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News Kazakhstan

Displaying items by tag: Kazakhstan

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Gezhouba Shieli invites investors for Kazakh project

11 October 2017

Kazakhstan: Gezhouba Shieli Cement Company LLC is now inviting international banks and financial institutions to support the construction of its planned cement production plant in Kyzylorda region, Kazakhstan, according to Li Jinqing, the company's general manager. Gezhouba Shieli is a thee-party joint venture (JV) between China Gezhouba Group Corporation Limited (CGGC) (50%), China Gezhouba Group Overseas Investment Co., Ltd (20%), a subsidiary of CGGC, and a local cement company (30%).

The cement production line will require a total investment of around US$200m, of which 70% will be funded through bank loans. At present, CGGC is actively in communication with some Chinese banks and financial institutions, including Export-Import Bank of China (EIBC) and China Development Bank Corporation (CDB). The plant is designed to have a production capacity of 2500t/day. It is expected to be operational by the end of 2018.

China Triumph International Engineering Co Ltd (CTIEC) won the engineering, procurement and construction (EPC) contract in April 2017, while its subsidiary Beijing Triumph International Engineering Co., Ltd will take responsibility for design work, according to Qian Yingchun, the project leader at CTIEC. More equipment will be required as construction progresses.

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Steppe Cement fights market contraction with price rise

18 July 2017

Kazakhstan: Steppe Cement has counteracted falling sales volumes with a price rise. Its sales volumes of cement fell by 15% year-on-year to 0.65Mt in the first half of 2017 from 0.76Mt in the same period in 2016. However, its sales revenue rose by 4% to US$26m from US$25m.

Overall the cement producer said that the country’s cement market contracted by 1% during the reporting period. Cement shipments from local producers rose by 5% though as imports remained flat and exports doubled due to favourable foreign exchange rates. Steppe Cement’s local market share fell to 15% from 18% but its exports rose markedly to 11% of its sales from 4%. The cement producer forecasts that the country as a whole will consume 9Mt of cement in 2017.

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Karaganda cement plant secures US$3m loan from VTB Bank Kazakhstan

12 May 2017

Kazakhstan: Karaganda cement plant has secured a US$3m loan from VTB Bank Kazakhstan to finance production growth at the unit. The Bank and Karcement JSC, which owns the cement plant, signed a corresponding agreement within the state program aimed at the development of domestic producers, according to the Trend News Agency. The plant has a production capacity of 3.6Mt/yr and it had been in operation since 1953.

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Seven Refractories opens plant in Kazakhstan

17 March 2017

Kazakhstan: Seven Refractories has opened a plant in Karaganda with a production capacity of 40,000t/yr. The first production run was completed in mid-February 2017. The unit is the Slovenian company’s most easterly production site.

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Cement production in Kyrgyzstan hit by imports since joining the Eurasian Economic Union

27 February 2017

Kyrgyzstan: Cement produced in Kyrgyzstan has become ‘uncompetitive’ since the country joined the Eurasian Economic Union. The State Committee for Industry, Energy and Mining has blamed this on high volumes of imports from Kazakhstan, according to the Tazabek newspaper. The country has five integrated cement plants.

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Rudny cement plant to start operation in 2017

17 February 2017

Kazakhstan: The Rudny cement plant in the Kostanai region is due to be commissioned in 2017. The US$46m unit has a cement production capacity of 0.5Mt/yr, according to a local government official reported upon by Interfax. Construction of the plant has been put on hold repeatedly since 2010 due to lack of financing.

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Kokshe Cement to launch cement plant later in 2017

26 January 2017

Kazakhstan: Commissioning of the Kokshe Cement plant in the Akmola region is expected to be completed later in 2017. Construction and installation work at the site has been completed, according to the Kazakhstan government. The plant will have a cement production capacity of 2Mt/yr and it has cost US$187m to build.

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Steppe Cement revenue falls by 8% to US$54m in 2016

13 January 2017

Kazakhstan: Steppe Cement’s revenue has fallen by 8% year-on-year to US$54m in 2016 from US$59m in the same period in 2015. Sales volumes of cement fell by 4% to 1.57Mt from 1.64Mt. The drop in revenue and sales volumes was blamed on increased competition and the start-up of two cement kilns in the country.

The cement producer reported that the country’s cement consumption fell by 8% to 8.9Mt in 2016. It imported 0.5Mt and exported 0.4Mt, with imports falling and exports rising respectively. The cement producer said that its market share was 17% in 2016. It will publish its full financial results for the year in April 2017.

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Steppe Cement reduces loss in first half of 2016

14 September 2016

Kazakhstan: Steppe Cement has reduced its consolidated loss after tax to US$1.5m in the first half of 2016 from US$2.2m in the same period in 2015. Its turnover fell by 47% year-on-year to US$23.7m from US$44.7m due to a devaluation of the Kazakh Tenge. Despite this, it increased its sales of cement by 6% to 0.76Mt from 0.72Mt.

The cement producer reported that the Kazakh cement market decreased by 10% during the first half of 2016. It expects a market of about 9Mt in 2016, down from 9.6Mt in 2015. Steppe Cement has increased its market share to 18% year-on-year in the reporting period from 16% and it expects to reach a share of 19% for the full year. Imports of cement into Kazakhstan have decreased by 63% in 2016 as the Russian Rouble exchange rate has returned to its historical level against the KZT. Imports represent 5% of the market down from 12% in 2015.

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Huaxin Cement’s sales fall by 11% to US$860m in first half of 2016

26 August 2016

China: Huaxin Cement’s sales revenue has fallen by 11% year-on-year to US$860m in the first half of 2016 from US$968m in the same period of 2015. Its net profit fell by 91% to US$1.21m from US$13.3m. The cement producer reported falling sales in most regions, with the exception of Tibet and Henan. Notable decreases in sales revenue occurred in Jiangsu, Jiangxi and Guangxi. The company blamed the result on falling prices caused by production overcapacity and ‘vicious’ market competition.

Outside of China the company has started operation at its 300t/day Gayur plant and it is building a 0.5Mt/yr grinding plant at Dangara in Tajikistan. Planning work has also been conducted at a 2800t/day cement plant at Narayani in Nepal and a 2500t/day cement plant at Aktobe in Kazakhstan.

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