27 November 2019
Cemex to sell Kosmos Cement plant in Kentucky to Eagle Materials 27 November 2019
US: Cemex says it has agreed to sell the Kosmos Cement Company to Eagle Materials for around US$665m. The Mexican company owns a 75% stake in the company and Italy’s Buzzi Unicem manages the remainder. It expects to receive US$499m from the transaction. This will be spent on debt reduction and for general corporate purposes. The sale includes the 1.7Mt/yr Kosmos integrated cement plant in Louisville, Kentucky as well as seven distribution terminals and raw material reserves.
“This is another key milestone in achieving our ‘A Stronger Cemex’ objectives. Now, closed or announced asset sales are in excess of US$1.3bn under this program. We are pleased with the continued favourable asset-divestment dynamics in our industry,” said Fernando A Gonzalez, chief executive officer (CEO) of Cemex.
Completion of the deal is subject to regulatory approval. It is expected to complete in the first quarter of 2020.
CRH’s sales grow by 4% to Euro21.8bn so far in 2019 27 November 2019
Ireland: CRH’s sales revenue grew by 4% on a like-for-like basis to Euro21.8bn in the first nine months of 2019. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 7% to Euro3.2bn. Sales grew fastest in its European and American heavy materials divisions with earnings growth more pronounced in North America than in Europe. The group reported growth in ready-mixed concrete and cement sales in North America as it continued to consolidate Ash Grove into the business. Sales in Europe were generally good, although declining construction activity in the UK was noted due to market uncertainty related to the country’s attempt to leave the European Union. CRH also reported falling sales volumes in the Philippines due to a slowdown in infrastructure spending.
Uzbekistan: The State Committee for Ecology and Environmental Protection plans to ask cement plants to establish sampling and analysis stations for sources of air pollution by the start of 2022. If they don’t the government will take measures up to and including suspension of production, according to the Trend News Agency. Uzbekistan was ranked in 16th place by AirVisual in a listing of the countries with the most air pollution in 2018.
Belarus: Cement producers plan to switch imports from Ukraine to the European Union (EU). Architecture and Construction Minister Dmitry Mikulenok said that the decision was made due to tariffs in Ukraine, according to the Belarusian Telegraph Agency (BELTA). He said that the industry had moved away from exporting to Russia and that exports from Ukraine stopped in July 2019. He added that exports grew through the Belarusian Universal Commodity Exchange (BUCE) in 2018.
Prime minister Sergei Rumas also noted that the government was watching local cement companies to make sure they were meeting their state support provision terms. He cited falling exports, low production capacity utilisation and market inefficiencies as issues facing the sector. The government has proposed restructuring the debts held by cement companies.
Eurocement’s Maltsovsky plant gains European cement certification 27 November 2019
Russia: Eurocement’s Maltsovsky integrated plant in Bryansk Region has gained European certification for its CEMI 52.5N, CEMI 42.5R and CEMII / A-S 42.5N products. Local testing and independent certification confirmed the new designation. Following an earlier certification for CEMI 42.5N the plant now hopes to grow its exports to the European Union.
Iranian province invests in Iraqi cement plant 27 November 2019
Iraq: Iran’s Khuzestan province plans to invest in a US$35m cement plant project in Al-Emareh. Deputy Governor General for Coordinating Economic Affairs Nourollah Hassanzadeh said it was a joint initiative with Iraq, according to the Islamic Republic News Agency (IRNA). The project was launched in the mid-2010s and is reported to be in its ‘final’ stages. The Iranian province borders Iraq and it hopes to increase its international investment profile.
Saudi Industrial Exports Company extends sales and marketing deal with Al Jouf Cement 27 November 2019
Saudi Arabia: The Saudi Industrial Exports Company (SIEC) has signed a one-year sales and marketing contract extension with Al Jouf Cement. It previously agreed with Al Jouf in November 2017 to sell 72,000t/yr to Jordan.
Nigeria: The Senate of Nigeria has urged the Federal Ministry of Transportation to complete the construction of the Ajaokuta - Otukpo railway line. The legislative chamber also advised the ministry to include a siding at Okaba to Ankpa as part of the project to make coal transportation easier, according to the Vanguard newspaper. Cement companies, including Dangote Cement’s Obajana plant and the Kogi State Super Cement Company at Allo-Itobe, would benefit from reduced coal prices. At present their coal is delivered by road. The railway project would also aid the Ajaokuta Steel Company.