28 April 2021

China: Anhui Conch’s consolidated net profit rose by 20% year-on-year in the first quarter of 2020 to US$917m from US$763m. Its total operating income rose by 48% to US$5.31bn from US$3.58bn. The group attributed the rise in operating income to the negative effects of the coronavirus pandemic in 2020.

Ireland: CRH recorded a 3% like-for-like year-on-year consolidated net sales increase in the first quarter of 2021. American regional cement volumes increased by 5% and cement prices increased by 4%. Asian cement sales increased due to stronger volumes despite lower prices. Cement volumes rose in France but fell in Ireland due to the different timelines of the Covid-19 outbreak in each country in the periods under comparison. The price of cement rose in Eastern Europe. The group said that there is currently good underlying demand and continued pricing progress across key markets.

In the first quarter of 2021, the company spent US$200m on acquisitions. It says that it continues to have a ‘strong pipeline of opportunities.’ It earned US$200m from divestment of its Brazilian business. The company continues its share buyback programme with a US$300m tranche to be completed by the end of June 2021. It expects its earnings before interest, taxation, depreciation and amortisation (EBITDA) in the first half of 2021 to be ‘well ahead’ of first-half 2020 levels.

Chief executive officer Albert Manifold said “We had a positive start to the year in a seasonally quiet period for our business. He added “While near-term uncertainties remain, as we look ahead to the second half of the year we expect further normalisation in our markets as the health situation continues to improve.”

Mexico: GCC recorded consolidated net sales of US$179m in the first quarter of 2021, down by 2% year-on-year. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 9% to US$49.5m. In Mexico cement sales volumes rose by 6% but in the US they fell by 7.7% due to poor oil well cement sales.

The company’s chief executive officer Enrique Escalante said, "GCC started 2021 with strong financial performance - increasing EBITDA, free cash flow and EBITDA margin. Our results reflect momentum in the industry and show early signs that we are entering into a new phase of the industry's cycle with a stronger demand for most of our products. Therefore, we will focus our efforts in producing cement to supply pent-up demand." Escalante continued "Our backlog and the overall market trends of our business are encouraging in the US and Mexico. Both countries are emerging from tough and uncertain times into brighter months ahead. Our focus continues on maximising production, improving plant reliability, and optimising our logistics network to take advantage of the pent-up demand we are experiencing."

Saudi Arabia: Arabian Cement has placed an order with Denmark-based FLSmidth for the supply of equipment for an upgrade of its Rabigh cement plant. The order includes new DDX top cyclones, a quenching chamber and an ABC Cooler Inlet. Installation and commissioning is expected to be during the fourth quarter of 2021.

Arabian Cement’s chief executive officer Badr Osama Johar said, “With FLSmidth having provided the original line, they were the obvious candidate for the upgrade - we wanted a trusted partner who knows the ins and outs of the plant and is able to secure the success of the upgrade.” The producer previously engaged the company for the supply of its Rabigh plant’s kiln in 2008.

Iran: National cement production increased to 68.3Mt in the 2021 financial year, which ended on 20 March 2021. The figure corresponds to 79% utilisation of the country’s 87.0Mt/yr production capacity. The Tehran Times newspaper has reported that Iranian cement consumption during the year was 65.0Mt and exports were 11.0Mt. Iran supplied both cement and production equipment to its neighbouring countries.

Pakistan: House of Habib subsidiary Thal Limited has invested US$11.0m to establish a polypropylene woven bag plant in Hub, Balochistan. Germany-based Windmoller & Holscher will supply the plant. The Business Recorder newspaper has reported that it will have a capacity of 90m bags/yr.

Chief executive officer Syed Umair Ahmed said "Thal Limited also has a paper production capacity of 250m bags/yr and with a polypropylene woven bag production capacity of 90m bags/yr we will be able to cater to not only the local market but also grow our export business."

Japan: An off-grid power system at Taiheiyo Cement’s Hidaka cement plant in Saitama prefecture exploded overnight on 27 April 2021, damaging a car in a nearby car park. Fire services quickly fought and extinguished a fire in woodland surrounding the plant. Kyodo News has reported that none of the 14 people working at the site at the time was harmed. Residents 2km away reportedly heard and felt the blast.