
Displaying items by tag: GCW145
LafargeHolcim merger gathers pace
07 April 2014Worldwide: More details have emerged over the weekend regarding the proposed merger of Lafarge and Holcim, with the name LafargeHolcim mentioned by key staff. The discussions look set to lead to a company with combined sales of around Euro32bn and earnings before interest, taxes, depreciation and amortisation (EBITDA) of Euro6.5bn.
"This proposed merger is a once in a lifetime opportunity to deliver substantially better value to customers with more innovation, a wider range of products and solutions and more sustainability and enhanced returns to shareholders," said Rolf Soiron, chairman of Holcim. "LafargeHolcim will be uniquely positioned to take advantage of growth in developed markets and the world's fastest growing economies by supplying the materials that will enable the construction industry to meet the challenges of the future."
"By combining Holcim's experienced teams, complementary geographies and innovative expertise with ours, we propose to set up the most advanced group in the construction industry, for the benefit of our clients, our employees and our shareholders," said Bruno Lafont, chairman and CEO of Lafarge. "I am confident that this merger of equals provides a unique opportunity to rapidly create the most advanced platform in our industry with outstanding synergies. With a best-in-class international portfolio, robust balance sheet and strong governance, the new group will offer higher growth and low risk, thus creating more value.'
Unofficial sources have suggested that the weekend's meetings involved detailed discussions regarding the sale of some parts of the companies' assets to conform to national and regional anti-monopoly regulations.
Subject to shareholder and regulatory approvals and other customary authorisations completion is to take place by the end of the first half of 2015.
Sacyr to build cement plant in Bolivia for US$244m
07 April 2014Bolivia: A consortium, led by Sacyr Industrial, has won an order for the construction of a cement plant in Bolivia for US$244m.
The contract, which was signed with the Bolivian state-run cement producer Empresa Publica Productiva Cementos de Bolivia (ECEBOL), includes the design, supply of machinery, construction, installation and launch of the plant in the city of Oruro in the central west of the country. The plant is planned to have a clinker capacity of at least 3000t/day.
The contract is in line with Sacyr's strategy for global expansion. The company is already present in Australia, the UK and Peru, with various projects in the oil, gas, power infrastructure, energy and waste-treatment sectors.
US: Essroc's cement plant in Nazareth, Pennsylvania has earned certification for superior energy efficiency from the US Environmental Protection Agency (EPA). The Energy Star certification signifies that the plant performs in the top 25% of similar facilities nationally and meets the strict energy efficiency performance levels set by the EPA.
The plant has recently improved its performance by managing its energy strategically across the entire organisation and by making cost-effective improvements, such as meters, LED, low-voltage lighting, timers and sensors. To earn the certification, the plant established a local energy team to discuss actions to be implemented to lower energy consumption, establish an action plan and review progress of those being implemented.
"Energy reduction is the most important part of the programme. The certification is the cherry on top of the cake," said Jean Paul-Morel, Essroc's chief electrical engineer.
Holcim and Lafarge discuss possible combination
04 April 2014Worldwide: Holcim has confirmed that Lafarge and Holcim are in advanced discussions regarding a possible combination.
Holcim and Lafarge have stated that, given the strong complementarity of their portfolio and the cultural proximity between the two companies, there is rationale in considering a potential merger that could deliver significant benefits to customers, employees and shareholders. Holcim said that their discussions have been based on principles consistent with a merger of equals, which would build on the strengths and identities of the two companies.
No agreement has yet been reached and no assurance can be given that these discussions will lead to a definitive agreement. Holcim stated that it will inform the public of any material developments in this respect.
BEE deal increases staff ownership of PPC to 12%
04 April 2014South Africa: PPC's new black economic empowerment (BEE) deal has shifted the beneficiary base from broad-based trusts to the company's employees themselves, using the 'proximity principle.' The new transaction will increase the company's staff ownership to 12%.
This follows a move in 2013 to close the income inequality gap through an executive pay freeze that bumped up the salaries of lower-paid workers. CEO Ketso Gordhan said that the company has spent time on the ground with its employees, who have shown an appreciation for being listened to. Whether PPC will follow this up with further executive pay cuts and freezes remains to be seen, though Gordhan has said that the company intends to reduce the wage differential further.
Asia Cement unit plans to buy Sichuan cement plant
04 April 2014China: Asia Cement said that its subsidiary interest Sichuan Yadong Cement has entered into a framework agreement with the existing shareholders of Sichuan Lanfeng Cement to acquire their entire equity interest in Sichuan Lanfeng and thus indirectly the entire equity interest in Sichuan Lanfeng's wholly-owned subsidiary, Sichuan Lanfeng Building Materials.
The target companies principally engage in the manufacture and sale of cement, concrete and related products in Sichuan Province. They operate a cement plant located in Pengzhou City, Sichuan which comprises two new dry process clinker production lines with a total cement production capacity of 5Mt/yr.
The parties are expected to sign the formal sale and purchase agreement before 16 April 2014.
ZEMA threat to Dangote cement plant
03 April 2014Zambia: Commerce minister Miles Sampa says that the Zambia Environmental Management Agency (ZEMA) is a threat to the planned commissioning of the US$400m Dangote Cement plant in Ndola in July 2014.
ZEMA recently directed the halting of construction of the plant. Sampa said that ZEMA needs to partner with the government in facilitating the much-needed foreign investments to help the country's economy grow.
"If ZEMA looks to stop progress then something is wrong somewhere," Sampa said. "Why in the world, after US$400m has been invested, would ZEMA decide to write to the investor to stop the construction? ZEMA approved the project in 2011."
According to local sources, ZEMA ordered a halt to the construction of the Dangote cement plant over a dispute on tapping water from the nearby Kafubu River. ZEMA contended that tapping water from the river was not in the initially approved Environmental Impact Assessment report when it approved the planned construction of the plant.
"If Dangote break the rule, let's treat them like any other company; the people here need jobs," Sampa said. "Let's not just dance to the tune of those who do not have the interest of the people here. I am appealing to ZEMA in the next seven days to formally write to advise Dangote to continue with the construction or to stop and that should be done within the law."
Sampa said that the new plant would increase competition among cement producers and consequently reduce the cost of the commodity in the country. "The construction industry is eagerly waiting for commercial production and distribution of Dangote cement products at competitive market prices," said Sampa.
India: The Government of Kerala is planning to construct a cement terminal at Azhikkal port in the state. The vessel capacity is up to 10,000DWT (dead weight tonnage) with a 6 - 12m draft. ABG Group has been awarded the contract. The project is waiting for the final approval from the finance and planning board department and is planned for completion in five years from the date of approval.