Displaying items by tag: Ireland

Ireland: CRH has appointed Richard Boucher as a non-executive director.

Boucher, aged 59 years and an Irish citizen, has experience in all aspects of financial services and was the chief executive of Bank of Ireland Group between February 2009 and October 2017. He also held a number of senior management roles within Bank of Ireland, Royal Bank of Scotland and Ulster Bank. He is a past President of the Institute of Banking in Ireland and of the Irish Banking Federation.

He is a consultant for Fairfax Financial Group and acts as its nominee on the Board of Atlas Mara, a company with investments in banks in Africa. He is also a non-executive Director of Eurobank Ergasias, a bank based in Athens, Greece that has operations in Greece and several other European countries. He holds a Bachelor of Arts (Economics) from Trinity College, Dublin and is a Fellow of the Institute of Banking in Ireland.

Ireland: Poor sales in the UK and Switzerland have reduced the sales of CRH’s Europe Heavyside division, which includes its European cement operations. The division’s sales revenue fell slightly to Euro6.90bn in 2017 from Euro6.95bn in 2016. Despite this the division reported market recovery in Ireland, France, Poland and Finland. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 7% year-on-year to Euro839m from Euro781m.

Overall, the group’s sales for its continuing operations rose by 1.7% to Euro25.2bn from Euro24.8bn. Its EBITDA rose by 5.6% to Euro3.15bn from Euro2.98bn.

“2017 was a year of continued profit growth for CRH. We benefited from increases in underlying demand in the Americas and positive momentum in Europe, and with focus on performance improvement and operational delivery, margins and returns were ahead of last year in our American and European Divisions,” said chief executive officer (CEO) Albert Manifold.

The group’s Americas Materials division’s sales rose by 5% to Euro7.97bn from Euro7.60bn and earnings rose similarly. The division said that its cement business in North America saw total volumes rise by 3% ahead with ‘marginal’ price increases, supported by stronger demand in the US. It added that the division has continued to optimise its terminal network and market penetration by repositioning more volumes to the US from Canada, where competitive market conditions remain, especially in Quebec.

Ireland/UK: Breedon Aggregates is reportedly in talks to buy a part or all of Ireland’s Lagan Group, according to the Sunday Times newspaper. Breedon Aggregates and Lagan’s subsidiary Whitemountain operate an asphalt joint venture at present. However, Lagan Group did not respond to a request for comment on the talks.

Breedon Aggregates purchased Hope Construction Materials in 2016, which included the Hope cement plant. The acquisition boosted Breedon’s financial results in 2017 giving it a revenue of Euro523m and it described the year as the, “…most eventful year in the group’s history.”

Lagan Cement operates a 0.7Mt/yr plant in Kinnegad in Ireland. In late 2012 it proposed a joint venture with Quinn Building Products. However, the deal fell through in early 2013 following the receipt of a package containing a bullet which was sent in the post to the Lagan's chief executive, Kevin Lagan. The bullet, which was sent to Lagan at his Belfast office, was accompanied by a message stating, "Quinn ... is this what you want".

Ireland: Ernst Bärtschi has retired from the board of CRH. He was appointed to the board of directors in 2011. A Swiss national he was previously the chief executive officer of Sika and had worked for Schindler Group.

Ireland: The Environmental Protection Agency (EPA) has started legal action against Irish Cement’s for alleged breaches of its operating licence at its Limerick plant. A court summons is related to dust ‘blowouts’ from the plant, according to the Limerick Leader newspaper. The case is scheduled to come before the Limerick District Court in early March 2018. The EPA investigated dust emissions from the plant in April 2017.

Ireland: CRH’s like-for-like group sales for the third quarter of 2017 rose by 3%, boosted by continued underlying growth in the Americas, although some operations were hit by adverse weather. CRH, which is in the final stages of buying US-based Ash Grove Cement for Euro2.98bn, added that it continues to expect another year of progress in 2017, with earnings before interest, taxes, depreciation and amortisation (EBITDA) of more than Euro3.2bn. This is 2.2% higher than the Euro3.13bn EBITDA it saw during 2016.

Group sales for the nine months as a whole were Euro20.7bn, an increase of 2% compared to the same period if 2016. EBITDA for the nine months was also 2% higher at Euro2.43bn.

South Africa: Ireland’s CRH is considering making a bid for PPC according to unnamed sources quoted by Bloomberg. However, no final decision has been made and neither CRH nor PPC have commented on the matter. Following an offer made by Fairfax Financial Holdings in September 2017, PPC said that it had received two other offers. Nigeria’s Dangote Cement publicly admitted that it was in talks with PPC but it later withdrew from the bidding process.

The last week marked a step change to the US industry with the news that Ireland’s CRH has agreed to buy Ash Grove Cement. The latter is the largest remaining cement producer still owned by an American company. Its history dates back 135 years to its founding in 1882, with links to the Sunderland family for over a century. Following the acquisition, each of the top five cement producing firms in the US will be operated by multinational corporations based in foreign countries.

Although this scenario is not new to many other countries around the world, it is rare for a nation with a cement industry of this scale. The US is the third biggest cement producer worldwide. Out of the top ten cement producing nations Global Cement Magazine identified in its Top 100 Report 2017 feature [LINK] in December 2016 only Egypt doesn’t have a local company to match the multinationals. China has China National Building Material (CNBM), for example and India has UltraTech cement and so on and so forth.

The actual sale covers Ash Grove Cement’s eight cement plants and 23 cement terminals, as well as its ready mix concrete and aggregate businesses, for US$3.5bn. Altogether its cement plants have a production capacity of 9.5Mt/yr and this really puts into contrast the Cementir Italia deal last week. HeidelbergCement has agreed to buy that company for around Euro57/t. CRH is buying Ash Grove Cement for US$368/t. That’s more that five times as much!

To be fair they are very different markets, with Italy’s cement sector consolidating near the bottom of a business cycle and the US growing with some promise. For comparison with other recent US acquisitions, CRH is offering to pay about the same as Summit Materials did to Lafarge for a cement plant and seven terminals in mid-2015. Other than that a few of the more recent transactions have been between US$200 – 300/t. The gradual price inflation for cement production capacity indicates that there is confidence in the US cement market.

In terms of CRH’s enhanced presence in North America following the completion of the deal, it currently operates two cement plants in the US: the American Cement Sumterville plant in Florida, a joint venture with Elementia, and the Trident plant in Montana. The CRH US division also runs five terminals in the Midwest and Northeast. This compliments Ash Grove Cement’s presence in the West, Midwest and South. Throw in CRH’s Canadian cement plants in Ontario and Quebec and CRH has the makings of a seriously strong cement business in North America. The only obvious impediment could be the close proximity of the CRH Trident plant and the Ash Grove Cement Montana City plant. Both are in Montana within 115km of each other and they are the only integrated plants in the state. A Federal Trade Commission arranged divestment in this location seems likely.

Ash Grove Cement’s chairman Charlie Sunderland, described CRH as his company’s biggest customer when the acquisition was announced. Buying Ash Grove Cement fills in one more piece in CRH’s construction materials puzzle in North America. Its American divisions have generated more than half of its revenue since at least 2014 dominating asphalt, aggregate and ready mix concrete markets. Yet it has lacked a cement market presence to match this. This changes when the deal with Ash Grove Cement completes.

US: Ireland’s CRH has agreed to buy Ash Grove Cement for US$3.5bn. The American cement producer operates eight cement plants across eight US states, combined with ready mix concrete, aggregates and associated logistics assets across the US midwest. Once shareholder and regulatory approval is obtained the deal is expected to complete by the end of 2017.

"Ash Grove is an excellent addition to CRH's portfolio of businesses across North America as we seek to deploy our capital into high quality businesses that enhance our global asset base and provide opportunities to create shareholder value. We welcome the Ash Grove team to CRH and look forward to further developing our longstanding relationship as part of one company," said Albert Manifold, chief executive of CRH.

Before the purchase agreement Ash Grove Cement was the largest domestically-owned cement producer in the US. The company has operated for 135 years and over a century of this time it has been run by the Sunderland family.

Ireland: On 29 August 2017 an oral hearing began to hear submissions regarding plans by Irish Cement to use alternative fuels for energy in its plant in Limerick. The company is seeking to move away from using fossil fuels as a main source of material in its cement kiln in Mungret and to use recovered waste and tyres instead.

A number of local residents and members from action group Limerick Against Pollution (LAP) held a protest outside the hearing. LAP spokesperson Tim Hourigan said that residents were concerned about the possible release of toxins from the proposed process and that they were opposed to it going ahead. The hearing was also attended by local businessman and racehorse owner JP McManus, who said he was ‘concerned’ about the plans.

Representatives from Irish Cement told the hearing that the proposal would improve the long-term viability of the plant as well as help to reduce CO2 emissions and the plant’s reliance on imported fossil fuels. The hearing is expected to last until Friday 1 September 2017.