Displaying items by tag: GCW140

Philippines: Holcim Philippines is prepared for more competition with the integration of markets in the Association of Southeast Asian Nations (ASEAN) region by 2015. Chief executive Eduardo Sahagun said that there is no reason that imports will be cheaper than local product especially considering the logistical costs of importing cement into an archipelago, according to the Manila Bulletin.

"We see opportunities in the greater integration of the ASEAN. Our view remains that the growth of cement demand in the medium term will be sustained but are considering other options to supply the market," said Sahagun. "I am hopeful that the government will support the local cement industry given that it is one of the few remaining integrated industries in the country. Local cement manufacturers are burdened by one of the highest energy costs in the region and an improvement in this area will go a long way to improve the industry's competitiveness."

In February 2014 Holcim Philippines announced that it may delay the construction of a US$550m cement plant in Bulacan province due to increasing economic integration in the ASEAN region.

Nigeria: Lafarge WAPCO intends to double its cement production capacity in Nigeria to 16Mt/yr with an investment of US$1.37bn by 2018. The proposed investment will enable Lafarge to complete the expansion of its cement plant in Calabar and the Ashaka Cement plant.

"Between 2009 and 2012 we invested over US$1.37bn in our operations," said Country Chief Executive Officer (CEO) Nigeria and Benin Republic, Guillaume Roux. He added that the expansion plan is in support of Nigeria's backward integration policy in cement production.

On a separate issue, Roux stated that a recent spate of building collapses was not caused by poor quality cement. He blamed the collapses on structural designs and poor usage of building materials by project handlers. He denied the existence of substandard cement in Nigeria, stating that "in Lafarge we put the control of the quality of cement at the forefront of our operation because we want to deliver very good quality products and services."

Philippines: Lafarge Republic is investing US$25m towards building a new 0.85Mt/yr cement mill at its plant in Bulacan. The plant is expected to be operational by June 2015 following the commissioning of a mill at the Teresa cement plant, which is scheduled for January 2015.

Lafarge said in a statement that the projects will enable the company to produce an additional 1.7Mt of cement by 2015. The upgrades have been commissioned to meet an expected increase in demand in response to anticipated infrastructure spending of US$8.94bn by the Philippine government.

Pakistan: The All Pakistan Cement Manufacturers Association (APCMA) has asked the Federal Board of Revenue (FBR) to exclude cement from the 'Third schedule' of the Sales Tax act or to fix the maximum retail price (MRP) on the basis of two different zones in the upcoming budget of 2014 - 2015.

In a letter to the FMR chairman the APCMA said, that as the dynamics of every province and region are different, collection of sales tax on the basis of a single MRP across the country would force producers to restrict sales to nearby markets. It added that this would restrict sales to further-away markets reducing the potential revenues the FBR could collect.

The APCMA has proposed a zone-based MRP to protect both local consumers from paying excess prices and producers from paying more to sell cement in outlying markets. It also asked the FBR to introduce a uniform tax rate for the corporate sector.

Cement in Pakistan is subject to various taxes including: Corporate Income Tax - 34% of taxable income; Minimum tax – 1% of turnover; Federal excise duty (FED) – US$3.8/t; and Sales Tax 17% of the MRP. The APCMA has also proposed removing the FED and reducing the duty on alternative fuels to zero. Further suggestions included restoring the initial allowance on plants and machinery to 50% (from 25% at present) to encourage production capacity development and reducing import taxes on raw materials and capital goods for industrial development from 5 to 1%.

Greece: Titan has reported that its turnover in 2013 rose by 4% year-on-year to Euro1.18bn, up from Euro1.13bn in 2012. Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 0.1% to Euro196m. This is the first time the construction materials group has reported improved operating results in seven years. Titan's net loss in 2013 increased to Euro36m from Euro24.5m in 2012. Titan attributed the pick-up on the recovery of the housing market in the US, resilient demand in Egypt and a general focus on exports.

By region, Titan noted that domestic cement demand in Greece continued to decline but at a slower pace than previous years, with demand now at 20% of 2006 levels. Its cement plants in Greece are dependent on exports for their viability. In the Group's Greece and Western Europe region, turnover rose by 4% to Euro250m and operating profit fell by 57% to Euro14m.

In North America, Titan's turnover rose by 11% to Euro411m and its operating profit rose to Euro32m. In its Southeastern Europe region, turnover fell by 4% to Euro215m and operating profit fell slightly by 2% to Euro63m. In its Eastern Mediterranean region, turnover rose by 1% to Euro300m and operating profit fell by 7% to Euro87m.

In its outlook for 2014, Titan anticipated cement demand in Greece to increase for the first time since 2006 due to infrastructure spending. Cement consumption in the USA is expected to grow, particularly in the south-east of the country where the majority of Titan's US operations are situated. Political and economic risks make Titan cautious in its outlook for Turkey and Egypt, particularly due to fuel shortages in the latter country.

Australia: Cockburn Cement has cut 44 jobs at its Munster cement plant and intends to cut another 20 jobs over the next 18 months at it restructures its operations. The company said it was restructuring the plant in the face of high-energy costs associated with the production of clinker, according to Western Australia Business News.

Under the restructure, Cockburn Cement will use imported clinker, which it will mill into cement at its Munster and Kwinana facilities. By 2016, all of the 400,000t of clinker previously produced at Munster will be replaced by imported materials. The lime kiln at Munster will remain operational following a US$41m investment, including the installation of dust filters, that increased its production capacity by around 250,000t/yr.

Algeria: PPC announced its advanced plans for entry into the Algerian cement market on 24 February 2014, through a partnership with Algerian private investors that would see it own a 49% stake in the Hodna Cement Company.

The transaction will be funded on a project finance basis, with 80% debt funding from local banks, according to PPC. The stake, which was bought for an undisclosed amount, will see PPC assume management control of Hodna, allowing for the consolidation of the financial results of the project into the PPC group accounts.

According to PPC, Hodna will construct a 2Mt/yr cement plant for US$350m in the Hodna area, which is roughly 300km east of Algiers. PPC is already building cement plants in Ethiopia, Rwanda and the Democratic Republic of the Congo.

"This project sees us entering yet another African country and gives us confidence that by 2017, 40% of PPC revenues will be earned outside of South Africa," said CEO Ketso Gordhan.

"The Algerian cement market is very attractive, as consumption exceeds local production by approximately 3Mt/yr. Moreover, the Algerian government has committed itself to large-scale capital spending programmes, including the US$6bn New City Hassi Messaoud project, which will see the rollout of thousands of housing units," he said, adding that this would "certainly boost the demand of cement in this country."

The company said that once the feasibility study has been concluded, construction of the plant will take up to 30 months, with commissioning anticipated by the fourth quarter of 2016. As with its other expansion projects, PPC said it would engage China's Sinoma International Engineering as the contractor to supply and build the plant, supported by India's Holtec Consulting.

"With a population of close to 40 million people, of which 74% live in urban areas, combined with a relatively high GDP/capita of US$5582, Algeria still requires the construction of 225,000 housing units per year to meet demand. The national housing shortage in Algeria is estimated at 1.2m units," stated PPC.

Switzerland: Swiss cement maker Holcim has announced a net profit increase of 59.3% to Euro1.3bn for 2013.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 0.2% to Euro3.21bn, boosted by the performance in the US, the UK, Germany, Ecuador and the Philippines, while India, Mexico, Canada and Brazil had a negative impact. The EBITDA margin grew to 19.8% from 18.4%. After adjustments for restructuring costs that were booked in 2012, EBITDA declined by 5.6%.

Revenue dropped by 6.8% to Euro16.2bn due to exchange rate effects and low prices in some markets. Holcim's cement sales fell by 2.4% mainly due to a decline in the Asia/Pacific business. The high demand in Russia and Azerbaijan boosted sales in Europe.

For 2014 the company expects cement demand to grow in all regions and operating profit to improve in organic terms.

India: Trinetra Cement and Trishul Concrete Products Ltd, both of which are subsidiaries of India Cements Ltd (ICL), will be merged with ICL. The board of ICL met on 26 February 2014 and approved the amalgamation of the two subsidiaries with itself. The amalgamation is subject to regulatory and other approvals.

ICL holds a 61.22% stake in Trinetra, which has a paid-up capital of US$721,000 through its fully-owned subsidiary, ICL Financial Services Ltd. ICL has an 88.4% stake in Trishul Concrete, which has a paid-up capital of US$352,000 through its wholly-owned subsidiaries.

Under the scheme of amalgamation, the appointed date for the merger is 1 January 2014.