12 August 2019

China: China Resources Cement (CRC) has reported lower net profits for the six months that ended on 30 June 2019, largely on falling sales of cement, clinker and concrete amid a slowing Chinese economy. Its net profit was US$481m, compared with US$510m in the first half of 2018. Revenue for the first half dropped by 6.0% year-on-year to US$2.22bn. The company said it will continue to seek partnerships with domestic and overseas companies as it noted that the Chinese economy is facing new downward pressure.

Kenya: East Africa Portland Cement Company (EAPCC) has withdrawn a restructuring and staff rationalisation notice that it had earlier issued. The firm had sought to declare 800 employees redundant, with the aim of trimming its bloated wage bill.

“A replacement notice about the intended company restructuring and staff rationalisation, shall be circulated, in due course,” stated EAPCC’s acting managing director Stephen Nthei.
EAPCC is stuck in negative working capital with obligations maturing within the next 12 months outstripping current assets by US$71m. This potentially makes it difficult to service its short-term obligations.

Nigeria: Dangote Cement has stated that the rate at which consumers are winning valuable prizes in its on-going national consumer promotion, tagged ‘bag of goodies,' is not a gimmick, but a means of giving back to the loyal consumers of its cement products. The response follows criticism that there are too few winners.

At a prize ceremony in Port Harcourt, Aliko Dangote, Chairman of Dangote Cement, stated that the presentation events were proof that the promotion was not a scam. The company is giving out 43 cars around Nigeria as well as other prizes, including televisions. “We value everybody in our value chain – distributors, wholesalers and retailers – and this is our own way of giving back to our consumers,” said Dangote.