Displaying items by tag: coronavirus

Germany: Beumer Group has published a technical report detailing changes to its operations due to the on-going Covid-19 outbreak. The group says that cement producers in some markets have changed to 50kg to 25kg bags. It also reported an increased rate of digitisation, less personal interaction with customers and an increased reliance on alternative fuels.

Cement head of sales Kay Wieczorek said, "Over past months, Covid-19 has forced us to cope with some changes. This will probably bother us even more in the colder months." He added, "Even if the Covid-19 figures are currently in progress, I am sure that BEUMER Group will come through this crisis pretty well; we just have to be well-prepared for it."

US: Eagle Materials’ sales in the nine months up to 31 December 2020 rose by 16% year-on-year to US$1.28bn from US$1.10bn. Its net earnings were US$273m, compared to a loss of US$1.54m in the first nine months of its 2020 financial year. Total cement volumes rose by 28% to 6.1Mt from 4.8Mt, and cement sales revenue rose by 35% to US$676m from US$502m.

President and chief executive officer Michael Haack praised the performance in the quarter which ended on 31 December 2020, saying, “Our cement shipments were up by 28% year-on-year, reflecting the strong performance of the recently acquired Kosmos Cement Business and the strength of our core markets. We continued to generate strong operating cash flow, which significantly improved our balance sheet and liquidity position providing us with increased financial flexibility.” He added, “As we continue to navigate the Covid-19 environment, I want to thank our team for their exceptional work under extraordinary circumstances, delivering strong results, remaining focused on the integration of Kosmos and keeping our strategic projects on schedule. We continue to closely monitor the disruptions caused by the Covid-19 pandemic and their possible impact on our business in current and future periods. We also continue to enforce strict health and safety protocols to protect our employees, customers and business partners, and we will continue to manage our cash flow prudently and protect our balance sheet.”

Thailand: SCG’s revenue from its cement division fell by 7% year-on-year to US$5.7bn in 2020. However, its earnings before interest, taxation, deprecation and amortisation (EBITDA) rose by 3% to US$719m. It blamed falling sales on the coronavirus pandemic and a ‘challenging’ economy but said that it managed to raise earnings and profits through efficiency improvements and a lower production costs. In the fourth quarter of 2020 the business faced resurgent coronavirus outbreaks and flooding in Thailand, Vietnam and Cambodia. Overall, the group’s revenue fell by 9% to US$13.3bn with declines in most division apart from packaging.

Spain: Oficemen, the Spanish cement association, reports that domestic cement consumption fell by 10% year-on-year to 13.3Mt in 2020 from 14.7Mt in 2019. Consumption at this level was last reported in 1967. The 12-month accumulated consumption figure began to fall in April 2020 due to Covid-19 restrictions and the association does not expect growth in 2021 despite an improvement in December 2020. Cement and clinker exports fell by 3.4% to 5.99Mt from 6.20Mt. It has forecast anything between a 3% rise and a 3% fall in consumption in 2021, due to coronavirus-related uncertainty.

The figures suggest that capacity utilisation in the cement industry is at roughly 60% nationally, according to the El Economista newspaper. Oficemen president Víctor García Brosa said that this level ‘cannot be indefinitely maintained.’ The association called for a recovery plan committed to infrastructure development, residential construction and rehabilitation and energy efficient transport.

Mexico: Grupo Cementos de Chihuahua (GCC) recorded earnings before interest, depreciation, taxation and amortisation (EBITDA) of US$308m, up by 6% year-on-year from US$292m. Net sales rose by under 1% to US$939m from US$934m. US cement volumes rose by 5%, excluding oil well cement, and rose by 3% in Mexico. The company said that its cost-and-expense reduction plan saved it US$24.3m throughout the year. During the second quarter of 2020 it signed a long-term agreement to secure wind power to meet 50% of the energy needs of its Rapid City cement plant.

Chief executive officer Enrique Escalante said, “GCC wrapped up 2020 with strong operational and financial results despite the challenges created by the Covid-19 pandemic. These positive results show GCC’s adaptability, resilience and what we can do in challenging times. We experienced a mixed demand for our products in Mexico and the US and, with the exception of oil-well cement, both markets outperformed expectations. GCC generated top-line growth, EBITDA, a strong free cash flow and margin expansion, benefitting from the successful execution of a comprehensive plan to reduce costs and expenses. 2020 was also a year of significant progress in GCC’s efforts to implement sustainability best practices. As a result, we reached our first major milestone by reducing net CO2 emissions by 9% from the 2005 levels.” He added, “Looking ahead, GCC entered 2021 even stronger than last year; even though the situation is still fluid and challenging, we are optimistic and we will operate with the same rigorous approach to continue creating value for all of our stakeholders: our shareholders, customers, employees and the communities where we operate.”

India: The India Cement’s consolidated nine-month net sales for the period which ended on 31 December 2020 were US$416m, down by 24% year-on-year from US$550m, in the corresponding period of 2019. Its sales volumes of cement fell by 29% to 5.9Mt from 8.4Mt. However, its net profit more than doubled to US$21.5m from US$8.3m. The cement producer said that the construction industry started to recover from September 2020 following coronavirus-related lockdowns earlier in the year. Earnings and profits grew in the reporting period in part due to reduced production costs.

India: Dalmia Bharat subsidiary Dalmia Cement (Bharat) has shifted its recruitment procedures towards hiring more local people in Maharashtra, Bengal, Orissa due to labour shortages throughout the Covid-19 outbreak. The Economic Times newspaper has reported that local labour now makes up a majority of the workforce at multiple cement plants belonging to the company.

Dalmia Bharat group head of human resources Ajit Menon said, "In our Bengal plant, we have 90 - 95% local workers now versus 20 - 25% earlier, while in Orissa it is almost 100% local labour. Covid-19 has accelerated the intake of local workforce.” He added, “This has also given us the opportunity to give employment to people in the locations neighbouring our factories - many of whom are tribal people and are from underprivileged communities."

India: Aditya Birla subsidiary UltraTech Cement recorded a profit of US$506m in the nine-month period ending on 31 December 2020, up by 47% year-on-year from US$345m in the corresponding period of 2019. Sales fell by 4% to US$4.16bn from US$4.33bn. Third-quarter sales rose by 17% to US$1.68bn from US$1.43bn and third-quarter profit rose by 122% to US$217m from US$97m. The company said that it ended the period having reached 84% production at its newly acquired cement plants of 15Mt/yr total capacity. In the third quarter the board approved capital expenditure investments of US$747m aimed to increase cement production capacity by a further 13Mt/yr.

The company said, “Recovery from the Covid-19-led disruption of the economy has been rapid. This has been fuelled by quicker demand stabilisation, supply side restoration and greater cost efficiencies.” It added, “While UltraTech continues to closely monitor the impact of Covid-19 on its operations, its capital and financial resources remain entirely protected and its liquidity position is adequately covered. With strong rural growth, revival in manufacturing sentiment, buoyancy in the goods and services tax and tax collections, UltraTech expects demand to grow on the back of the government’s push on infrastructure projects. Given its pan-India presence, UltraTech is well-positioned to support the rising demand for cement in the country. As always, UltraTech remains committed to all its business associates and stakeholders.

Belgium: IKN was presented with the first clinker from a modified calciner and IKN cooler installed at the CBR Cement integrated Antoing plant on 24 December 2020. The cement sector engineering supplier said, “We thank everybody involved for their determination and efforts in this challenging project: in spite of Coronanirus and a tough schedule there was no compromise on safety!” CBR Cement is a subsidiary of Germany-based HeidelbergCement.

Peru: Cement and clinker production fell by 14% year-on-year to 9.14Mt and 39% year-on-year to 5.54Mt respectively in 2020. Data from the Association of Cement Producers (ASOCEM) shows that production fell significantly during March to May 2020 at the same time as a coronavirus-related lockdown. However, ASOCEM reports that cement sales from August to December 2020 were higher than the historical monthly averages. Exports of cement and clinker fell by 28% to 0.14Mt and 56% to 0.31Mt. Imports of cement decreased by 7% to 0.72Mt but clinker imports grew by 7% to 0.67Mt.