Displaying items by tag: LafargeHolcim

Romania: The Competition Council says it has found irregularities in the cement market. Following an investigation started in the autumn of 2018 it has revealed that the country’s three major producers – Holcim, CRH and HeidelbergCement – were operating with high profit margins and similar market share, according to Business News Europe. It noted that geographic distribution of customers around the three companies’ production facilities might support a hypothesis of market collusion. It also reported similar production capacity utilisation rates between the main producers despite different production capacities.

The Competition Council has not drawn any conclusions from the report. Previously, it said that if it does find any evidence of cartel-like behaviour it could apply a fine of up to 10% of company turnover.

Malaysia: Lafarge Malaysia has resumed supplying cement to the East Coast Rail Link project. The cement producer has been asked to continue supplying the project until the end of 2019, according to the Star newspaper. The US$65m contract was originally agreed in March 2018 but then suspended in July 2018 when the government reviewed the project.

India: Customers of Ambuja Cement have been deceived by a fake website pretending to take orders for the company. Victims of the fraud have notified the police in Mumbai, according to the Times of India newspaper. The fraudulent website obtained orders, raised invoices and promised delivery following the receipt of advance payment. When the customers failed to receive the goods they approached Ambuja Cement and the deception was revealed. So far around US$2500 has been reported lost.

Zimbabwe: Switzerland’s LafargeHolcim has lent US$30m in the form of a long-term loan to Lafarge Zimbabwe. The company has taken out a short-term loan of US$4.4m from a local bank, according to the Zimbabwe Independent newspaper. In its financial results for the 2018 the cement producer reported that its revenue grew by 24% year-on-year to US$72m in 2018 and that its profit before tax grew strongly to US$4.4m.

Algeria: Ciment Lafarge Souakri (CILAS) has started exporting a consignment of 30,000t of cement to Cameroon. The operation was handled via the port of Annaba, according to Radio Algeria. It is the cement producer’s sixth large-scale export operation to another Africa country. The subsidiary of LafargeHolcim is using Lafarge Trading to supply logistical support.

Malaysia/Singapore: Switzerland’s LafargeHolcim has signed a deal to sell its 51% stake in Lafarge Malaysia to YTL Cement for US$396m. Lafarge Malaysia operates three integrated cement and two grinding plants. With the divestment, LafargeHolcim will fully exit the Malaysian market. LafargeHolcim has also signed an agreement with YTL Cement Singapore for the divestment of its entire 91% share in Holcim Singapore.

YTL Cement is part of YTL Corporation, a Malaysian infrastructure conglomerate, which is active in cement production, construction, property development and utilities. The deal is expected to be completed within the second quarter of 2019. It is subject to approval by regulatory bodies.

India: Ambuja Cement’s net sales grew by 3% year-on-year to US$410m in the first three months of 2019 from US$398m in the same period in 2018. Its cement sales volumes rose by 2% to 6.37Mt from 6.22Mt. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 9% to US$66.7m from its net profit after tax increased by 57% to US$61.4m. The cement producer said that its focus on alternative fuels had partly mitigated a ‘significant’ rise in power and fuels costs.

Switzerland: The Board of Directors of LafargeHolcim will propose that its shareholders approve the appointment of three new Members of the Board, after acknowledgement of the departure of two current Board members, at the Annual General Meeting on 15 May 2019.

The Board of Directors will nominate Colin Hall, Naina Lal Kidwai and Claudia Sender Ramirez for election as new Board Members. Nassef Sawiris and Gérard Lamarche have decided not to stand for re-election.

As the Head of Investments of Groupe Bruxelles Lambert, a major shareholder of LafargeHolcim, Colin Hall will add extensive experience in international finance to the Board. As one of India's most successful businesswomen, Naina Lal Kidwai held a number of senior leadership positions at ANZ Grindleys Bank and HSBC in India and Asia Pacific. She has a particular interest in environmental topics. Claudia Sender Ramirez will bring to the Board her wide-ranging marketing and emerging market experience from leadership positions at LATAM Airlines Group and Whirlpool in Latin America.

Beat Hess, Chairman of the Board of Directors at LafargeHolcim, said, "On behalf of the entire Board I would like to thank Nassef Sawiris and Gérard Lamarche for their important contribution to the success of our company over the past years. I am very delighted that we are proposing three new members whose unique experience will complement the expertise of our existing Board members. It is a particular pleasure for me that with the new nominations we will be able to further increase the geographical and gender diversity of our Board."

All other current members of the Board of Directors will be proposed for re-election at the Annual General Meeting: Beat Hess (Chairman), Oscar Fanjul (Vice-Chairman), Paul Desmarais, Jr., Patrick Kron, Adrian Loader, Jürg Oleas, Hanne Birgitte Breinbjerg Sørensen and Dieter Spälti.

India: ACC’s sales rose by 8% year-on-year to US$551m in the first quarter of 2019 from US$509m in the same period in 2018. Its sales volumes of cement grew by 6% to 7.5Mt from 7.1Mt. Ready-mix concrete (RMX) sales volumes grew by 19% to 0.94Mm³ from 0.79Mm³. Its operating earnings before interest, taxation, deprecation and amortisation (EBITDA) increased by 8% to US$76.1m from US$70.4m.

"Our three-pronged strategy of customised solutions for consumers, focus on premium products and operational improvements are enhancing our bottom-line and powering ACC's strong growth trajectory,” said Neeraj Akhoury, managing director and chief executive officer (CEO) of the subsidiary of LafargeHolcim.

The company noted that fuel and slag prices rose in the quarter although this was compensated by market growth, cost reductions, fuel mix improvements and general production optimisation. It added that plant capacity utilisation improved during the reporting period. ACC also commission eight new RMX plants in the first quarter of 2019, bringing its total to 80.

Mauritius: Lafarge Mauritius has launched Lakaz Mazik, a cement bag that dissolves in a concrete mixer. The bag has been developed by Sweden’s BillerudKorsnäs, according to the L’Express newspaper.