Displaying items by tag: Votorantim Cimentos

Brazil/Turkey: Votorantim Cimentos has announced investment plans of up to US$158m to expand its business in Turkey. As well as tripling the output of its cement plant in Sivas, Votorantim may set up or acquire a new plant to tap the growth potential of Turkey's construction sector, according to company officials.

"The investment in our Sivas plant will boost production capacity to 1.8Mt/yr, up from its current level of 600,000t/yr. Following the upgrade, the Sivas plant will account for 42% of Votorantim's cement production capacity in Turkey," said Sefik Tuzun, Votorantim Turkey's CEO. "Votorantim sees the potential of Turkey's construction sector and this investment shows our commitment to reinforcing our presence in Turkey. Sivas' expansion will bring a crucial dynamism and competitiveness to the company in the Turkish cement market."

The capacity upgrade will be completed by April 2017. The construction works for the extension will create employment for 700 people. Votorantim Turkey is active in cement production as well as concrete and aggregate businesses in the country, accounting for a share of about 29% of Votorantim Cimentos' total production capacity, excluding China.

India: Brazilian cement major Votarantim Cimentos, InterCement Austria Holding and Camargo Corrêa have settled a case with the Securities and Exchange Board of India (SEBI) for alleged violation of takeover protocols regarding Shree Digvijay Cement. They have paid over US$115,000 in settlement charges.

SEBI had initiated adjudication proceedings against the three companies over the violation of provisions Substantial Acquisition of Shares and Takeovers (SAST) regulations. It was alleged that the entities failed to comply with certain provisions of the SAST regulations while making an open offer for acquisition of 36.7 million shares, representing a 26% stake in Shree Digvijay Cement.

Brazil: Brazil's antitrust watchdog Cade has ordered six cement makers named in a price-rigging case to pay a combined US$934m in fines within one month in a landmark decision that also orders asset disposals, according to Reuters. Under the terms of the decision announced on 29 July 2015, the watchdog gave the companies a one-year deadline to reduce their installed capacity in the cement and concrete industries through asset sales. The decision was published in the government's official gazette.

According to Cade, which first issued a ruling in the case in May 2014, Votorantim Cimentos, Intercement Brasil, Itabira Agro Industrial, Cia de Cimentos Itambé, Holcim Ltd and Cimpor Cimentos de Portugal colluded on pricing to force rivals out of the market. The ruling, which followed an eight-year inquiry, followed cost overruns that dogged Brazil's preparations for the 2014 FIFA World Cup as well as dozens of road, port and infrastructure projects across the country. The companies control about 75% of the domestic market for cement and concrete.

A series of studies by Cade showed evidence that several takeovers and asset swaps among cement companies during the 1990s and the 2000s were made to prevent rivals from entering the market. The largest players in Brazil's cement industry tend to have strong market control in specific regions, increasing the potential for collusion. The number of cement producers in Brazil shrank to about 10 in 2011 from almost 25 in the early 1990s.

Under terms of the ruling, Votorantim must pay US$450m in fines and Cimpor US$89.2m. Cade fined Intercement Brasil US$72.4m, Itabira US$123m and Holcim US$153m. Itambé must pay US$26.4m. Some of the companies are challenging Cade's ruling in the courts. Cade also imposed sanctions on ABCP, Brazil's Portland cement group and SNIC, which represents local cement plants.

Brazil: Votorantim Cimentos intends to temporarily suspend production at its cement plant in Ribeirao Grande, Sao Paulo from August 2015. The plant will operate as a distribution centre from this time. The decision has been blamed on current Brazilian financial climate.

A total of 128 workers are to lose their jobs, of which 83 have already been suspended, according to Valor Econômico. The company has also confirmed it is working with the workers union for the region to try to relocate the dismissed workers.

Brazil: According to the Esmerk Latin American News, Brazil's economic defence body Cade has ended its administrative inquest against Votorantim Cimentos, Cia de Cimento Itambe and Cimpor Cimentos do Brasil. The investigation was into the alleged breech of economic order through actions such as the refusal to sell certain types of cement to independent firms from 2008 onward. The illicit operations were alleged to have affected companies in Rio Grande do Sul and in the south east and central west regions.

Turkey: Votorantim Cimentos has announced a Euro140m investment in the expansion of its cement plant in Sivas, Turkey. The investment is the largest carried out in Sivas' history and will increase the plant's current production capacity by three times, from 0.6Mt/yr to 1.8Mt/yr.

The investment will allow Votorantim Cimentos, which currently operates in the country at full capacity, to increase its market share in Turkey. The Sivas plant currently accounts for about 19% of Votorantim Cimentos' 3Mt/yr production capacity in Turkey. After the expansion, it will account for 42% of the company's total production capacity in the country.

"Votorantim Cimentos sees the potential of Turkey's construction sector and this investment shows our commitment to reinforcing our presence in Turkey. Sivas' expansion will bring a crucial dynamism and competitiveness to the company in the Turkish cement market," said Mustafa Şefik Tüzün, CEO of Votorantim Cimentos in Turkey.

Groundbreaking at the plant will take place in June 2015 and construction work will employ around 700 people. Cement production will begin in 2017. The plant will supply the market with CEM I and CEM II, the most in-demand products in the Turkish cement market.

Votorantim Cimentos recently announced a Euro1.61bn investment package for 2015 - 2018. The company will invest in five new plants in Brazil, one in Bolivia, as well as in the expansion and modernisation of existing units, such as the one in Sivas.

Brazil: Votorantim Cimentos has announced a new investment package for 2015 – 2018. US$1.6bn will be invested in five new plants in Brazil, one in Turkey and one in Bolivia, as well as in the expansion and modernisation of existing plants. The announcement comes after an investment plan of US$3.2bn, completed in the period between 2007 - 2014, when the company expanded its global production capacity by 51%.

In Brazil, Votorantim's priority is to increase production in the central-north and northeast regions. It has identified growth potential in the construction sector and in cement consumption in those regions. Two of the new cement plants will begin operating in 2015, one in Edealina, Goiás and another in Primavera, Pará. In the second phase, the construction of two plants in Sobral and Pecém in Ceará is planned and one in Caaporã, Paraíba. The plants are expected to come on stream in the second half of 2017.

With its new plants, Votorantim will increase its cement production capacity in Brazil by 18%, adding about 6Mt/yr to the current capacity of 32Mt/yr of cement. The investments are in line with the company's preparation for a new cycle of growth in the country. "We are concentrating investments in attractive and profitable markets, always with long-term vision and thinking of the future market demand," said Walter Dissinger, Votorantim Cimentos' CEO.

In the Americas and Europe, investments include one cement plant in Yacuses, Bolivia in partnership with two other companies and one new plant in Turkey. The company is also considering the construction of a new plant in Morocco. In the US there is a project for the expansion of the Charlevoix plant in Michigan. "The American market is recovering and is also attractive," said Dissinger. The new projects outside of Brazil will add 2.5Mt/yr to the company's installed capacity. "We prepared ourselves to confront a challenging scenario in Brazil and follow our policy of thinking in the long term. Our discipline and financial solidity allows us to keep investing to be ready for the recovery of the markets," said Dissinger.

Brazil: Votorantim Industrial has reported that its revenue rose by 7% in 2014 to US$9.3bn from US$8.74bn in 2013. Net profit rose to US$600m from US$79.2m. The cement, metals, steel, energy, pulp and agribusiness group attributed the result to high prices in most of its businesses.

Votorantim Cimentos, its cement arm, was responsible for the largest portion of consolidated income. It saw sales volumes decline slightly to 37.1Mt/yr in 2014. Despite this, net revenue grew by 5% year-on-year to US$4.34bn due to higher prices. Notably, its North American operation recorded a rise in sales volume and revenue, driven by the recovery of the US economy.

Brazil: Votorantim Cimentos said that the proportion of alternative raw materials used in Brazilian cement is one of the best in the world, according to data from the Brazilian construction industry association SNIC. In 2013, 91% of all the cement commercialised in Brazil had some additive in addition to the clinker derived from limestone used in cement production.

"Brazil has one of the highest clinker substitution rates in the world. This is due to industry research and the development of technologies to incorporate natural substitutes and even steel industry rejects into cement manufacture", said Edvaldo Rabelo, executive director of energy, sustainability and safety for Votorantim Cimentos. "The addition of alternative raw materials ensures a product as strong and durable as cement made with pure clinker and generates gains such as reductions in gas emissions, water consumption and the burning of fossil fuels in the production process."

Votorantim Cimentos Research and Development manager, Silvia Vieira, said that the company plant in Porto Velho, Rondônia is considered a model in climate change initiatives. In operation since 2009, the plant saw alternative raw materials as a means of reducing operational costs. Located in the north of Brazil, there is a lack of limestone for clinker production and the high cost of transporting it from other mines is prohibitive. "This led us to think about producing calcined clay pozzolan at the plant and increasing the proportion of substitutes. After research, the involvement of scientists to establish technical specifications and diverse tests, we developed our own furnace for producing the material," said Silvia.

US: The Charlevoix County Board of Commissioners has approved the proposal by St Marys Cement to expand its cement plant in Michigan State. St Marys Cement, part of Votorantim Group, is planning a US$130m upgrade to the Charlevoix plant, which would increase its production capacity from 1.3Mt/yr to nearly 2Mt/yr.

According to local press reports, in a 5:1 vote that followed the hearing, the county board approved the upgrade plan. Commissioner George Lasater provided the lone vote in opposition. He said that he simply wanted to do more research on the proposal. Other commissioners described their votes in support as important to sustaining the economy in Charlevoix County.

The proposal now moves to the state Department of Environmental Quality for final approval. If the Charlevoix plans were rejected, St Marys officials have said they will seek to reopen the Illinois plant.