Displaying items by tag: Sale

India: Jaypee Power Ventures' board of directors met on 12 December 2022 to discuss the possible sale of the company's Nigrie grinding plant in Madhya Pradesh. Press Trust of India News has reported that parent company Jaiprakash Jaypee Group's audit committee recommended the sale under proposed measures to reduce the group's debt. The producer had been in talks with Adani Group about the possible sale of its cement business, along with other non-core assets, for US$606m in October 2022.

Jaypee Power Ventures operates 4Mt/yr-worth of cement capacity, 40% of Jaypee Group's total 10Mt/yr.

Switzerland: Holcim increased its consolidated sales by 14% year-on-year during the first nine months of 2022 on a like-for-like basis, to US$22.8bn from US$19.9bn. Its recurring earnings before interest and taxation (EBIT) rose by 6.5% to US$3.74bn from US$3.53m. The group’s cement segment’s sales volumes were 139Mt, down by 1%. The segment contributed US$13bn in sales, up by 14%. Concrete sales volumes were 36.6Mm2, up by 4.1%. During the reporting period the group completed its divestment of its operations in India and Brazil and derived cash proceeds of US$7.3bn. Overall net sales grew in all five of the group’s business regions on a like-for-like basis with particular growth noted in the Americas. Cement sales volumes fell in Asia Pacific, Europe and Middle East Africa.

China: China Resources Cement (CRC) plans to sell subsidiaries CRC Changzhi and China Resources Concrete (Lucheng) for US$168m or more. CRC Changzhi operates a 2Mt/yr cement plant in Changzhi City, Shanxi Province. Both it and China Resources Concrete (Lucheng) serve the Shanxi Province market.

India: Udaipur Cement Works plans to raise US$42.6m through the sale of bonds, Reuters News has reported. The producer says that the bonds will mature in March 2025.

India: Jaypee Group subsidiary Jaiprakash Associates is reportedly seeking to sell its remaining assets after receiving a new insolvency bid from State Bank of India. The Times of India newspaper has reported that the company has previously sold US$4.92bn-worth of assets to pay off debts.

Jaiprakash Associates chair and chief executive officer Manoj Gaur said "We have kept faith in the law of the land and helped maximise recoveries of the bank. The setback is due to circumstances and issues such as the UltraTech deal. Our intent is to clear all the dues.”

The producer failed to sell a cement plant to UltraTech Cement under a US$2.05bn, 21.2Mt/yr cement capacity deal in 2017.

India: Cement Corporation of India has called for e-tenders for its mothballed Adilabad cement plant's equipment for a sale of the plant's assets prior to its permanent closure and decommissioning. The state-owned company will receive offers until 23 May 2022 and will open bids after 120 days. The New Indian Express newspaper has reported that a planned airport will take up some of the land currently occupied by the plant in Telangana.

The US$7.73m Adilabad cement plant was operational between 1982 and 1998. It reportedly has sufficient limestone reserves to continue cement production until 2122.

Russia: Holcim said that it has received interest from over 30 possible buyers for its Russian business. The group announced that it would sell the assets, including three cement plants, in March 2022, after the Russian invasion of Ukraine on 24 February 2022.

Chief executive officer (CEO) Jan Jenisch said that the sale would need to be handled ‘with very great diligence.’ He continued "We don't expect to write it off completely. I would hope this business has a value." Jenisch asked investors and commentators to ‘give us a couple of months’ to ‘get more clarity.’

Denmark: FLSmidth’s sales were US$670m in the first quarter of 2022, up by 27% year-on-year. Its earnings before interest, taxation and amortisation (EBITA) rose by 59% to US$43m. The supplier’s cement business recorded a sales increase of 10%. This contributed to a continuation in the ‘positive trend’ in earnings from the end of 2021, along with improvements from executed reshaping activities. The business made a property sale worth US$3.27m. In light of the results for the quarter, the company announced that it has maintained its guidance of US$2.49 – 2.71bn consolidated sales and US$783 – 855m in cement business sales in 2022.

Chief executive officer Mikko Keto said “The first quarter of 2022 saw a strong momentum in order intake driven by both mining and cement.” Keto expanded “Our cement business has continued its positive development on improving profitability.”

Regarding the on-going Russian invasion of Ukraine, he said “Our key priority in this challenging time of war has been on the safety and well-being of our employees. We closely follow this tragic situation to ensure we take the right responsible decisions from a humanitarian, legal, and financial point of view.”

US: The former Lehigh Hanson Redding cement plant is the subject of a new acquisition deal. Martin Marietta has now agreed to sell the plant, which is in California, and related cement terminals to CalPortland for US$250m. The deal also covers 14 ready-mix concrete locations. The parties have also established arrangements for any future agreement for the sale of Martin Marietta’s Tehachapi cement facility and its related cement distribution terminals. Martin Marietta acquired both plants from Lehigh Hanson in October 2021.

CalPortland’s parent company Taiheiyo Cement said that the acquisition will enable it to build a supply system to meet the growing demand for cement in northern California, Oregon and Nevada. It added that the Redding Plant is an important plant in northern California, which its expects can improve customer satisfaction through an investment to develop more efficient systems. The company concluded “As a result, we expect steady growth in revenue and profits for Taiheiyo Cement’s US cement and ready mixed concrete businesses, which in turn will contribute to the achievement of the medium-term management plan from fiscal years 2022 to 2024.”

US: Cemex USA has sold its headquarters in West Palm Beach, Florida for US$13.4m. The South Florida Business Journal newspaper has reported that the company will vacate the property in early 2022. It will relocate to a nearby smaller office. Cemex USA has occupied its current headquarters since 1983. According to sources quoted by the newspaper, it no longer requires the 20,000m2 space due to increased rates of remote working by staff.