Displaying items by tag: Investment

Philippines: Holcim Philippines is set to invest US$54m over the next two years to expand capacity and brace for ‘cut-throat’ competition that it says has affected is profitability. In the first six months of 2017, Holcim Philippines’ net profit fell by 42.6% year-on-year to US$41.5m on the back of a 16.7% decline in net sales to US$344.2m. For the second quarter alone, its net profit slumped by 46.2% year-on-year to US$22.9m. The decline in income was attributed by the company to lower sales alongside higher production input costs. Nonetheless, the company said that it would continue to invest to raise its cement production capacity from 10Mt/yr to 12Mt/yr to support demand as the government rolls out its flagship infrastructure projects.

In a statement Holcim Philippines president and chief executive Sapna Sood said that the investment indicated the company's continued commitment to the development of the country and its customers. "Our investments ensure that Holcim Philippines will continue to provide a reliable supply of an essential building material as cement demand increases in the country as these projects come on stream," she said. "The company will invest US$54m in the next two years to add 2Mt/yr to its current cement capacity by the first half of 2019, particularly in La Union and Davao."

Liberia: The government is considering a 17-year tax reduction deal worth US$200m to encourage the Liberia Steel and Cement Mining (LICEMCO) to build a cement and steel plant. The so-called Investment Incentive Agreement is between the government, the TIDFORE Investment Company and LICEMCO, according to the Liberian Observer newspaper. A government Committee on Investment and Lands, Mines and Energy will investigate and report on the proposal by the end of July 2017.

Philippines: The Board of Investments (BOI) is seeking investment in the cement sector as it expects demand to double to 40Mt/yr by 2020 due to a peak in government infrastructure spending. At the same time Department of Trade and Industry (TI) Undersecretary for industry promotions group Ceferino S Rodolfo confirmed that two companies are preparing to build new integrated plants, according to the Manila Bulletin newspaper. Both companies are obtaining permits for their projects but Rodolfo would not confirm their identifies. DMCI Holdings was reported in the local press as being interested in building a plant Antique's Semirara Island in early June 2017.

India: The state investment promotion board of Andhra Pradesh has approved proposals by Chettinad Cement and KCP to build cement plants in the state. Chettinad Cement plans to spend US$210m towards building a grinding plant in Vizag and a plant in Guntur, according to the Economic Times newspaper. These projects are scheduled to start production in March 2019. KCP has allocated US$83m towards its project in Krishna with the first phase of operations due to start in mid-2018. However, media commentators have noted that the south of India is facing cement production over capacity.

Cameroon: Mira’s plans to build a 1Mt/yr cement plant have taken a step forward with an investment of US$55m. The investment is a continuation of an agreement signed with the government in late 2015, according to the African Press Agency. The project intends to use a 2013 private investment incentives law granting tax exemptions over a 5 – 10 year period to set up the plant.

Philippines: Republic Cement & Building Materials has approved a five-year capital expenditure programme to increase its clinker and cement production capacity to meet local demand. One of the cement producer’s owners, Aboitiz Group, announced that it was making the investment to take advantage of infrastructure development plants by the Duterte administration, according to the Philippines Star newspaper. The upgrade is expected to increase the company’s production capacity by 1Mt/yr from its current level of 7Mt/yr. The investment will be spent on both production efficiency improvements at existing plants and by building a new kiln.

Bangladesh: The China Building Materials Federation has expressed interest in investing US$2bn in the country’s infrastructure. A 12-person delegation from China met with the Bangladesh Investment Development Authority (BIDA) to discuss the proposal that includes developing the cement sector. Both sides have agreed to sign a memorandum of understanding on the potential investment.

Tanzania: EAM, Mamba and Sungura are planning to invest in the cement industry. Industry, Trade and Investment Minister Charles Mwijage said that the companies have all requested to enter the industry at the Dar es Salaam International Trade Fair, according to the Tanzanian Daily News. EAM wants to build a 3Mt/yr plant in the Tanga region on condition that the government lets it export cement internationally. It has also requested other conditions that are in discussion with the government. Mamba and Sungura are also in discussion with the government regarding their projects.

India: Sanghi Industries plans to raise US$180m towards increasing its production capacity. It has recently increased the production capacity at its Kutch cement plant by 1.2Mt/yr to 4.1Mt/yr, according to the Times of India. Following this the cement producer intends to increase its capacity to 8.1Mt/yr in the next three to four years. It plans to raise funds through a mix of internal accruals, debt and equity. The company is also building a 15MW waste heat recovery system that is likely to be commissioned by the end of 2018.

Kenya: 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.