Displaying items by tag: Sales

Tunisia: Carthage Cement Company's turnover for the first six months of 2014 amounted to US$87.5m excluding VAT, up by 419% compared to the same period of 2013. Clinker sales totalled US$16.6m, while cement sales amounted to US$55.1m, including US$14.5m of exports. Sales of ready-mix concrete grew by 25% compared to the same period in 2013.

Kenya: Strong sales of cement and fertiliser have boosted Kenya's ARM Cement's pre-tax profit by 20% to US$13.68m in the first half of 2014. Total revenue jumped by 16% to US$86.6m, after cement sales rose by 10% in Kenya and by more than 33% in Tanzania. The improved sales were attributed to an improved distribution network.

"The east African regional economies are growing briskly and demand for cement, as well as the other products, are expected to grow further," said ARM. The company expects earnings to grow further in the second half of 2014, mainly due to improving margins driven by investments in its plants in Tanzania and Kenya.

ARM has invested a total of US$171m in a clinker plant in Tanga, Tanzania and a cement plant in Dar es Salaam, also in Tanzania. The plants have a combined capacity of 1.8Mt/yr. The investments have helped the earnings before interest, taxes, depreciation and amortisation (EBITDA) to hold steady at 24% in the first half of 2014, defying pressure from higher input costs, such as energy.

UK: Anglo American has announced that it plans to sell its equity in its joint venture project with Lafarge UK. Anglo American plans to use the proceeds of the sale to pay off debt.

Once it owns the entire firm, Lafarge plans to sell it to help it gain approval from competition regulators for its merger with Holcim. Lafarge and Holcim need to shed around Euro5bn in assets to persuade regulators to back the merger. Lafarge and Holcim's merger is expected to be completed in the first half of 2015.

"The sale will be subject to a number of conditions, including the completion of the Lafarge / Holcim merger, the divestment of Lafarge Tarmac being accepted as a suitable remedy, and approval of this sale transaction by the necessary regulators," said Anglo American.

Europe: Lafarge and Holcim have set up a Divestment Committee following the announcement of the planned merger on 7 April 2014, with the aim of taking forward the divestment process. The Committee has drawn up a list of proposed asset disposals to anticipate potential competition authorities' requirements. The announcement represents a major part of the total assets that the two companies aim to divest.

The two companies are proposing the following disposals:

• Austria: Lafarge's Mannersdorf cement plant;

• France: Holcim's assets in metropolitan France, except for its Altkirch cement plant and aggregates and ready-mix sites in the Haut-Rhin market; Lafarge's assets on Reunion island; except for its shareholding in Ciments de Bourbon;

• Germany: Lafarge's assets;

• Hungary: Holcim's assets;

• Romania: Lafarge's assets;

• Serbia: Holcim's assets;

• UK: Lafarge Tarmac assets with the possible exception of one cement plant.

• Canada: Holcim's assets;

• Mauritius: Holcim's assets;

• The Philippines: the associated companies of Lafarge and Holcim (Lafarge Republic Inc and Holcim Philippines Inc) are exploring the combination of their businesses other than LRI's Bulacan, Norzagaray and Iligan plants, which are considered to be divested as part of such combination;

• Brazil: Holcim and Lafarge will file soon with the Brazilian regulator (CADE) and propose a comprehensive and high quality package of divestments.

The future LafargeHolcim group will have a significant and balanced industrial base in Europe, enabling it to take advantage of the European economic recovery. Both companies will continue to consider whether divestments would be necessary where there might be overlaps or depending on regulatory requirements.

The proposed divestments are subject to review and further discussions with the regulatory authorities. The divestment process will be carried out in the framework of the relevant social processes and ongoing dialogue with the employee representatives' bodies and will be conducted in parallel to discussions with the competition authorities and potential buyers. The divestment process will be completed subject to the closing of the merger between Holcim and Lafarge.

Find out exactly which cement plants are affected by Holcim and Lafarge's proposed asset divestments in the Global Cement Directory 2014, available here.

Fiji/Vanuatu: Pacific Cement Limited, a Fijian Holding Group company that was formerly known as Fiji Industries Limited, has labelled its branded cement project a success. For the past 12 months Pacific Cement has been making cement for home brands, whereby customers select the brand. The company's original brand, Pacific Cement, has been on the market for more than 40 years. However, the emerging market trend is that distributors wish to have their own cement brand.

"We started with our distributor in Port Vila, Vanuatu," said Pacific Cement Limited's acting general manager, Sonni Dutt. "The distributor requested cement under his own brand and we supplied it. After 12 months, the response has been extremely good and exports from Fiji under the new brand have increased. The biggest advantage under this business model is that we don't need to do any marketing."

Pacific Cement has also commenced the same process in Fiji, with two key distributors requesting cement under their own brand. "We are trying to get more customers and we are in fact expecting a few more to come on board," said Dutt. "So that has become a loyalty between the supplier and the customer and presents a win-win situation for both parties."

Colombia / Trinidad & Tobago: Trinidad & Tobago's Trinidad Cement Limited (TCL) has entered the Colombian cement market. The company has imported the first shipment containing cement to be processed at its Barrancabermeja facility in Santander. The shipment contains 300t of Type G oil well cement.

In total, TCL has spent US$320,000 on its facility in Barrancabermeja, and it plans a similar project in Llanos Orientales for the second half of 2014.

Germany: HeidelbergCement intends to sell its building products business and has already contacted several banks about the deal. The division is expected to be sold for Euro1.1 – 1.5bn, according to the Financial Times. CEO Bernd Scheifele has been reportedly planning on conducting the sale for a long period. In the 2013 financial year the company's building products business saw its revenue fall by a tenth to Euro1.1bn.

Poland: Gorazdze Cement has forecast that sales of cement in the country will grow by up to 7% year-on-year in 2014 to 15.5Mt up from 14.5Mt in 2013. Similar sales growth is expected in 2015, provided more projects co-financed by the European Union are started. The Institute for Market Economics (IBnGR) expect sales to reach 15.2Mt in 2014 and then 16.4Mt in 2015. The research institute attributes the sales growth in 2014 to an improving situation in the rail, energy, residential and road construction sectors.

Zimbabwe: PPC Zimbabwe reports that its domestic sales for the first five months of 2014 have fallen by 5% compared to the same period in 2013. Managing director Njombo Lekula blamed the drop on a decrease in housing projects.

"For the past few years there has been significant growth in housing, which boosted cement demand, however, the current economic situation is beginning to have an impact on home building activities," said Lekula in comments reported by The Herald.

PPC Zimbabwe now intends to sell its excess production in neighbouring countries. However, Lekula pointed out that Mozambique has a 'very competitive' market due to imports from the Far East via the port of Beira. In addition the cost of logistics to reach this market is an issue for the cement producer. PPC Zimbabwe are also considering targeting Zambia but logistics and the fluctuating price of the Kwacha have posed challenges.

PPC Zimbabwe intends to start building a US$200m cement plant in the north-east of Zimbabwe in 2014. The company has also started constructing clinker grinding plants near Harare and Tete, Mozambique. Currently, PPC Zimbabwe has a cement production capacity of 0.76Mt/yr. The new projects are expected to increase capacity to 1.2Mt/yr.

Ecuador: Lafarge has announced the sale of its cement operations in Ecuador for an enterprise value of US$553m to Union Andina de Cementos (UNACEM). Lafarge Cementos SA operates an integrated cement plant with a production capacity of 1.4Mt/yr in Otavalo.

The divestment will contribute to Lafarge's objective to reduce its net debt below Euro9bn in 2014. The transaction is subject to customary closing conditions.