Displaying items by tag: China
South Africa: The South African Bureau of Standards (SABS) has confirmed to Pretoria News that Longkou Fanlin Cement had been approved for sale in the country. However, the mandate is only part of the process the Chinese cement producer needs to secure to allow it to import cement into the country.
Thato Chabeli, the interim group manager of marketing, public relations and communications at SAB, confirmed to local press that ‘two schemes’ for Longkou Fanlin Cement had been approved by the SABS. He added that the trade body had not received any other applications from Chinese cement producers. The SABS certifies cement as being compliant with the South African compulsory specification before it can be sold in the domestic market. However, Chabeli, added that the Chinese cement producer also needed to secure a letter of approval from the National Regulator for Compulsory Specifications (NRCS) before the company would be permitted to export its cement to South Africa. The NRCS has not responded to queries by local press on the matter.
Industry commentators have compared potential cement imports from China to those of Pakistan. Local cement producers filed a dumping complaint with the International Trade Administration Commission (ITAC) about cement imported into South Africa from Pakistan. ITAC made a final determination in December 2015 on the anti-dumping duties and imposed duties ranging between 14.29 - 77.15% on cement imported from Pakistan. Subsequently, cement imports to South African from Pakistan fell by 30% year-on-year. The Pakistan government has since approach the World Trade Organisation (WTO) for arbitration on the dispute.
Shanshui Cement warns of ‘significant’ loss in 2015
16 March 2016China: Shanshui Cement has issued a profit warning, predicting a significant loss in 2015 compared to 2014. It has blamed the impending financial result on poor market demand for cement, industry production overcapacity and management distractions with legal proceedings the company has undertaken concerning the company and its subsidiaries.
In late January 2016 Shanshui Cement defaulted on a US$270m bond. The default followed a battle for control of the company between Tianrui Cement, its biggest shareholder, and the Zhang family, its second-largest shareholder and former owners.
China Resources profit falls by 76% to US$130m in 2015
14 March 2016China: China Resources’ profit has fallen by 76% year-on-year to US$130m in 2015 from US$542m in 2014. Its revenue fell by 18% to US$3.45bn from US$4.21bn. It blamed the drop in revenue on falling demand for cement and a general economic slowdown in China.
Despite the fall in demand, sales volumes of cement rose by 7% to 77Mt in 2015 from 72Mt in 2014. The group reported that it maintained its cement production utilisation rate at a surprising 99.5% and its clinker production utilisation rate at 113.3% in 2015. It completed the construction of one 1Mt/yr cement grinding line at Lianjiang City, Guangdong and a fifth 1.6Mt/yr clinker production line at Fengkai County, Guangdong.
China Resources expects its cement and clinker production capacities to continue rising to 2018 to 87.3Mt/yr and 64.3Mt/yr respectively. It added that new infrastructure projects, the gradual recovery of real estate market and long-term national policies of the ‘One Belt and One Road’ initiative and the thirteenth five-year plan will help to stabilise cement demand in the medium and long term.
Tibet Tianlu to build US$154m cement plant in Lhasa
14 March 2016China: Tibet Tianlu has signed a contract worth US$154m to build an integrated cement plant in Lhasa, Tibet. The civil engineering company said in a statement to the Shanghai Stock Exchange that it will build the 4000t/day plant in partnership with the Tibetan Building Materials Company. The scope of contract includes building the production line, from limestone crushers to finished cement and auxiliary production facilities. The project will also include a waste heat recovery and flue gas denitrification systems. Construction is due to start in April 2016 with completion scheduled for September 2017.
Venezuela: President Nicolas Maduro has dedicated a new cement production line at the Invecem cement plant in San Sebastian de los Reyes, Aragua. The project has cost US$168m and is part of an agreement between China and Venezuela to build 2.1Mt/yr in production capacity.
Ministry of Industry and Information Technology considering guidelines on eliminating outdated cement capacity
02 March 2016China: The Ministry of Industry and Information Technology (MIIT) and related departments are considering draft guidelines on eliminating outdated production capacity in cement, ship-making, electrolytic aluminium and glass industries, according to Xinhua. At least 500Mt of ‘low-grade’ cement production capacity will be phased out.
The central government decided to promote supply-side reform at the end of 2015. Eliminating outdated capacity is a top priority. Methods to do this include phasing out outdated capacity, removing ‘zombie’ enterprises and promoting industrial reorganisation.
Kong Xiangzhong, vice president of China Cement Association, has advised the central government to provide certain compensation for the industry and establish a special fund so as to appropriately deal with the re-employment of redundant personnel and enterprise debts. Several provinces have specified their targets. Guangdong Province plans to cut clinker production capacity to 110Mt by the end of 2018.
Wang Shizhong resigns from BBMG Corporation
19 February 2016China: Wang Shizhong has resigned as an executive director and a member of the Strategic Committee of BBMG Corporation with immediate effect. He resigned due to the re-designation of his work. The board of BBMG expressed its appreciation for Wang’s contribution to the company development in a statement.
China Tianrui Group expects net profit to drop by 30% in 2015
18 February 2016China: China Tianrui Group Cement has said that it expects that its 2015 net profit will drop by more than 30% year-on-year in 2015. It has blamed the downturn on China's economic slowdown that has reduced demand for cement and lowered the selling price. The cement producer didn’t release a figure for its expected net profit in 2015 but it reported a net profit of US$86.6m in 2014. It intends to release its full financial results for 2015 at the end of March 2016.
Anhui Conch confirms that production at Shaanxi subsidiary is suspended until mid-march 2016
18 February 2016China: Anhui Conch Cement has confirmed that its subsidiary in Shaanxi province, Liquan Conch Cement, has suspended its production. The decision follows Shaanxi Provincial Government legislation requiring all cement and clinker producers to adopt off-peak production. Most producers are required to stop production from 15 December 2015 until 15 March 2016 with a few exceptions. 25 cement companies, with a total of 37 clinker production lines, are based in the province.
Liquan Conch has a cement production capacity of 4.4Mt/yr, contributing 1.5% to the total production capacity of Anhui Conch. It held audited net assets worth US$96.3m at the end of 2014, representing 0.9% of Anhui Conch’s total. Anhui Conch do not expect the temporary suspension of production at Liquan Conch to adversely affect its operating results. Liquan Conch was built in 2009.
Asia Cement expects loss in 2015
29 January 2016China: Asia Cement expects a loss for 2015 due to lower product selling prices and foreign exchange losses from US Dollar-denominated loans. The producer reported a net profit of US$120m in 2014. Its financial results for 2015 will be released by the end of March 2015.