21 February 2020

Mexico: Group Cementos Chihuahua (GCC) reported a better-than-expected fourth quarter in 2019, due largely to record sales volumes in the US, its main market. A delay to the start of the construction season, an order book containing contracts for oil well cement and alternative energy projects and strong residential and infrastructure segments, boosted its cement sales volumes by 12.3%. Along with an increase of 2.9% in prices overall (4.8% rise in the US), this gave rise to sales figures 13.2% higher than in the fourth quarter of 2018.

"Our excellent operational execution and robust distribution network, supported by improved climate, once again contributed to record volumes in cement in the US, surpassing our estimates," said Enrique Escalante, GCC’s Managing Director.

In its domestic Mexican market, sales increased by 5.6% due to a mixture of higher prices and appreciation of the national currency. Industrial warehouse construction segments, mining projects and middle housing in border towns were factors for the rise.

Spain: The Association of cement manufacturers of Spain (Oficemen) attended a debate at the European Parliament Headquarters in Brussels, Belgium that discussed future population trends across the EU.

The Vice President of Cembureau and Oficemen, Isidoro Miranda, was in charge of opening the meeting. He highlighted the role of the industry as an “activity that solidly confers on the economy of a country in terms of wealth generation, employment and the economic and social wellbeing.”

Highlighting that many cement plants operate for 80 or more years, Miranda added that of Spain’s 33 integrated cement plants, 12 are within what is considered to be ‘empty Spain,’ areas that have experienced rapid depopulation in the past 20-30 years.

To end the meeting, the President of Oficemen, Víctor García Brosa, highlighted that, "Depopulation is one of the great political challenges facing Europe today. It affects 80% of the territory and it is necessary to have strategies specific to promote economic development, access to services and connectivity. The decline or disappearance of traditional industries in Europe leads to loss of qualified employment and a mismatch between supply and demand in the labour market. A role for industries is essential to address the challenge of population fixing and combating emptied Europe."

During the event, Oficemen and The Industrial Federation of Food and Beverages (FIAB) presented a 'Manifesto against the Empty Europe,’ which they say is "a call made to the institutions of the EU to strengthen the role of the industry as a brake on the demographic decline.

India: Lafarge Holcim-owned Ambuja Cement’s consolidated net profit almost halved to US$100.4m during the three months to 31 December 2019, from US$191.4m in the three months to 31 December 2018. The 2018 result was boosted by a one off benefit of US$121.5m, meaning that underlying operating profit has improved year-on-year. Ambuja’s revenue from operations was up by 6% to US$992m from US$936m.

Kuwait: Kuwait Portland Cement has reported that its fourth quarter profit for 2019 fell by 44% to US$4.57m from US$8.15m in the fourth quarter of 2018. Its fourth quarter operating revenue in 2019 was US$76.3m, down by 36% from US$119m a year earlier.