Displaying items by tag: Brazil
Brazil: The National Union of Cement Industry (SNIC) has said that 2017 may be the worst year on record for the local cement industry. Domestic sales of cement fell by 11.7% year-on-year to 57.2Mt in 2016. SNIC’s new president Paulo Camillo Penna described the situation as the worst in the industry’s history. He added that following capacity utilisation rates of 70% in 2015 and 57% in 2016 that he expects the rate to fall below 50% in 2017. SNIC forecasts that sales of cement will contract by 5 – 7% in 2017.
Brazil: Eduardo Ferraz has been appointed as the chief financial officer and Investor Relations Officer of Magnesita with immediate effect. Ferraz is currently the finance director for South America, a role he will continue to hold. He replaces Eduardo Gotilla who has resigned from the roles following the on-going merger between Magnesita and RHI with the transfer of some executive officers of the company to the UK.
Gotilla will continue to be an officer for Magnesita International and lead finance and investor relations globally for the Magnesita Group, but will no longer hold an officer position in the company, principally due to Brazilian legislation requiring statutory officers to be residents in Brazil.
Brazil: Arabian Cement has frozen plans to build a cement grinding plant in the north-west of the country. It said that there was no ‘investment efficiency for the project’ due to the poor Brazilian economy, according to Mubasher. The cement producer originally planned a joint venture in 2014 with Cementos Relampago Company, an affiliate of Cementos La Union, to build a 0.23Mt/yr plant for US$28.7m.
Argentina: Brazilian cement producer Camargo Corrêa is in talks to sell a 40% stake in Loma Negra. The company is exploring a potential sale with an unspecified number of bidders, according to Reuters and Brazil Journal. The proceeds of any successful sale will be used to reduce the debts of InterCement, the holding company that Camargo Corrêa uses to manage assets it purchased from Cimpor. Loma Nega is the largest cement producer in Argentina.
Brazil: Otmar Hubscher has been appointed as the new chief executive officer of Secil. He replaces Gonçalo Salazar Leite, according to the Negócios newspaper. Hubscher, a Swiss national, was previously the head of LafargeHolcim's Brazilian operations.
Brazil: Camargo Corrêa has named Heinz-Peter Elstrodt as its chairman replacing Vitor Hallack. The decision to hire Elstrodt is part of the conglomerate’s intention to direct the company towards asset portfolio management away from the construction industry, according to the Valor Econômico newspaper. Previously, German national Elstrodt has spent 32 years at the consultancy McKinsey, where he reached the role of Latin America president. The changes in management follow the resignation of Hallack in August 2016 and governance problems following links to the Petrobras corruption scandal.
Brazil: Brazil's antitrust watchdog Cade has decided to end its investigation into 18 companies from the cement sector over alleged anti-competition practices. The allegations were that some of the companies had reached an agreement to refuse to provide three types of cement to competitors outside of an economic group, which would lead to increased prices of the products, according to the Valor Economico newspaper. Cade determined punishments were to be applied to Holcim Brasil, Cimento Tupi and Votorantim Pimentos. However, case leader Paulo Burnier decided that there insufficient evidence to apply sanctions on the majority of companies concerned. He also noted that some of the companies had already been set punishments by Cade for involvement in cartel practices.
Brazil/US: FCT Combustion has released details on contracts it has been awarded from CSN Cement Brazil and Ash Grove Cement. CSN Cement Brazil in Arcos, Brazil has ordered a Turbo-Jet kiln burner with a maximum thermal power of 102Gcal/hour for high sulphur petcoke, heavy fuel oil, alternative solid fuel and alternative liquid fuels firing for its 6500t/day cement kiln. Ash Grove Cement in Seattle, Washington in the US has awarded a contract for 63Gcal/hour Gyro-Therm MKII kiln burner for natural gas firing.
FCT Combustion has also opened new offices in Fort Lauderdale, Florida and São Paulo, Brazil.
Austria/Brazil: RHI and Magnesita are to merge to create a new refractory company called RHI Magnesita. RHI’s management board has agreed to sign a share purchase agreement with Magnesita’s controlling shareholders regarding the acquisition of a controlling stake of at least 46%, but no more than 50% plus one share of the total share capital of Magnesita, pending RHI’s supervisory board approval. The purchase price for the 46% stake will be paid in cash amounting to Euro118m and 4.6 million new shares to be issued by RHI Magnesita. The new company will be established in the Netherlands and listed on the London Stock Exchange.
As pat of the agreement, GP Investments (GP) will become a relevant shareholder of RHI Magnesita. The combined company’s corporate governance will consist of on a one-tier board structure while GP will be represented on the board of directors.
The deal is dependent on approvals by the relevant competition authorities, the migration of RHI to the Netherlands, the listing of RHI Magnesita’s shares in the premium segment of the Official List on the Main Market of the London Stock Exchange and RHI’s shareholders not having exceeded statutory withdrawal rights in an amount of more than Euro70m in connection with organisational changes preceding RHI’s migration from Austria. The migration and the preceding organisational changes in Austria require qualified approval by RHI’s shareholders’ meeting. If the deal is terminated for reasons not under the control of Magnesita’s controlling shareholders, an aggregate break fee of up to Euro20m is payable by RHI to Magnesita’s controlling shareholders.
The merger transaction is expected to complete in 2017. Until then, the two companies will remain completely separate and independent. Therefore customers, suppliers, employees and other stakeholders should expect no change in management teams, commercial relationships, supply chains and product offerings during this period.
RHI and Magnesita say that the new refractory company will bring together complementary businesses, both in terms of products and geographical footprint. Magnesita have a presence in South America and the US compared to RHI’s presence in Europe and Asia. The merger is also expected to aid the company’s position against the growing Chinese refractory industry. In addition, Magnesita’s position in dolomite-based products is complementary to RHI’s asset portfolio, which traditionally has a strong focus and an excellent market reputation for high-quality magnesite products.
Synergies from the merger are expected to deliver at least Euro36m in earnings before tax (EBIT) by 2020. However, if RHI Magnesita’s stake in Magnesita significantly exceed 46%, RHI expects substantially higher synergies of approximately Euro72m, especially in the areas of enhanced production efficiency and cost benefits in research and development, marketing and administrative functions. In addition, capital expenditure synergies are expected to amount to be Euro2 – 7m/yr and aggregate working capital savings of Euro40m are expected in the coming years.
Brazil: Votorantim Cimentos has received Environmental Product Declarations (EPD) for five of its products. The company is the first in Brazil to obtain such certifications under the International Organization for Standardisation, according to Jornal Dia Dia. EPDs are comprised of reports about products' environmental impacts from the extraction phase to the final consumer.
Votorantim Cimentos' clients are now closer to obtaining sustainable construction certificates such as AQUA and LEED. According to a World Green Building Trends report, the number of sustainable projects record a two to six-fold increase every three years. In Brazil, the expansion rate for such projects is expected to increase from 6% to 36% over the next three years.