Displaying items by tag: Votorantim Cimentos

Brazil: Brazil's Camargo Corrêa has launched a bid for the 68.1% stake in Portugal's Cimpor that it does not already own. Camargo Corrêa Cimentos, the Brazil-based cement unit of which is that nation's fifth-largest cement producer, currently controls 32.9% of Cimpor.

It is thought that Camargo Corrêa may be taking advantage of depressed valuations in the troubled Portuguese economy to win control of the company. Cimpor is itself the fourth-largest cement producer in Brazil. In 2010, Camargo Corrêa teamed up with industrial conglomerate Grupo Votorantim to thwart Brazilian steelmaker CSN's bid for full control of Cimpor. Votorantim holds 21% of Cimpor.

This new move may open up the spectre of a lengthly and interesting anti-trust approval if the deal is accepted by Cimpor, especially given that Camargo Corrêa, Votorantim and four other producers were accused of price-fixing in the Brazilian cement market in November 2011.

At the end of 2011 Portuguese media reported that both Camargo Corrêa and Votorantim were preparing to buy Cimpor minority shareholders out. It has now been reported that Votorantim is looking to make use of its option to buy bank Caixa Geral de Depositos SA's 9.6% in Cimpor and thus reach a stake in Cimpor similar in size to that owned by Camargo Corrêa.

Brazil: Votorantim Industrial, Brazil's largest diversified industrial conglomerate, intends to use proceeds from the sale of its stake in steelmaker Usiminas to expand its cement and mining output.

Chief executive, Raul Calfat, announced that the US$1.34bn raised by Techint's purchase of Votorantim's 13.5% voting stake in Usiminas had boosted the group's cash holdings to US$6.5bn. This high level of cash will allow the investment holding company to avoid borrowing at a time when financial markets remain shut for all but the most credit-worthy companies, said Calfat. It also gives the company room for funding heavy investment plans with its own cash.

Calfat said that the group's cement unit, Brazil's largest producer of the building material, would get one-third of the Usiminas stake sale proceeds. He said that the money would go towards the construction of four factories by 2013.

Brazil: Construction group Camargo Corrêa has denied that it is in talks to buy a remaining stake in Portuguese cement maker Cimpor.

Camargo Corrêa and industrial conglomerate Votorantim have been reported as being in talks to buy the additional stake. According to one source, Camargo Corrêa plans to take over Cimpor's operations in Brazil while Votorantim would consolidate assets of the Lisbon-based company outside of Brazil.

"There isn't any change in the position of this company regarding Cimpor," Camargo Corrêa said in a statement. Camargo Corrêa and Votorantim currently hold 54.1% of Cimpor.

The value of the remaining stake is about Euro1.5bn based on Cimpor's closing share price on 19 October 2011. Votorantim and Camargo Corrêa acquired 53% of Cimpor early in 2010 after beating an offer from steelmaker Companhia Siderúrgica Nacional.

Brazil: Domestic demand for cement in Brazil is leading to an increase of imports. Imports of cement and clinker reached 2.2Mt from January to September 2011, an increase of 74% from the same period in 2010. The total value of imported cement cost USD135m from January to September 2011, compared with USD80m from the same period in 2010.

From 2007 to 2010 Brazilian per capita consumption rose from 224kg to 310kg while production rose from 40Mt/yr to 59Mt/yr. The country has 70 plants to meet this growing demand. Exports have fallen from 515,000t/yr in 2008 to 36,000t/yr in 2010.

Votorantim Cimentos leads the market with 40 plants and a production of 21Mt/yr. It currently plans to build eight plants by 2014 with investments of USD1.4bn, a sum that includes concrete units as well. CSN Cimentos is an emerging player in the market and it is planning to meet a production level of 8.4Mt/yr by 2013. Camargo Correa Cimentos runs 5.2Mt/yr and Joao Santos 5.9Mt/yr.

Brazil: Votorantim's overall operating performance improved in the first quarter of 2011 compared to the same period of 2010, with cement sales increasing. The group's consolidated net revenues and earnings before interest, tax, depreciation and amortisation (EBITDA) amounted US$3.53bn and US$851m, an increase of 11% and 1% respectively. Ebitda margin declined from 26.5% to 24.0%, impacted by its cement and steel businesses.

The groups cement interests were negatively impacted in Brazil, as a result of the exchange of certain production plants for Cimpor shares in the third quarter of 2010. Nevertheless, sales volume increased by 1% in the country and by 2% in North America. Net revenues went up by 6% to total US$1.16bn, supported by a price increase in Brazil. EBITDA decreased from US$412m to US$312m mainly due to the exchange of certain production plants for Cimpor shares. In addition, EBITDA was also impacted by higher electricity and petcoke costs in Brazil and increased inventory in North America. Votorantim's total debt decreased by 1% by the end of the first quarter of 2011 compared to the first quarter of 2010, from US$14.06bn to US$13.93bn.

Capital expenditure amounted to US$690m, mainly for expansion projects and investment in cement accounted for 47% of the total.