18 February 2016
KHD ordered to pay damages to South American customer 18 February 2016
Germany: KHD International and its US-based subsidiary Humboldt Wedag (HW Inc) have been ordered to pay damages by a Portuguese arbitration court to a customer in South America. HW Inc’s arbitration claim for disbursement of outstanding payments, reimbursement for a called bank guarantee, as well as additional compensation (for damages) was denied. KHD expects the damages to lead to expenses of Euro15m in its 2015 financial results. The customer has not been named.
“This ruling does not reflect our own or our legal counsel’s expectations in any way. We believe that it is grossly incorrect and will exhaust all promising possibilities for success in proceeding against this judgement,” said KHD International CEO Johan Cnossen. KHD said in a statement that the arbitration award would not have an impact on its forecast results for 2015 as ‘adequate’ provisions had already been set up.
Union accepts pay increase at Lafarge South Africa 18 February 2016
South Africa: LafargeHolcim has reported that the National Union of Mineworkers (NUM) has accepted an 8% pay increase, according to Reuters. Around 800 workers affiliated to the union started a strike on 11 February 2016 asking for an 8.5% wage increase, a US$6500 housing grant, salary adjustments and a 35% acting allowance, Lafarge said in a statement. It added that the company was ‘well placed’ to meet its customer’s orders. The industrial action followed a series of negotiations which started in October 2015.
LafargeHolcim stops quarry extension at Sagunto cement plant 18 February 2016
Spain: LafargeHolcim has decided to stop the expansion of its limestone quarry at its Sagunto cement plant. It decided this due to environmental issues with the local government and the lack of viable alternative for expansion in the area, known as Margas.
Lafarge originally signed at agreement with the government to expand the quarry in 2013. However the one licence requires renewal in 2017 and the local government has opposed the request.
Anhui Conch confirms that production at Shaanxi subsidiary is suspended until mid-march 2016 18 February 2016
China: Anhui Conch Cement has confirmed that its subsidiary in Shaanxi province, Liquan Conch Cement, has suspended its production. The decision follows Shaanxi Provincial Government legislation requiring all cement and clinker producers to adopt off-peak production. Most producers are required to stop production from 15 December 2015 until 15 March 2016 with a few exceptions. 25 cement companies, with a total of 37 clinker production lines, are based in the province.
Liquan Conch has a cement production capacity of 4.4Mt/yr, contributing 1.5% to the total production capacity of Anhui Conch. It held audited net assets worth US$96.3m at the end of 2014, representing 0.9% of Anhui Conch’s total. Anhui Conch do not expect the temporary suspension of production at Liquan Conch to adversely affect its operating results. Liquan Conch was built in 2009.
China Tianrui Group expects net profit to drop by 30% in 2015 18 February 2016
China: China Tianrui Group Cement has said that it expects that its 2015 net profit will drop by more than 30% year-on-year in 2015. It has blamed the downturn on China's economic slowdown that has reduced demand for cement and lowered the selling price. The cement producer didn’t release a figure for its expected net profit in 2015 but it reported a net profit of US$86.6m in 2014. It intends to release its full financial results for 2015 at the end of March 2016.