Displaying items by tag: Cemex
Cemex to expand in Philippines
19 September 2012Philippines: Cemex has announced that it is planning to expand the cement production capacity of its APO plant in the Philippines by 1.5 Mt/yr. Through an investment of approximately US$65m, the company will increase production and strengthen its distribution network to better serve high-demand areas throughout the country. The increase is expected to be operational by the first quarter of 2014.
With this new investment, Cemex says that it will keep pace with the Filipino market's rapid growth. The country registered a GDP growth of 6.1% in the first half of 2012, according to its National Statistical Coordination Board. The Metropolitan Manila Development Authority has begun multiple infrastructure projects as the country recovers from damage caused by extreme weather conditions.
"Infrastructure development has been one of the constant needs of the country and it has to be addressed with urgency," said Pedro Palomino, president of Cemex in the Philippines. "We are proud to be a part of the development of the Philippines and wish to be a long-term partner on its path to a prosperous, sustainable future."
Court annuls Cemex stake in Assiut Cement
17 September 2012Egypt: An Egyptian court has ordered that the sale of Assiut Cement Company to Cemex be annulled. The plant will be returned to the Egyptian government as it was sold for less than its fair value. The court also ruled that all workers forced to retire after the sale may return.
Cemex bought 90% of the state owned factory in 1999 for US$580m in cash and assumed debt and currently owns a 96% stake. Under the court ruling, Cemex would be responsible for all the financial obligations its Egyptian business incurred since 1999. Cemex plans to contest the ruling and appeal the court's decision.
Ash Wednesday: cement in the Philippines
05 September 2012Coal ash seems to be in short supply in the Philippines. Lafarge Republic has signed a deal with a local energy producer to buy coal ash from a new 600MW coal plant.
Although the cost of the deal was not announced, the agreement will run from when the plant starts operation until 2019. This move follows a similar arrangement by Cemex Philippines in June 2012. In that instance Cemex agreed to purchase coal ash from the 200MW Kepco SPC Power Corp plant in Naga, Cebu for US$0.95/t.
Distinctively both arrangements were set up in conjunction with local government. For the Lafarge deal part of the agreement involved donating at least 10,000 bags of cement per month for use in various infrastructure projects of the province. Bataan governor Enrique Garcia put the value of the deal at US$1.19m/yr. For the Cemex deal the Cebu Provincial Government signed the agreement. In November 2009 Cebu Province and Kepco entered into an Ash Disposal Agreement, where Cebu Province was granted exclusive rights to the ash produced by the power plant.
Adding to the suspicion that the Philippines lacks sufficient coal ash, back in the autumn of 2011, the Cement Manufacturers' Association of the Philippines (CeMAP) asked the Department of Trade and Industry (DTI) to impose mandatory quality standards on raw materials, such as coal ash. This followed accusations by CeMAP that poor quality coal ash might be behind complaints from contractors working on infrastructure projects. In 2009 a DTI profile on the cement industry placed the demand for Portland cement at 73% and the demand for pozzolan cement at 27% of the total.
Cement sales in the Philippines have been steadily growing over the last decade. Lafarge Republic announced in August 2012 that it was increasing its capacity to just below 9Mt/yr in 2013. Around the same time CeMAP released data showing that sales were up 20% year-on-year for the first half of 2012. The local industry reported combined sales of 15.6Mt in 2011. Previous to this, Holcim Philippines announced the US$9.46m upgrade to a previously closed mill in Batangas.
Jose Llontop takes top job at Giant
29 August 2012US: Jose Llontop has joined Giant Cement as its new CEO and president. He joins the company with 14 years of experience in the industry. Previously he has held senior level positions at Cemex, including being the regional president for a US$1bn sales operation for countries in Central Eastern Europe and being the president of Cemex Egypt.
"Llontop is a professional with a long and successful career in the cement industry, who has held positions of high responsibility in different countries and achieved excellent results," said Juan Bejar, chairman and CEO of Cementos Portland Valderrivas, the Spanish company that owns Giant.
Llontop received his undergraduate degree in mechanical engineering from the University of Virginia, Charlottesville, VA, completed his MBA at Rice University, Houston, Texas, USA, and attended the Harvard Business School's General Manager Program in Cambridge, Massachusetts, USA.
Llontop served as chairman of the Cemex supervisory board in Austria and as vice chairman of the Cemex board in Egypt. Since 2010 Llontop was the president of Saudi Readymix, and the senior vice president of Building Materials for Alturki Group in Al Khobar, Saudi Arabia.
Cemex sees solid second quarter
20 July 2012Mexico: Mexico's cement giant CEMEX has released its financial results for the second quarter of 2012. These show total consolidated net sales of US$3.9bn during the period, a 1% rise on a like-to-like basis compared to the second quarter of 2011. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 11% during the quarter to US$702m. On a like-to-like basis operating EBITDA increased by 22% in the same period.
Cemex attributed the increase in consolidated net sales on a like-to-like basis to higher prices in local currency terms in all of its regions. It reported that infrastructure and residential sectors were the main drivers of demand in most of its markets.
Net sales in Cemex's operations in Mexico decreased by 14% in the second quarter of 2012 to US$833m compared with US$968m in the second quarter of 2011. Operating EBITDA decreased by 4% to US$300m versus the same period of 2011. The groups's operations in the US reported net sales of US$795m for the quarter, up by 15% year-on-year. Here its operating EBITDA increased to US$27m, comparing favourably to a loss of US$17m in the same quarter of 2011.
In Northern Europe, net sales for the second quarter of 2012 decreased by 18% to US$1.10bn, compared with US$1.34bn in the second quarter of 2011. Operating EBITDA was US$122m for the quarter, a 19% fall from 2011. Second-quarter net sales in the Mediterranean region were US$384m, 20% lower compared to the US$477m taken during the second quarter of 2011. Operating EBITDA decreased by 23% to US$96m for the quarter compared to the same quarter in 2011.
Cemex's operations in South & Central America and the Caribbean reported net sales of US$529m during the second quarter of 2012, representing an increase of 20% over the same period of 2011. Operating EBITDA increased by 58% to US$189m in the second quarter of 2012 from US$120m in the second quarter of 2011. Operations in Asia reported a 10% increase in net sales year-on-year to US$142m compared to the second quarter of 2011. In this region its operating EBITDA was US$30m, up by 35% from the same period of 2011.
Fernando A González, Executive Vice President of Finance and Administration, said, "We are pleased with our 22% growth in operating EBITDA on a like-to-like basis, on back of a 1% growth in consolidated net sales. This is the highest EBITDA generation since the third quarter of 2009 and the fourth consecutive quarter with a year-over-year EBITDA increase. We are particularly pleased with the quarterly performance of our operations in the United States, South & Central America and the Caribbean and Asia regions."
Cemex introduces ‘Ecoperating’ seal
27 June 2012Mexico: Cemex has introduced a new 'Ecoperating' seal that will identify the products and services from its portfolio of building solutions that have an outstanding sustainability performance. Ecoperating is a seal that was developed through a rigorous internal process that measured the environmental or social impact of a wide range of building solutions that Cemex offers, from low-CO2 cement and other building materials to services such as paperless invoicing. Among the most relevant criteria for a product or service to qualify for the Ecoperating seal are sustainable attributes, like thermal insulation, use of recycled raw material and contribution to a reduction in CO2 Footprint.
"Cemex is well known for a number of services and initiatives that significantly reduce environmental impacts or have a highly positive effect on society," said Vicente Saiso, Cemex's sustainability director. "The Ecoperating seal will help our clients identify Cemex's initiative to foster its sustainable development through the building solutions Cemex provides to the markets it serves."
The Ecoperating seal is being introduced around the world gradually. In June 2012 in a number of Cemex's cement and concrete products were given the seal in Croatia and the seal will reach Egypt, the Philippines, Colombia, Costa Rica and Mexico during the third quarter of 2012. Countries in northern Europe, South America and the Caribbean and the remainder of Asia will be given the seal in the fourth quarter of 2012 and the first half of 2013.
Diamond cement tanker tribute to Queen
06 June 2012UK: To celebrate the Queen's Diamond Jubilee, Cemex UK has decorated a cement tanker, aggregate tipper, concrete mixer and curtain sider with the Union Jack. The company's fleet of over 1000 vehicles travel thousands of miles every week to deliver essential building materials for construction projects, helping the company to build a 'Greater Britain.'
The Union Jack vehicles will be travelling around the country visiting Cemex sites and delivering loads to key customers.
Image courtesy of Cemex UK
Cemex sole cement supplier for Panama City metro
30 May 2012Panama: Mexican cement manufacturer Cemex is the sole cement supplier for Panama City's metro line 1.
Cemex will provide nearly 0.1Mt of cement for the construction of the line, which will run 13.6km from the San Miguelito neighbourhood in the north of the city to the Albrook bus terminal in the south, with 11 stations in total. Construction is being carried out by Spanish firm FCC and Brazil's Odebrecht at an estimated total cost of US$1.45bn.
Line 1 will be both above and below ground will and include tunnels, trenches and viaducts. It is expected to have an initial capacity to transport 15,000 people per hour in 2014, rising to 40,000 by 2035. The line will make Panama the first Central American country to have a metro system.
Cemex turns to the wind at Victorville
23 May 2012US: Cemex USA has announced a novel plan to install four 120m-tall wind turbines at one of its US cement terminals and quarry in order to cut carbon emissions and energy costs.
The Victorville Planning Commission has unanimously approved the two turbines proposed at Cemex's cement manufacturing plant, with the company stating the project would help keep jobs in the Victor Valley.
"Our operations will continue at Victorville even if the turbine permits are not approved," said Cemex spokeswoman Sara Engdahl. "However, the wind turbine project at our Victorville site is beneficial not only to our operations but to the environment as well. The project will contribute to the local economy through jobs created for the construction and engineering of the turbine, and the project directly partners with California-based Foundation Windpower."
The two turbines in Victorville will produce an estimated 6500MWh of electricity in an average year, enough to sustain 650 average homes, according to the company. The other two proposed turbines will be built at the Black Mountain Quarry in an unincorporated area of Apple Valley. They are under review by San Bernardino County.
The project will reduce greenhouse gas emissions and stabilise energy costs for Cemex, while preparing the company to comply with future carbon emission requirements, according to Cemex's proposal to the city of Victorville.
"The wind turbine project at our Victorville plant is part of our vision and commitment to reduce our environmental footprint and contribute to a cleaner environment," said Engdahl. "Cemex is increasingly using renewable energy to generate power for our operations."
She added that Foundation Windpower began working on foundations of the Victorville site in August 2011. It is scheduled to start erecting the turbines in September 2012.
Cemex loss narrows in first quarter of 2012
26 April 2012Mexico: Mexican cement giant Cemex has reported that sales growth in its operations in the United States, Central and South America and the Caribbean helped it to narrow its first-quarter loss in 2012.
"The favourable performance in most of our regions leads us to believe that we are in the initial stages of a turnaround," said Fernando Gonzalez, Cemex's executive vice president of finance and administration, who added that the quarter marked Cemex's sixth consecutive quarter of top-line growth.
Sales rose by 4% year-on-year in the January-March 2012 period to US$3.5bn. Higher sales in the US helped compensate for weaknesses in Mexico and Europe, although the US operations were still a drag on operating earnings before interest taxes, depreciation and amortisation (EBITDA).
Cemex said its operating EBITDA rose by 7% on the year to US$567m. On a like-to-like basis for its ongoing operations and adjusting for currency fluctuations, operating EBITDA increased by 10%.
Cemex's net loss for the quarter was US$26m, narrower than a loss of US$229m loss a year earlier.