Displaying items by tag: Australia
ACCC says that Boral is not passing on its carbon tax savings
02 February 2015Australia: The Australian Competition and Consumer Commission (ACCC) has said that it is 'chasing up' Boral's failure to pass on savings from the carbon tax repeal.
Legislation to remove the tax was passed in July 2014. ACCC chair Rod Sims said that compliance from the affected businesses had since been very good. However, he singled out landfill companies and Boral for not passing on savings.
The ACCC said that Boral had informed customers in 2012 that the price of cement and terracotta products would increase by 1% and 3% respectively. Boral's CEO Mike Kane said, at the company AGM in October 2013, that the carbon tax would cost it about US$15m/yr.
"We've got a couple of companies that we're chasing up, but they're more ambiguous and so we haven't named them," said Sims. "But Boral, yes, we do have a problem. We're engaging with them." A spokesman for Boral said that it was continuing to comply with its obligations related to the tax removal.
Australia: The Boral cement plant in Berrima, New South Wales, will receive a US$3.3m grant from the Environmental Trust as part of the NSW Environment Protection Authority's Waste Less, Recycle More initiative. The funding will be used to increase the use of waste derived fuels at the plant.
Executive general manager for Boral Cement Ross Harper said the achievement of the grant confirmed the potentially-important role that the New Berrima site could play in reducing the increasing impact of re-usable materials ending up in landfills.
"Since September, we have been informing our local stakeholders about the positive environmental and economic effects which can be obtained by replacing a portion of our coal consumption at Berrima with fuels derived from recovered and processed waste streams," said executive general manager for Boral Cement, Ross Harper.
Boral is currently preparing to submit planning applications which will seek approval for the use of wood waste-derived fuel and refuse-derived fuel in production at the Berrima plant. The site already holds an approval to use rubber tyre chips. Pending approvals, the site is looking to begin integration of the two fuels from the start of 2016 following construction of the new infrastructure.
James Hardie’s second quarter profit jumps by 66%
20 November 2014Australia: Fibre cement producer James Hardie has posted a sharp increase in its operating profit for the second quarter of its 2015 financial year, despite a slower-than-expected recovery in the US housing sector.
James Hardie, which generates 66% of its revenue in Europe and the US, had warned of short-term US uncertainty with the recent 'flattening in housing activity,' but has forecast a moderate improvement for the year ending in March 2015. Its Australian, New Zealand and Philippines businesses are also expected to improve.
"Management cautions that, although US housing activity has been improving for some time, market conditions remain somewhat uncertain and some input costs remain volatile," said James Hardie.
The company reported a net operating profit of US$127m for the quarter that ended 30 September 2014, up from US$51.9m in the same period of 2013. Chief executive Louis Gries said that the 66% jump reflected increased volumes and higher average net sales prices across its US, European and Asian fibre cement businesses, which drove net sales up by 12% for both the quarter and the half-year. "The recovery of the US housing market remains below our expectations at the beginning of the year," said Gries.
For the 2015 financial year, James Hardie expects US$205 – 235m of net operating profit, excluding asbestos compensation costs. In the 2014 financial year, the company reported US$197m of net operating profit.
Terra Cement partners with Ore Mines International
06 November 2014Australia: Terra Cement, a sustainable cement technology company, has signed a joint venture agreement with Ore Mines International (OMI) in South Australia to form a new company, called Terra Cement Australia (TCA). TCA will engage in the marketing of Terra's proprietary process (patent pending) for producing sustainable cement using ash in Australia, New Zealand and Papua New Guinea.
"As collaborators with a global reach and local market knowledge, industry leaders such as OMI play a significant role driving innovation to market," said Henry Val, CEO at Terra. "OMI's expertise enables rapid commercialisation by freeing us to focus on the development of our core technology. Likewise, our technology gives OMI access to a large, new market that would not exist without Terra."
TCA will convert existing cement plants and mixing facilities to produce hydrogel made from fly ash in Australia. When organic proprietary liquids are added, sustainable cement is produced, which is stronger, more durable and cures faster than Ordinary Portland Cement. No thermal energy is used and no carbon dioxide emissions are produced during the manufacturing process.
OMI has conducted preliminary testing of the ash available in Australia and has determined it to be suitable for the production of its cement. OMI has ordered the design for the conversion process for its existing facilities and will complete the process in the near future. TCA, as a joint venture, will begin its operations by the end of 2014.
James Hardie’s first quarter 2015 net profit fell by 80%
15 August 2014Australia: James Hardie Industries, an Australian fibre cement producer, has posted an 80% fall in its net profit to US$28.9m during the first quarter of its 2015 fiscal year, which ended on 30 June 2014. During the same period of its 2014 fiscal year, net profit was US$142m.
The company revised down its full year earnings expectations due to an uncertain US economic recovery. James Hardie generates 66% of its revenue in Europe and the USA. James Hardie's CEO, Louis Gries, said that the US market 'is recovering more modestly than we assumed at the start of the year.'
Australian and New Zealand cement industry shrinks
25 June 2014Bad news for both cement workers and local clinker production in Australia and New Zealand this week with the announcement of job cuts and planned closures of clinker plants. Holcim New Zealand has confirmed that around 120 jobs will go when its Westport cement plant closes in 2016 along with the rationalisation of a few management jobs when the company integrates its Australian and New Zealand businesses. Meanwhile, Boral announced that it will cut 28 jobs from its Maldon Cement plant in Australia when it ceases clinker production at the end of 2014.
With these planned closures cement production capacity in the antipodes will shrink by just over 1.5Mt/yr to around 7.5Mt/yr, a reduction of over 15% Alongside the drop in native cement production players are re-focusing on an import market.
The trend is highlighted by the fact that Boral's Maldon site will retain its grinding mill. Earlier in June 2014 it was reported that Vue Australia is planning to convert a brownfield site on Kooragang Island, New South Wales into a cement storage and transfer plant. In February 2014 Cockburn Cement cut 44 jobs at its Munster cement plant as it started to restructure its operation for grinding using imported clinker. Also in February 2014 Cement Australia, the joint-owned company between Holcim and HeidelbergCement, had a US$17m expansion of its cement loading and storage facility for processing at Osborne approved by local authorities.
Following its restructuring in 2013, which has seen clinker production cease at Waurn Ponds and soon to cease at Maldon, Boral reported that its cement revenues grew in its 2012 – 2013 financial year. This is likely to continue when the 2013 – 2014 year is reported in August 2014. Likewise, Adelaide Brighton reported growing revenues in 2013. Cement Australia reported growing cement sales year-on-year in the first quarter of 2014 following reduced sales in 2013.
All in all the local cement industry in Australia and New Zealand has taken quite a knock in recent years. Reasons for this have included a poor recovery for the local building materials market, high-energy costs, the Carbon Tax in Australia, competition concerns and the spectre of cheap clinker imports from East Asia undercutting everything. However the return to revenue and then profit suggest that the worst of the job cuts and clinker production shrinkage is over.
In this business environment, revelations such as a China Resources spending upwards of US$300,000 on golf are unlikely to garner sympathy for any measures that appear to reduce international competiveness for Australian industry. The current Australian government led by Tony Abbott is set to make good on its promise to repeal the Carbon Tax from July 2014. The environmental effects will be unclear given that the tax may have cut emissions from participating companies by 7%, falling from 342Mt in 2011 – 2012 to 321Mt in 2012 – 2013, according to the Investor Group on Climate Change. As is usual with localised carbon taxation or legislation, whether global emissions fell during this period or whether emissions grew in looser jurisdictions to compensate is hard to calculate. The trend towards clinker imports suggests that there may be a significant contribution from the latter.
Holcim jobs lost in New Zealand/Australia merger
24 June 2014New Zealand: Holcim New Zealand has revealed that a company shake-up will result in four management jobs in Christchurch being axed in the next few months. In addition, the wind-down of the Westport cement plant in 2016 has been confirmed, which will result in the loss of about 120 jobs. It is also considering selling part or all of its lime business.
Holcim New Zealand's managing director, Jeremy Smith, will be made redundant, with Holcim announcing that it will combine its New Zealand and Australian operations. Three other management jobs will also be axed, although the head office in Christchurch will remain open.
"Other than the four senior roles announced as being dis-established in 2015, no other changes are planned in the near future," said Smith. Commenting on the status of other staff numbers once all the plans come into play, Smith said, "That is not known and it is too early to even discuss. The changes to the business model will eventually reduce the scale and scope of the New Zealand business over the coming years and it will require a smaller corporate management operation after 2016." Holcim currently employs 420 staff in New Zealand.
Holcim announced in 2013 that it was halting cement manufacturing in New Zealand and replacing it with bulk importing of cement for the New Zealand market. As such, Holcim has gained final approvals for construction to begin on its two new import cement terminals at Timaru and Auckland. Planning work is already underway on the Timaru project, where two 30,000t cement terminals are to be built. The terminals are part of Holcim's US100m investment in its New Zealand operations.
Boral to axe 28 jobs from Maldon cement works
23 June 2014Australia: Boral will cease clinker production at its Maldon cement plant in New South Wales on 31 December 2014, axing up to 28 jobs in the process. Boral Cement's executive general manager, Ross Harper, said that a decline in demand for off-white clinker, which forms the basis of a range of specialty cement products, was behind the decision.
"Unfortunately, demand has declined sharply as consumers switch to products made from imported white clinker," said Harper. "This decline has coincided with a downturn in demand, rising costs of production, the availability of cheap imported clinker and the slow recovery of the building and construction industry." He said that the combination of these factors, plus the Maldon kiln's high cost and sub-scale output, rendered off-white clinker production unsustainable at Maldon. Harper added that Boral would maintain its Maldon grinding mill, packaging and associated logistics on site.
Australia: After being mothballed in 2012, the disused Hydro Aluminium plant on Kooragang Island could soon be operational again. The site is set to be reincarnated as a cement-mixing plant. Vue Australia has lodged a US$3m plan with Newcastle council to change the site's use from an aluminium transfer, storage and dispatch facility to a cement storage and transfer plant.
Under the plan, Vue will transfer, store and dispatch an estimated 300,000t/yr of Portland cement, utilising the site's existing three large silos and overhead conveyor. Much of Vue's US$3m investment will be spent on installing dust-control measures, particularly in truck-loading areas.
Vue is also seeking approval to operate 24hr/day, every day, because it needs to do so when a ship arrives with raw materials to unload. "This is expected to occur some 16 times a year," said a company spokesperson. The conveyor to the silos would carry raw products delivered by ship. The cement products would be dispatched via road tankers to customers.
Dust-emission reports and environmental reports have been submitted. An environmental impact statement concluded that potential environmental impacts associated with the upgrade are negligible and could be managed through the implementation of the mitigation measures identified by the study.
Vue said that it hopes to have the new cement plant operating within months. While the project would only create a small amount of jobs, the company said that it would help to diversify the port's industry, put mothballed infrastructure to work and 'increase competition within the New South Wales cement market and related construction industry.'
James Hardie doubles annual profit
22 May 2014Australia: Fibre cement producer James Hardie Industries said on 22 May 2014 that it expects the US housing construction market to improve in 2014 as it posted a more than doubling in annual net profit. "The company continues to expect improvement in the US operating environment," said James Hardie.
James Hardie, which generates two-thirds of its revenue in Europe and the US, said that its annual net sales in those markets grew by 19%, helped by strong rises in US single-family building permits. James Hardie posted a net profit of US$99.5m for the year to 31 March 2014, up from US$45.5m in the previous year. Net operating profit, which excludes charges for asbestos liability, asset impairments and regulatory charges, was US$197.2m compared with US$140.8m in the prior year. Overall net sales grew by 13% to US$1.49bn.
James Hardie has been compensating Australian victims of asbestos-related illnesses such as mesothelioma and said that its asbestos liability grew by US$186.18m to US$1.44bn by 31 March 2014, after the number of claims were higher than expected for a second consecutive year.