Displaying items by tag: Government
PPC struggling to transfer US$64m from Zimbabwe
27 November 2018Zimbabwe: South Africa’s PPC has revealed that it is unable to transfer US$64m in cash and cash equivalents out of the country due to local currency restrictions. The cement producer said in its half-year report that the funds were freely available to spend locally. However, the Zimbabwe Central Bank has introduced a foreign payments priority list and any foreign payments are dependent on the bank’s ranking criteria, including the bank having adequate funds placed with its foreign correspondent banks. Despite these problems the company’s local sales and earnings grew in the half-year period. Revenue increased by 31% year-on-year to US$77m due to ‘strong’ volume growth. Earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 42% to US$25m.
Union criticises management at Meghalaya Cherra Cement
23 November 2018India: The employees union of state-owned Meghalaya Cherra Cement has given the government two weeks to pay back salary from 2015 to 2016 and overtime payments since 2013. Union president S Diengdoh criticised the state-owned plant for poor management and low production, according to the Sentinel newspaper. The union alleges that the plant has an utilisation rate of only 30% and poor levels of safety.
Honduran producers agree to price cut
23 November 2018Honduras: Cementos Argos and Cementos del Norte have agreed to cut the price of cement for government-backed reisdential and infrastructure projects following a request by President Juan Orlando Hernández, according to the El Heraldo newspaper. The price will fall by around 15% when the agreements between the cement producers and the government is finalised.
EAPCC receives government backing to sell land to meet debts
21 November 2018Kenya: The East Africa Portland Cement Company (EAPCC) has received backing from the Ministry of Trade to sell unused land to pay off debts and commitments of nearly US$150m. The ministry said that a cabinet memorandum is ready to grant the company approval to sell off its assets, according to the Business Daily newspaper. The cement producer says it needs the funds to pay employee benefits, pay suppliers, pay off debts to companies including the Kenya Commercial Bank and the Japanese International Cooperation Agency and refurbish its plant. The cement producer says it wants to spend US$19.5m towards refurbishing its plant in a one-to-two month shutdown. At present the unit is operating at a 50% capacity utilisation rate.
Cement packaging in Mozambique to include expiry date
20 November 2018Mozambique: The National Inspectorate of Economic Activities (INAE) says that all cement producers must include an expiry date on cement packaging. The decision follows a study looking at the production, labelling, sale and transport of cement, according to the Mozambique News Agency. The ruling applies to both locally produced and imported cement.
INAE has requested that any cement should be sold at least three weeks prior to its expiry date. It is intended to give consumers consistent information about the date of production, the type of cement, the quality and the price. The central government agency is also hosting talks with local government to help provide warehouse space to distributors and retailers selling cement. It aims to stop the sale of cement on the street.
Cemex Philippines facing legal action over landslides in Naga
20 November 2018Philippines: Cemex Philippines is facing legal action in relation to the quarry operations of its subsidiary in Naga following a landslide that killed nearly 80 people in September 2018. It said that it had received a summons order for the class suit along with its subsidiary APO Cement, according to the BusinessWorld newspaper. The defendants also include APO Land & Quarry, the Mines and Geosciences Bureau Regional Office VII, the City Government of Naga and the Province of Cebu. The lawsuit is attempting to seek damages of up to US$80m on environmental grounds on relation to the quarry.
Gas supplier ordered not to raise price for Lucky Cement
19 November 2018Pakistan: The Peshawar High Court has temporarily ordered Sui Northern Gas Pipelines (SNGP) not to charge Lucky Cement a higher price for gas. The cement producer took legal action against the supplier, the Oil and Gas Regulatory Authority (OGRA) and the Ministry of Energy following a price increase of 142% in October 2018, according to the Dawn newspaper. The court has asked OGRA to respond to questions about the price rise. Lawyers on behalf of the Lucky Cement argue that the increase in the cost of gas was taken without following the normal legal requirements.
Canada: Quebec's Ministry of Economy and Innovation has confirmed that it has received a request from the shareholders of McInnis Cement to swap the debt the province holds in the venture for equity. A request has been made to the ministry and to Investissement Québec, the provincial government's investment arm, to convert almost US$200m of debt into shares in the cement producer, according to the Globe and Mail newspaper. The newspaper speculates that an arrangement of this kind could be part of a potential deal with creditors to reduce the company’s liabilities and enable it to continue to operate.
McInnis Cement’s plant at Port-Daniel–Gascons was inaugurated in mid-2017. Construction at the site started in mid-2014. However, cost overruns saw the government-backed project delayed and then taken over by an investor, the Caisse de dépôt et placement du Québec (CDPQ), a pension and insurance fund manager. The CDPQ was reportedly considering options including selling the plant or securing more investment in early 2018. Three bids were made for the cement producer but were rejected as being too low, according to reporting by the Globe and Mail. Interested parties in the company included Germany’s HeidelbergCement.
Holcim El Salvador receives nod from environmental ministry
19 November 2018El Salvador: Holcim El Salvador has received a ‘Special Mention’ from the Ministry of Environment and Natural Resources as part of the 2018 National Environment Awards, according to the El Mundo newspaper. It won the recognition for its environmental strategy, including efforts to recover and manage eco-systems around its quarries in Metapan.
EAPCC described as insolvent by Auditor-General
19 November 2018Kenya: Edward Ouko, the Auditor-General, has described the East Africa Portland Cement Company (EAPCC) as insolvent because it cannot pay its debts. The cement producer made an operating loss of US$34m in its financial year that ended on 30 June 2018, according to the Standard newspaper. Its revenue fell by 25% year-on-year to US$50m. The company said it devised a new strategy to focus distribution on it own depots and to compete on pricing to counteract a lack of distribution of its products in common retail stores.