Displaying items by tag: GCW328
HeidelbergCement sells half of its Georgian business
13 November 2017Georgia: HeidelbergCement has sold 50% of the voting rights in its Georgian business to Cement Invest, an investment company jointly managed and owned by the Georgian Co-Investment Fund (GCF) and Hunnewell Partners. HeidelbergCement and Cement Invest will jointly control the resulting joint venture. The transaction will contribute in total about Euro115m to cutting HeidelbergCement’s net debt.
“The joint venture’s competitiveness will be improved with the modernisation of the Kaspi cement plant, where the construction of a modern dry kiln line already started in 2016 and is expected to be finalised by the end of 2018. The disposal is part of our portfolio review and optimisation with the goal to generate additional cash flow in order to support our disciplined growth and increase shareholder returns,” said Bernd Scheifele, chairman of the managing board of HeidelbergCement.
HeidelbergCement started operating in Georgia in 2006. The new joint venture operates three integrated cement plants, a cement grinding facility and a cement terminal on the Black Sea coast. The cement production capacity exceeds 2Mt/yr. A network of 13 ready-mixed concrete plants and two aggregate quarries supports the cement business.
Cement producers cross about Indian tax classification
13 November 2017India: The Cement Manufacturers Association (CMA) says it is disappointed for the entire industry following the Goods and Services Tax (GST) Council’s decision to retain cement in a higher tax rate. The GST Council has reduced the tax rate on a wide range of commonly used items, from chewing gum to detergents, to 18% from 28%, according to the Press Trust of India. However, cement, along with paints, has remained at the 28% rate, despite the expectations of the cement industry.
"The retention of the cement in the 28% GST bracket, along with luxury items such as washing machines and air conditioners is quite unfortunate," said CMA President Shailendra Chouksey. He added that cutting the tax rate of cement could have hastened the recovery of the industry from a current slow period.
Birla Corporation net profit drops sharply in first half
13 November 2017India: Birla Corporation’s net profit has fallen by 72% year-on-year to US$6.8m in the first half of its financial year to the end of September 2017 from US$24.4m in the same period in 2016. However, its sales revenue grew steeply by 37% to US$444m from US$325m. Sales volumes grew by 39% to 5.9Mt from 4.3Mt.
The cement producer said that despite ‘challenging’ markets it had increased its sales volumes and benefitted from synergies following its acquisition of Reliance Cement in mid-2016. It added that demand and prices were ‘seriously’ impacted in central India by a prolonged shortage of sand and aggregates, especially in Uttar Pradesh, which constitutes around 35% of the company’s sales. Prices were also down in the northern states of Rajasthan, Haryana and the National Capital Region due to poor demand.
Eagle Cement builds profit on higher sales volumes
13 November 2017Philippines: Eagle Cement’s net profit rose by 8% year-on-year to US$64.4m in the first nine months of 2017 from US$59.7m in the same period in 2016. It attributed the growth to higher sales volume despite tight competition, according to the Manila Bulletin newspaper. Its net sales revenue grew by 12% to US$219m from US$196m. This was due to over 20% growth in the sales volume of bagged and bulk cement even though the price of cement has fallen, in part because of imports. The cement producer is set to commission a third production line at its Bulacan plant in 2018.
Appeals to Italian competition regulator deferred until June 2018
13 November 2017Italy: Appeals by Italian cement producers to the judiciary of Lazio against fines imposed by the Italian Competition Authority (AGCM) has been deferred to June 2018. Italcementi, Buzzi Unicem, Colacem, Cementir, Sacci, Holcim, Cementirossi, Barbetti, Cementeria di Monselice, Cementizillo, Calme, Moccia, TSC and the Italian Cement Association (AITEC) were penalised more than Euro184m in July 2017 for allegedly coordinating sales prices and agreeing market share from June 2011 to January 2016, according to the ANSA news agency. The majority of the fine was levied on Italcementi and Buzzi Unicem at around Euro84m and Euro60m respectively. Itacementi started appealing against the sanctions in August 2017.
Adelaide Brighton investigates deliberate underpayments
13 November 2017Australia: Adelaide Brighton is investigating a series of transactions to a small number of customers who may have underpaid for the products supplied to them. The cement producer says it is investigating the situation ‘fully’ with the aid of the forensic accountants KPMG. It added that it is possible that an employee of the company is involved.
The company believes, that, based on the evidence so far, it appears that there may have been deliberately hidden underpayments by customers over a sustained period. This may have a negative impact on the company’s 2017 earning before interest and taxation (EBIT), currently estimated to be up to US$11m, less the impact of any recoveries that may be made. Adelaide Brighton has reported the situation to its auditors and will co-operate with relevant authorities as the investigation proceeds.
Chinese ambassador denies links with Sinocem Costa Rica
13 November 2017Costa Rica: Tang Heng, the Chinese Ambassador to Costa Rica, has confirmed that Sinocem China has ended all commercial relations with Sinocem Costa Rica. The statement was made due to an investigation into alleged irregularities and lobbying involving the owner of Sinocem Costa Rica, Juan Carlos Bolanos, and certain officials of state-owned bank Banco de Costa Rica, according to La Nación newspaper. According to Heng, Hangzhou Sinocem Building Materials said in July 2017 that Sinocem China had stopped supplying cement to Sinocem Costa Rica as the latter allegedly purchased cement from other Chinese cement suppliers and continued to use the Sinocem brand on packaging without its permission.
Belgium: The European Parliament and Council have reached a provisional agreement to revise the European Union (EU) Emissions Trading System (EU ETS) for the period after 2020. This revision is intended to help the EU on track to achieving its commitment under the Paris Agreement to reduce greenhouse gas emissions by at least 40% by 2030. The deal between the parliament and council follows more than two years of negotiations, following the European Commission's proposal to revise the EU ETS in July 2015.
The main improvements agreed by parliament and council include changes to the system in order to hasten emissions reductions and strengthen the Market Stability Reserve to speed up the reduction of the current oversupply of allowances on the carbon market. Additional safeguards have been proposed to provide European industry with extra protection, if needed, against the risk of carbon leakage. Several support mechanisms have also been added to help industry meet the innovation and investment challenges of the transition to a low-carbon economy.
Cembureau, the European Cement Association, said that it had hoped, “…for a stronger signal towards best performing plants that their investment efforts will be honoured through a full protection against carbon leakage and is still concerned about the impact of a cross-sectoral correction factor.” However, it added that it was pleased that the EU had withstood attempts to differentiate between sectors in applying the rules of the ETS scheme.
Environmental campaign group Sandbag criticised the amendments for not going far enough to cope with a gap between allowance supply and emission. “The logic of the Paris Agreement is that all countries need to step up ambition to cut emissions. With the ETS hobbled, the EU and Member States must now immediately look to how emissions can be cut rapidly before 2020 and in the period up to 2030. Accelerating coal plant closures and supporting the efforts of industry to decarbonise, is essential,” said Sandbag’s managing director Rachel Solomon Williams.
Following the political agreement between the parliament, council and commission, also known as a trilogue, the text will have to be formally approved by the parliament and the council. Once endorsed by both co-legislators, the revised EU ETS Directive will be published in the Official Journal of the Union and enters into force 20 days after publication.
Buzzi Unicem’s revenue boosted by European and US sales
10 November 2017Italy: Buzzi Unicem’s revenue in the third quarter of 2017 has been boosted by strong sales in the US, Italy, Germany and Russia. Overall, its net sales rose by 6.7% to Euro2.13bn in the first nine months of 2017 from Euro2.00bn in the same period in 2016. Its cement sales volumes rose by 4.1% to 20.3Mt from 19.5Mt.
The group said that, although its operating performance was penalised at the end of August and in September 2017 by the impact of hurricane Harvey along the Texas coast, sales volumes of the group grew due to its acquisition of Zillo Group, which started in July 2017. With the exception of Ukraine, all countries in which the company operates in recorded gains in shipments and a marked increase was noted in Italy, Germany, the Czech Republic and Luxembourg.
Cemex USA launches terminal in Denver
10 November 2017US: Cemex USA has officially launched a new railway terminal at Commerce City near Denver, Colorado. The site started operations in late September 2017. It is served by an existing rail line from the Lyons Cement Plant and has a silo capacity of 5000t. It will be used to store Type II ordinary Portland Cement. The unit is intended to supply cement to the Denver Metropolitan area as well as the wider state market.
Cemex’s US assets include 11 cement plants, 43 distribution terminals, 57 aggregate quarries and more than 270 ready-mix concrete plants.