Displaying items by tag: Cemex
Cemex completes global roll out of digital platform
03 June 2019Mexico: Cemex says it has completed the global deployment of its digital platform Cemex Go. The product is available in 21 countries with 96% of the company’s total recurring customers using it. 45% of Cemex’s total global sales are processed through the platform, over half a million payments are completed through it per year and 1.5 million deliveries use the system annually.
“We are incredibly proud that our vision of providing a superior customer experience enabled by digital technology has been deployed to our customers around the world. Cemex Go has proven itself as a game changer, an established and essential tool for our customers, accessible anywhere, any time to help them run their businesses with increased efficiency,” said Fernando A Gonzalez, chief executive officer (CEO) of Cemex. He added that platform was only part of the ‘initial’ stages of the company’s digital transformation plans.
Peru: The Supreme Court has upheld a fine of nearly US$2m by the National Institute for the Defense of Free Competition and the Protection of Intellectual Property (INDECOPI) on UNACEM. The penalty was levied due to UNACEM and its distribution network refusing to allow retailers to sell cement made by its competitor, according to the Gestión newspaper. INDECOPI said that in 2014 UNACEM and its collaborators refused to allow retailers to stock its Sol brand of cement if they were selling the rival Quisqueya brand produced by Mexico’s Cemex.
Cement producers in the Philippines warn that unchecked imports may affect investment plans
28 May 2019Philippines: Cement producers say that if the government does not implement a permanent safeguard duty on cement imports they may reconsider investment plans to upgrade their plants. Representatives of Taiheyo Cement, Republic Cement, Holcim and Cemex made the comments at public hearings by the Tariff Commission, according to the Philippine Star newspaper. The commission is conducting an investigation to determine whether the provisional safeguard duty imposed by the Department of Trade and Industry (DTI) on cement imports should be kept.
During the hearings, Cirilo Pestaño II the executive director of the Cement Manufacturers Association of the Philippines (CEMAP), lobbied the government to impose a higher ‘definitive’ safeguard duty. He said that imports of cement rose by 64% year-on-year to 1.74Mt in the first quarter of 2019 from 1.06Mt in the same period in 2018 despite the provisional safeguard measure being in place.
Philippines: Cemex Philippines has broken ground on the new US$235m production line at its Solid Cement plant at Antipolo in Rizal. The new production line will increase the plant’s production capacity to 3.4Mt/yr from 1.9Mt/yr, according to BusinessWorld magazine. The upgrade is intended to support the government’s ‘Build, Build, Build' infrastructure program.
Cemex agrees final agreement to sell aggregate and ready-mixed concrete assets in Germany
14 May 2019Germany: Cemex has signed the final agreement to sell its aggregates and ready-mix assets in the North and North-West regions of Germany to GP Günter Papenburg AG for around Euro87m. The divestment is expected to close during the second quarter of 2019.
The assets in Germany being divested consist of four aggregates quarries and four ready-mix facilities in North Germany, and nine aggregates quarries and 14 ready-mix facilities in North-West Germany. The proceeds expected to be obtained from this divestment will be used mainly for debt reduction and for general corporate purposes.
Mexico: Cemex’s cement sales volumes fell by 6% year-on-year to 14.9Mt in the first quarter of 2019 from 15.9Mt in the same period in 2018. It has blamed this on falling volumes in its key markets in Mexico and the US. Its net sales dropped by 3% to US$3.24bn from US$3.34bn. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased by 6% to US$562m from US$598m. Its concrete sales volumes fell slightly to 12.1Mm3 from 12.2Mm3.
“We are pleased with the 1% top-line growth we achieved during the first quarter, despite volume declines in our two most important markets: Mexico and the US. During the quarter, we enjoyed improved pricing performance in all our regions with favourable volume dynamics in Europe. In the US, ready-mix and aggregates volumes also grew despite adverse weather in part of our footprint,” said Fernando A Gonzalez, chief executive officer (CEO) of Cemex.
By region, the group also reported falling sales in its South, Central America and the Caribbean and Asia, Middle East and Africa regions. However, sales volumes of both cement and concrete increased by over 10% in Europe. Here, net sales rose by 3% to US$805m from US$781m. This was attributed to ‘strong’ domestic demand in most countries and a mild winter.
Cemex to contribute to reconstruction of Notre-Dame
24 April 2019France: Cemex says that it will match the donations made by its employees to help restore the Notre-Dame Cathedral in Paris. The donations will be handled by the Fondation du patrimoine (French Heritage Foundation), a private organisation dedicated to saving French cultural and natural heritage. The 800-year old cathedral was devastated by fire on 15 April 2019.
In addition, Cemex will help the reconstruction efforts through its range of technical and specialised products and services, the availability of its research and development centres based in Biel and Paris and assistance with material specifications and mix designs through its laboratory services.
Cemex Colombia‘s long road to Maceo
17 April 2019Good news for Cemex Colombia this week with an agreement reached to open its Maceo cement plant in Antioquia. Local media was reporting that the cement producer has struck a government-brokered deal with CI Calizas y Minerales to lease the land it built its plant on. Finally, the new(ish) US$350m integrated plant can start operation.
For those unfamiliar with the debacle, Cemex has been fighting the fallout publicly since 2016, following a dodgy land deal at the site. The 1Mt/yr integrated Maceo plant was originally announced in 2014 with full operation scheduled for late 2016. Then, in October 2016 Cemex fired several senior staff members in relation to the project and its subsidiary’s chief executive resigned. This followed an internal audit and investigation into payments worth around US$20m made to a non-government third party in connection with the acquisition of the land, mining rights and benefits of the tax free zone for the project. Other irregularities are also alleged to be linked to the project. As well as the Colombian authorities being involved, the US Department of Justice is also running its own investigation into the affair with wider implications for Cemex’s operations in other Latin American countries. Some of the sacked staff members and others have since been investigated on corruption charges.
Graph 1: Cement production in Colombia, 2010 – 2018. Source: DANE.
Looking at the wider Colombian market though, it does make one wonder whether the long-delayed plant is really necessary. As Graph 1 shows, cement production rose steadily year-on-year to 2015 before it hit a downturn. It reached a high of 13Mt in 2015 before declining. Production in 2018 grew slightly compared to 2017 but not at the same rate seen previously. In Antioquia specifically despatches increased by 1.3% in 2018, above the national average of 0.2%. Despatches now appear to have continued into January and February 2019.
Cemex Colombia started to benefit from an improved fourth quarter in 2018 as the general economy picked up. Despite this its overall net sales and operating earnings fell in 2018. However, it did flag its earnings margin as a concern with higher freight and energy costs in the fourth quarter of 2018, although it partially offset this with higher prices. Cementos Argos, the other big producer in Colombia, reported a similar picture to Cemex, although in a better position. Its cement volumes fell slightly for the year in 2018 but picked up fast in the fourth quarter. Annual revenue was down slightly, as were adjusted earnings. In its opinion the construction industry improved in the second half of 2018 due to an improved housing market and infrastructure projects.
Given the downturn in production since 2015 the thought does occur whether the opening of the Maceo plant being delayed accidentally helped Cemex or not. It has probably been losing money by not running the plant but if, for example, the company had some sort of insurance to protect it against unexpected delays it might still benefit. However, if evidence of serious wider misconduct in both Colombia and other Latin American countries are found by the US authorities, then things could get expensive. This would be unfortunate, particularly in Colombia, given that the market looks set to recover.
Cemex USA awarded 2019 Energy Star Partner of the Year
16 April 2019US: Cemex USA has been awarded the 2019 Energy Star Partner of the Year by the Environment Protection Agency (EPA) for its efforts in energy management. It was presented with the award by the EPA and the US Department of Energy at a ceremony in Washington, DC.
“At Cemex, sustainability is key to our vision of building a better future, embedded in our core business strategy and day-to-day operations,” said Cemex USA President Ignacio Madridejos. “We strive to conserve energy where possible with energy management initiatives, and many of our operations have received repeated recognition for their efforts. Cemex is also incorporating the use of more alternative fuels.”
Cemex Colombia strikes deal to start Maceo cement plant
15 April 2019Colombia: Cemex Colombia has reached a deal with the Attorney General allowing it to operate its Maceo cement plant in Antioquia. Under the terms of the government-brokered agreement Cemex will lease the land from CI Calizas y Minerales for around US$15,000/yr, according to the El Espectador newspaper. The lease has a duration of 21 years and this can be extended by another 10 years.
In 2016 Cemex fired several senior staff members in relation to the Maceo project and its subsidiary’s chief executive resigned. This followed an internal audit and investigation into payments worth around US$20.5m made to a non-governmental third party in connection with the acquisition of the land, mining rights and benefits of the tax free zone for the project. The US Department of Justice is also investigating the project.