15 August 2016
Gulf Cement Company profit falls 12.7% 15 August 2016
UAE: Gulf Cement Company's profit fell by 12.7% year-on-year to US$3.65m in the second quarter of 2016, from US$4.27m in the first quarter of 2015. The decrease was attributed to the negative impact of investments in the first half of 2016.
Tanga profit up despite competition 15 August 2016
Tanzania: Tanga Cement has seen its net operating profit rise by 55% in the first six months of 2016, despite intense competition from other cement companies and cheap imported products from abroad. The company more than doubled its clinker production, from 0.45Mt to 1.23Mt, after commissioning the second clinker line at its plant.
Lawrence Masha, Chairman of the Board, said, "In this year, the business is focusing on profitability, driven by operational efficiency and overall business effectiveness. This will enable the company to absorb the increase in production related costs, as far as possible, in order to remain competitive in challenging market conditions.”
Masha said the cement sector is witnessing fierce competition due to the new market entrants. He said imports of cheap cement from companies that enjoy tax benefits in their home countries further erode the local market and are causing significant injury to local producers.
Irish Cement tyre plans receive backlash 15 August 2016
Ireland: Irish Cement’s plans to use used tyres as an alternative fuel at its plant in Limerick, Munster, have been delayed, after more than 1000 local residents signed a petition to present to the Environmental Protection Agency (EPA).
Local Labour councillor Joe Leddin said the sheer number of submissions is, ‘testament to the huge anxiety and worry of residents.’ An EPA spokesman confirmed it is one of the highest responses it had ever received for any application. The petition now means that no decision is likely to be made on the plans until the start of 2017.
Irish Cement has previously stated that the public’s concerns are disproportionate. The tyres will be burnt at such high temperatures, that the tyres will be completely consumed and pollution will be minimal.
Arghakhanchi to expand in the face of foreign competition 15 August 2016
Nepal: Arghakhanchi Cement has obtained a consortium loan pledge to finance the expansion of its cement plant from 1200t/day (0.4Mt/yr) to 3000t/day (1.0Mt/yr). The company expects to spend US$38.6m, including US$27m in consortium financing led by Nabil Bank. Other banks involved include Nepal Bank, NIC Asia Bank, Global IME Bank, Prime Bank and Century Bank.
The company's promoters, the Siddhartha Group, Murarka Organisation, Kedia Organisation and India's Uma Cement International, will invest US$11.6m in the expansion project.
When it is completed by the close of 2017 Arghakhanchi Cement will be the largest cement factory in Nepal. "If we don't increase our capacity and achieve economy of scale, we will vanish once big plants with foreign investment start producing cement," said Rajesh Agrawal, Managing Director.
Nigeria’s Dangote Cement, China’s Hongshi Cement and Huaxin Cement and India’s Reliance Cement have all received approval to start operations in Nepal. Their combined foreign direct investment amounts to US$1.45bn and their proposed output stands at 22,000t/day (7Mt/yr).