017, according to Eduardo A Sahagun, president and chief executive officer of Holcim Philippines, in a briefing to local press. At present the cement producer has a production capacity of 8.2Mt/yr. Around 65% of the investment will go towards maintenance of existing facilities. Holcim Philippines remains committed to developing a brownfield cement plant in Norzagaray, Bulacan subject to the approval of the company's head office in Switzerland.
Sahagun blamed the fall in revenue on expensive clinker imports from Vietnam intended to support the market. Despite this the company expects annual profits for 2015 to exceed those in 2014.
Puerto Rico: Cementos Argos has purchased a 60% stake for US$18m in Wetvan Overseas, a company that controls a cement terminal in Puerto Rico. The remaining 40% belongs to Grupo Vicini, a Dominican business group holding investments in the Caribbean and Central America. The acquisition will give Argos a 15% market share in Puerto Rica.
"With this transaction, we are entering a new market that is closely tied to the US economy, that currently consumes close to 650,000t/yr and whose growth perspectives are being driven by the latent recovery and the new programs aimed at stimulating investment in Puerto Rico. The acquisition strengthens our position as leader in the region," said Jorge Mario Velásquez, CEO of Argos.
With the new purchase Argos increases its presence in the Americas with operations in Antigua, Colombia, Curacao, Dominica, the US, Haiti, Honduras, French Guiana, Panama, Puerto Rico, the Dominican Republic, Saint Martin, Saint Thomas and Suriname.