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News Raw Materials

Displaying items by tag: Raw Materials

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Shree Cement’s sales and profit rise in 2022 financial year

23 May 2022

India: Shree Cement recorded standalone sales of US$1.84bn in its 2022 financial year, corresponding to a rise of 13% year-on-year from US$1.63bn in the 2021 financial year. Profit after tax for the year was US$306m, up by 2.8% from 298m.

In the fourth quarter of the 2022 financial year, Shree Cement’s energy costs rose by 10% year-on-year and equalled 26% of its sales, while transport costs fell by 1.1% to 23% of sales. Raw materials costs equalled 6.6% of the quarter’s sales.

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Livetouch Investments to build integrated cement plant

19 May 2022

Zimbabwe: Livetouch Investments plans to invest US$100m in the construction of an integrated cement plant. The Herald Zimbabwe newspaper has reported that the group plans to establish the new facility in phases, with the first phase costing US$15 – 20m. The phase will include the exploration of possible locations for the plant with suitable limestone resources, which could then also supply its Redcliff grinding plant. The grinding plant currently imports 4000t/yr of Zambian clinker and also buys raw materials from Lafarge Zimbabwe.

Managing director Kyle Wang said “We are still limited by the limestone resources in the country.” He said that the company has identified ‘good limestone deposits’ in Rushinga, Nyamapanda, Bulawayo and Masvingo, however “The problem with some of the limestone is the quality.”

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HeidelbergCement boosts sales in the first quarter of 2022

12 May 2022

Germany: HeidelbergCement’s first-quarter sales were Euro4.43bn in the first quarter of 2022, up by 12% year-on-year from Euro3.96bn in the first quarter of 2021. Its cement and clinker sales volumes remained level year-on-year at 28.4Mt. Sales grew in all regions except North America, where they fell by 6% to Euro798m from Euro849m. Cement and clinker sales volumes fell there by 17%, but rose in every other region.

Chair Dominik von Achten said “The first quarter of 2022 was not an easy one for HeidelbergCement. Despite the continuing uncertainties regarding the supply of energy and raw materials and the associated rise in energy prices, we were able to increase our revenue significantly.” Looking to the rest of 2022, von Achten said
”Although there is still a lot of uncertainty concerning energy and raw material availability and costs, we continue to see strong demand for our products in all regions. In particular, demand for sustainable, low-carbon products is growing rapidly.” 


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Cementos Argos increases sales in first quarter of 2022

10 May 2022

Colombia: Cementos Argos recorded sales of US$642m in the first quarter of 2022, up by 11% year-on-year from first-quarter 2021. The company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 18% year-on-year to US$88.6m. Cement volumes remained level year-on-year at 3.9Mt. Cementos Argos said that higher inflationary pressures impacted costs associated with raw materials, energy, freight and maintenance, but noted its ‘very good price performance’ across all of its regions. It expects the rise in cement prices to a contribute to a reduction in inflationary cost impacts in the rest of 2022.

CEO Juan Esteban Calle said "Demand for our products and solutions remains very healthy and dynamic in all regions. We are operating at full capacity, despite a challenging environment due to global supply chain disruptions and inflation in energetics and raw material costs. In this environment, we are focused on maximising production at our integrated cement plants to meet our customers' growing needs and on executing a pricing strategy that mitigates the impact of inflation.”

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Margins being eroded for cement producers in Mexico

13 April 2022

Mexico: Increases in raw material prices and energy costs, as a result of high inflation levels, will affect the operating margins of cement companies listed on the Mexican Stock Exchange in the first quarter of 2022, according to analysts quoted by CE NoticiasFinancieras.

Jacobo Rodríguez, director of Economic Analysis at Black Wallstreet Capital, explained that, "Despite the fact that companies are slow to pass on the increase in their costs to their final products, we will see pressure on their margins in their results in the first quarter of the year and from now on.”

Heriberto Sandoval, investment advisor at Increase Kapital, said “The cement industry is strongly affected by the increase in energy costs and, considering that the high cost pressures worldwide will be longer lasting than originally thought, this will lead to a decrease in earnings before interest, tax, depreciation and amortisation (EBITDA) this year.”

Mexican cement companies recorded a decline in the price of their shares between January and March 2022. Market leader Cemex led the way, with a 23.59% drop in the value of its shares. The second largest drop was seen by GCC, which lost 9.5% of its value. Cementos Moctezuma’s shares also lost 3.05% of their value in the first quarter of 2022.

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Lafarge Zement’s Mannersdorf plant commissions new Euro23m raw materials mill

25 March 2022

Austria: Lafarge Zement has announced the successful commissioning of a new raw meal mill at its Mannersdorf cement plant in Lower Austria. CEO Berthold Kren congratulated process engineer Nina Wolf and the Mannersdorf plant team for carrying out the Euro23m project.

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Conch KT Cement completes Kampong Speu cement plant feasibility study

24 March 2022

Cambodia: Conch International Holding (HK) subsidiary Conch KT Cement has completed the feasibility study for its upcoming US$250m Kampong Speu cement plant at Monorom in Horng Samnan Commune. The Phnom Penh Post newspaper has reported that the company is collaborating with stakeholders to develop a ‘masterplan’ to manage all potential impacts revealed in the feasibility study. The plant is Conch KT Cement’s second in the country, with the help of which it hopes to secure a reliable domestic cement supply for Cambodians, making use of the kingdom’s abundant raw materials.

In the first 10 months of 2021, Cambodia imported US$40m-worth of cement, down by 33% year-on-year from US$59m in 2020.

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Vicat to test new alternative raw materials at Xeuilley cement plant

23 March 2022

France: Vicat plans to use a kiln at its 1Mt/yr Xeuilley, Meurthe-et-Moselle, cement plant for trials of cement production using new alternative raw materials developed under the international CO2Redres supplementary cementitious materials (SCM) project. The project brings together Vicat, HeidelbergCement subsidiary CBR, Buzzi Unicem subsidiary Cimalux and CRH subsidiary Eqiom in an effort to map mineral resources, waste deposits and usable residues ‘on a cross-border scale.’ On the basis of this research, the partners will seek to develop new SCMs for use in cement production.

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ICRA forecasts 18 - 20% Indian cement sales volume growth in 2022 financial year

23 March 2022

India: The Indian cement industry's sales volumes will rise by 18 - 20% year-on-year in the 2022 financial year and surpass 2020 financial year pre-Covid-19 outbreak levels by 6%, according to ratings agency ICRA. The Press Trust of India has reported that, in the first nine months of the 2022 financial year, fuel and electricity costs rose by 31%, raw materials costs by 12% and logistics costs by 5%. This offset a 5% net sales rise to result in an operating profit before interest, taxes, depreciation and amortisation (OPBITDA) per tonne of cement of US$14.70/t, down by 10% year-on-year. ICRA forecast a further decline in full-year OPBITDA per tonne of 16 - 18% to US$13.50 - 13.80/t in the 2022 financial year.

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Cementos Fortaleza to commission Acajutla cement plant in early 2023

21 March 2022

El Salvador: Cementos Fortaleza is establishing a new 0.3Mt/yr cement plant at Acajutla in Sonsonate Department. The Diario El Mundo newspaper has reported that the subsidiary of Grupo Regalado and Mexico-based Elementia plans to commission the plant in eatly 2023. The company will invest US$40m in its construction. The plant will produce its cement from 20% El Salvadorean-produced raw materials and will primarily serve local consumption, with the possibility of also exporting some cement.

Grupo Regalado representative Marcos Regalado Nottebohm said “It is challenging to invest in a project of such magnitude. This has been a natural step between two large business groups of great renown.”

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