26 October 2020

India: HeidelbergCement India’s net profit in the six months to 30 September 2020 – the first half of its 2021 financial year – was US$15.1m, down by 19% year-on-year from US$18.6m in the first half of the 2020 financial year. Its revenues fell by 17% to US$125m from US$151m.

The company attributed the fall to the impacts of the on-going coronavirus outbreak. It said, “The company is taking all possible steps to mitigate the effects of Covid-19 on its business and operations. The management has also evaluated the possible impact of the pandemic on the business operation and, based on its assessment of the current indicators of the future economic conditions, it is expected that the carrying amount of assets will be recovered.”

China: China Resources Cement’s nine-month profit for the period that ended on 30 September 2020 was US$954m, up by 28% from US$747m in the corresponding period of 2019. Reuters has reported that the company’s turnover was US$3.51bn, up by 1.7% from US$3.45bn.

Kenya: East Africa Portland Cement Company has defaulted on a long-term loan from KCB Bank. The bank has demanded immediate repayment of the full loan, according to the Business Day newspaper. The cement producer’s current liabilities grew by 70% year-on-year to US$126m in the financial year to June 2019. In a report made to parliament Auditor-General Nancy Gathungu said, “This movement was largely due to the transfer of long-term loans to current liabilities on account of default on existing loan covenants.”

Algeria: The Ministry of Trade has drawn up a plan for the export of Algeria’s 20Mt/yr surplus cement, over 1.0Mt/yr of which is already being exported to Niger and other West African neighbours. Algeria Press Service has reported that the plan involves the country opening its land and sea borders for the cement, which constitutes 50% of the country’s 40Mt/yr total cement production.

Trade Minister Kamel Rexig said, “The surplus production will be exported and will thus guarantee an inflow of money amounting to US$900m/yr. The ministry has identified 10 national zones of production, including the export of cement, as a strategy for the year 2021.” He added, “The efforts made by economic and industrial operators to increase the volume of production intended for export in cement deserve to be encouraged.”

Algeria’s cement capacity first exceeded domestic consumption in 2017, prior to which it relied on cement imports from Tunisia.

Sweden: Sandvik says that it will launch Sandvik Rock Processing Solutions in on 1 January 2021. The new business area will consist of its current Crushing and Screening division, which is part of the Sandvik Mining and Rock Technology business area at present. It said the reason for the restructure was “to accelerate profitable growth.”

Chief executive officer (CEO) Stefan Widing says, “Sandvik is market leading within rock processing, and our Crushing and Screening division is a well-performing business with exciting growth opportunities, operating quite independently, with its own manufacturing, sourcing and aftermarket. By establishing Rock Processing Solutions as a business area we will improve transparency and strengthen our growth ambitions within the area."