Displaying items by tag: GCW474
Fitch Ratings predicts Indian cement demand fall
22 September 2020India: Credit rating agency Fitch Ratings has forecast a 15% year-on-year decline in domestic cement demand in the 2021 financial year, which ends on 30 March 2021 due to “weak property demand and a sluggish construction cycle.” Fitch Ratings gave the reasons for the decline as “low consumer confidence caused by business uncertainty and unemployment concerns,” causing “underlying appetites of financial institutions to lend to the construction sector to remain weak” in spite of the Reserve Bank of India’s temporary funding relief measures to the sector, which include “loan restructuring, moratoriums and relaxed lending limits.”
Fitch Ratings reported that steel demand will also fall by 10% in the 2021 financial year.
Breedon Group issues trading update
22 September 2020UK: Breedon Group says that it has “continued to deliver an encouraging trading performance since demand began to return in early May 2020 after the Covid-19 lockdown,” recording eight-month sales of Euro580m over the period that ended on 31 August 2020, down by 15% from Euro681 over the corresponding period of 2019. The group says that the figure includes the contributions of its newly acquired Cemex ready-mix and aggregates assets for August 2020.
As a result of this performance, the board reinstated its 2020 guidance, with underlying earnings before interest and taxation (EBIT) for the second half of 2020 anticipated to be in line with that in the second half of 2019. It added, “We continue to be reassured by the UK government's restated commitment to investment in the UK's infrastructure and to encouraging demand from the UK housing market, complemented by similar trends in the Republic of Ireland.”
Norway: The Norwegian government has introduced a bill to parliament to allow funding for industrial scale implementation of HeidelbergCement’s carbon capture and storage (CCS) project at its 1.2Mt/yr Brevik plant in Porsgrunn, Telemark. If enacted, the legislation will provide for the majority of required funding.
HeidelbergCement chair Dominik von Achten, “We are very pleased with the proposal of the Norwegian government. This allows us to continue the pioneering work that we started together with our partners in Brevik. The CCS project in Norway is an important cornerstone in our climate strategy. It will enable us to significantly reduce otherwise unavoidable greenhouse gas emissions related to the cement production process.”
Fortune names Cemex in 2020 Change the World list
22 September 2020US: Fortune has named Cemex amongst socially impactful companies on its 2020 Change the World list. It gave the reasons for the company’s inclusion as “its efforts in social impact business models. One such initiative was the rapid deployment of solutions to meet the current challenges caused by the Covid-19 pandemic. Working with the Mexican Institute of Social Security and in coordination with more than 20 multi-sectoral partners in Mexico, Cemex built mobile hospitals with highly durable precast antibacterial concrete modules in a record time of two weeks per medical facility. This effort in Mexico will be replicated in other countries where Cemex has operations to contribute to global challenges positively.”
Chief executive officer (CEO) Fernando González said, “Once again, we are honoured by Fortune’s recognition of our efforts to improve the well-being and quality of life of the population. By living our purpose of building a better future and working with our stakeholders, we seek to develop innovative solutions while promoting a sustainable and resilient future.”
LafargeHolcim commits to net-zero CO2 emissions with 20% specific reduction by 2030
21 September 2020Switzerland: LafargeHolcim has signed the Science-Based Targets initiative (SBTi) Business Ambition for 1.5°C pledge, which commits it to net-zero carbon dioxide (CO2) emissions by 2050. Additionally, the company has committed itself to a 20% reduction in its CO2 intensity between 2018 and 2030.
The company says that over the period it will: “accelerate the use of low-carbon and carbon-neutral products such as ECOPact and Susteno, recycle 100Mt of waste and by-products for energy and raw materials, scale up the use of calcined clay and develop novel cements with new binders, double waste-derived fuels in production to reach 37%, reach net CO2 emissions 475kg/t of cementitious material and open and operate its first net-zero CO2 cement plant.
Chief Executive Officer (CEO) Jan Jenisch said, “I believe in building a world that works for people and the planet. That’s why we are reinventing how the world builds today to make it greener with low-carbon and circular solutions. I am very excited to be working with SBTi, taking a rigorous science-based approach to shape our net zero roadmap and accelerating our efforts to substantially lower our CO2 footprint. I will not stop pushing the boundaries to lead the way in green construction.”
Iran: Data from the Islamic Republic of Iran Customs Administration (IRICA) shows that cement producers exported 5.85Mt of cement in the first five months of the local 2021 financial year, which began on 20 March 2020. The value of cement exports fell by 52% year-on-year to US$128m from US$266m, according to the Tehran Times newspaper. Iraq, Kuwait and Afghanistan were the top destination for the exports. Cement was also sent to India, Russia, Qatar, Kenya, Sri Lanka, Pakistan, Armenia, Turkmenistan, Kazakhstan, Azerbaijan, Bangladesh, China, and Oman.
In its 2020 financial year Iran exported a total of US$7.0bn-worth of building materials and produced 85Mt of cement against a domestic consumption of 65Mt.
PPC updates on finance arrangements
21 September 2020South Africa: PPC says that it has extended existing short-term banking facilities with its two primary South African lenders until at least September 2021 and deferred scheduled interest and capital repayments on long-term facilities until March 2021. The company says that it will “enhance its security position through a security pool arrangement” and “reduce the levels of gearing in South Africa through a combination of a capital raise and asset sales.” It added, “Any capital raise is conditional on the implementation of the other project steps.”
PPC also signed a new working capital facility with its third South African lender, which it says “provides on-going liquidity until December 2021.”
Bestway Cement loses US$157,000 in 2020 financial year
21 September 2020Pakistan: Bestway Cement has recorded a loss of US$157,000 in the 2020 financial year, which ended on 30 June 2020, compared to a US$80.3m profit in the 2019 financial year. Its net turnover declined by 31% year-on-year to US$224m form US$324m.
Group chair Sir Mohammed Pervez said, “Despite various challenges, it is a matter of great satisfaction that management’s proactive approach and preparedness meant that the company demonstrated resilience and remains in good financial health.”
HeidelbergCement presents Beyond 2020 business strategy
18 September 2020Germany: HeidelbergCement has presented a new business strategy, involving an accelerated climate action plan, called Beyond 2020. Under the Strategy, the company will aim to reduce its specific carbon dioxide (CO2) emissions by 10% to 525kg/t of cement by 2025 from 585kg/t in 2019. Its financial targets over the period are “a significant increase in earnings before interest, taxation, depreciation and amortisation (EBITDA) margin by 300 basis points and return on invested capital (ROIC) to clearly above 8%. The group says that it will target a leverage ratio between 1.5 and 2 times its result from current operations in 2020.
Chief executive officer (CEO) Dominik von Achten said, “We see climate change and digitalisation as the two central challenges of the future for society and for our company. As one of the world's leading building materials producers, we have the ambition and the innovative strength to actively shape this change in a pioneering role. At the same time, we see further optimisation potential in our plants and processes. Ecology and economy are not contradictory. Our new medium-term targets for 2025 illustrate this claim.”
Hazemag supplies pozzolan crushers to Northern Cement
18 September 2020Philippines: Germany-based Hazemag says that it has supplied two HRC 1230 roller crushers to Northern Cement’s 2.0Mt/yr Bulacan, Quezon cement plant. The supplier says that each crusher has a capacity of 800t/hr and will grind pozzolan, shale and silica in the plant’s additive crushing and handling line.