Displaying items by tag: Italcementi
Italcementi bucks trend with Euro150m eco-investment
25 October 2012Italy: Italcementi has announced that it will invest Euro150m in order to revamp its cement plant in Rezzato, which was built in 1964. Italcementi has stated that it wants to turn the plant into the most modern and ecological cement plant in Europe, with work set to start in November 2012. It said that the opening of the adapted plant would be scheduled for some time towards the end of 2014.
Italcementi's CEO Carlo Pesenti said that the restructuring would lead to an improvement in the environmental and economic sustainability of the plant, as well as cutting production costs by 23% and reducing specific consumption of raw materials by 8%.
Italcementi plant seized by court for EU emissions breach
11 October 2012Italy: Italian police have impounded Italcementi's Colleferro plant south of Rome for allegedly breaching emission limits. The company has been given 10 days to finish updating its facilities to bring them in line with European Union regulations. Production will continue during this period.
Italcementi said that the process of updating the plant had already been underway and would continue under special administrators appointed to operate factory by an Italian court. Colleferro has a capacity of 1.5Mt/yr and employs about 200 workers.
Justice officials said that the seizure for violation of pollution regulations was ordered by a court in the nearby town of Velletri, based on a report by the regional environmental protection agency, Arpa. This is the second case so far in 2012 of an Italian court seizure of a major factory for environmental reasons. Europe's biggest steel plant Ilva, based in southern Italy, was ordered to shut down in September 2012 by a court due to toxic emissions.
Italian workers occupy cathedral bell tower to protest layoffs
26 September 2012Italy: Two Italcementi workers have protested against company layoffs by occupying the bell tower of the Cathedral of St. Nicholas in Sassari, Sardinia. The workers climbed up on 19 September 2012 in what they described as a 'sit-in prayer'. Union representative Simone Testoni said that workers to be laid off in November 2012 still haven't been told what the company's next move will be.
Italcementi reached a deal in 2008 with the regional government in which it pledged that while consolidating all its operations on the island, it would transfer existing employees rather than lay them off. Yet in May 2010 the factory closed. Italcementi blamed the economic crisis.
Zuari Cement settles with L&T for US$33.8m
28 August 2012In July 2012 L&T filed for arbitration proceedings against the cement maker to claim US$33.8m in unpaid bills and payment delays. L&T alleged that Zuari failed to pay US$5.66m it owed to the engineering company for the construction of a 5500t/day cement plant at Yeraguntala in Andhra Pradesh. L&T claimed the rest of the amount as a penalty for payment delay and for cashing a performance guarantee.
West China Cement profit collapses by 65% in first-half
17 August 2012China: West China Cement's net profit has fallen by 64.6% to US$23.4m in the first half of 2012. The cement producer's revenue dropped by 7.2% to US$250m in the same period.
Yet West China Cement expects better profits and revenue in the second half of 2012 as production capacity rises by up to 50%. "Our production costs will go down as our scale increases," said company chairman Zhang Jimin. "Our gross margin will rise in the second half. With selling prices and sales volume rising, our profits and revenue will increase." Zhang added that the company's cement sales would be boosted by infrastructure projects in Shaanxi province, including the Datong-Xian high-speed-rail project and the second Xian-Ankang rail project.
On 8 August 2012 US 'short seller' Glaucus Research Group accused West China Cement of fraud, inflated profits and suspicious acquisitions. West China Cement executive director Low Po Ling said that her company was consulting its lawyers and that is had reserved the right to take legal action against Glaucus. Low said that since the Glaucus report came out, Italcementi Group, West China Cement's third-biggest shareholder, had held discussions three or four times with the mainland company. "Italcementi was very unhappy. It will issue a statement," said Low.
How much is an Indian cement plant worth?
08 August 2012Anyone need a spare cement plant? If so then it looks like India is the place to head to this week.
First, Italcementi denied that it was in talks with Jaiprakash Associates to buy one of their Jaypee Cement plants. Then, after much speculation, CRH announced publicly that it had entered negotiations to purchase an equity stake in Jaypee's entire cement business. In addition the Indian government has also revived a plan to sell six Cement Corporation of India (CCI) factories that have been closed for almost 10 years.
All of this raises a question: how much are Indian cement plants actually worth?
According to one source, Italcementi was thought to be offering US$100/t (installed capacity) in the bid it supposedly made but has denied making. Jaypee 'wanted' US$150/t. However analyst commentary with the CRH announcement suggested that Jaypee's asking price was too high! This is hardly surprising. Back in June 2012 when Jaiprakash announced that it was selling its plants it was reported that Holcim was offering up to US$160/t. Alongside the CCI story an analyst was quoted as putting the cost of Indian cement production capacity at US$110/t-US$120/t. Yet these plants have been shut for a decade.
Unlike in Europe, Indian cement industry profits have been rising in double digits in recent years. However, input costs like energy and transport are rising and they are starting to hit margins listed in quarterly reports. Serious additional costs have also arisen from the anti-cartel fines issued by the Competition Commission of India. Throw in questions on infrastructure raised by last week's nationwide power-cuts and Italcementi's (non)decision to stick to US$100/t seems prescient.
Unlike Italcementi however CRH has money to spend. Back in June 2012 it was reported that the company had Euro1.5bn to invest. With Euro250m gone in the first half of 2012 on so-called 'bolt-on' acquisitions that still leaves plenty in the pot to pick up the CCI plants. Now that would be a surprise.
Italcementi results for 2012 so far
01 August 2012Italy: Italcementi Group has released consolidated results for the six months to 30 June 2012, which show mixed results across its operations. Revenue and earnings were both down, as was the group's net profit, which was drastically down due to the absence of a major one-off receipt seen in the year-ago period. The company announced that it expected the second half of 2012 to be broadly in line with that of 2011.
The group's consolidated revenue for the first half of 2012 was Euro2.29bn compared to Euro2.42bn in the first half of 2011. Recurring earnings before interest, tax, depreciation and amortisation (EBITDA) came in at Euro328.7m compared to Euro371.7m in the first half of 2011. Italcementi's total profit for the period was Euro0.8m, compared to Euro187.8m in the first half of 2011. This apparent drop was due to the absence of a receipt from the sale of Turkish operations, which was conducted in the first half of 2011.
In the first half of 2012 consolidated cement and clinker sales totalled 23.5Mt, a drop of 7.5% compared to the first half of 2011. The reduction was largely due to the decline in central western Europe and, to a lesser degree, in Egypt. Sales in Asia continued to make good progress and sales volumes in North America and Bulgaria showed a strong recovery.
Italcementi said that its first half results confirm the upturn in North America and the recovery in prices in some markets, although demand was down in the Eurozone. Among emerging countries, it recorded positive market performances in India and Morocco, while the sales trend in Egypt remained negative, although better than expected. It added that its withdrawal from the Turkish market a and new strategic agreement in China had generated positive impact on its financial position.
Going forward, Italcementi said that the effects of efficiency measures, together with a positive dynamic in prices on a number of markets should enable it, in the absence of currently unforeseen events, to reach full-year operating margins broadly in line with those of 2011.
Italcementi back in the red
08 May 2012Italy: Italcementi has posted a net loss of Euro34.6m for the first quarter of 2012, compared with a net profit of Euro127.6m for the same period of 2011. The 2011 results benefited from the sale of Italcementi's operations in Turkey.
Revenues fell by 6.8% year-on-year to Euro1.07bn. Recurring earnings before interest, tax, depreciation and amortisation (EBITDA) dropped by 3.1% to Euro126.7m and EBITDA went down by 8.7% to Euro135.5m. Earnings before interest and tax (EBIT) slumped by a massive 41.4% to Euro21.3m.
Italcementi posted a pre-tax loss of Euro7.8m for the quarter compared with a pre-tax profit of Euro24m for the first quarter of 2011. Its net financial debt rose to Euro2.18bn on 31 March 2012 compared to Euro2.09bn at 31 December 2011.
Italcementi opens Euro40m research centre
18 April 2012Italy: Italcementi has inaugurated its new research centre, i.lab, costing Euro40m near Bergamo in northern Italy. Once complete the centre, which was designed by US architect Richard Meier, will cover 23,000km3 and will employ 1300 researchers.
Italcementi will focus the research on the development of new building materials and on the use of renewable and reusable raw materials. The centre will also research special products such as 'pollution' cement.
In 2010, Italcementi's ITCLab received the European Greenbuilding Award of the European Commission for energy efficient construction and now the centre can also boast Leadership in Energy and Environmental Design platinum certification. The centre allows energy saving of up to 60% compared to traditional buildings, director general Giovanni Ferrari said.
Italcementi faces Egyptian strikes
21 March 2012Egypt: Italcementi subsidiary Suez Cement has announced that workers at two of its factories in Suez and Katamiya started a strike on 14 March 2012. The strike has halted shipping at these plants although production has not been affected. In a separate statement Suez Cement said that strike action at its Tourah plant ended on 20 March 2012.