Displaying items by tag: Brazil
Brazil: Based on Brazil's 2015 GDP forecast, cement production and civil construction in Brazil are expected to remain flat in 2015 for the first time in more than a decade.
GDP rose by 7.53% in 2010, but growth dropped in the following four years to 2.73%, 1.03%, 2.49% and 0.1%, according to BNamericas data. The amount of cement produced has followed the same trend. While in 2010 production was up by 14.2%, it rose by 7.55%, 8.19%, 2% and only 1.5% in the following four years, ending 2014 at 71.2Mt. Finally, civil construction revenue jumped by 33.5% in 2010, but the industry posted increases of 12.6%, 12.9%, 7.60% and 8.48% over the next four years. The last drop in Brazil's civil construction industry occurred in 2002. As GDP estimates are pointing toward a 1.7% contraction for 2015, cement production and civil construction are unlikely to grow in 2015 if they continue to follow Brazil's overall economy.
Brazil: Sinoma Group has announced plans to invest in the Brazilian State of Ceara after visiting the Pecem Port industrial complex on 31 July 2015. The group will not necessarily install a cement plant at the complex and could instead supply machinery and equipment to the cement sector. The group is likely to continue to evaluate the market and economic conditions of the state before determining the level of investment to be made.
Brazil: COO of Intercement Ricardo Lima has been appointed as company president. He replaces Jose Edison Franco. Lima and Franco have made a strategic company plan, which includes a US$250m investment in a new cement plant in Mozambique.
Brazil: Brazil's antitrust watchdog Cade has ordered six cement makers named in a price-rigging case to pay a combined US$934m in fines within one month in a landmark decision that also orders asset disposals, according to Reuters. Under the terms of the decision announced on 29 July 2015, the watchdog gave the companies a one-year deadline to reduce their installed capacity in the cement and concrete industries through asset sales. The decision was published in the government's official gazette.
According to Cade, which first issued a ruling in the case in May 2014, Votorantim Cimentos, Intercement Brasil, Itabira Agro Industrial, Cia de Cimentos Itambé, Holcim Ltd and Cimpor Cimentos de Portugal colluded on pricing to force rivals out of the market. The ruling, which followed an eight-year inquiry, followed cost overruns that dogged Brazil's preparations for the 2014 FIFA World Cup as well as dozens of road, port and infrastructure projects across the country. The companies control about 75% of the domestic market for cement and concrete.
A series of studies by Cade showed evidence that several takeovers and asset swaps among cement companies during the 1990s and the 2000s were made to prevent rivals from entering the market. The largest players in Brazil's cement industry tend to have strong market control in specific regions, increasing the potential for collusion. The number of cement producers in Brazil shrank to about 10 in 2011 from almost 25 in the early 1990s.
Under terms of the ruling, Votorantim must pay US$450m in fines and Cimpor US$89.2m. Cade fined Intercement Brasil US$72.4m, Itabira US$123m and Holcim US$153m. Itambé must pay US$26.4m. Some of the companies are challenging Cade's ruling in the courts. Cade also imposed sanctions on ABCP, Brazil's Portland cement group and SNIC, which represents local cement plants.
Brazil: Votorantim Cimentos intends to temporarily suspend production at its cement plant in Ribeirao Grande, Sao Paulo from August 2015. The plant will operate as a distribution centre from this time. The decision has been blamed on current Brazilian financial climate.
A total of 128 workers are to lose their jobs, of which 83 have already been suspended, according to Valor Econômico. The company has also confirmed it is working with the workers union for the region to try to relocate the dismissed workers.
Brazil: According to the Esmerk Latin American News, Brazil's economic defence body Cade has ended its administrative inquest against Votorantim Cimentos, Cia de Cimento Itambe and Cimpor Cimentos do Brasil. The investigation was into the alleged breech of economic order through actions such as the refusal to sell certain types of cement to independent firms from 2008 onward. The illicit operations were alleged to have affected companies in Rio Grande do Sul and in the south east and central west regions.
Brazil: According to Valor Economico, estimates from the cement industry association Sindicato Nacional da Indústria do Cimento (SNIC) point to a retraction in domestic cement demand in 2015, the first market dip in the last 10 years.
Some estimates point to a 10 - 12% decrease, eventually 15% if there is no pick up in demand. There was a 1% increase in cement demand in 2014, as the sector was pushed by construction activities and abundant credit offers at favourable rates. Cement sales in 2014 grew by 1.4% to 70.9Mt and imports fell by 20.4% to 817,000t. Apparent cement consumption in 2014 grew by 1% to 71.7Mt.
The SNIC has said that consumption could fall to around 60Mt in 2016. Installed capacity is 90Mt/yr and 10Mt/yr of extra cement production capacity is expected in 2015.
Brazil: Magnesita Refratários has announced an agreement with ACIS, a cement maintenance and operations service company based in China and Saudi Arabia, to extend its services offering Magnesita's refractory products supporting greenfield projects around the world. ACIS and Magnesita will target Chinese cement original equipment manufacturers (OEMs), which are building projects in countries primarily outside of China. The cooperation started on 1 July 2015 and shall continue for three years, with a possible extension.
"Partnering with ACIS which is recognised within the cement industry for its technical and service capability, is an important step for Magnesita's continued growth within the industrial market. This alliance with ACIS will help clients control costs utilising Magnesita's high-quality refractory products as new cement plants are commissioned," said Magnesita CEO, Octavio Lopes.
ACIS will create a commercial team in China tp focus on clients and the development of new projects while Magnesita's technical assistance team will work closely with ACIS to provide application and engineering support.
Brazil/Portugal: SeeNews Portugal has reported that Portuguese holding company Semapa Sociedade Invest Gestao SGPS' Brazilian subsidiary NSOSPE Empreendimentos e Participacoes (NSOSPE) has acquired a 50% stake in Brazilian cement maker Supremo Cimentos.
The US$94m purchase agreement was announced on 29 April 2015. NSOSPE is jointly-owned by Semapa and Portuguese construction materials supplier Secil. Following the closure of the transaction, Semapa and Secil indirectly own the entire share capital of Supremo Cimentos.
Brazil: Reuters has reported that Brazilian industrial conglomerate Camargo Corrêa is looking to sell a stake in Intercement for up to US$1.2bn in order to make new overseas investments, according to a report in newspaper Folha de S Paulo.
Camargo Corrêa plans to sell 10 – 18% of Intercement for between US$648m and US$1.17bn. The industrial conglomerate is one of several in Brazil with executives accused of paying bribes for contracts with state-run oil company Petroleo Brasileiro, known as Petrobras, threatening its access to public works contracts and driving up borrowing costs. Two Camargo Corrêa executives have already pleaded guilty.
Folha reported that Camargo Corrêa 's US$2.66bn of debt had led it to seek a minority partner in order to take advantage of opportunities to grow in countries as diverse as Egypt, Mozambique and Paraguay.