Displaying items by tag: Lafarge
Lafarge Republic signs coal ash deal with GNPower Mariveles
05 September 2012Philippines: Lafarge Republic has signed a deal with the provincial government of Bataan and GNPower Mariveles Coal Plant to buy coal ash from the latter company's 600MW power plant.
Lafarge Republic, formerly Republic Cement, said the deal will start once the power plant begins producing coal ash. It will expire in November 2019. The company didn't provide financial details of the deal.
In a transaction announced in June 2012, Cemex Philippines said it will buy for around US$1 each ton of coal ash to be produced by the 200MW power plant of Korea Electric Power in the central province of Cebu.
Lafarge to increase capacity in the Philippines
29 August 2012Philippines: Lafarge Republic plans to increase its production capacity by roughly 1Mt/yr starting in 2013 to meet strong public and private sector demand for cement in the Philippines.
The firm, whose production capacity was reported at 7.7Mt/yr in early 2011, said it will be refurbishing its grinding plant in Danao, Cebu and the mill at its plant in Norzagaray, Bulacan, yielding a capacity of 650,000t/yr in Visayas, as well as another 200,000t/yr in Luzon and 100,000t/yr in Mindanao.
"Based upon the strong demand growth for building materials during the first half of 2012 and our understanding of the order backlog of construction projects for the leading construction companies, we expect another year of sales and earnings growth in 2013," said Dong H Lee, country chief executive of Lafarge in the Philippines.
Lafarge UK plant hits 50% alternative fuel rate
24 August 2012UK: Lafarge Cement UK's Cauldon Works in Staffordshire has received recognition for its industry-leading sustainability achievements, which have seen it reach an alternative fuel substitution rate of 50%. The achievement is the latest milestone for the plant, which has been researching, developing and using alternative fuels, mainly processed sewage pellets (PSP) and tyre chips, for a decade.
Its parent company, Lafarge Group, has honoured the works as part of its annual awards. These champion the efforts of employees worldwide who are transforming the way in which products are manufactured. As part of the latest achievement, Lafarge has announced that the Cauldon team was able to run the calciner for a trial 10hr period using just PSP and tyre chips. Cauldon is only the third of Lafarge's 166 production sites across the world to achieve 100% alternative fuel substitution on the calciner for a limited period.
Cauldon Works' optimisation manager, Andy Woodcock, said, "We are aware that environmental legislation across the construction sector will increase in the near future and we want to be sure that we have measures in place to stay at the forefront for environmental performance and delivering sustainably-produced products to our customers. We're pleased to announce this development, which will help us continue to reduce our carbon footprint and reinforce our position as Lafarge UK's flagship works for the use of waste-derived fuels."
Lucky strike for imports to South Africa
15 August 2012Pakistan's Lucky Cement received the 'all clear' for its cement imports from the South African regulators last week. The situation exposes the increasingly competitive market in the country after the South African Competition Commission cartel investigations in 2011.
Sales of Lucky Cement were originally shut down in 2011 due to accusations made by its competitors, including Pretoria Portland Cement (PPP) and Natal Portland Cement (NPC). They complained that Lucky was not complying with South African standards. South Africa's National Regulator for Compulsory Specifications (NRCS) then ran its independent investigation and released its results last week.
The regulator's full 28-day test found no evidence that Lucky Cement imports were non-compliant with regards to their quality. A minor infringement concerning underweight bags was found and fixed. However, about a week beforehand, Lafarge South Africa's CEO said that his company was considering approaching another trade body with concerns about 'low-quality cheap cement' imported from Pakistan.
More serious criticism came from the Cement and Concrete Institute when the NRCS admitted that it didn't know how much cement had been imported into South Africa so far in 2012. The NRCS is supposed to inspect and approve the testing bodies each producer and importer uses for every 500t of cement.
Lucky Cement has been a regular importer of cement to South Africa since 2009. It exports around 1.65Mt/yr to over 22 countries in South East Asia, the Middle East and Africa. CCI figures reckon that 140,000t of cement was imported to South Africa in the first quarter of 2012, mostly by Lucky Cement. According to the Global Cement Directory 2012 South Africa's capacity is around 11Mt/yr.
Four domestic producers – Lafarge, PPC, AfriSam and NPC – were accused of cartel activity by the South African Competition Commission, in a case that has been running since 2008. PPC confirmed the existence of the cartel, whilst Lafarge and AfriSam were fined US$19.6m and US$16m respectively.
By letting Lucky Cement resume the sale of its cement in South Africa, the NRCS has arguably done more than the Competition Commission to prevent cartel activity. With reports surfacing that other producers in Pakistan and India are considering exports to South Africa, domestic producers are going to have to become more inventive and more competitive.
Commission hits back over Lafarge accusations
03 August 2012South Africa/Pakistan: Pakistan's Trade Commission in South Africa has defended products made by a Pakistani cement company, Lucky Cement, saying that they meet all quality standards in South Africa. The move follows accusations from senior figures within Lafarge's South African unit. The Commission also pointed out that the products were cheaper than established South African-manufactured products.
Lafarge had earlier said that it was considering approaching the International Trade Administration Commission of South Africa to protect the local market from what it deemed to be low-quality, cheap cement from Pakistan.
Lafarge wants Pakistan exports to South Africa blocked
01 August 2012South Africa: Lafarge is considering approaching the International Trade Administration Commission of South Africa to protect the local market from what it calls 'low-quality cheap cement' imported from Pakistan. The multinational is concerned that substandard products are being used for large infrastructure projects in the country, including the construction of hospitals, government housing and schools. Some importers are labelling cement as flour to dodge quality tests. Yet when the regulators do test imported product, they refuse to disclose the outcome, citing confidentiality.
"Imports are a concern for several reasons; sometimes the prices are very low, which affects us financially. We are looking at approaching the International Trade Administration Commission of SA to intervene in the market, but no decision has been made," said Lafarge South Africa CEO Thierry Legrand. He added that some cement sellers did not comply with the National Regulator for Compulsory Specifications, yet had import licences. Other domestic producers including AfriSam and Pretoria Portland Cement have also expressed concern at the situation.
In 2011 three companies importing from Lucky Cement, Pakistan's biggest cement exporter, were shut down. Cement and Concrete Institute (CCI) managing director Bryan Perrie said that 140,000t of cement were imported into South Africa in the first quarter of 2012 and that a substantial portion of it probably came from Lucky Cement. "People have struggled to keep accurate import statistics of cement but we know that Lucky is a major importer. People bring cement in as flour, so the statistics of how much comes in is often incorrect," he said.
Importers in South Africa are supposed to test samples for every 500t of imported cement. Yet when the CCI asked third-party regulators about the results of these checks, they were told this was confidential. The CCI had asked the regulator to publish a list of cement importers online, recording which products had letters of authority, but this has not happened.
Lafarge Q2 profit takes Euro200m Greek hit
27 July 2012France: Lafarge has reported that its net profit fell in the first half of 2012 due to troubles in its European markets, mainly in central and eastern Europe, where the construction industry slumped Lafarge recorded an impairment of Euro200m on its Greek assets alone. The French cement group's net income fell from Euro260m in the first half of 2011 to Euro13m in 2012, a drop of 95%.
Sales rose by 5% to Euro7.61bn and earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 8% to Euro1.52bn, boosted by increases in emerging markets. In addition to the impairment on Greek assets, Lafarge also recorded a Euro148m charge related to the company restructuring in the first half of 2012.
"Economic conditions remain challenging in many parts of the world and we remain prudent on our outlook," said Lafarge's chief executive Bruno Lafont. "Even in a lower growth volume environment, our actions to generate sales growth and cash, and to improve returns, led to a third consecutive quarter of positive trends." He confirmed that he expects the cement industry to grow between 1% and 4% in 2012, mainly driven by emerging markets. Lafarge expects higher pricing for the year and cost increases to be slower than in 2011.
By region on a like-for-like basis, cement volumes increased in North America by 14% to 5.7Mt and sales increased by 16% to Euro1.4bn. In Western Europe volumes decreased by 11% to 8.3Mt and sales decreased by 10% to Euro1.62bn. Here sales decreased by 6% to 7% in France and the UK, where it was blamed on adverse weather and a slowdown in advance of the London 2012 Olympic Games, and by 28% to 30% in Spain and Greece.
In Central and Eastern Europe volumes decreased by 7% to 5.9Mt, yet sales remained stable increasing by 1% to Euro561m. In both Russia and Poland higher pricing counteracted a drop in volume. In Middle East and Africa volumes decreased by 2% to 23.4Mt and sales increased by 4% to Euro2.2bn. Notably, Nigeria saw a 49% increase in sales due to a new line started in 2011 and Egypt saw volumes fall by 11% due to limited gas supply. In Latin America volumes increased by 5% to 4.5Mt and sales increased by 12% to Euro474m. In Asia volumes increased by 5% to 21.9Mt and sales increased by 11% to Euro1.36bn. Notably, activity slowed in India yet sales still rose by 25%. In China sales were impacted by slower construction growth, with volumes remaining stable but prices decreased.
Lafarge said that its debt stood at Euro12.55bn at the end of June 2012, down from Euro14.26bn a year earlier. The company's debts peaked at Euro17bn in 2008 and they stem from a series of acquisitions culminating in the Euro8.8bn takeover of Egyptian rival Orascom Cement. Lafarge plans to raise as much as Euro1bn in asset sales in 2012, though it hasn't said which units it may sell.
Lafarge made Euro72m from divestments in the first half of 2012. The company has also cut investment and reduced the number of executives. In June 2012, the company announced it would cut its costs by Euro1.3bn by 2015.
Nigeria: The government of Lagos State has unveiled a new deal with Dangote Cement and Lafarge Cement WAPCO. The collaboration will help to ensure undisrupted supplies of cement products to construction firms that have been contracted to handle various infrastructure projects that are to be carried out by the state in the coming years.
Commissioner for Works and Infrastructure, Dr Obafemi Hamzat, revealed the details and explained that Governor Babatunde Fashola had engaged both Dangote and Lafarge Cement WAPCO to guarantee stable supplies. "We are looking into the use of concrete now that we have a lot of cement in the country. We have met with Dangote and Lafarge to see how they can assist us with our contractors."
Hamzat lamented the high cost of cement imports as one of the reasons responsible for the high cost of road construction and urged the Federal Government to restore railways so that they can be used as an alternative route.
Aberthaw celebrates 100 years with open day
16 July 2012UK: Lafarge Cement UK is inviting members of the public to an open day at Aberthaw Works in Wales on 21 July 2012 to celebrate 100 years of operation at the site. Visitors will be able to talk to employees and go on a guided tour of the works and quarry.
Works manager James Kirkpatrick said, "We are very keen to share our centenary celebrations with as many local people as possible. Aberthaw Works has played a very important part in the local economy and communities of the Vale of Glamorgan for a long time. It is important to us that we mark this milestone by opening up our doors for people to come on site and find out more about our operation in the 21st Century.
Kirkpatrick added that the open day would include tours of the cement plant and adjacent quarry, an exhibition giving an overview of the 100-year history of the site and displays from other local companies and organisations.
Lafarge places a seven year Euro500m bond
02 July 2012France: Under its Euro Medium-Term Note programme, Lafarge has today issued a Euro500m bond with a 7 year maturity and fixed annual coupon of 5.875% to institutional investors. While the French cement and building materials giant had said that it had no immediate refinancing needs, the proceeds of this bond issuance will reinforce the already strong liquidity position of the group.
The settlement and issuance of the bond are expected to occur on 9 July 2012.