Displaying items by tag: Buzzi

Italy: In the nine months to 30 September 2019, Buzzi Unicem’s net sales rose by 13.4% year-on-year to Euro2.42bn from Euro2.14bn. Cement volumes rose 5.7% to 22.1Mt from 20.9Mt in the corresponding period of 2018. The company said that “Growth was continually mitigated by weakened manufacturing activity due to reduced investments and political and economic uncertainty.”

UK: The Global Cement and Concrete Association (GCCA) has launched ‘Innovandi,’ a research network between industry and scientific institutions. The network intends to research the areas of process technology, including the impact of co-processing, efficiency of clinker production and implementation of CCUS/ technologies, and products. This will include the impact of clinker substitutes and alternative binders in concrete, low carbon concrete technology and improve the understanding of CO₂ reduction through re-carbonation.

“Our industry is fully committed to taking action to reduce CO₂ emissions. As such, Innovandi is an industry led initiative and will bring together the best minds from all corners of the cement and concrete world, academia and business. Together we will truly collaborate on a global scale and use our expertise to find new ways of working and developing effective innovations,” said Benjamin Sporton, the chief executive officer (CEO) of the GCCA.

24 companies from the cement and concrete industry, including cement and concrete manufacturers, admixture specialists and equipment suppliers, have committed to the initiative, with scientific institutions and additional companies set to join as its work begins work. These include Buzzi Unicem, Cementir Holding, Cementos Argos, Cementos Molins, Cementos Pacasmayo, Cemento Progresso, Cemex, CNBM, Chryso, CRH, Dalmia Cement, FLSmidth, Grupo Cementos de Chihuahua (GCC), GCP Applied Technologies, Mapei, HeidelbergCement, LafargeHolcim, Nesher Israel Enterprises, SCG Cement, Titan Cement, Refratechnik Cement, Sika Technology, Subote New Materials and Votorantim.

As part of the new initiative, the GCCA also intends to establish an annual Innovandi global conference to promote collaboration on innovation and research in the sector.

Italy: The 0.4Mt/yr integrated cement plant at Travesio, which has been out of operation since early 2016, has not been purchased by w+p Zement, a subsidiary of Weitersdorfer, the Austrian cement and construction materials group. Diego Franz, the mayor of Travesio, has expressed the hope that Buzzi Unicem will now oversee the decommissioning of the plant itself.

Russia: Buzzi Unicem has formed its total 8.1Mt/yr Russian operations into a limited liability company called SLK Cement. The name combines the first letters of the names of cities where its plants are located, namely Sukhoi Log and Korkino. Andrey Immoreev, chief executive officer (CEO) of Dyckerhoff Cement in Russia, said that the rebranding ‘emphasises the importance of the Russian market in the company’s plans.’ Buzzi Unicem continues to trade as Dyckerhoff in its Central and Eastern European production areas.

With a good number of the financial results published by the non-Chinese multinational cement producers for the first half of 2019, it is now time for a roundup. Graphs 1 and 2 below lay some of the basics with the general sales revenue and cement production volume trends.

Graph 1: Sales revenues from large multinational cement producers in the first half of 2019 and 2018. Source: Company reports.

Graph 2: Cement sales volumes from large multinational cement producers in first half of 2019 and 2018. Source: Company reports.

This is only part of the picture as the larger companies had various complications. For example, LafargeHolcim’s apparent falling revenue and sales volumes is mainly due to its massive divestments in South-East Asia. On a like-for-like basis its sales and sales volumes of cement rose. Its recurring earnings before interest, taxation, depreciation and amortisation (EBITDA) better illustrated this with a rise of 7.2% year-on-year in real-terms to Euro2.41bn in the first half of 2019 from Euro2.25bn from 2018. The company didn’t have it all its own way though with falling cement sales volumes in Asia despite the divestment and poor growth in its Middle East Africa region.

By contrast HeidelbergCement reported growing sales but its earnings and profits were down. Its profit fell by 33% to Euro291m from Euro435m. This was blamed on the group’s sale of its Ukraine subsidiary in April 2019. The operations were sold to Overin Limited, part of Ukrainian investment company Concorde Capital Group, for Euro13m. HeidelbergCement said that the divestment resulted in a loss of Euro143m. Aside from this, as Bernd Scheifele, the chairman of the managing board of HeidelbergCement, explained, positives in markets in Asia, Western and Southern Europe compensated for weaker business in North America and the Africa-Eastern Mediterranean Basin Group area.

Cemex has a tougher time of it than its larger rivals due its greater reliance on American markets. Slow starts to infrastructure projects were blamed in Mexico, poor weather hit earnings in the US and problems occurred further south too. Luckily Europe was strong for the company with lots of good news areas. It wasn’t enough though as Cemex’s sales fell by 4% to US$6.72bn from US$7bn and its operating EBITDA dropped by 11% to US$1.21bn from US$1.36bn.

As for the other companies covered in the graphs, Buzzi Unicem and Titan Group prospered due to the US market. The former described its US activity as ‘lively.’ However, it admitted that its sales growth there was mainly caused by falling imports in the face of weak domestic demand and ‘considerable production and logistical difficulties’ in June 2019 caused by flooding of the Mississippi river. Titan, meanwhile, caught a well-deserved break after recent years with growth also in Greece and Southeastern Europe. Vicat managed to stave off a decline in sales due to poor markets in Turkey, Switzerland, Indian and West Africa through its acquisition of Brazil’s Ciplan in late 2018. Yet, its earnings and cement sales volumes fell anyway.

Dangote Cement once again suffered at home in Nigeria, while its Pan Africa business grew. Trouble at home was pinned on lower volumes, price discounting, higher input and distribution costs and higher fuel and power costs in the first half of 2019. Of more concern, earnings fell in Pan Africa too in the first half due to market conditions in South Africa and Zambia. As ever though Dangote Cement’s diversity in Sub-Saharan Africa should see it through. Finally, Semen Indonesia continued to ride high as its sales increased by 23% to US$1.17bn due to its absorption of LafargeHolcim’s assets. Unsurprisingly, its sales volumes grew at a similar rate, to just below 13Mt in the first five months of 2019. Yet trouble may be store ahead as its local sales fell by 7% in this period.

Other major producers omitted here include Ireland’s CRH and India’s UltraTech Cement. Both are set to release their results later in August 2019 and will make for essential reading as the market conditions so far in 2019 become clearer. The latter in particular will be worth watching if a report by Indian credit agency CARE Ratings out this week is correct. It has forecast production capacity growth of 120Mt by 2030 in India. UltraTech Cement is perfectly poised to benefit from this.

Italy: Buzzi Unicem sales revenue grew by 13.6% year-on-year to Euro1.52bn in the first half of 2019 from Euro$1.34bn in the same period in 2019. Its net profit rose by 27% to Euro135m from Euro123m. Its cement sales volumes increased by 7.1% to 13.9Mt from 12.9Mt but ready-mixed concrete sales fell slightly to 5.8Mm³.

The building materials producer said that ‘lively’ activity levels in the US had driven its sales so far in 2019. This was mainly caused by falling imports in the face of weak domestic demand and ‘considerable production and logistical difficulties’ in June 2019 caused by flooding of the Mississippi river. A slight recovery in Italy was also noted with growing cement sales volumes and strengthening prices. Elsewhere, growth was recorded in most territories apart from Luxembourg, the Czech Republic and Slovakia.

Italy: Buzzi Unicem says that its Unical subsidiary is the first national concrete producer to earn silver level RSS certification from the Concrete Sustainability Council. The accreditation asserts that a company meets criteria for sustainable practices and operates in a sustainable, environmentally positive manner. Unical’s Strada Berlia concrete batching plant in Turin received the certification in June 2019. The CSC procedure also included certifying the cement produced by Buzzi Unicem’s Robilante Cement plant and the aggregates from Ceretto quarry. The certificate was issued by ICMQ, the Italian Certification Body member of CSC. Unical manages more than 100 concrete plants in Italy.

Russia/Ukraine: Dyckerhoff cement plants in Russia and Ukraine have gained OHSAS 18001 or ISO 45001 certification in occupational safety. The OHSAS 18001 and ISO 45001 standards provide for a safe and healthy workplace environment and set forth guidelines for continually identifying and controlling health and safety risks, reducing accidents and improving overall performance.

US: A fire broke out in the preheater tower at Buzzi Unicem’s Stockertown cement plant in Pennsylvania on 7 June 2019. No staff injuries were reported at the plant, although a fireman required medical treatment, according to the Express-Times newspaper. Fire crews were on the site for around two hours.

Italy: Buzzi Unicem says its ready-mix concrete subsidiary Unical has completed the largest continuous concrete casting in Europe at the Galeazzi Orthopedic Institut project in Milan. It pumped 33,000m³ of concrete continuously for 94 hours including 3300 concrete mixer journeys with 106 Unical staff on duty. The new 16-storey building will have a height of 90m once completed.