Displaying items by tag: GCW266
Chile: AES Gener is exploring options to sell by-products from its Guacolda coal-fired power station to cement producers. The power-generation company has asked for permission to do so and has approached Polpaico, owned by Holcim, and BSA, owned by Hurtado Vicuna group, according to the Diario Financiero newspaper. Guacolda produces around 40,000t/yr of synthetic gypsum and 60,000t/yr of Ash. AES Gener is already selling 30,000t/yr or half of the ash generated at its Ventanas power plant, to Melón. The company also has agreements in place with a number of universities to explore the use of these materials in concrete, cement, agriculture and mining activities.
China: Huaxin Cement’s sales revenue has fallen by 11% year-on-year to US$860m in the first half of 2016 from US$968m in the same period of 2015. Its net profit fell by 91% to US$1.21m from US$13.3m. The cement producer reported falling sales in most regions, with the exception of Tibet and Henan. Notable decreases in sales revenue occurred in Jiangsu, Jiangxi and Guangxi. The company blamed the result on falling prices caused by production overcapacity and ‘vicious’ market competition.
Outside of China the company has started operation at its 300t/day Gayur plant and it is building a 0.5Mt/yr grinding plant at Dangara in Tajikistan. Planning work has also been conducted at a 2800t/day cement plant at Narayani in Nepal and a 2500t/day cement plant at Aktobe in Kazakhstan.
Arghakhanchi Cement plant prepares for US$38.5m upgrade
26 August 2016Nepal: Arghakhanchi Cement plans to spend US$38.5m to increase both its clinker and cement production capacities to 3000t/day by October 2017. At present the plant has a clinker capacity of 1200t/day and a cement capacity of 1000t/day, according to the Kathmandu Post. Managing director Rajesh Agrawal added that the company has signed a deal worth US$9.32m to order vertical roller mills from FLSmidth as part of the upgrade.
Local industrial groups Siddhartha, Murarka and Kedia hold stakes of 35%, 30% and 17.5% respectively in the cement producer. Uma Cement, an Indian company, owns the remaining 17.5% stake. Arghakhanchi Cement was originally known as Dynasty Cement.
Philippines: Cement sales have risen by 10.7% year-on-year to 13.2Mt in the first half of 2016 due to increased government spending on infrastructure and improved private sector involvement in construction. Ernesto Ordoñez, president of the Cement Manufacturers Association of the Philippines, also cited good weather as helping drive up sales, in comments made to the Philippine Daily Inquirer. Private sector construction constitutes 76% of cement sales, while public construction projects use the remaining 24%.
Zimbabwe: Chinese cement producer Mortal Investments Manufacturing Company is building a US$10m grinding plant in Redcliff, Midlands province with a production capacity of 1Mt/yr. It is the second cement project in the province following the Sino Zimbabwe Cement plant near Gweru, according to the Financial Gazette newspaper. 400 jobs will be created at the site. The plant is also expected to benefit from slag from the nearby Zimbabwe Iron and Steel Company (ZISCO) steel plant at Kwekwe.
ARM Cement seeks US$138m investment from CDC Group
26 August 2016Kenya: ARM Cement intends to use US$138m investment from the UK government-owned fund CDC Group to finance the construction of a new cement plant in Kitui County. The cement producer is Chief executive Pradeep Paunrana said that more details on the proposed 2.5Mt/yr plant would be released after shareholders’ approval of the development finance institution’s proposed investment in return for a 40.66% stake in the cement manufacturer, according to the Daily Nation newspaper. The project is planned to be completed by 2021. Nigerian company Dangote Cement is also building a cement plant in the same area.
CRH sales revenues rise following acquisitions
25 August 2016Ireland: CRH’s sales revenue has risen by 35% year-on-year to Euro12.7bn in the first half of 2016 from Euro9.38bn in the same period of 2015. On a proforma basis - or adjusted for acquisitions, divestments and currency changes – sales revenue rose by 8%. CRH’s earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 20% to Euro1.12bn on a proforma basis. The company attributed the increases in sales, mainly to the Americas, with rises in Europe and Asia also.
"We have had a very satisfactory first half, with good performance from our heritage businesses and contributions from 2015 acquisitions delivering significant profit growth for CRH,” said chief executive Albert Manifold. “With continued positive momentum in the Americas and the modest impact of early-stage economic recovery in Europe, assuming normal weather conditions for the remainder of the season, we expect further progress in the second half with full year reported EBITDA in excess of Euro3bn."
Boral’s profit rises by 8% to US$204m
25 August 2016Australia: Boral’s profit after tax has risen by 8% year-on-year to US$204m in its financial year which ended on 30 June 2016 from US$190m in the previous year. Its sales revenue fell, by 2% to US$3.28bn, but revenue from continuing operations rose slightly. Revenue from continuing operations benefitted from stronger residential activity in Australia and the US, which offset the decline in resource-based and other major project activity. The company’s earnings before interest and tax (EBIT) also rose due to operational cost improvements, lower fuel costs and some pricing gains.
“We have continued to improve our performance across our businesses in line with our strategy, managing our portfolio more efficiently and maintaining a strong balance sheet,” said CEO and managing director Mike Kane. “The continued growth in Boral’s earnings demonstrates the great work that has been done to improve our cost base, grow margins, and efficiently supply market demand, which continues to be strong in Australia and Asia, and is growing in the US.”
The group’s revenue from its cement business grew by 3% to US$231m due to a 6% increase in cement volumes due to stronger activity in New South Wales and 2% higher average prices, partially offset by lower wholesale clinker volumes due to kiln availability. Earnings also grew with cost improvement initiatives, including improved utilisation of assets and sourcing of lower cost raw materials and energy.