Displaying items by tag: Cementos Molins

Spain: Cementos Molins has obtained loans from CaixaBank, Sabadell, BBVA, Santander and HSBC to a total value of Euro180m. EuropaPress has reported that the funds, consisting of a loan of Euro40m and a Euro140m revolving credit facility, of which Euro50m will be immediately available, will be used to clear the company’s debt and for future projects. The interest will be Euribor plus 0.9%.

Colombia: Empresa Colombiana de Cementos (EcoCementos), a 50-50 joint venture between Colombian multinational Organizacion Corona and Spanish-based Cementos Molins, has announced the start of production at its new 1.5Mt/yr integrated cement plant at Sonson, Antioquia province. The plant, which was constructed with an investment of US$380m, mines limestone from its own quarry and will produce Alion brand cement for the Colombian market. The unit is increases Cementos Molins’ first in Columbia. It already produces and trades cement via its subsidiaries in Argentina, Bolivia and Uruguay.

Spain: Cementos Molins’ nine-month income rose by 8.0% year-on-year to Euro594m from Euro550m in the corresponding period of 2018. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 6.3%. Its South American subsidiaries’ sales and EBITDA outstripped those in other regions. The company’s consolidated net profit for the period rose by 9.7% to Euro70.2m from Euro64.0m in 2018.

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.

Spain: Cementos Molins says that 13 of its 14 directors want to keep the company’s headquarters in Madrid following a request by a minority shareholder. This represents a hardening by the board on the issue following its move from near Barcelona in 2017, according to Crónica. The cement producer decided to move its registered address away from Sant Vicenc dels Horts in Catalonia following moves by the regional government to push for independence.

Cementos Molins’ financial results took a tumble this week, in part due to the poorly performing Argentinian economy. A decrease in sales in Mexico was also to blame but rampant inflation in Argentina caused the Spanish cement producer problems.

Cementos Molins owns a 51% stake in Cementos Avellaneda, with Brazil’s Votorantim Cimentos owning the remainder. Molins took pains in its financial report to point out that the aggregate rate of inflation had been 109% in mid-2018. Accordingly, its income and earnings in 2018 would have been much better if the economy had been in a better state. As it was, its income fell by 24% year-on-year to Euro134m and its earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 30% to Euro30.3m. Adjusted for negative inflationary effects these should have risen by 43% and 31% in 2018.

Graph 1: Construction activity in Argentina (year-on-year growth, %). Source: El Instituto Nacional de Estadística y Censos de la República Argentina (INDEC).

Graph 2: Monthly changes in cement despatches in Argentina (year-on-year growth, %). Source: Asociación de Fabricantes de Cemento Portland (AFCP).

The other major local producers, Loma Negra and LafargeHolcim Argentina, are owned by Brazil’s InterCement and Switzerland’s LafargeHolcim respectively. Both companies are due to present their financial results later this week but the signs were not looking good earlier in the financial year. In its third quarter results Loma Negra said that the general economy was dragging on cement demand. Construction activity data from El Instituto Nacional de Estadística y Censos de la República Argentina (INDEC) showed that growth nosedived in mid-2018. This corresponds roughly with falling year-on-year cement despatches. Loma Negra noted that the depreciation of the Argentine Peso was hitting its bottom line and that its cement sales volumes dropped by 6.2% to 1.61Mt in the third quarter of 2018 from 1.72Mt in the same period in 2017. Despite this, its net revenue grew by 42.3% in the nine months to the end of September 2018.

Understandably, much of the talk in Loma Negra’s third quarter earnings call was about the effects of local currency depreciation with questions about how the expenditure for its L’Amalí plant expansion project was split between different currencies or how fuel costs were being affected. More revealing though was information about Loma Negra’s plans to reduce production capacity as national demand falls. Chief executive officer (CEO) Sergio Faifman said that the production cost at L’Amalí would be US$15/t less than the national average and that its Olavarría and Barker integrated plants would be first in line for production cuts given their closeness to L’Amalí.

Holcim Argentina reported ‘significant’ growth until May 2018 in its third quarter report. From here its sales fell and it expected zero growth for the year as a whole. It blamed this on the state of the general economy, the lower attractiveness of mortgages in the residential sector and problems with infrastructure project financing. Its sales volumes of cement rose by 6.4% year-on-year to 2.54Mt in the first nine months of 2018 from 2.39Mt in the same period in 2017. Holcim Argentina also has an upgrade project underway, at its Malagueño cement plant near Córdoba. Once completed by the end of 2019, the project is expected to increase the unit’s production capacity by 0.73Mt to over 3Mt/yr.

The problems facing the Argentine cement producers are clearly due to the poor general economy. The government took a US$56bn loan from the International Monetary Fund (IMF) in mid-2018 to shore up the situation. Since then the Argentinean Peso seems to have stabilised against the US Dollar and inflation has settled. At this point the question is whether this is the bottom of the economic trough. The other thing to note is that Argentina has faced economic problems at the same time as Turkey. Although Turkey has a much bigger cement industry, both countries are prominent cement producers in their regions.

The sad thing though is that the local cement market was facing shortages in late 2017, producers were investing in new production capacity and Loma Negra launched an initial public offering (IPO). All of this growth in the cement industry has been jeopardised by the general economy. Let’s hope it rebounds soon.

Spain: Cementos Molins’ turnover fell by 8.9% year-on-year to Euro588m in 2018 from Euro646m. It blamed the falling sales on currency depreciation in Argentina and a decrease in sales in Mexico. Its net income decreased by 4.2% to Euro85.3m from Euro89.1m. Its cement sales volumes rose by 7.5% to 6.05Mt from 5.6Mt but its concrete sales volumes reduced by 4.5% to 1.5Mm³ from 1.58Mm³. Spain remained the group’s biggest sales territory and these rose by 11.1% to Euro260m.

Argentina: Aumund Brazil and Aumund China have collaborated with Sinoma Tianjin TDI to supply two clinker-conveying orders for cement plants. No value for either order has been disclosed.

Aumund will supply three chain bucket elevators, eight belt bucket elevators, five pan conveyors and a drag chain conveyor for Line 2 at Loma Negra’s L’Amali cement plant. The order also includes 19 silo discharge gates. In August 2017 Loma Negra awarded Aumund the order to build a second kiln line with a capacity of 5800t/day at the L’Amali plant in Olavarria in Buenos Aires province. The new line, which will produce 2.7Mt/yr of clinker, will be located adjacent to the existing kiln line. Production will start early in 2020.

In June 2018 Aumund Brazil worked with Aumund Brazil and Sinoma to supply four belt bucket elevators, three chain bucket elevators and three pan conveyors via Sinoma TDI to Cementos Avellaneda. Cementos Avellaneda is a joint venture operated by Brazil’s Votorantim Group and Spain’s Cementos Molins.

Spain: Cementos Molins has allocated Euro200m towards dismantling old production lines at its Sant Vicenç dels Horts plant near Barcelona. Kilns, towers, silos and obsolete buildings will be removed as part of the project, according to the La Vanguardia newspaper. The plant operates a single 1.4Mt/yr production line that was commissioned in 2010.

Spain: Cementos Molins has benefited from good performance in Mexico, Argentina and Spain. Its sales revenue rose by 13% year-on-year to Euro779min 2017 from Euro691m in 2016. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 15% to Euro192m from Euro168m. The cement producer attributed its increase in sales to higher prices and sales volumes.