Displaying items by tag: Pakistan

Pakistan: Lafarge Pakistan has announced the appointment of Amr Reda as the new Country CEO. Prior to joining Lafarge Pakistan he was the Regional Business Controller Lafarge Middle East and Pakistan and has served as member Board of Directors' Lafarge Pakistan since January 2007.

"We are fortunate to have Amr as the new CEO and I have full faith that he will take the company to the new heights of professionalism. We will together work for the benefit of all stakeholders of the Company," said outgoing Lafarge Pakistan CEO Major General Rehmat Khan. Khan will take a new role as Chairman Board of Directors of Lafarge Pakistan.

Pakistan: Lucky Cement Limited has outperformed its competition by recording a 42.2% rise in its half-year profit for the year 2012-13. It has declared a profit for the half-year ending on (31 December 2012) of US$43.9m.The company's gross profit increased by 32.3% during the half-year as its net sales revenue improved by 13.9% to US$179.3m.

During the period under review, the combined sales revenue of Lucky Cement increased by 13.9%. This was attributed to a 21.3% growth in domestic sales and a 3.7% growth in exports.

To enhance the quality of cement and for capturing new export markets, Lucky Cement plans to replace its existing cement grinding mills from Chinese suppliers located at the Karachi plant with vertical mills from European suppliers. This replacement will reduce the cost of production due to more energy efficient operations.

Pakistan: Cement exports from Pakistan have fallen by 5.28% to 4.22Mt, according to figures on the first six months of the 2012-2013 financial year from the All Pakistan Cement Manufacturers Association (APCMA). However domestic cement sales increased by 7.61% to 11.7Mt in the same period. The Pakistan financial year runs from 1 July until 30 June.

A statement from the APCMA revealed that cement plants in the south of the country grew by 7.98% in the local market but posted even higher declines of 16.3% for exports. In the north, where the majority of the country's cement capacity of located, the industry posted a growth of 7.52% in domestic sales whilst exports declined by 1.31%.

The APCMA added that hype created on trade with India has so far not materialised and export in that market was only 0.209Mt during the last six months, a decline of 40.41% and a result well below the expectation of the cement sector. The APCMA spokesman blamed 'stringent non tariff barriers' from India.

During the last six months, the adjacent Afghanistan market remained stable and cement sector exported 2.41Mt. Exports to other destination through sea excluding India also remained stable in comparison with the last six months of 2011-12.

Pakistan: The cement industry has faced a shortage of raw material since Friday 7 December 2012 because truck owners have stopped picking up coal consignments for factories from Port Qasim, according to the All Pakistan Cement Manufacturers Association (APCMA). They are observing a strike against increased incidences of theft, extortion and the charges from the motorway police. The Pakistan cement industry consumes around 4.5Mt/yr of coal.

Coal and various other raw materials are not currently being transported to any cement producer from Port Qasim, which is likely to hurt production in the coming days.

Aside from the thefts and extortion by criminals, the truck owners and drivers say that motorway police have imposed impractical restrictions on truck loading. Truck owners said that the load restriction of 58.5t including 28t from the trucks themselves, is too low. This requirement severely limits the coal-carrying capacity of many trucks, making the transportation cost per tonne unrealistically high.

The APCMA has demanded the government to resolve the issues of goods carrier at the earliest hence the supplies are made regular in order to continue uninterrupted cement production.

Pakistan: Iranian cement is being sold informally in Quetta and other parts of Balochistan at below the price of locally-produced cement. A cement producer quoted by the Pakistani newspaper Dawn said that Iranian cement was selling up to 30% below the price of locally-produced cement.

The producer added that cement smuggled from Iran started arriving in Pakistan in early November 2012. The local industry pays US$15.5/t of cement on federal excise duty and sales tax. No duties are paid on the illegally-imported cement from Iran.

The All Pakistan Cement Manufacturers Association (APCMA) chairman Aizaz Mansoor Sheikh said that his members are performing quality check on Iranian cement. The APCMA also intends to raise the issue with the Pakistan government.

Keeping in view the production capacity of local cement manufacturers, he said the APCMA would take up the matter with the government besides suggesting imposition of import duty to safeguard the local industry.

Iraq and Afghanistan are two principal markets for cement export from Pakistan, constituting 50% of the country's total exports of 9Mt/yr. Annual exports to South Africa and India are 800,000t/yr and 600,000t/yr respectively. Due to US sanctions on Iran and devaluation of Iranian currency, surplus Iranian capacity has posed direct threat to Pakistani cement in these two markets.

At the inauguration of a cement plant in the Esfahan's Na'in Township on 4 December 2012 Iranian president Mahmoud Ahmadinejad placed his country's cement production capacity at 86Mt/yr. Iran produced 66Mt in 2011 and after international economic sanctions its local capacity utilisation is estimated to be 50%. Iran plans to export 12Mt of cement in the current calendar year.

The outgoing chief executive of PPC (Portland Pretoria Cement) officer, Paul Stuiver, summed up the dilemma facing cement producers on the east coast of Africa. Building near the coast leaves you vulnerable to imports.

In a recent interview with the South African business weekly, 'Financial Mail', Stuiver said that imports are not a threat to African expansion, provided that a facility is not built within 200km of a port. Exactly the same issue was raised by Yves De Moor in his column in the November 2012 issue of Global Cement Magazine.

Countries along Africa's east coast receive imports, but Stuiver said that Africa's high logistics costs mean the prices increase steeply as the cement is transported inland. He commented that the markets in Mozambique and KwaZulu Natal in South Africa were especially vulnerable and that most imports to South Africa come through Durban. Unsurprisingly both of PPC's big recent investments have been in landlocked countries, Zimbabwe and Ethiopia respectively. In July 2012 it also tried to invest in CINAT, the Democratic Republic of Congo's state-owned cement producer.

The import issue to South Africa reignited last week when the South African National Regulator for Compulsory Specifications (NRCS) confirmed that it had confiscated 'sub-standard' cement imported from Vietnam. As we covered in August 2012 in this column this follows a row in July 2012 about whether cement from Pakistan's Lucky Cement was complying with South African standards.

Although standards still lead the argument, more honesty has emerged with the use of the word 'dumping' in the complaints. Stuiver explained that "...the price of cement from Pakistan, India and Vietnam is low because electricity, fuel and transport rates are subsidised." Whilst PPC can report that its revenue has risen by 9% to US$837m for the first nine months of 2012, complaints against foreign imports seem overly protective. In 2009 PPC confirmed the existence of a cartel in the country. PPC has even gone to the Advertising Standards Authority to stop imports with elephants on their bags!

With reports that Nigerian producer Dangote is building a new US$389m plant in South Africa, thoughts turn to what will happen once South Africa becomes 'self-sufficient' in cement, like Nigeria which has proudly announced this recently. Giant infrastructure projects are one way to use all that excess cement and this is what Lafarge WAPCO has been asking the Nigerian government to do recently, in a road building drive. Better transport links in South Africa would wreck Stuiver's maxim about not building near a port.

Two solutions from this week's news might appeal to the industry on the south and east coasts of Africa. The first is to use inventive export barriers just like the Bureau of Indian Standards have imposed to slow down exports from Pakistan. The second is to persuade importers to do what a North Korean ship reportedly did with its consignment of cement this week off the coast of Somalia: dump it in the sea.

India: India has made all cement exports subject to a US$10,000 Performance Bank Guarantee. A letter issued by the Bureau of Indian Standards (BIS) to all foreign cement manufacturers explained that cement exporters will have to submit this guarantee in order to be qualified to export cement to the country.

Pakistan cement producers view this as another non-tariff barrier imposed by the BIS to restrict cement exports from Pakistan despite the country being designated 'most favoured nation' status by India effective from 1 January 2013.

According to an industry official quoted by the Pakistani Observer, India has previously used non-tariff barriers to slow Pakistan exports. In 2007 the BIS issued licenses to Pakistani cement manufacturers after physical verification of their production process but these expired leading to slowdowns in cement exports.

Pakistan: The Pakistan Railways, Custom authorities and All Pakistan Cement Manufactures Association (APCMA) have decided to tighten security arrangements at the border with India following reports that heroin has been smuggled into India disguised as cement exports from Pakistan. The decision was made during a meeting between the three organisations.

Indian custom authorities have caught heroin from Pakistan cement four times within the last few months, according to APCMA sources. Proposed measures to improve security have included deploying more custom officials at the loading stations, further checks by officials and special locks for railway bogies.

According to the APCMA, despite increased demand for cement in India, exports from Pakistan have declined by 15.7% so far in 2011. Pakistan Railways have commented that the decision to tighten security arrangements at the border have been taken to save the country from 'defamation'.

Pakistan: Lucky Cement Limited has declared a profit after tax of US$21.0m for the quarter ending 30 September 2012, 33.8% higher than the same quarter of 2011 when it made a net profit of US$15.7m.

Gross profit for Lucky Cement, which is Pakistan's largest cement manufacturer, increased by a similar margin. This rose by 32.9% year-on-year as its net sales revenue improved by 18.1% to US$92.4m. Higher sales volume in the domestic markets, in line with the company's strategy gave rise to the increased profit.

Lucky's local sales volume during the quarter grew by 5%, rising to 0.86Mt compared to 0.82Mt sold during the 2011 quarter. However, its export sales volume declined by 9% from 0.62Mt to 0.56Mt. This was mainly due to intentional focus on the domestic markets, which increased the overall profitability of the company. The company also managed to decrease its financing cost by 76% compared to 2011.

Lucky has also reported that it had successfully sourced uninterrupted electricity from Hesco since 1 July 2012, averaging a supply of over 20MW/hr during the quarter. It said that this new source of electricity had helped to reduce Pakistan's power generation problems.

The company also reported progress with respect to its joint venture investment in a new cement plant in the Democratic Republic of Congo, where plant and machinery has been negotiated and finalised with a renowned European supplier, and on its joint venture investment for a grinding facility in Iraq, where the teams for the project have been mobilised at the site.

Pakistan: The All Pakistan Cement Manufacturers Association (APCMA) has re-elected Aizaz Mansoor Sheikh unanimously as its at its Annual General Meeting held at APCMA Secretariat, Lahore. Names of the other elected office-bearers for the year 2012-13 were also announced at the meeting.

A statement issued by APCMA said that Sayeed Tariq Saigol of Maple Leaf Cement Factory and Muhammad Ali Tabba of Lucky Cement were also unanimously re-elected as Vice Chairmen of the Association.

Aizaz Mansoor Sheikh of Kohat Cement Company has served as Chairman of the APCMA for eight years since 1992. The current term 2012-13 is his second consecutive term as Chairman APCMA.

M Raza Mansha of DG Khan Cement, Amer Faruque of Cherat Cement, Rehmat Khan of Lafarge Cement Pakista, M Sabir of Fauji Cemen, Asmat Ullah Khan Niazi of Askari Cement, Syed Asif Shah of Bestway Cement, Babar Bashir Nawaz of Attock Cement Pakistan, Mazhar Iqbal of Pioneer Cement, M Tousif Paracha of Gharibwal Cement were elected as Members of the Executive Committee.

Prominent industry issues discussed at the meeting included were the non-availability of railways wagons for export to India, high diesel rates and its consequential effects on the high input costs that the industry is confronted with.