Displaying items by tag: Votorantim Cimentos
Peruvian joint venture plant no longer on the cards
29 January 2014Peru: Sources close to the Peruvian cement sector have reported that the shareholders of Cementos Portland (Cempor), a joint venture between Peru's Portland Investment World Cement Group, Brazil's Votorantim Cimentos and Chile's Cementos Bío Bío that was due to construct a cement plant close to the Peruvian capital Lima, did not reach an agreement on its agenda items. They are now to resolve their differences in an international commercial arbitration, which will probably take place in France. Issues came to a head at a meeting on 27 January 2014 due to a disagreement over financing.
Brazil: Brazil's antitrust regulator is likely to impose US$1.3bn of fines on six cement producers that were allegedly part of a cartel in the Latin American country.
On 22 January 2014, four of the five members of the board of Brazil's Administrative Council for Economic Defense (Cade) voted for the penalties, while the remaining member requested a review of the process. Under the regulator's rules, during the review period Cade members can change their votes. Cade didn't offer a timetable for a final decision.
According to the current proposal, Brazil's Votorantim Cimentos would be fined US$657m and Switzerland's Holcim would receive a penalty of US$214m. Itabira Agro Industrial would be fined US$173m, Cimpor Cimentos would receive a penalty of US$126m and InterCement, a subsidiary of Camargo Correêa group, would be fined US$102m. In addition, Itambe would receive a fine of US$37.1m. Representatives for companies involved in the investigation couldn't be immediately reached for comment.
Cade said that the cement cartel, which allegedly existed from 1986 - 2007 according to the regulator's investigation, led to increased prices that were passed on to consumers.
Brazil: América Latina Logística (ALL) plans to increase the volume of clinker and cement it transports for Votorantim Cimentos in the south of Brazil by over 30% before the end of 2013. The Brazilian logistics firm intends to increase its shipments for Votorantim to 1Mt/yr from 0.75Mt/yr, according to Brazilian news service Agência Estado.
ALL recently invested US$3.4m in trains and improving unloading bays in the southern state of Paraná and has borrowed a total of US$771m from the Brazilian Development Bank so far in 2013. The construction market represents 15% of its client portfolio in the industrial products sector.
Votorantim cancels IPO plans due to market conditions
14 August 2013Brazil: Votorantim Cimentos has cancelled a US$4.8bn initial public offering (IPO) due to poor market conditions. According to Dow Jones, the leading Brazilian cement producer had initially delayed its IPO in July 2013 to September 2013.
"The IPO continues to be the company's plan and we will continue to monitor the evolution of the capital market conditions to be able to resume the offer," said chief financial officer Lorival Luz.
Itacamba to build 0.85Mt/yr cement plant in Bolivia
14 August 2013Bolivia: Itacamba Cement intends to build a 0.85Mt/yr cement plant costing US$180m at Yacuses near Puerto Suarez, Santa Cruz. According to Bolivian local media, the project will start once President Evo Morales approves state-owned oil company Yacimientos Petrolíferos Fiscales Bolivianos to install a gas line. Itacamba intends the new cement plant to reduce its reliance on imported clinker from Brazil.
Currently based in the Santa Cruz region of Bolivia and established in 1991, Itacamba operates a cement grinding plant. It is majority owned by Votorantim (66%) and other entities including Bolivia's Tumpar Group. The new plant is expected to create 540 jobs when it is opened.
Rumours that Votorantim will halt IPO
19 June 2013Brazil: Votorantim Cimentos, Brazil's largest cement producer, and its shareholders have cancelled a US$4.8bn initial public offering (IPO) that had been scheduled, according to a report from Reuters. Controlling shareholder Votorantim Participações was unwilling to sell its stock of Votorantim Cimentos below the suggested price range of US$7.34-8.71, according to a source reported by Reuters.
The news-wire service also reported that a second source had said that potential investors would take part in the IPO provided that shares offered a 'large discount' when viewed against the US$7.31/share price at the bottom of the potential price range. Any such discount would value Votorantim significantly below its rivals in the Brazilian cement market. Votorantim Cimentos has not confirmed the suspension of the IPO plan.
The battle for Brazil: Camargo Corrêa versus Votarantim
10 April 2013Camargo Corrêa came out fighting this week when it announced plans to invest US$1.5bn into the Brazilian market. The move represents the serious readjustment to the Brazilian cement industry that's been shadowed ever since the government approved the Cimpor takeover in 2012.
To show how high the stakes are, in October 2012 Votarantim, the Brazilian cement market leader, released early plans to invest US$160m for a 0.75Mt/yr plant in the Treinta y Tres region of Uruguay to meet demand for the 2016 Rio de Janeiro Olympic Games. At these prices the Camargo Corrêa spend could represent projects creating up to 7Mt of cement production capacity in Brazil. This is close to the current capacity gap between Camargo Corrêa (15Mt/yr) and market-leader Votarantim (23Mt/yr)! It's no killer blow for Camargo Corrêa but it does put the two producers in the same 'weight' category.
Although SNIC, the Brazilian cement industry association, recently downgraded estimates for growth in the market to 5.5% in 2013, this still represents very strong demand growth. A previous estimate by Research & Markets put the figure at 9%/yr until 2016. Either way that puts Brazilian capacity at between 87Mt/yr and 100Mt/yr in 2016 with Camargo Corrêa poised to snare a hefty chunk all for itself.
Yet before onlookers count Votorantim out, the company filed for an Initial Public Offering on 9 April 2013. No amounts were revealed but Dow Jones reported a figure of US$2.95bn in mid-January 2013 for expansion both inside and outside of Brazil. Also, the sale of shares must be approved by the Brazilian Securities and Exchange Commission. The industry heavyweight isn't going down without a fight! International companies have also shown interest with Lafarge's announcement in January 2013 that it would invest US$500m in the country, just one of many such moves on the way. Whatever happens, the Brazilian cement market is shaping up for one hell of a scrap.
For more information see our article on the Brazilian cement industry in the February 2013 issue of Global Cement Magazine. In early 2014 Global Cement will hold the first Global Cement CemBrazil Conference and Exhibition. Dates are to be confirmed.
Votorantim Cimentos income hits US$801m in 2012
03 April 2013Brazil: Votorantim Cimentos saw its net income nearly double in 2012, reaching US$801m in 2012 compared to US$413m in 2011. Its sales revenue rose by 9% to US$4.69bn in 2012 from US$4.30bn in 2011.
"The combination of a favourable market alongside the opening of new factories and mills allowed a 4% increase in sales volume in Brazil, reaching 24Mt," said Votorantim Cimentos in its 2012 results report.
Votorantim's profit was boosted in 2012 by a US$132m gain recognised on stake swap in which Votorantim Cimentos gave its stake in Portuguese cement maker Cimpor to InterCement in exchange for assets in Spain, Turkey, Morocco, Tunisia, China and India, and a deposit in Peru. Additionally the company obtained US$141m in non-cement operating revenue, mainly from tax benefits.
The firm finished 2012 as the world's eight largest cement producer, with a total production capacity of 52.2Mt/yr, including 34 cement plants and 22 grinding plants, according to the report.
CTIEC builds ties with Votorantim
23 January 2013Brazil: The chairmen of China Triumph International Engineering (CTIEC) and Votorantim Group have met to discuss working together on future projects. Peng Shou, chairman of CTIEC, visited Raul Calfat, CEO of Votorantim Group. Votorantim is the parent group of Votorantim Cimentos, Brazil's largest cement producer.
In the meeting the two companies exchanged ideas on the cement industry in China and Brazil and reached a consensus on advancing strategic cooperation, starting with cement and cogeneration projects. The companies decided to promote future communication and exchanges of technical information.
Votorantim Group is a conglomerate engaged in industries including power generation, papermaking, food, metal smelting and cement. It achieved business revenues of US$12bn in 2011. Its subsidiary Votorantim Cimento has over 50 cement production lines in countries and regions like Brazil, the US, Canada and Africa and is further expanding production capacity.
Spain: Cementos Molins has sold 10.61% in its Argentina-based unit Cementos Avellaneda to Votorantim Europe for Euro45.2m. Following the deal Cementos Molins retains 51% in the company and Votorantim Europe, part of Brazilian group Votorantim, is holds 49%. The Spanish firm also transferred a 12.61% stake in its Uruguayan-based unit Cementos Artigas to Votorantim Europe for Euro19m, keeping 49% in the subsidiary and its partner raised its stake to 51%.