
Displaying items by tag: GCW93
Semen Indonesia to build US$200m plant in Myanmar
27 March 2013Myanmar: Indonesia's largest cement producer PT Semen Indonesia, formerly Semen Gresik, has announced that it will build a US$200m cement plant in Myanmar early in 2014 as part of its expansion into the Southeast Asian market.
The company may pitch about US$70m for the plant, which it would set up with its Myanmar partners, as it aimed to control about a 40% stake in the planned joint venture, said president director Dwi Soetjipto in a press event reported by the Jakarta Post. The construction of the cement plant, designated with a capacity of 1Mt/yr, is scheduled to start in early 2014, while operations are expected to begin in 2017. Based on the firm's plan, the new plant will serve the Myanmar market and neighbouring countries like Thailand and Bangladesh.
The move by Semen Indonesia follows its acquisition of Vietnam's largest cement producer, Thang Long Cement Joint Stock Company, in late 2012. It now aims to expand its annual capacity to 6.5Mt/yr from 2.3Mt/yr by establishing two new plants. At home in Indonesia, Semen Indonesia is also preparing for capacity upgrades with the construction of cement plants in Rembang, Central Java and Padang, West Sumatra, both with production capacities of over 2.5Mt/yr.
In 2013 the firm has targeted a domestic market share of up to 44%, up from 41% in 2012, supported by increased output to around 27Mt from 22.6Mt in 2012, according to Dwi. The overall domestic cement market is estimated to increase by more than 10% to 6Mt in 2013, according to the Indonesian Cement Association.
Huaxin Cement sees profit almost halve
26 March 2013China: Huaxin Cement Co Ltd, a Hubei Province-based cement producer, announced on 25 March 2013 that the company's net profit came to US$89.5m in 2012, a year-on-year decrease of 48.3%. Huaxin Cement saw its operating revenue for 2012 slide by 0.93% year-on-year to US$2.0bn.
The company attributed the drop in its profit to falling cement prices caused by overcapacity in the Chinese cement market during 2012.
Eurocement Ukraine back in the black in 2012
26 March 2013Ukraine: According to preliminary data Eurocement Ukraine finished 2012 with a net profit of Euro3.58m. The company, part of Russia's Eurocement Holding, finished 2011 with losses of Euro4.4m. As of late 2012, the assets of Eurocement Ukraine came to Euro92.1m with current liabilities of Euro23.9m.
Saudi Arabia: Since 20 March 2013 the Northern Region Cement Company (NRCC) has been forced to halt production, due to the closure of a road leading to the plant. This has blocked trucks entering the plant for cement collection and has meant that the plant has now been forced to halt production.
The decision to close the road leading to the plant was taken by a committee drawn up from representatives from the Governorate of Northern Border, the Ministry of Transportation and the Department of the Police in the area, following NRCC's 'failure' to construct an upper bridge road connecting the plant with a nearby international highway.
NRCC was required to construct the bridge road by the authorities in order to safeguard the lives of the people driving in the area. However, an NRCC official said that it cannot be constructed as it would cost US$4.8m, an amount that requires approval through a meeting of the company's general assembly. Additionally, the official called for the formation of a committee to inspect the roads around the plant as he believes that the present road layout poses no danger to road users. He added that the local market would start to feel the effects of the plant shutdown 'very soon.'
CPV considers plant closure
25 March 2013Spain: Cement producer Cementos Portland Valderrivas (CPV) is considering the closure of one of its production units in Spain, according to Juan Bejar Ochoa, CEO of the company's majority shareholder FCC. The move looks likely to affect one of the three factories in northern Spain or one of the two plants in Catalonia. Bejar justified the measure by highlighting the 20% decrease in Spanish market demand in 2012. The decision on which unit will be shut down will be taken after analyses of transport and production costs.
ThyssenKrupp to build 1.7Mt/yr cement plant in Indonesia
22 March 2013Indonesia: ThyssenKrupp Polysius has won a contract from PT Holcim Indonesia Tbk., to build a second cement plant near the town of Tuban on the northern coast of the island of Java. The contract is worth around US$250m and the plant is scheduled to start production in 2015. Tuban 1, the initially-awarded project, is due to begin operation in June 2013. Tuban 2, the newly-awarded project, and Tuban 1 will each have a capacity of 1.7Mt/yr of cement.
"This follow-up order is proof of our good partnership with the customer and shows that our technological solutions and leading engineering expertise are supporting Holcim in the growth of the Indonesian cement industry," said Dr Hans Christoph Atzpodien, CEO of the ThyssenKrupp Polysius' Industrial Solutions business area. "We are firmly focused on the markets of the future."
For both plants ThyssenKrupp Polysius is supplying state-of-the-art equipment covering raw material preparation, clinker production, cement loading and fuel preparation. A POLAB laboratory automation system is being installed for quality monitoring and control.
The Indonesian cement market is predicted to grow at a double-digit rate in 2013. With a production capacity of 8.2Mt/yr Holcim Indonesia is one of the country's top three cement manufacturers.
UK: The Minerals Products Association (MPA) has welcomed measures in the UK government's 2013 budget that will help boost the outlook for the cement industry and the wider mineral products and construction sectors. The MPA singled out the decision to freeze the indexation of the Aggregates Levy until April 2014 and the decision to introduce the Climate Change Levy mineralogical and metallurgical exemption for energy intensive industries such as cement and lime.
"The government is clearly listening and understands that investing in infrastructure and construction is key to securing growth. The issue remains of ensuring that cash flows into action on the ground to help improve confidence and induce private sector investment, which is needed to accelerate growth in demand," said Nigel Jackson, chief executive of the MPA.
West China Cement profit drops 24% in 2012
21 March 2013China: West China Cement has reported that its gross profit fell by 23.7% to US$109m in 2012 from US$142m in 2011. The Chinese cement producer attributed the shortfall on a decreasing selling price, increases in electricity costs and higher overheads due to lower productivity.
The company's revenue rose by 10.5% to US$567m from US$513m. Earnings before interest, taxes, depreciation and amortisation (EBIDTA) fell by 9% to US$170m from US$187m. Cement sales volumes rose by 22% to 14.3Mt in 2012 from 11.7Mt in 2011.
In its annual report West China Cement reported that it is consolidating its position as the largest cement producer in Shaanxi Province as well as expanding into Xinjiang Province, where economic and infrastructure growth promoted by the Chinese government's Western Development Policy remains a key feature of the 12th Five-Year Plan. For 2013 the company expects the recovery in infrastructure demand in the second half of 2012 to continue. However, increased overall capacity in Xinjiang Province is expected to continue impacting upon cement prices in that region.