24 July 2020

South Africa: PPC says that pent-up cement demand post-coronavirus lockdown has enabled year-on-year sales growth “in double digits” for the company in June 2020. Sales volumes also rose, by a single-digit figure. PPC said, “This recovery is mostly driven by the absence of imports, which has given an opportunity for local producers like PPC South Africa to grow.”

In May 2020 PPC recorded sales between 30% and 35% lower than in May 2019.

UK: An independent report by Mott Macdonald has found that Breedon Group’s Hope Cement plant in Derbyshire contributes Euro67m/yr to the local economy, up by 15% from Euro58m/yr at the time of the previous report in July 2017. The 1.5Mt/yr integrated cement plant employs 270 people, 202 of them directly, corresponding to 1.8% of total employment in the national park in which it is situated. Its economic contribution to the park’s total economic output of Euro956m is 7%.

Breedon Group said that the 90-year-old plant “Has a long tradition of actively engaging with the local community through its many social and communal activities. These include access for local residents to the Hope Works estate and the Earles Sports and Social Club as well as on-site open days and tours and a range of local business and community partnerships.” Manager Ed Hope said, “It is gratifying to see the healthy increase in our contribution to the local economy over the past few years. We’re very proud of the part we play in the lives and employment of people in the Peak District National Park.”

Zambia: Sinoma Mpande Limestone has donated 1000 bags of cement for use in the construction of a new secondary school in Chongwe, Lusaka Province. The People’s Daily newspaper has reported that the community is responsible for a 25% contribution in addition to World Bank funding for the project. District Commissioner Robster Mwanza said that it was “hard pushed to meet this requirement” and that the cement would “go a long way” in helping.

Denmark: FLSmidth has predicted a 55% year-on-year decline in earnings before interest, taxation and amortisation (EBITA) in the first half of 2020 to Euro48.2m from Euro107m. Sales are Euro1.12bn, down by 15% from Euro1.33bn, and order intake was Euro1.33bn, down by 7% from1.42bn. Net debt is expected to have declined by 15% to Euro309m from Euro363m.

The company said, “Across all regions, the mining industry and especially the cement industry have been negatively affected by the pandemic. Even in the regions with easing of lockdowns and mobility restrictions, it is yet unclear how our customers’ spending patterns will advance. Visibility remains low and our guidance remains suspended.”