Cementos Cibao inaugurates new packing plant
Dominican Republic: Cementos Cibao has inaugurated a new packing and despatch plant. The unit has two automated packing lines with a palletising system, according to the Listín Diario newspaper. The site also includes a warehouse that can store 200,000 bags of cement. The cement producer operates an integrated plant.
Cement sales rise in Uruguay by 4.6% to 0.6Mt so far in 2018
Uruguay: Cement sales rose by 4.6% year-on-year to 0.60Mt in the first nine months of 2018 from 0.57Mt in the same period in 2018. Exports and internal sales both rose by similar ratios to 87,700t and 0.51Mt respectively, according to data from the Chamber of Industries of Uruguay. Despite overall growth, exports in the third quarter of 2018 nearly halved. Most exports were sent to Paraguay, followed by Argentina and Brazil.
Yguazú Cementos renews call for clinker import ban to be lifted
Paraguay: Yguazú Cementos has renewed its call for a ban on clinker imports to be lifted. The cement producer made its latest bid to the Luis Alfredo Llamosas, the Vice Minister of Industry, during a visit to its plant, according to La Nacion newspaper. The company produces 0.37Mt/yr of clinker that it uses to make 0.55Mt/yr of cement. However, the plant can grind up 0.75Mt/yr of cement and it wants to import clinker to increase its productivity. Staff at Yguazú Cementos have previously criticised the import ban that allows only Industria Nacional del Cemento (INC) to bring in clinker from abroad.
PPC struggling to transfer US$64m from Zimbabwe
Zimbabwe: South Africa’s PPC has revealed that it is unable to transfer US$64m in cash and cash equivalents out of the country due to local currency restrictions. The cement producer said in its half-year report that the funds were freely available to spend locally. However, the Zimbabwe Central Bank has introduced a foreign payments priority list and any foreign payments are dependent on the bank’s ranking criteria, including the bank having adequate funds placed with its foreign correspondent banks. Despite these problems the company’s local sales and earnings grew in the half-year period. Revenue increased by 31% year-on-year to US$77m due to ‘strong’ volume growth. Earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 42% to US$25m.
Perfect storm in Panama
Panama: The economic slowdown and a strike by the Trade Union of Construction Workers, combined with a fall in consumption and construction permits have hit the cement sector hard. It is expected that this will mean a 13% fall in cement demand in 2018, according to José Luis González Habas, Cemex's planning director. Cemex is the country’s only integrated cement producer.
González said that the cement sector had been growing by 13-14% and that infrastructure was growing even more. However, he was worried by the situation, stating that it was intolerable that the sector could be so unstable.
Héctor Ortega, president of the Panamanian Chamber of Construction has suggested a reduction in paperwork to help free up planning procedures and ensure infrastructure growth.
Zambian project back underway
Zambia: BBMG Corporation and Tangshan Jidong Cement have resumed work on the development of a cement plant in Zambia, which requires a total investment of US$290m. The facility will produce 3000t/day of clinker and have a cement capacity of 1.3Mt/yr.
Up to 60% of the funding will be secured from Bank of China (BOC), the International Finance Corporation (IFC) and South Africa-based Nedbank. Aside from the 20% project capital that has been invested by the project owners, Tangshan Jidong Cement will raise the remaining 20% funding from other banks after February 2019.
The original contract was made prior to 2015 between Tangshan Jidong Cement and Zambia-based Suhails International Ltd. and the cement plant was supposed to commence operations by the end of 2017. The IFC also launched due diligence at the beginning of 2015, according to reports published by Hebei government website and Tangshan local media. In April 2015 regulators from China and Zambia approved the project. However it was delayed due to the restructuring of Tangshan Jidong Cement.
Diversification bears fruit for PPC
South Africa: PPC reports that its strategy to expand into the rest of Africa has started to bear fruit, despite continuing challenges in many markets. Johan Claassen, the chief executive of PPC said that the group's diversified portfolio had enabled the company to offset the weaker South African performance with robust growth in its rest of Africa segment.
"We are very pleased with our rest of Africa operations, which grew volumes by more than 34%, increased revenues by 36% to US$120m and improved earnings before interest, tax, depreciation and amortisation (EBITDA) by 18% to US$36.7m. "This performance was supported by robust volume growth in Zimbabwe and a positive contribution from the Democratic Republic of Congo (DRC),” said Claasen.
Claassen added that the first phase of PPC's Cimerwa plant upgrade in Rwanda, which involved de-bottlenecking the plant to increase production capacity, was successfully completed in the six months to September 2018 and that PPC began to realise the benefits towards the end of the reporting period when record volumes were achieved.
However, the revenue achieved by the Cimerwa plant declined to US$29.1m from US$31.9m in the prior period because of a 7% reduction in volumes. PPC’s Rwandan EBITDA slumped to US$6.7m from US$12.2m, because of unexpected maintenance associated with clinker imports costs. Claassen added that its operations in the DRC continued to encounter challenging market conditions, which were characterised by overcapacity and muted cement demand due to political uncertainty.
Ireland: Ecocem Materials’ turnover rose by 9.4% in 2017 to Euro79.4m from Euro72.6m in 2016. Pre-tax profit fell by 37.5% to Euro2.5m from Euro4m in 2016, as its costs rose by 12% to Euro76.5m from Euro68.6m.
Ecocem makes cement using waste from steel slag. The company has its head offices and a factory in Dublin, as well as businesses in the UK, France and the Netherlands. It is looking to expand into the US, although its subsidiary Orcem Americas has come up against stiff resistance from environmental groups in San Francisco.
Strong Ukrainian sales in October
Ukraine: Ukrainian cement production in October 2018 increased by 13.8% year-on-year to 0.96Mt in October 2018, according to the State Statistics Service. The figure was 7.4% higher than in September 2018. Over the first 10 months of 2018, the production of cement increased by 0.1% year-on-year to 7.86Mt.
Dalmia Bharat to pursue northern market after Binani disappointment
India: Dalmia Bharat is reported to be planning a 4Mt/yr greenfield cement plant in Rajasthan to cover the north Indian market. It was earlier reported to have secured limestone mining rights in the area surrounding Chittogarh and it has recently missed out on the purchase of northern cement maker Binani Cement to its rival Ultratech Cement.
Speaking to Business Standard, a Dalmia Bharat spokesperson said, “If we aren’t able to foray into North India via acquisition, we’ll do it via a greenfield project.” He added that the plant will start with a single 2Mt/yr line, with a second to be added later.
This new proposal gives Dalmia Bharat exposure to Rajasthan and neighbouring Gujarat, opening the wider nothern region up to the company. “The region is expected to register good growth in the next 10 years, which makes this market lucrative for us. It has always been our endeavour to be present across the country,” concluded the spokesperson.