Displaying items by tag: Lafarge

France: Twelve Lafarge employees have gone on hunger-strike to oppose the closure of the company's plant in Frangey, Haute-Savoie, France. The French cement giant took the decision to close the site by April 2013 in May 2011 and the trade union CGT fears that Lafarge wants to close another five cement units in the future.

UK: Lafarge Cement's vision for the future is starting to take shape at the company's former cement works at Northfleet in Kent, UK, where it is conducting a major investment to reconnect rail freight facilities to the main north Kent line. Lafarge expects the rail sidings to be operational by mid February 2012.

The first main user of the restored line will be the cross-London rail project, Crossrail, which will transport excavated material from a tunnel bore near Paddington, London by train to Northfleet for onward transportation by ship.

Balfour Beatty Rail is carrying out all the design and construction of the new sidings and connection to the main line, whilst Chunnel Group has carried out the siding preparation works within the main site. The overall length of the rail link is around 2.25km and in total 4.75km of new track will be provided.

The 104-acre site is undergoing redevelopment by Lafarge in association with the Councils of Kent and Gravesham. The linkage of the site to the main line represents another important step in the regeneration of Northfleet embankment.

Hungary: The Austrian construction group Strabag SE has invested some Euro270m in the construction of a new cement plant in southern Hungary, according to Strabag's CEO Hans-Peter Haselsteiner. Strabag will work with its partner Austrian Lafarge Cement CE Holding on the construction of the 1.25Mt/yr facility. The plant will be used exclusively for Strabag's own construction activities, bringing operational savings to the group.

Haselsteiner expects depression in the construction industry over the upcoming years, but remains positive in the long run.

Indonesia: Lafarge is planning to build a new cement plant in Langkat district in North Sumatra. The USD406m, 1.5Mt/yr plant is expected to be open for business by 2015. The head of North Sumatra Mines and Energy Office, Iskandarsyah, said "No license has been issued for Lafarge which will build cement plants in Kuala and Bahorok, Langkat." The head of the North Sumatra provincial Industry and Trade office, T Nilfan Shahari reitterated earlier announcements that new cement plants were welcome in the region.

The 300 hectares for the cement plant which will be located in Parit Bindu village, Kuala sub-district. 73 hectares are in Batu Katak village, Bahorok sub-district and another 227 hectares in Batu Katak Bahorok village, which is rich in natural limestone.

UK: The Office of Fair Trading (OFT) has referred the proposed UK construction materials joint venture between Anglo American plc and Lafarge SA to the Competition Commission for further investigation. The companies had proposed the establishment of a 50:50 joint venture to which each of them would contribute the bulk of their construction materials businesses in the UK.

The OFT concluded that competition concerns arise in a number of markets including: overlaps in the supply of aggregates, asphalt and ready-mixed concrete in a large number of local areas (as well as particular types of aggregates at regional and national level); an overlap in the supply of bulk grey cement at a regional and/or national level, as well as, separately, an increased prospect of coordination in the supply of bulk grey cement; and a concern that the joint venture could foreclose independent ready-mix concrete suppliers by making it substantially more difficult for them to source bulk grey cement at competitive prices.

Ali Nikpay, OFT Senior Director, said - "The proposed joint venture would bring together Tarmac's and Lafarge's construction material assets in the UK. This represents a significant structural change in this sector and raises serious competition issues in several markets which need to be considered in detail by the Competition Commission. Although the parties did offer to divest a variety of assets in order to try to resolve the issues identified, we are not confident that the package proposed would clearly remove our concerns in all areas."

Anglo American and Lafarge provided a significant quantity of information and analysis to the OFT to inform its review. The OFT also received information from around 300 customers and competitors of the two parties as part of its merger investigation. The Competition Commission is expected to report by 16 February 2012. This announcement follows the OFT's decision in August 2011 to refer the UK cement, ready-mix concrete and aggregates sectors to the Competition Commission.

Malaysia: Lafarge Malayan Cement Bhd's pre-tax profit for the quarter ending 30 June 2011 increased to USD34.86m from USD30.6m in the corresponding quarter of 2010. The company attributed the improved result mainly to higher revenue and share of better results from its associated company but added that this was partly offset by the higher cost of fuel and raw materials. A 10% increase in electricity tariff, which came in on 1 June 2011, further added to the cost of production. The company's revenue for the quarter rose to USD223.5m from USD198m in the 2010 quarter.

For the first six months of 2010, its pre-tax profit rose to USD57.9m from USD49.7m in 2010. Its six-month revenue rose to USD425.3m from USD381.8m. The company also attributed this 11% year-on-year increase in first half revenue to higher domestic sales volume and better selling prices.

UK: Plans to burn used tyres and plastics for energy at Lafarge's Aberthaw works in South Wales have been submitted to the Environment Agency for approval. Lafarge's comes after it sent out 5000 letters to residents explaining the latest proposals and held two public consultations. The proposal has previously sparked concerns among some residents and environmentalists.

The plant's management team says that the move would cut costs and reduce coal burning and CO₂ emissions. The proposal comes six years after the Lafarge meat and bone meal (MBM) from cows and sheep as a sustainable waste-derived fuel at the plant. If the move is approved by the Environment Agency, the used Solid Recovered Fuel (SRF), including papers and plastics, and end-of-life car and van tyres, could save up to 15,500t/yr of coal and reduce carbon dioxide emissions by up to 20,000t/yr.

James Kirkpatrick, manager at the Aberthaw works, which has an integrated capacity of 0.55Mt/yr, said the plan had been prompted by increased competition in the cement market and a serious downturn in demand for construction products. "Since it was introduced in 2005, we have used 50,000t of MBM which has significantly reduced our consumption of fossil fuels," he said. "Extending the range of sustainable waste-derived fuels we can use offers us a good way to keep a check on our costs which have been escalating."

Keith Stockdale, secretary of Barry and Vale Friends of the Earth, said, "The Environment Agency will have to impose strict conditions on the burning of this potentially hazardous waste."

Europe: Several European cement producers have announced financial results for the second quarter and the first half of 2011. On 28 July 2011 Lafarge, the world's largest cement producer, announced that its profit fell by 16%, in part due to higher material costs (Read full story here). Other European producers have seen a mixed bag of results for the quarter, with Ciments Français and HeidelbergCement both reporting improvements over the year. Unlike the multinationals however, Cementos Molins and Titan, which both have significant interests in markets that are currently depressed, have had bad quarters.

Ciments Français took a consolidated revenue of Euro2.04bn in the first six months of 2011, down by 1.8% on the year. The group's recurring earnings before interest, tax, depreciation and amortisation (EBITDA) were down more significantly, by 12.8%, at Euro386.4m and its net profit was Euro232.2m. This compares favourably with the Euro166.9m made in the six months to 30 June 2010. The group's net debt was down by Euro218.2m to Euro1.19bn. Group sales volumes in the first six months of 2011 remained relatively stable (-0.7%) for cement and clinker at 21.9Mt. Sales volumes increased in India (+16.3%), France and Belgium (+10.8%), Thailand (+6.6%) and Morocco (+6.0%). Volumes dropped in Greece (-26.1%), Bulgaria (-25.0%) and Egypt (-14.1%). Volumes remained fairly steady in the group's other markets.

HeidelbergCement (HC) announced that its net profit grew to Euro208m in the second quarter, up by 25% on the same period of 2010. Revenue rose only slightly (3%) on the year to Euro3.4bn, burdened by negative exchange rate effects. The group's operating profit dropped by more than 10% to Euro441m, which the company attributes to rising energy costs that have not been offset by the implemented price increases. "Despite a positive development of revenue and results, we are not satisfied with the second quarter," said HC's CEO Bernd Scheifele, who added that the group's FOX 2013 fiscal savings programme had so far generated savings of some Euro134m. Its turnover for the second quarter was Euro3.39bn.

The attributable profit of the Spanish cement company Cementos Molins for the first half of 2011 went down by 57.8% year-on-year to Euro11.64m. Its turnover inched up by 0.6% to Euro400.23m. The 15% increase in the company's international operations offset a massive 24.7% fall that it registered in the domestic market. Its EBITDA amounted to Euro76.19m between January and June 2011, an annual decline of 16.2%.

Meanwhile, analysts are predicting an even worse time for Greece's Titan when it announces its results on 2 August. They expect its profit to drop by a staggering 64% amid the ongoing weakness in the Greek and US markets where Titan has a significant majority of its assets.

France: Lafarge has released its financial results for the second quarter and first half of 2011 which show strong cement volume growth. The group's sales were stable in the second quarter of 2011 at Euro4.42bn but current operating income was down by 16% on the year to Euro702m. For the first half of 2011, sales were up by 3% to Euro8.0bn but current operating income was down by 14% to Euro926m.

Sales increased on a like for like basis in all product lines for both the quarter and first half of 2011, thanks to strong volume growth driven by continued strength in emerging markets. Cement prices moved progressively higher from the fourth quarter of 2010 to the second quarter 2011, but were slightly down compared to the first-half of 2010.

Lafarge achieved Euro50m of structural cost savings in the quarter and has achieved Euro100m of savings in 2011 to date and has agreed to sell its Australian, South American and European gypsum wallboard assets.

Bruno Lafont, Chairman and CEO of Lafarge, said, "While I am encouraged by the return to cement volume growth for the last several quarters, the impact of high inflation and a slow recovery in mature markets has weighed on the cement sector. The group is focused on its priorities, including price actions in response to a high-cost environment and strategic moves with its asset portfolio, to support profitability and reduce debt by at least Euro2bn in 2011. The business will continue to benefit from volume growth thanks to our continued development in emerging markets."

Lafarge expects to see cement demand continuing to move higher and estimates market growth of 2-5% in 2011 compared to 2010. Emerging markets continue to be the main driver of demand and Lafarge benefits from its well balanced geographic spread of high quality assets.

Cement sales were stable in the second quarter (up by 3% like for like) and up 3% in the first-half (up by 3% like for like), reflecting volume improvements in emerging markets and new capacities acquired in Brazil offset by the negative impact of foreign exchange.

Volumes increased by 9% in the quarter (up by 6% like for like) and by 8% in the first-half (up by 5% like for like), with growth driven by the Middle East, Africa and other emerging markets. Despite the Group's cost reduction program, higher cost inflation and foreign exchange put pressure on results and margins.

India/Bangladesh: Khaitan & Co has won Supreme Court (SC) approval for French cement company Lafarge to mine limestone in India's north-eastern region in a landmark ruling that will likely set the tone for future reforms in environmental governance. Khaitan & Co litigation partner Sanjeev Kapoor instructed senior advocates for the company, which had commenced mining activity in Meghalaya as a French-Spanish joint venture Lafarge Umiam Mining.

Lafarge successfully defended allegations of fraud and wilful concealment of the facts while contesting the case after 2010's prohibition from mining in the area. The company's project involved sending limestone across the Indo-Bangladesh border on a conveyor belt as raw material for its cement plant in Bangladesh.

"This is a landmark judgement in the context of the environment and mining, especially for projects involving use of forest land for non-forest purposes. The judgement dwells deep into many areas that were until today untouched by any judicial interpretation," said Khaitan & Co. in a statement.

The SC forest bench has upheld the decision of the Ministry of Environment and Forest (MoEF), which had granted revised environmental clearance, site clearance and stage-1 forest clearance to Lafarge. The bench, comprising chief justice S H Kapadia and justices Aftab Alam and K S Radhakrishnan dismissed the petition of 21 tribal activists under Shella Action Committee opposing Lafarge's mining activity in the forest region. The court took into consideration the principles of economic sustainability and environmental viability while laying down significant guidelines such as appointment of a 'National Regulator' to appraise projects, enforce environmental conditions and to impose penalties on polluters.

The court held that, "The word 'development' is a relative term. One cannot assume that the tribals are not aware of principles of conservation of forest. In the present case we are satisfied that limestone mining has been going on for centuries in the area and that it is an activity that is intertwined with the culture and the unique land holding and tenure system of the Nongtrai Village. On the facts of this case, we are satisfied with due diligence exercise undertaken by MoEF in the matter of forest diversion."