Displaying items by tag: Ecuador

Mexico: Holcim Mexico has appointed Jorge González Mateu as its chief financial officer (CFO). He previously worked as the Head of Controlling and the Deputy CFO for Holcim Mexico. González Mateu has worked for Holcim group since 2013 with similar financial roles for Holcim Ecuador, as well as other related positions for the group in Spain and Switzerland. Prior to this he worked for Tarmac in Spain.

Ecuador: Saint-Gobain has entered into an agreement to acquire a majority stake in IMPTEK Chova del Ecuador, a producer of waterproofing construction chemicals. When the deal completes it will be France-based company’s first manufacturing presence in the country. IMPTEK sells its products locally but also exports to several Latin and Central American countries. The completion of the transaction is subject to approval by competition authorities and expected in the first half of 2024. No value for the purchase has been disclosed.

Peru: Unacem recorded consolidated sales of US$380m during the first quarter of 2023, corresponding to year-on-year growth of 2.6%. Despite this, the producer's earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 7.4% to US$105m. Unacem attributed its sales growth to 'strong' cement sales volumes in the US, as well as increased prices across its markets. The domestic Peruvian market contributed US$247m (65%) of Unacem's sales, up by 0.5% year-on-year. Peruvian cement volumes fell by 8%, while high fuel costs there contributed to a local decline in earnings.

Looking ahead to the full 2023 financial year, Unacem CEO Pedro Lerner expects the group's consolidated sales to rise year-on-year. He forecast a 10% drop in Peruvian cement volumes to 6Mt. Lerner said that the company is 'monitoring events' in neighbouring Ecuador, but considers it inevitable that on-going political disturbances will 'affect economic conditions' in the market.

Ecuador: Encapsulation in concrete served to destroy 110t of cocaine in Ecuador during the first nine months of 2022. The figure corresponds to 61% of cocaine seized by authorities during the period. Local press reported that the mixed slurry forms strong precast concrete elements, from which the cocaine is impossible to extract. Encapsulation accelerates destruction of the drug by a factor of 20 compared to incineration, with removal rates of up to 1500kg/hr.

Ecuadorian cocaine seizures at ports alone increased by 42% year-on-year throughout 2022, necessitating the operational improvements in disposal methods.

Cemento Yura said it was considering expanding cement and lime production this week. The announcement, made in an interview to business newspaper Gestión, follows a strong second quarter for the subsidiary of Grupo Gloria with clinker production volumes jumping up by 36% year-on-year to 0.51Mt. Overall for the half-year its clinker and cement production rose by 12.8% year-on-year to 0.86Mt and 12.7% to 1.47Mt. The success was attributed to consistent demand from the domestic sector as well as various large-scale mining projects. Julio Cáceres, the commercial director for its Cement, Concrete and Lime Division in Peru, Chile and Bolivia, wouldn’t say where the company was considering heading next, other than that remarking that it was attentive to new markets.

As Cáceres’ job title implies Cemento Yura also operates cement plants outside of Peru. At home it runs one integrated plant in the south of the country near to Arequipa as well as a lime plant at Juliaca. Outside of Peru though it also runs two integrated plants and a grinding unit in Bolivia, via its Sociedad Boliviana de Cemento (SOBOCE) subsidiary, and two integrated plants in Ecuador, via its Union Cementera Nacional (UCEM) subsidiary. The company also has assorted concrete assets. The international aspect to Cemento Yura’s business is interesting given that the larger cement producers in Peru are dominant in different parts of the country with Cementos Pacasmayo in the north, UNACEM (Unión Andina de Cementos) in the centre around Lima and Cemento Yura in the south. Notably, UNACEM also runs a plant in Ecuador and one in Arizona, US. It is also worth mentioning that competition issues have been reported in the local market previously. In mid-2021 Peru’s competition authority, the National Institute of the Defense of Competition and Intellectual Property Protection (INDECOPI), investigated Cemento Yura.

Cemento Yura’s rise in clinker production in the second quarter of 2022 is worth considering because in a previous interview with the local press Humberto Nadal, the chief executive officer of Cementos Pacasmayo, said that importing clinker had become more expensive in 2021. Subsequently, the company started a US$70m upgrade at its Pacasmayo plant to increase its production capacity by 0.6Mt/yr. In its second quarter financial results for 2022 Cementos Pacasmayo directly credited a 27% increase in its earnings on higher operating profits arising from decreasing costs by using less imported clinker. Sure enough data from Association of Cement Producers (ASOCEM) shows that both cement and clinker imports started to fall in October 2021 and have mostly followed a downward trend since then. Clinker imports fell by 41% year-on-year to 0.66Mt from January to August 2022 compared to the same period in 2021.

Graph 1: Cement production in Peru, 2014 – present. Source. Association of Cement Producers (ASOCEM).

Looking at the wider picture in Peru, cement production has stayed fairly consistent since 2014 at around 10Mt/yr. An upward trend probably started in 2019 but then the Covid-19 pandemic cut it off in the first half of 2022 before the market surged back in the second half of that year. 2021 was a good year with production peaking at 12.9Mt. So far the first eight months of 2022 have seen production rise by 5.3% year-on-year to 8.64Mt.

In summary, cement production is rising in Peru, importing clinker appears to have become more expensive for at least one of the producers and some of the larger local companies are investing in new production capacity, considering it or thinking about acquisitions elsewhere. Local clinker producers appear to be in a good place; clinker importers, or those reliant on it, not so much.

Ecuador: Holcim Ecuador has launched its new portfolio of ECOPlanet reduced CO₂ cements. The products bear the new green and blue branding of the Holcim group.

CEO Dolores Prado said that the company began its green transition with the September 2019 carbon neutral certification of its Agrovial, Base Vial and Maestro cements.

Ecuador: Holcim Ecuador has despatched its first export shipment of bulk cement to the Peruvian market. The volume of this shipment was 32,700t and it was loaded in 2t Big Bags. Holcim Ecuador says that it invested US$2.2m in establishing the infrastructure to realise this achievement.

Switzerland: Holcim’s consolidated sales rose by 16% year-on-year to Euro18.7bn in the first nine months of 2021 from Euro16.1bn in the first nine months of 2020. The company’s recurring earnings before interest and taxation (EBIT) rose by 33% to Euro3.3bn from Euro2.48bn. Its operating profit rose by 38% to Euro3.11bn from Euro2.26bn.

The group increased its cement sales by 7.8% to 150Mt from 139Mt. Volumes in Asia Pacific were 51.7Mt, up by 17% from 44.2Mt; volumes in Europe were 35Mt, up by 4.1% from 33.7Mt; volumes in Middle East Africa were 27.2Mt, up by 11% from 24.5Mt; volumes in Latin America were 20.5Mt, up by 18% from 17.3Mt and volumes in North America were 15.1Mt, up by 1.5% from 14.9Mt.

CEO Jan Jenisch said “I’m pleased that we have achieved a record quarter of profitable growth once again. I congratulate my teams for their exceptional resilience as they continue to successfully navigate the challenges posed by the pandemic in a dynamic business environment. On the back of their performance we have revised our recurring EBIT growth guidance from 18% to at least 22% on a like-for-like basis.” He continued “Most importantly, our colleagues have kept their focus on our key long-term value creation drivers to become the global leader in innovative and sustainable building solutions. We are picking up momentum in our strategic portfolio transformation, with the divestment of our business in Brazil, the announcement of nine bolt-on acquisitions so far this year and the expansion of our Firestone GacoFlex range from Mexico to Colombia and Ecuador.”

Ecuador: Holcim Ecuador has appointed Caterina Costa de García as the chair of its board of directors. She is the first woman in the post and succeeds Oscar OrrantiaVernaza, who has stepped down to become the country’s ambassador to France.

Costa de García has worked for plastics manufacturer Poligrup for over 25 years becoming executive president in late 2020. She has also held leading positions at a number of national business associations such as the Chamber of Industries of Guayaquil, the Ecuadorian Business Committee and the Ecuadorian and Latin American Plastics Associations. She took her first degree from the Catholic University of Santiago in Guayaquil, earned a master’s degree in comparative law from New York University and a Master of Business Administration (MBA) from the Federico Santa María Technical University.

Americas: Switzerland-based LafargeHolcim has begun its roll-out of ECOPact low-carbon concretes in its Latin America region, launching the product range in Ecuador, Colombia and Mexico to “meet growing demand for green products.” The company says that the launch in other markets will follow in early 2021. It said “this roll-out of ECOPact builds on its successful market adoption across Europe, the UK, the US and Canada.” The producer additionally plans to introduce its ECOLabel “to transparently communicate the environmental benefits of its green cement range” across the Disensa retail network from December 2020, enabling customers to “easily identify products that comply with the company’s green criteria, including lower carbon dioxide (CO₂) footprint and recycled content.” Every country in the region will have at least one ECOlabel product, according to the company.

Latin America regional head Oliver Osswald said, “With the roll-out of the widest range of green building materials in Latin America, we are committed to leading the way in sustainable construction. Building on our region’s excellent third quarter 2020 results, demonstrating strong resilience despite an unparalleled health crisis, Latin America is well positioned to tackle the challenges ahead. We have a clear and unified strategy supported by two strong pillars: a rapidly expanding Disensa retail franchise network, and a fully orchestrated regional push toward green building solutions.”

LafargeHolcim’s Latin America retail network Disensa will reach 2500 stores in 2020, almost double the number in 2018. The company said, “Disensa will become the central network to reach millions of consumers with a diverse product portfolio, based on quality and environmental benefits by offering ECOLabel products on a wide scale. Disensa will also introduce new digital experiences to the buying process and eventually become a full line of stores from Disensa Express to Disensa MAX!”

LafargeHolcim will host the First Latam Virtual Convention for current and potential Disensa franchisees from 25 – 27 November 2020, with participants from eight Latin American countries.