Displaying items by tag: Loma Negra

Argentina: China’s Sinoma International says that it has successfully lifted the first steel column of the pre-heater tower on a 5800t/day production line it is building at Loma Negra’s L'Amalí cement plant. The work in late December 2018 marked the start of the installation phase of the project. It is the subsidiary of China National Building Material’s (CNBM) first engineering, procurement and construction (EPC) project in South America. When the project was first announced in late 2017 it had a completion date of early 2020.

Argentina: Aumund Brazil and Aumund China have collaborated with Sinoma Tianjin TDI to supply two clinker-conveying orders for cement plants. No value for either order has been disclosed.

Aumund will supply three chain bucket elevators, eight belt bucket elevators, five pan conveyors and a drag chain conveyor for Line 2 at Loma Negra’s L’Amali cement plant. The order also includes 19 silo discharge gates. In August 2017 Loma Negra awarded Aumund the order to build a second kiln line with a capacity of 5800t/day at the L’Amali plant in Olavarria in Buenos Aires province. The new line, which will produce 2.7Mt/yr of clinker, will be located adjacent to the existing kiln line. Production will start early in 2020.

In June 2018 Aumund Brazil worked with Aumund Brazil and Sinoma to supply four belt bucket elevators, three chain bucket elevators and three pan conveyors via Sinoma TDI to Cementos Avellaneda. Cementos Avellaneda is a joint venture operated by Brazil’s Votorantim Group and Spain’s Cementos Molins.

Argentina/US: US law firm Howard G Smith has filed a class action lawsuit against Argentina’s Loma Negra on behalf of investors that purchased securities in the company’s initial public offering (IPO) in late 2017. The legal complaint alleges that the cement producer misled investors by: misrepresenting Loma Negra's exposure to a corruption scandal affecting its owner, Brazil’s InterCement; misrepresenting demand for Loma Negra’s products; misrepresenting the general state of the Argentine economy; and including references to known potential risks that had already happened.

Loma Negra launched its IPO in November 2017. Since then cement sales in Argentina have fallen year-on-year in the second half of 2018 and the general economy has floundered. The local competition body, the National Commission for Protection of Competition, also started an investigation into alleged collusion and coordinated behaviour in the cement industry in May 2018

Argentina: Loma Negra’s net revenue grew by 42.3% year-on-year to US$435m in the first nine months of 2018 from US$305m in the same period in 2017. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 46.5% to US$113m from US$77.3m. Overall, its cement masonry and lime sales volumes remained stable at 5.1Mt but sales in Paraguay fell by 4.2% to 0.42Mt. Sales volumes fell in both Argentina and Paraguay in the third quarter of 2018.

Sergio Faifman, Loma Negra’s chief executive officer (CEO), said, “Our core Argentine Cement business, delivered both revenue growth and adjusted EBITDA margin expansion notwithstanding the challenging macro backdrop in the country in which our volume declined at a mid single-digit pace year-on-year in line with overall industry performance.”

The subsidiary of Brazil’s InterCement said that it is moving ahead with building a new US$350m production line at its L’Amalí plant. The new line will have a clinker production capacity of 5800t/day. The project is being built by China’s Sinoma International Engineering and it is expected to be completed by early 2020. Main equipment is expected to arrive at the site by the end of 2018 and the steel structure is under construction.

Argentina: Loma Negra has announced its results for the three and six-month periods that ended on 30 June 2018. Its net revenue rose by 37.2% year-on-year to US$202m, mainly driven by growth in its core cement, masonry and lime businesses in Argentina. Argentine cement, masonry and lime net revenues rose by 33.4%, despite relatively flat sales volumes.
Consolidated adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 26.9% year-on-year to US$49m, mainly driven by the 36.6% increase in adjusted EBITDA from Argentina. Cement, masonry and lime sales in Argentina came to US$42m.

Commenting on the financial and operating performance for the second quarter of 2018, Sergio Fairman, Loma Negra’s Chief Executive Officer, said, "Our core business, cement in Argentina, continued to deliver a solid performance, posting both revenue growth and EBITDA margin expansion despite the current challenging macroeconomic environment in the country. This was achieved despite relatively flat volumes year-on-year, as we continue with our strategy of balancing profitability and market position. Sustained growth in concrete volume demand, by contrast, was supported by ongoing implementation of public infrastructure projects in our key markets."

"Looking ahead, we remain cautiously optimistic with the cement demand outlook in Argentina. Despite the potential impact of an adverse macro environment in the second half of the year and, given current market conditions, we believe the industry could reach similar record volumes (to those) achieved last year."

Argentina: The National Commission for Protection of Competition (CNDC) has hastened an investigation into alleged collusion and coordinated behaviour in the cement industry. Cement prices increased by 13% in May 2018, according to La Nacion newspaper. So far in 2018 the price of cement has risen by 23% and the cement companies say that further price rises are expected in June 2018.

The local industry has blamed rising input prices of up to 50% due to local currency devaluation but the Argentine Peso has only fallen by 30% so far in 2018. The companies under investigation include Loma Negra, LafargeHolcim, Petroquimica Comodoro Rivadavia and others.

Argentina: Loma Negra’s sales and earnings have increased due to a strong market recovery in its domestic market. Its sales revenue rose by 54.8% year-on-year to US$752m in 2017 from US$486m in 2016. Its adjusted earnings before, interest, taxation, depreciation and amortisation (EBITDA) rose by 67.7% to US$194m from US$116m. Its cement and lime sales rose by 18.6% to 6.99Mt from 5.89Mt. The cement producer also benefited from an increased equity share of Paraguay’s Yguazú Cementos during the year.

“2017 was a pivotal year for Loma Negra marked by achieving significant milestones. Key events for the company last year included: volume and sales expansion benefitting from the economic momentum in Argentina, record EBITDA, commenced expansion of the L’Amalí plant and ending the year with the successful Initial Public Offering (IPO) – the largest Argentine IPO in almost 25 years and the largest ever for a cement company,” said Sergio Faifman, Loma Negra’s Chief Executive Officer.

Argentina: Loma Negra is considering using two trailer trucks or b-trains. The study follows a government relaxation concerning their usage in January 2018, according to the El Cronista newspaper. The cement producer is looking at using the longer trucks for both input materials and cement shipments. Due to a strong market locally most of the company’s 5.5Mt/yr cement production capacity is sold domestically.

Argentina: President Mauricio Macri has inaugurated a 24MW expansion to the Parque Eólico Rawson wind farm that will supply Loma Negra. Energy company Genneia has invested around US$40m on the project, according to Renewables Now news service. The unit has a 20 year contract to supply electricity to the cement producer. The renewable power purchase agreement between private companies is a first for the country.

Argentina: Loma Negra plans to spend US$350m on building a new 2.7Mt/yr production line at its Amalí plant in Olavarria. Production on the new line is scheduled to start in early 2020. Once operational it is expected to create 220 new jobs. The new line will include a new kiln, two new two vertical mill for raw and cement grinding and a bagging and palletising unit.