Displaying items by tag: BosniaHerzegovina

Croatia: HeidelbergCement has appealed against an investigation by the European Commission into the proposed joint purchase with Germany’s Schwenk Zement of Cemex Croatia. The cement producer asserts that by considering Schwenk and itself rather than Duna-Dráva Cement (DDC), a subsidiary that both companies own equally, the commission has given the transaction a ‘Union dimension,’ according to the Official Journal of the European Union. Although DDC is based in Hungary, within the European Union (EU), it imports cement into Croatia (in the EU) from Bosnia & Herzegovina, a country outside of the union. The appeal was made in late December 2016 but only reported in late February 2017.

The European Commission revealed that it was investigating the proposed acquisition of Cemex Croatia by HeidelbergCement and Schwenk in October 2016. The commission was concerned that the transaction would merge the biggest producer in the area with the biggest importer, potentially reducing local competition.

Bosnia: Bosnia's Tvornica Cementa Kakanj (TCK) has forecast that its cement output will be flat in 2015 after producing 420,000t in 2014, according to company director Branimir Muidza. TCK is majority-owned by Dutch-based CEEM Investment, a unit of Germany's HeidelbergCement.

"Our cement production fell by around 10% in 2014, which was probably the most difficult year since the war for the Bosnian economy and its citizens. The country went through political turmoil in February 2014, followed by record floods in May 2014 and August 2014 and elections in October 2014," said Muidza.

Extraordinarily high rainfall affected Bosnia and Herzegovina between 14 May 2014 and 19 May 2014, the largest precipitation in 120 years. The European Union's delegation in Bosnia said in July 2014 that the cost of the total economic impact from the subsequent devastating floods that hit large parts of Bosnia was Euro2bn.

TCK's total revenues are projected to stagnate in 2015, given that in the first quarter of the year there will be no new major infrastructure works. Those that are expected to resume will mainly do so in the second half of the year. TCK's business outlook for 2015 is based on the low purchasing power of the population, a lack of foreign investments, political instability, a decline in personal consumption of building materials, job insecurity and the expected dynamics and intensity of planned public infrastructure works. Bosnia is expected to consume 1.1 - 1.2Mt in 2015, mostly unchanged from 2014.

Muidza is much more optimistic for 2016 onwards. Large government investments in public infrastructure and energy facilities, such as the pan-European Corridor, new units at thermal power plants Tuzla and Ugljevik and the new hydro power plant Vranduk, could help boost demand for construction materials in the country.

TCK plans to build a new Euro10.2m cement silo by 2018. Construction is expected to start later in 2015. There are also plans to install equipment that will enable the rail transport of bulk cement. During 2015, TCK will also finish a Euro1.53m project for the automation of its cement milling and packing operations.

Bosnia and Herzegovina: Oetelshofen Kalk, a family-owned company with a 114-year-long tradition in the production of lime in Germany, is considering acting as a strategic partner to open a lime plant with Geoinženjering in Tuzla Canton. The first stage of investment involves the production of aggregates and drawing up plans to build a lime plant. Prime minister Bahrija Umihanić said that the government of Tuzla Canton was available to all investors, especially those who have long-term plans and create new jobs for the citizens of Tuzla Canton.

Bosnia and Herzegovina: Bosnian cement factory Tvornica Cementa Kakanj (TCK) plans to invest Euro10.2m in the 2013 - 2018 period towards environmental upgrades. In 2014 TCK plans to invest Euro2.55m on modernising its cement mills and dust collecting system. The company is majority-owned by Dutch-based CEEM Investment, a subsidiary of HeidelbergCement.

Bosnia and Herzegovina: Schaefer Kalk Gmbh & Co is planning to initiate a joint manufacturing project with BFS, part of the Stanić group. The Euro30m project will be located in the city of Mostar, Bosnia and Herzegovina and will generate around 150 jobs.

The entire production of the future lime plant will be exported to markets in Africa, Asia and Europe. Mostar was chosen because of its proximity to the port of Ploče in Croatia, which would facilitate the export process.

"At the moment the initiative is in the preparation phase, which includes obtaining certification on taking the test quantity of limestone," said the Mostar city authorities. "After this a trial production would take place in the BFS plants in Kresevo, Bosnia and Herzegovina."

Bosnia-Herzegovina: The Bosnian-Herzegovinian cement producer Tvornica Cementa Kakanj (TCK), part of Germany's HeidelbergCement, has announced that it expects its net profit to increase by 20 - 25% to Euro5.6 - 6.1m in 2013, while it expects cement sales to be broadly flat at around 425,000t. The effects from ongoing investment and process-optimisation measures are expected to kick in in 2013, generating savings that should lead to the projected rise in net profit, according to company director Branimir Muidza. Speaking to regional news agency SeeNews, he described the targets as ambitious and optimistic but not unrealistic.

TCK is making its claims in the midst of a Bosnian market that is estimated to require only 1.05Mt of cement in 2013, a decrease from the 1.10Mt/yr consumed in 2012. In 2008 - 2009 cement consumption was as high as 1.85Mt. Muidza expects that the lack of new investments in the industrial sector and new infrastructure, rising unemployment, illiquidity in the construction sector and a crisis in the real estate market would lead to a continued slump.

Muidza said that the expected impact on TCK's business from the recent EU accession of Croatia, which is the company's largest export market, would not cause problems for TCK, as its cement is already made to EU standards. He added that if Croatia benefits from EU accession further down the road, so will TCK.

Going forward, TCK's investment pipeline for the 2013 - 2014 period features a project for the automation of cement milling and packing operations, modernisation of its sampling laboratory, upgrade of its weighing system, construction of an administrative building and procurement of new IT equipment. No production capacity upgrades have been planned over the medium term as the existing capacity is sufficient to meet the current market demand.

When it comes to long-term investments, which covers the period until 2018, the company plans the construction of a cement silo which should further expand the range of its products and therefore put it in a better competitive position. The cost of the investment is currently thought to be US$10.3m.