Displaying items by tag: costs

Uzbekistan: United Cement Group subsidiary Qizilqumsement says that it has awarded contracts for the upgrade of Lines 1 and 2 at its Qizilqum cement plant in Navoiy Region. Uzbekistan Newsline has reported that the producer has completed testing to ascertain the lines' parameters of operation, fuel and energy consumption and output. This will inform its decisions, with a view to reducing the cost of clinker production.

Qizilqumsement is currently in the process of building the Qizilqum plant's new 767,000t/yr Line 4, which will also increase its clinker capacity by 657,000t/yr. The producer expects this to lower the cost of its clinker production by 30%.

Colombia: Cementos Argos sold 3.9Mt of cement during the first quarter of 2023, down by 0.6% year-on-year. This contributed to a 12% rise in its consolidated revenues to US$721m. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 42% to US$127m.

President Juan Esteban Calle said "In the first quarter of the year we experienced a stable market dynamic in most of the territories in which we are present, sequential improvements in costs, especially in fuels, energy and, in some cases, raw materials and mixed macroeconomic signals that keep us optimistic about medium-term trends." He added "Beyond the constant challenging conditions, we continue to take forceful steps toward our goal of creating value for the company, our investors, customers and other stakeholders."

India: UltraTech Cement reported revenues of US$7.48bn in the 2023 financial year, up by 21% year-on-year from US$6.18bn in the 2022 financial year. The cement producer's total expenses rose by 29% to US$6.27bn. This contributed to an 8% decline in the company's earnings before interest, taxation, depreciation and amortisation (EBITDA) to US$1.3bn from US$1.41bn.

Hungary: The government has enacted an 'architecture law' which will increase its role in decision making within the Hungarian cement industry. When it enters force in July 2023, the law will let the government set producers' cement volumes and prices. It will also require the companies to sell their products to the market-leading retail network, and will give the government a right of first refusal over future divestments.

Der Spiegel News has reported that the government previously enacted decrees that further regulated limestone production, imposed 90% 'additional mining levies' and required producers to obtain special permits to export their cement abroad. Duna-Dráva Cement, a subsidiary of Heidelberg Materials and Schwenk Zement, reportedly began making losses on its bagged cement sales due to the new rules. Both Germany-based owners separately received letters inviting them to sell a stake in Duna-Dráva Cement, and thanking them for their cooperation, in 2022. The sender identified themself as the owner of an 'intensively expanding group of companies' with a 'dominant position in the Hungarian building materials industry.' Anti-corruption organisation Transparency International identified the correspondent as a friend of Hungarian President Viktor Orbán.

Regarding the incoming change to the law, a representative of Heidelberg Materials said "These regulations are a total violation of all the rules of the European internal market. It is obvious that the government wants to pressure foreign cement manufacturers to sell.”

China: Anhui Conch Cement plans to invest US$2.81bn in capital expenditure (CAPEX) throughout 2023. The investments will go towards building new capacity, upgrading to new technologies and increasing plants' energy efficiency. The Morning Star newspaper has reported that the producer currently faces high energy costs, against a backdrop of reduced cement demand.

Anhui Conch Cement recorded sales of US$19.2bn in 2022, down by 21% year-on-year from US$24.4n in 2021.

Philippines: Holcim Philippines recorded sales of US$490m during 2022, down by 1% year-on-year from US$499m. Sales rose by 9% year-on-year to US$266m during the second half of the year, 53% of the full-year figure. Throughout the year, the producer increased its alternative fuel (AF) substitution rate by 20% year-on-year and processed 1Mt of waste from industrial partners and local government bodies. Digitisation initiatives and alternative raw materials substitution helped the producer to reduce its specific CO₂ emissions by 7%. The Business Mirror newspaper has reported that the year also brought 'surging' energy and fuel costs for the producer.

President and CEO Horia Adrian said "In the face of extraordinary challenges, our company and people displayed tremendous resilience that enabled us to deliver positive financial performance and contribute to building progress in the country. Alongside a strong sales rebound in the second half and expansion of our customer base, we accelerated the decarbonisation of our operations."

Barbados: Arawak Cement has ceased clinker production at its St Lucy cement plant. The facility will continue to operate as a grinding plant. Loop News has reported that the company now seeks to lay off 70% of the plant's staff. Negotiations between the producer and the Barbados Workers' Union are reportedly in 'advanced' stages.

In its previous restructuring in 2016, Arawak Cement offered voluntary separation packages to employees. At that time, 'unfavourable economic conditions globally and in the region' necessitated cost reduction.

Saudi Arabia: Riyadh Cement's full-year 2022 results show an 11% year-on-year drop in sales to US$159m, from US$179m. The producer's operating and administrative costs dropped throughout the year. As such, it recovered a net profit of US$50.5m, up by 13% year-on-year from US$56.9m.

South Africa: PPC has forecast a drop in its cement sales volumes during the 2023 financial year, which will end on 31 March 2023. It says that its South African sales will drop by 4%, and its Botswanan sales by 7%. In the first half of the financial year, sales dropped by 2.6% year-on-year. PPC now says that disruptions at South African ports will likely limit the decline in its sales volumes in its home country by reducing competition from imports. South Africa imported 30% of cement consumed during the 2022 financial year, however congestion at ports and currency effects have kept this figure from rising throughout the present financial year.

PPC's CEO Roland van Wijnen said "Rising input costs and the objective of maintaining our market share continue to cause margin pressure." The group now expects to reduce its debt by 28 - 33% to US$39.5 - 42.2m in the 2023 financial year.

Afghanistan: Ghori Cement says that its Baghlan cement plants currently produce 600t/day of cement, corresponding to annual production of 0.22Mt/yr. The producer states that production is restricted by shortages of electricity and vehicles. With regular supply of these, it would increase its production by 33% to 800t/day (0.29Mt/yr), according to the company.

Production at the Baghlan cement plants was previously suspended for four months in mid-2022 due to high coal prices. This was resolved when the government began supplying the plants with coal at a pre-agreed price. The plants then reopened with a daily production of 520t/day (0.19Mt/yr), up by 49% from 350t/yr (0.13Mt/yr).

The provincial government said that an upgrade with equipment from China and Iran since increased production by 15% to its present 600t/day (0.22Mt/yr).