Displaying items by tag: Brazil

Brazil: InterCement, the indirect controlling shareholder of Loma Negra, has extended its exclusivity agreement with Companhia Siderúrgica Nacional for a potential acquisition of its entire share capital until 16 December 2024. This extension is part of a broader non-judicial collection process and does not impose any binding obligations on InterCement or its shareholders. This follows a previous extension of the exclusivity period in July 2024.

Brazil: Votorantim Cimentos has reported that its net profit surged by 24% in the third quarter of 2024 compared to the same period of 2024, to reach US$179m. Its net revenue increased by 6% year-on-year to reach US$1.33bn.

However, when excluding currency fluctuations, revenue decreased by 1%. This highlights the significant impact of foreign exchange rates on Votorantim's global operations. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 20% to US386m. Cement sales volume increased by 3% to 10Mt during the quarter.

The company said that these figures indicate resilient demand across Votorantim's markets, despite challenging economic conditions in some regions. The company's diversified geographical presence has helped balance market fluctuations.

In the sustainability arena, Votorantim Cimentos also says that it has made significant progress. The company reduced its specific embodied CO₂ emissions by 4% to 556kg/t of cement in 2023. It has also increased its alternative fuel thermal substitution rate (TSR) from 26.5% in 2022 to 30.9% in 2023.

Brazil: Buzzi has finalised the acquisition of the remaining 50% stake in Companhia Nacional de Cimentos (CNC) from Brennand Cimentos, securing full control over the joint venture. The deal, valued at US$311m, was approved by Brazil's Administrative Council for Economic Defense (CADE), according to Movimento Econômico. CNC has been operational since 2018 and has five integrated cement plants and two grinding plants in Brazil, with a total production capacity of 7.2Mt/yr. This acquisition follows initial transactions that began in June 2024.

Brazil: Votorantim Cimentos has launched Blenture, a new brand of cement and concrete designed to reduce CO₂ emissions and promote sustainable construction practices. Blenture products, developed through significant investment in research and development, align with the company’s decarbonisation strategy to utilise recycled materials and non-fossil fuels. Blenture cements and concretes, certified with environmental product declarations by AENOR, reportedly offer a 30% lower carbon footprint while maintaining quality, strength and performance.

Brazil: China-based Sinoma Overseas has signed an engineering and supply contract for the Z02 cement grinding plant and a technical cooperation framework agreement with Votorantim Cimentos. The agreements were signed by Sinoma chair Zhu Linhe and Votorantim’s global projects director Alvaro Lorenz. This collaboration marks the third cement grinding plant project between the two companies and is part of Votorantim's ‘2028 Development Strategy.’ The contract encompasses the design, equipment supply, and technical services for a 150t/hr cement grinding plant.

Zhu Linhe said "Votorantim is the most valuable client for Sinoma Overseas, this contract and agreement strengthens the strategic partnership between the two companies. It is the strong commitment of Sinoma Overseas to support Votorantim in achieving its '2028 Development Strategy' with Sinoma’s extensive industry expertise, advanced technology and mature localised operations.”

Brazil: InterCement has presented a restructuring plan to local courts. The plan is aimed at reprofiling the capital structure of the company, and has gained approval from creditors representing over one third of its debt. The plan depends on a possible merger and acquisition transaction that is still under negotiation, according to a statement by the company. This plan comes a few months after the company announced it had entered talks to sell to Companhia Siderurgica Nacional.

Brazil: Cement sales increased to 6.2Mt in August 2024, marking the highest monthly sales since October 2014, when sales reached 6.7Mt. This 10-year peak reflects a 5% month-on-month and 3% year-on-year increase, spurred by dry weather and a robust real estate sector, according to data released by the National Union of the Cement Industry (SNIC).

All regions in Brazil reported sales growth, with the highest sales in the north and northeast and a recovery in the south after the floods in Rio Grande do Sul. Year-to-date sales reached 43Mt, up by 3% from 2023.

However, concerns about prolonged dry spells potentially affecting electricity prices and logistics are emerging, with SNIC stating in a press release "The announcement of the increase in the red flag energy bill in Brazil due to the lack of rainfall is already causing concern for the cement sector, both in terms of production costs and logistics. Brazil is facing the worst drought in history in 2024 and this could have an impact on cement sales, especially in the north."

Brazil: Votorantim Cimentos has appointed Antonio Miguel Sousa Pelicano as Executive Vice President of Finance and Investor Relations. He has succeeded CEO Osvaldo Ayres Filho in the role. Filho took the position of Chief Financial Officer (CFO) and Investor Relations in May 2024 on a temporary basis when Bianca Nasser Patrocínio resigned.

Sousa Pelicano, a Portuguese national, holds a degree in economics from the University of Coimbra in Portugal and an International MBA in Administration from Rutgers Business School in the US. He has held executive positions at Cimpor and Votorantim Cimentos EAA (VCEAA). He worked at Cimpor from 2003 to 2012 starting his career as an IT Project Manager and eventually becoming the Country CFO. He also gained experience working in various countries, such as Morocco, Tunisia, Türkiye, China and Mozambique. Since 2012, he has been working at VCEAA, where he held the position of CFO in China. In 2019, he was responsible for creating the holding company VCI in Luxembourg, where he worked as CFO. In 2020, he took the position of CFO of VCEAA.

Brazil: Companhia Siderúrgica Nacional (CSN) will invest approximately US$530m to build a cement plant and a limestone plant in Itaperuçu, Curitiba. Noticias Financieras News has reported that the project is set to begin construction in 2025 and will create 3000 jobs. The cement plant will receive about US$500m, covering 150 hectares with an additional 70 hectares for mining.

Currently, the company is obtaining environmental licences from the Water and Land Institute and will be supported by the government when construction starts in 2025. The initiative benefits from tax incentives under the Paraná Competitivo programme, which provides a tax reduction for companies and industries that want to invest in the state, aligning with efforts to boost local employment and economic growth.

Brazil: Votorantim Cimentos ended the second quarter of 2024 with global net revenue of US$1.3bn, up by 1% from 2023. The company recorded a net profit of US$2.8m, a 10% rise from the same period of 2023. In North America, revenue fell by 13% to US$403m, impacted by reduced demand, though this was partially offset by price increases and improved operational efficiency. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at US$112m, down from US$119m in 2023.

In Latin America, revenue grew by 2%, with Bolivia showing improved volumes. However, adjusted EBITDA dropped by 25% to US$5.3m, affected by tough market conditions in Uruguay and maintenance schedules. In Brazil, revenue was stable at US$586m, with adjusted EBITDA also stable at US$104m, supported by new business growth and cost improvements.

Osvaldo Ayres, global CEO of Votorantim Cimentos, said "At the end of the first half of the year, our results demonstrate the resilience and effectiveness of our diversification and capital allocation strategy. We remain focused on strengthening our structural competitiveness, advancing decarbonisation projects and new businesses, while maintaining our solid financial discipline. We stay on course with our investment plan, aligned with our global strategy and strategic mandate."