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Displaying items by tag: Brazil
Brazilian domestic demand increases imports by 74%
14 October 2011Brazil: Domestic demand for cement in Brazil is leading to an increase of imports. Imports of cement and clinker reached 2.2Mt from January to September 2011, an increase of 74% from the same period in 2010. The total value of imported cement cost USD135m from January to September 2011, compared with USD80m from the same period in 2010.
From 2007 to 2010 Brazilian per capita consumption rose from 224kg to 310kg while production rose from 40Mt/yr to 59Mt/yr. The country has 70 plants to meet this growing demand. Exports have fallen from 515,000t/yr in 2008 to 36,000t/yr in 2010.
Votorantim Cimentos leads the market with 40 plants and a production of 21Mt/yr. It currently plans to build eight plants by 2014 with investments of USD1.4bn, a sum that includes concrete units as well. CSN Cimentos is an emerging player in the market and it is planning to meet a production level of 8.4Mt/yr by 2013. Camargo Correa Cimentos runs 5.2Mt/yr and Joao Santos 5.9Mt/yr.
Holcim price-fixing probe ends in Brazil
01 October 2011Brazil: An antitrust investigation into alleged price-fixing by Holcim and others in Brazil has ended today. The company could face a fine of up to USD413m if the probe decides that Holcim's behaviour was uncompetitive.
Several cement makers are among the companies named by the Brazilian government's anti-cartel investigation arm (SDE) in an inquiry that began in 2005. According to the Brazilian government, the companies were given until 1 October 2011 to make their final submissions before the SDE gives its opinion to the Administrative Council of Economic Defense (CADE), which will makes a final ruling. The companies involved face fines of up to 30% of their Brazilian revenue if CADE decides they have been running a cartel.
"There is an investigation into the cement industry including Holcim, which started in 2005," said Holcim spokesman Peter Gysel. "This is an ongoing proceeding and we cannot comment further."
Cartel fines are normally limited to 30% of revenue from Brazil, but a recent case showed that repeat offences can draw penalties of up to 50%. In 2010 Brazil's antitrust regulator fined White Martins Gases Industraies USD1.3bn for forming a cartel with four other industrial gas companies. The amount was later reduced to USD0.95bn. Praxair expects to win two appeals to the case.
Holcim previously has been fined by the anti-cartel authorities in Brazil following an investigation that dates back to its activities in 2002. "In 2002, there was an investigation in the aggregates business where the company received a non-material fine," Holcim spokesman Gysel said.
Ian Osburn, analyst for ING Bank, said that if the investigation found against Holcim, the company could face fines of up to 50% of its 2009 revenue in Brazil, which he estimates was around USD820m. Penalties of half of that amount, or USD410m, would reduce the company's 2012 earnings before interest, tax and amortisation by around 15% Osburn said. "In the worse case scenario, the fine would be about 15% of Holcim's 2012 group operating profit. That's significant," he said.
KHD announces order for Liz
30 August 2011Brazil: KHD Humboldt Wedag International has announced that its subsidiary Humboldt Wedag Inc has received a major order from Brazilian cement firm Cimentos Liz SA.
KHD Humboldt Wedag will supply the Brazilian company with equipment as well as engineering and consulting services on site. It will also provide services for the commissioning of Liz's new facility, which will have a capacity of 5000t/day. The value of the total order is expected to be in the region of USD120m.
Loma Negra to invest in Argentina
08 August 2011Argentina: Cement maker Loma Negra, controlled by Brazil's Grupo Camargo Correa, will invest USD404m in Argentina between 2012 and 2014, President Cristina Fernandez has announced.
Camargo Correa officials met with the Argentine president Fernandez and presented an investment plan that includes a new cement plant. "They told me about investments... for USD404m with a cement plant that will allow them to produce 900,000t more," Fernandez, who is seeking re-election in October 2011, said in a speech.
The investments, aimed at increasing output, also include a coal stockpile yard, said Ricardo Lima, vice president of operations at Camargo Correa. Loma Negra has nine cement plants and six concrete plants.
Brazil: Votorantim's overall operating performance improved in the first quarter of 2011 compared to the same period of 2010, with cement sales increasing. The group's consolidated net revenues and earnings before interest, tax, depreciation and amortisation (EBITDA) amounted US$3.53bn and US$851m, an increase of 11% and 1% respectively. Ebitda margin declined from 26.5% to 24.0%, impacted by its cement and steel businesses.
The groups cement interests were negatively impacted in Brazil, as a result of the exchange of certain production plants for Cimpor shares in the third quarter of 2010. Nevertheless, sales volume increased by 1% in the country and by 2% in North America. Net revenues went up by 6% to total US$1.16bn, supported by a price increase in Brazil. EBITDA decreased from US$412m to US$312m mainly due to the exchange of certain production plants for Cimpor shares. In addition, EBITDA was also impacted by higher electricity and petcoke costs in Brazil and increased inventory in North America. Votorantim's total debt decreased by 1% by the end of the first quarter of 2011 compared to the first quarter of 2010, from US$14.06bn to US$13.93bn.
Capital expenditure amounted to US$690m, mainly for expansion projects and investment in cement accounted for 47% of the total.