13 July 2015
Europe: Holcim Ltd and Lafarge SA have completed their global merger and have launched LafargeHolcim. The merger completion was dated 10 July 2015. All conditions for the completion of the merger were fulfilled following the successful completion of the public exchange offer and the issuance of new Holcim shares to Lafarge shareholders. Holcim's shareholders had previously approved the merger-related resolutions at an Extraordinary General Meeting on 8 May 2015.
With the completion of the merger, the mandate of the new board of directors and of the new executive committee with Eric Olsen as CEO has become effective. LafargeHolcim will also unveil its new logo and corporate identity. It has been designed to demonstrate that Holcim and Lafarge have united to form one company, expressing the leadership and strength of the new group.
"Today's closing is a historic event, not only for our two founding companies, but also for the industry as a whole. LafargeHolcim has a unique business portfolio, is the industry benchmark in research and devlopment and offers its customers the widest range of innovative and value-adding products, services and solutions, from smallholders to large enterprises and most complex projects," said Wolfgang Reitzle, co-chairman (statutory chairman) of the board of directors of LafargeHolcim.
"This new company is built on the rich history and culture of Lafarge and Holcim and its teams. The merger has not only resulted in a larger and more global company but brings about a unique set of complementary capabilities to capitalize on. Under the leadership of Eric Olsen, the new Group will foster a new operating model and create more value for all our stakeholders," said Bruno Lafont, co-chairman of the board of directors of LafargeHolcim.
The new LafargeHolcim shares will be traded on the SIX Swiss Exchange as well as the Euronext in Paris as of 14 July 2015. As announced, LafargeHolcim will re-open the public exchange offer to give the remaining Lafarge shareholders the opportunity to also tender their shares. The new offer period will start on 15 July 2015 for a duration of ten trading days until 28 July 2015.
Carthage Cement improves its position in the sector 13 July 2015
Tunisia: According to African Manager, data published by the National Chamber of Cement Producers points to a year-on-year improvement in the position of Carthage Cement in the first four months of 2014.
Carthage Cement's domestic sales have increased by 44% to 349,823t in the first four months of 2015 compared to 242,0315t in 2014, despite the 6.69% decline of total cement sector sales. Carthage Cement's total sales in the first four months of 2015 rose by 36.6% to 420,923t compared to a cement sector decrease of 1.57%.
Lafarge launches cement depot in Solwezi 13 July 2015
Zambia: According to TUMFWEKO, Lafarge Zambia has launched a depot in Solwezi to provide convenience of purchase for resellers and end users in North Western Province. The provincial minister, Dawson Kafwaya, congratulated Lafarge for opening a depot in Solwezi.
Kaziwe Kaulule, marketing director of Lafarge, said that Lafarge's goal was to provide the Zambian market with building materials and construction solutions by opening depots across the country. "Lafarge will continue to put in place systems and best ways of serving customers because customer satisfaction is what drives us. Our target is to make sure that we open a depot in every province to help our customers to easily access the products we offer," said Kaulule. He further assured the people that the depot would be operated according to the Lafarge Health and Safety Standards and that the company had put in place a strategy to help drivers achieve safe delivery of the product to the depot.
The Newly opened Lafarge Solwezi depot has a capacity to store 4500t of cement and will be the fifth Lafarge depot in Zambia among others held in Chipata, Livingstone, Ndola and Kasumbalesa.
Oman: According to Middle East North Africa Financial Network, Oman Cement has reported a more than 40% decline in net profit for the first six months of 2015. Net profit fell to US$14.1m from US$23.6m a year earlier.
Oman Cement's sales revenue declined marginally to US$65.7m in the first half of 2015 compared with US$66.7m in the corresponding period of 2014. Investment and other income fell sharply by 54.1% to US$4.68m from US$10.2m in 2014. As a result, Oman Cement's total revenue fell by 7.7% US$70.9m.
In June 2015, Oman Cement disclosed that due to operational difficulties it had to prolong the shutdown of one of its kilns. The kiln, with 4000t/day clinker production capacity, was closed for planned maintenance, which was to be completed in early June 2015. Oman Cement warned that the prolonged shutdown of a kiln would have an impact on its second-quarter performance.
Oman Cement's total expenses rose by 8.2% to US$55.3m in the first six months of 2015 compared to US$51.2m in the same period of 2014. The Ministry of Oil and Gas had increased the price of natural gas supplied to industrial companies by 100% from 1 January 2015. As such, Oman Cement's gas price was hiked from US$1.5/mmbtu to US$3/mmbtu. The company expects its gas costs to rise by an estimated US$17.2m in 2015.
Cement production in Iran exceeds 15.8Mt 13 July 2015
Iran: The Ministry of Industry, Mines and Trade has announced that in the first three months of 2015, cement production reached 15.8Mt and clinker output was 19.3Mt. In the same period, more than 12.7Mt of cement was distributed inside the country and 4.34Mt of cement was exported.
The Employers Guild Association for the cement industry said that, in the Iranian year 1393 (to 21 March 2015), cement and clinker exports exceeded 18.9Mt, up from 18.8Mt in 1392. Iran produced 66.4Mt of cement in the year and 70Mt of clinker.
Yemen: According to local media, five alleged Saudi-led airstrikes attacked Amran Cement plant on 12 July 2015, leaving three workers dead and 10 others injured. The cement plant was almost entirely destroyed. Yahia Abu Hulaiqa, the director of Amran Cement plant, said that the losses are estimated at US$100m.
India: According to India Investment News, Gujarat chief minister Anandiben Patel has inaugurated a new grinding plant at Sanghi Industries' plant in Abdasa, Kutch.
The new grinding plant will have a production capacity of 1.2Mt/yr that will enable the company to boost its cement production capacity to 4.1Mt/yr from 2.9Mt/yr. The plant will cost around US$19.7m. The chief minister also laid the foundation stone for a 15MW waste heat recovery (WHR) system that will recycle waste heat of the cement plant into power. Sanghi Industries will inject US$23.6m to develop the WHR project, which it intends to commission in the next two years.
Russia: According to SKRIN Newswire, in the first five months of 2015, Eurocement's Pikalevskiy cement plant shipped 11,700t of bagged cement to its customers, which is 23% more than in the same period of 2014.
Russia: According to SKRIN Newswire, the president of Eurocement Mikhail Skorokhod has announced introduced the new general director of the Kavkazcement plant as Georgy Kuznetsov.
"Kuznetsov's has more than 30 years of experience," said Skorokhod. "He has held executive positions in the administration of the Ministry of Taxes and Assessments of the Russian Federation and in the Ministry of Defense of the Russian Federation. He has worked for Eurocement since March 2014 as the deputy head of the department of economic security."
Kuznetsov thanked Eurocement management for their vested confidence. "Kavkazcement has a very united and highly professional team, which is able to fulfil any task," said Kuznetsov. "I promise to use all my experience and skills to maximum effect to achieve all targets set for the plant and to justify the confidence vested to me."
The 3Mt/yr Kavkazcement plant is currently being built to meet expected demand growth. "The market of the south is growing and Kavkazcement has very good prospects to increase the volume of products shipping and improve production figures," said Skorokhod. "The plant will become one of the most advanced enterprises in the region, meeting the highest world requirements by the quality of its equipment, production efficiency and environmental friendliness. Moreover, construction of a new modern highly efficient cement plant in the territory of the Karachayevo-Cherkessian Republic will promote active social and economical development of the region and provide the construction industry of the republic and adjacent regions with high-quality cement," said Skorokhod.
The contract for the plant construction was signed between Eurocement and China's Sinoma International Engineering Company on 9 November 2014 within the framework of the XXII APEC Summit held in Beijing. Sinoma International Engineering Company will supply a complete package of equipment and design, supervision of erection and personnel training for the new plant.
Eurocement outlines Mordovcement development 13 July 2015
Russia: According to SKRIN Newswire, an important period of the Mordovcement plant integration to Eurocement Group's logistics is currently being completed. Eurocement bought the Mordovcement plant in December 2014.
Mikhail Skorokhod, the president of Eurocement and Vladimir Volkov, the head of the republic of Mordovia, held a working meeting in the Administration of the Republic, where they discussed prospects of development of Mordovcement plant. The main topics were the business strategy of Mordovcement and contribution of the production facility to social and economic development of the Republic.
"Mordovcement has an important position in the construction industry of the country. It is one of the leading cement suppliers in the Russian construction materials market," said Vladimir Volkov. "This is why the plant is of strategic importance for our republic. It is crucial for us to know how Eurocement will develop the plant and we are ready for active cooperation on these issues. The most important is to load the production facility with maximum efficient orders and to respond promptly to changing needs of the construction market. For us, it is matter of principle to preserve the huge working team of Mordovcement and assure stable salary increases at the plant."
"From the moment of Mordovcement's inclusion in Eurocement, a large project aimed at increasing operational efficiency has been undertaken. All issues of Mordovcement debts have been solved, refurbishment and major repair of main equipment of the production facility have been made," said Skorokhod. "Today Eurocement executes complex measures to reduce the specific consumption of fuel and gas and increase equipment capacity."