
Displaying items by tag: Investment
Dangote Cement increases revenues as cement sales drop in 2022
28 February 2023Nigeria: Dangote Cement recorded sales of US$3.49bn in 2022, up by 17% year-on-year from US$3.05bn in 2021. The producer's cement sales volumes fell by 5.1% year-on-year to 27.8Mt from 29.3Mt. Its selling and distribution costs rose by over 50% to US$643m, yet profit after tax also rose, by 4.9% to US$833m.
The Premium Times newspaper has reported that the producer invested US$543m in is subsidiaries throughout the year. The group said that most of this investment took place outside of Nigeria.
Sagar Cements discloses price of Andhra Cements acquisition
20 February 2023India: Sagar Cements says that it will pay US$111m to acquire Andhra Cements outright. The Hindu BusinessLine News has reported that the deal will more than double the producer's capacity to 8.25Mt/yr. By 2025, Sagar Cements expects to increase the newly acquired subsidiary's clinker capacity by 1.2Mt/yr, and its grinding capacity by 600,000t/yr. The group plans to invest US$56.8m in capital expenditure before 2025 in order to realise its plans.
DBS Group not concerned about financial exposure to Adani Group
13 February 2023Singapore: Banking and financial services company DBS Group says it has controlled its exposure to India-based Adani Group. Chief executive officer Piyush Gupta said "They're solid, cash-generating companies, so we're not concerned about the exposure," according to Reuters. He added that the cement industry has ‘”huge potential” in India. The company was part of a group of banks that lent Adani Group US$10.5bn to fund its acquisition of Ambuja Cement and ACC from Holcim in 2022. DBS Group contributed around US$751m. Adani Group has seen its share price fall since US-based short-seller Hindenburg Research accused it of stock manipulation and accounting fraud in late January 2023.
JK Cement to build 2.5Mt/yr Prayagraj grinding plant
09 February 2023India: JK Cement has announced a planned investment of US$60.6m in construction of a new 2.5Mt/yr grinding plant at Prayagraj, Uttar Pradesh. Asian News International has reported that the producer hopes to strengthen its presence in Eastern India. The project increases JK Cement's total investments in Uttar Pradesh to US$145m. It previously inaugurated its 2Mt/yr Hamirpur grinding plant in the state in October 2022. It also operates a 1.5Mt/yr grinding plant at Aligarh.
JK Cement's deputy managing director and CEO Madhavkrishna Singhania said "We are proud to be a part of this dynamic state that not only offers us a geographic advantage but also gives a plethora of opportunities for investment and expansion. With its favourable business environment, abundant resources, and highly skilled workforce, Uttar Pradesh is undoubtedly an ideal location for our expansion plans."
Holcim to acquire Duro-Last
07 February 2023US: Holcim has signed an agreement with Duro-Last to acquire the roofing systems producer for US$1.29bn. Reuters has reported that the acquisition will be Holcim's largest for all of 2022 and 2023 so far. Once the parties complete the transaction, Duro-Last's business will join Holcim's products and systems division. Holcim expects the deal to yield synergies of US$60m/yr, primarily through a reduction in the cost of materials.
Holcim expects its products and systems division to contribute a majority of its profit in North America once increased investment under the US government's Inflation Reduction Act begins to take effect. In 2022, the division accounted for 40% of regional profit. The group is committed to a global target of 30% of sales being attributable to the products and systems division by 2025, compared to 19% of sales in 2022.
Siam Cement Group forecasts 10% sales growth in 2023
27 January 2023Thailand: Siam Cement Group (SCG) has forecast 10% year-on-year growth in its consolidated sales to US$19.1bn in 2023, from US$17.4bn in 2022. The Bangkok Post newspaper has reported that the group expects sales to rise due to the reopening of the Chinese market and an anticipated growth in Thai domestic tourism.
High value-added goods and services constituted 34% of SCG’s total sales in 2022. The group increased its installed renewable power capacity by 78% to 234MW throughout the year. SCG has planned capital expenditure investments of US$1.22 - 1.53bn in 2023.
SCG president and CEO Roongrote Rangsiyopash said "The economic outlook for 2023 seems to be better than last year, but we will continue to monitor risk factors that may affect our businesses.”
Siam Cement Group increases sales as profit drops
26 January 2023Thailand: Siam Cement Group (SCG) recorded consolidated sales of US$17.4bn in 2022, up by 7% year-on-year from 2021 levels. Its net profit was US$652m.
During 2023, SCG plans to invest US$1.22 - 1.53bn in capital expenditure.
Livetouch Investments plans Zvishavane cement plant
24 January 2023Zimbabwe: Livetouch Investments plans to build a new 200,000t/yr cement plant in Zvishavane, Midlands Province. The first phase of construction will reach completion in mid-2024 and cost US$20m. When subsequently commissioned, the plant will create 300 new jobs. The Chronicle newspaper has reported that the upcoming plant is situated close to Livetouch Investments' existing limestone resources.
Livetouch Investments' mananging director Kyle Wang said that the company is building the plant in order to reduce Zimbabwe's reliance on imports of cement, notably via Zambia. Zimbabwe already has a cement capacity of 2.6Mt/yr, but a cement demand of just 1.6Mt/yr.
Carthage Cement increases turnover in 2022
24 January 2023Tunisia: Carthage Cement recorded a turnover of US$119m during 2022, up by 13% year-on-year from US$105m. The producer invested US$8.17m in capital expenditure projects during the year, up by 18% from US$6.95m. Africa Manager News has reported that Carthage Cement's debt fell by 8% year-on-year to US$123m at the end of 2022.
Unacem Perú to 'significantly increase' cement capacity
23 January 2023Peru: Unacem Perú plans to 'significantly increase' its cement production capacity 'in the medium-term future.' Prior to that, the producer will invest US$130m in capital expenditure during 2023, double what it invested in 2022. The investments will go towards slightly expanding the producer's capacity from 8.3Mt/yr and increasing alternative raw materials use in its cement production, including pozzolan and ground granulated blast furnace slag (GGBFS). Additionally, it will open its new Manchay limestone quarry in Pachacámac in early 2023.
Unacem said that it increased its cement sales 'unexpectedly' during 2022. It operated at 85 - 90% capacity utilisation, and continued to export clinker.