Displaying items by tag: delay

India: JK Cement has targeted a 10% year-on-year sales growth in its 2022 financial year, which ends on 31 March 2022. The Economic Times has reported that the company foresees sales growth due to the on-going government infrastructure investment push, minimal monsoon disruptions and pent-up cement demand following Covid-19-led disruptions. Cement chief operating officer Rajnish Kapur said that growth momentum from the end of the 2021 financial year will likely continue throughout the coming nine months, despite a Covid-19 led sales drop in the first quarter of the 2021 financial year.

The cement producer also expects that its new cement plant project at Panna in Madhya Pradesh is likely to be completed in the 2023 financial year due to Covid-19 related delays. The plant will bring its total cement production capacity to around 20Mt/yr from nearly 15Mt/yr at present once it is finished. The company is also considering acquisitions to further increase its capacity to 25Mt/yr by the mid-2020s.

Saudi Arabia: Yanbu Cement says that a two months modernisation project on Line 4 at its integrated Yanbu plant that was first reported in mid-February 2021 has been delayed. This has been caused by a hold up in receiving certain spare parts. The cement producer said that the financial impact would be limited to the increase in production costs only since the start of the shutdown date. It also stressed that sales would not be affected by the stoppage due to its existing clinker stocks.

India: Ramco Cements says that its 16Mt/yr installed production capacity will increase to 20Mt/yr during its 2022 financial year that starts in April 2021 with the completion of a new plant at Kurnool in Andhra Pradesh and a third production line at its Jayanthipuram plant. The original plan to complete the work by the end of March 2021 was delayed by the coronavirus pandemic, according to the Hindu newspaper. The new integrated plant at Kurnool will have a clinker capacity of 2.25Mt/yr and a cement production capacity of 1Mt/yr. The third production line at the Jayanthipuram plant will have a production capacity of 1.5Mt/yr, increasing the plant’s total to 4.5Mt/yr.

The producer also plans to complete Phase 3 of the installation of a waste heat recover (WHR) unit at the Jayanthipuram plant. Phase 1 (9MW) was commissioned in September 2020, Phase 2 (9MW) in February 2021 and Phase 3 (9MW) is scheduled for after the third line is complete. So far the first two stages have reduced the cement plant’s power consumption from a thermal power plant by 15MW. The project has cost around US$30m.

Ramco Cements has spent US$345m out of its planned US$470m capital expenditure in the 2021 financial year, which ends on 31 March 2021.

UK: QMJ Group has decided to postpone its Hillhead quarrying and recycling show until 21 – 23 June 2022. It follows review of its plans for 2021 with consideration given to the government’s post-Covid pandemic reopening roadmap. The event was originally planned to take place in June 2021.

Event director Richard Bradbury said, “Under these guidelines, it is clear that the show will not be able to operate legally in June this year. Our priority is to provide the Hillhead experience that our exhibitors and visitors have come to expect but, with the continuing uncertainty around travel restrictions and social distancing measures, this is not achievable in 2021.” He added, “By delaying the show until June 2022, the full benefits of a completed vaccination programme will have filtered through, allowing us to deliver a safe and vibrant event. The team looks forward to welcoming you back to Hillhead Quarry, Buxton, from 21 - 23 June 2022.”

Bangladesh: Production at Premier Cement’s new plants at Narayanganj and Chattogram has been delayed until November 2020 due to the coronavirus pandemic. Mohammed Amirul Haque, managing director of the cement producer, said that the projects have been delayed due to the absence of some technical personnel from China and Denmark, according to the Daily Star newspaper. The units were originally scheduled to start commercial production in June 2020 but this is now expected to start in December 2020. Both plants have a combined budget of around US$150m. Denmark-based FLSmidth was reported to be supplying mills for the plants.

Egypt: Egyptian Cement Group’s chief executive officer (CEO) Ahmed Abou Hashima says that the company plans to inaugurate its new cement factory in 2021. The plant is located in Sohag and has a total investment cost of US$285m, according to the Hapi Journal. The 2Mt/yr project was originally scheduled to open in the first half of 2020 but was delayed due to the coronavirus pandemic.

South Africa: PPC has delayed the publication of its annual results for the year to 31 March 2020 for a second time due to a “restructuring and refinance project.” It now expects to publish the results by late September 2020. It previously delayed reporting its financial results when the Johannesburg Stock Exchange allowed it to delay releasing the figures because of challenges created by the coronavrius pandemic. The cement producer also said it has found errors in its financial reporting for the year that ended in March 2019 due to mistakes made in valuing operations in Ethiopia and Zimbabwe and a miscalculation of the accounting of a foreign-exchange transaction in the Democratic Republic of Congo (DRC).

The group expects that revenue for the year to 31 March 2020 will decline by no more than 5% year-on-year from US$605m in the same period in 2019. Earnings before interest, taxation, depreciation and amortisation (EBITDA) are expected to fall by up to 20% from US$113m.

In an operational update for April to July 2020 the group said that it ramped up cement operations in May 2020 following the relaxation of coronavirus-related lockdowns in most of its territories. It attributed strong growth in cement sales volumes in June and July 2020 due to a reduction in imports as well as pent-up demand. Similarly, sales volumes were strong outside of South Africa, particularly in Zimbabwe and Rwanda, and in the DRC to a lesser extent.

Saudi Arabia: The 25th Arab International Cement Conference and Exhibition (AICCE) in Riyadh, Saudi Arabia, has been postponed from 1 – 3 December 2020 to a later date to be announced in due course. The cause of the postponement is the impacts of the coronavirus. Arab Union of Cement and Building Materials secretary general Ahmad Al-Rousan said, “For health and safety reasons for all delegates, exhibitors, and speakers, and in order to provide all participants with a reliable basis for planning, we see this rescheduling of the event as the most responsible conclusion.”

India: JSW Group has delayed the initial public offering for its subsidiary JSW Cement to 2022 from December 2020 due to lack of demand for cement. Mint News has reported that the company will increase its cement production capacity during the intervening period by 43% to 20Mt/yr from 14Mt/yr.

Managing director Parth Jindal said, “A second consecutive year of decline in cement demand has delayed our expansion plans.” He added, "We will restart capital expenditure projects worth US$160m in October 2020. We're adding 1.5Mt/yr of integrated capacity and 3.0Mt/yr of grinding capacity."

JSW Cement’s cement production fell by 30% year-on-year in the three months that ended on 30 June 2020.

India: Dalmia Bharat says that price rises and cost cutting helped it to improve its profits in the first quarter of the Indian financial year. Its income from operations fell by 22% year-on-year to US$263m in the quarter to 30 June 2020 from US$338m in the same period in 2019. Its cement sales volumes dropped by 20% to 3.66Mt from 4.55Mt. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased by 8% to US$81.9m from US$88.9m. However, its profit after tax grew by 24% to US$25.1m from US$20.3m.

The group said that, once the coronavirus-related lockdown in April 2020 ended, cement demand picked up due to infrastructure projects and the residential sector, especially in east India, with an emphasis on rural markets. It also reported that the ongoing upgrade to grinding plants has been delayed by the health situation with completion rescheduled to December 2020.