Displaying items by tag: costs

Vietnam: Vietnam Cement Association (VCA) chair Nguyễn Quang Cung has announced the suspension of all cement plant projects scheduled to begin in 2020. Cung said that oversupply and a lack of financial liquidity have made it unfeasible for cement producers to finish cement plant projects, according to Vietnam News Brief Service. The average cost of an integrated cement plant in Vietnam is US$194m.

Two projects - the 2.5Mt/yr Tan Thanh cement plant and 2.3Mt/yr Long Son cement plant - will be completed in 2020, bringing the domestic integrated production capacity of Vietnam to 106Mt/yr across 86 plants.

Pakistan: Producers dispatched 3.52Mt of cement in April 2020, down by 24% year-on-year from 4.61Mt in April 2019. Domestic consumption was 3.27Mt, down by 19% from 4.04Mt due to the coronavirus outbreak. The Business recorder newspaper has reported that cement producers were already ‘struggling to survive due to extremely high input costs.'

The All Pakistan Cement Manufacturers Association (APCMA) said, "The decline in construction activities around the world, including in Pakistan, contributed to a downfall in demand, however, the cement sector even otherwise was operating under acute distress."

Egypt: Suez Cement, a HeidelbergCement subsidiary has implemented of a 20% reduction in pay for members of the management committee and a 30% reduction in pay for the managing director in the second quarter of 2020. The cuts are intended as a ‘cost-saving measure’ in line with the company’s aim to reduce expenses. Suez Cement said, “During the last few years the Egyptian cement industry has been going through very challenging times caused by oversupply and a sustained decrease in the demand, and Suez Cement Group has posted negative results. The COVID-19 crisis has complicated market conditions, affecting demand and increasing our costs. Moreover, it has affected our main shareholder, HeidelbergCement. In many countries it has suffered complete shutdowns and it is currently enduring complications in most of the countries that is present.”

Suez Cement continues to employ all staff.

Germany: Lubricants specialist Fuchs has announced its collaboration with chemicals company BASF in performing a cradle-to-grave analysis of different mineral oil hydraulic fluids that takes into account all environmental and economic aspects of their lifecycle. The study concluded that high performance multigrade hydraulic oil (HVLP) has a lower environmental impact and lower overall cost than monograde hydraulic oil (HLP). Fuchs said, “This advantage is mainly based on an improved diesel fuel economy throughout the use phase - primarily due to improved volumetric fluid efficiency, lower friction and lower fluid mass circulation ratio.”

Fuchs and BASF both supply lubricants and chemical products to the cement industry.

Russia: TimluyCement has received a Hyundai Robex 210W-9S excavator at its 0.8Mt/yr Timluisky plant. The vehicle replaces the plant’s Twex EK-14. The new excavator is equipped with a bulldozer blade, outriggers and a hydraulic line for attachments and has a bucket capacity of 1.1m3. A Webasto pre-heater will warm up the engine before starting it in the cold season, increasing service life. TimluyCement managing director Vladimir Klichko said, “The modernization of the fleet of special equipment is an integral part of our production process. By acquiring high-performance, reliable vehicles, we increase work efficiency, minimise operating costs and also improve the working conditions of our employees.”

Hyundai previously provided the Timluisky plant with front-end loaders.

Vietnam: US-based FCT Combustion has published details of a new contract with Vietnam National Coal and Minerals Industry Holding Group (Vinacomin) for the supply of an FCT Turbo-Jet burner to Vinacomin’s 0.6Mt/yr La Hiên plant in Thái Nguyên province. The upgrade aims to enable the use of lower calorific coal while maintaining clinker strength and specific fuel consumption, in order to reduce fuel costs.

FCT Combustion previously provided burners at Vinacomin’s 0.8Mt/yr Quan Trieu cement plant in 2019 and 1.5Mt/yr Quang Son cement plant in 2020, both in Thái Nguyên province.

Switzerland: LafargeHolcim has announced measures to limit the ‘volatile’ impacts of coronavirus on health and business. The measures, which overrule its previous 2020 guidance, consist of: a year-on-year capital expenditure (CAPEX) reduction of Euro378m, a year-on-year fixed cost reduction of Euro283m and a reduction of net working capital ‘at least in line with level of activity.’ LafargeHolcim has said that it had Euro7.56bn strongly liquid assets as of 26 March 2020.

LafargeHolcim predicted that global construction’s cement demand will decline in April and May 2020. It said the construction sector has begun to recover in China, where all of its cement plants outside of Hubei province are once more operational. It expects to deliver 70% of it April 2019 Chinese volumes in April 2020.

Colombia: Cementos Argos owner Grupo Argos has announced a raft of cuts to investments and expenses worth a total of US$245m in response to the impacts of Covid-19. Noticias Financieras News has reported that US$61.2m of the cuts will be to planned investments in expansion projects and raw materials inventory restocking, including to some in the cement business. Group Argos President Jorge Mario Velasquez said that the measures would, “give additional currency for the different sources, cash and funding that the organization has access to and give us relative peace of mind in our cash structure.”

Grupo Argos said it would stick to its US$3.67bn five-year investment plan.

UK: Mineral Products Association (MPA) chief executive Nigel Jackson has written to the Chancellor, Rishi Sunak, welcoming his deferment of value added tax (VAT) and urging the extension of this deferment to Employer National Insurance (ENI), Corporation Tax and Business Rates. “What business needs now are fast and simple solutions that enable them to keep cash in their businesses and their employees in their jobs,” said Jackson. “Fixed costs are very high. Once the recovery starts the pent-up demand will be immense.”

Denmark: FLSmidth has reported ‘increasing disruptions to customers’ and its own operations’ and higher costs due to ‘more complex logistics and a weaker fixed cost absorption’ following the coronavirus outbreak. It says that around half of employees are working remotely.

FLSmidth continues its business improvement initiatives launched in 2019 and has implemented a capital expenditure (CAPEX) reduction, salary adjustment postponement and hiring freezes.