Displaying items by tag: LafargeHolcim

Malaysia: Lafarge Malaysia has appointed Yeoh Khoon Cheng as its chief executive officer (CEO). He has held the role of interim CEO since late 2018 and was also the company’s chief financial officer (CFO), according to the New Vision newspaper. Edward James Coultrup will succeed Yeoh as CFO.

Yeoh, aged 60 years, holds over 30 years of experience in the cement industry and 18 years of experience as a CFO. He has worked for LafargeHolcim’s subsidiaries and predecessor companies since 1999. He first held the CFO post in Malayan Cement Berhad, now Lafarge Malaysia, from 1999 until 2011. He has since been CFO at Lafarge Cement China and Huaxin Cement. He is a Certified Public Accountant and is a member of the Malaysian Institute of Certified Public Accountants (MICPA) and Malaysian Institute of Accountants (MIA).

Philippines: Holcim Philippines has launched a new blended cement product called Solido. It is intended to produce concrete that is better than that made from Ordinary Portland Cement (OPC) in terms of durability and compressive strength. The product is also more environmentally friendly than OPC as it uses less clinker. The cement producer is also offering technical training, test and field support to potential users. It says it has launched the product to support the country’s construction boom.

All the major multinational cement producers reported growing sales in 2018. Yet, the big growth was found outside of Europe, with China Resources Cement (CRC), Ultratech Cement and Dangote Cement all posting sales revenue growth of above 10%. Similarly, cement sales volumes continued to rise. CRC and Ultratech Cement were the standouts here, with the latter benefitting from its acquisitions including, most recently, Binani Cement. Concrete sales volumes were the same, rising for all the companies with the exception of Buzzi Unicem. It suffered market issues in Italy and Germany.

Graph 1: Sales revenue from selected multinational cement producers in 2017 and 2018 (Euro billions). Source: Company financial reports.

Graph 2: Cement sales volumes from selected multinational cement producers in 2017 and 2018 (Mt). Source: Company financial reports.

Graph 3: Ready-mixed concrete sales volumes from selected multinational concrete producers in 2017 and 2018 (Mm³). Source: Company financial reports.

With the major Chinese producers, including CNBM and Anhui Conch, yet to release their annual results for 2018, CRC is included in this roundup to give an idea of how that market is performing. Both CNBM and Anhui Conch have released profit alerts anticipating bumper results in 2018 though. This is likely due to boosted local cement prices.

The major story for the European-based producers was one of asset sales and debt reduction. LafargeHolcim returned to positive income in 2018 with a focus on its Strategy 2022 programme. HeidelbergCement’s earnings were hit by poor weather in the US and insufficient divestments. Cemex, although based in Mexico, retains a significant European presence and so it included here. It suffered from poor sales outside of its base in Mexico and the US. CRH continued on its trajectory as the world’s biggest building materials company with solid sales and earnings growth. Interestingly though given its expansion strategy in recent years CRH’s debt to earnings before interest, taxation, depreciation and amortisation (EBTIDA) ratio remains better than the other three majors above, even after its purchase of Ash Grove Cement in mid-2018 taken into account. Although other financial comparisons are worth considering, such as EBITDA margin.

Despite Cemex’s relatively high net debt compared to its peers it has been cutting its debt the fastest, at 8% to US$10.4bn in 2018. Its current plan is to reach an ‘investment-grade’ balance sheet by 2020. LafargeHolcim and HeidelbergCement are in ‘cuts’ mode leading to all sorts of speculation about where they might sell next. The wilder rumours in the press include preparations by LafargeHolcim to sell its entire operation in the Middle East and Africa. Similar tales about a sale in the Philippines are more credible but remain unconfirmed. HeidelbergCement is keeping its cards closer to its chest but poor performing territories that might be up for sale include some of its Italian plants and parts of Africa.

Of the larger producers without a European presence, Ultratech Cement has been negatively effected by energy costs during the nine months to the end of 2018 with its income and EBITDA down. Dangote Cement’s performance in 2018 was driven by sales at home in Nigeria although earnings elsewhere continued to grow.

With all of this in mind the scene appears set for a breakout by a major Chinese producer to buy a big bolt-on acquisition or expansion by regional or national players along the lines of that seen by Semen Indonesia or UltraTech Cement. Taiwan Cement has been ahead here with its purchase of a 40% stake in Turkey’s Oyak Cement but what we’re really waiting for is a majority position within a country or territory. At which point CNBM and the like will have earned its place in the 2019 version of this article. Perhaps the age of truly multinational cement producer is coming to an end as regional players become more prominent.

Russia: M Goncharov has been appointed as the chief executive officer (CEO) of LafargeHolcim Russia. He took up the role at the start of March 2019. G Brusco, the previous CEO, has been transferred to a role at LafargeHolcim’s headquarters in Switzerland, according to the AK&M Information Agency. E Molodtsova has separately been named as the subsidiary’s commercial director.

Zambia: The board chairman of Lafarge Zambia, a member of LafargeHolcim, has announced that Jimmy Khan has become the company’s new CEO, with immediate effect.
Khan holds a Bachelor of Science in Business with a major in Accounting and Information System from Virginia Tech University in the US. His 14-year career with Lafarge / LafargeHolcim has included appointments in Mauritius, Seychelles, Nigeria, France and North America.

UK: Wincanton has won a five-year deal with Aggregate Industries for the distribution of concrete products from a majority of its UK manufacturing sites. Under the new agreement, logistics firm Wincanton will operate a dedicated fleet of specialised vehicles, backed up by its national network, from 10 factories to customers across the country. This deal is in addition to two existing contracts, which cover distribution of bulk and packed cement from Aggregate Industries’ Cauldon works and the provision of Readymix assets.

"We have witnessed Wincanton’s ability to deliver on major national contracts at our Cauldon bulk operation. We have also seen how its commitment to continuous improvement can generate material benefits across the business. We are looking forward to the Wincanton team joining our concrete products operation," said Shaun Elliott, Head of Logistics, Concrete Products at Aggregate Industries.

Algeria: LafargeHolcim Algeria has exported 10,000t of white cement to South Africa via the port of Oran to Cape Town. The consignment consists of its ‘Super White’ product from its Oggaz plant, according to the Algeria Press Service. The local subsidiary of LafargeHoclim operates two cement plants, at M’Sila and Oggaz respectively, and it runs a third plant at Biskra as a joint venture with Souakri Cilas Group.

Philippines: Companies including Japan’s Taiheyo Cement, Thailand’s Siam City Cement and China’s Anhui Cement have been linked to the sale of Holcim Philippines. Local companies include Eagle Cement and DMCI Group, according to sources quoted by the Philippine Star. Non-binding offers were have been submitted in February 2019 but it is not clear which companies were involved. However, no agreement has been reached on price yet. LafargeHolcim has reportedly looking at selling its business in the Philippines as part of a review of its operations in South-East Asia.

Spain: LafargeHolcim España says it is considering whether to keep its Sagunto cement plant open due to a dispute with the local government over an expansion to its quarry. The Valencian local government is set to block the plans, according to the Expansión newspaper. The cement producer maintains that preventing the expansion of the quarry will damage the plant’s development in the short to medium term.

Egypt: Lafarge Egypt has been named as the sole cement supplier for base construction work by China State Construction Engineering (CSCE) for the Central Business District in the New Administrative Capital. The subsidiary of LafargeHolcim will supply its cement based on a framework of the long-term partnership between Lafarge Egypt and CSCEC to erect several high-rise buildings, including a tower that is set to be the tallest in Africa. It will use its Hydrocem Plus cement product for the project. Lafarge Egypt will also take part in the concrete pouring for the foundations.

"We are proud to hold such a long-term cooperation with CSCE for the construction of such a historical project and we value their trust in our products’ quality, which magnifies our capabilities in providing tailored and unique products and solutions to meet our customers' needs. Additionally our capability as a company helped us supply large quantities of cement in a short time which helped complete the pouring in 40 consecutive hours only," said Hussein Mansi, Chief Executive Officer of Lafarge Egypt.

Lafarge Egypt is also engaged in a number of projects in the New Administrative Capital project, including different types of concrete products and steel fibres.