Brazil: Votorantim’s sales from its cement business have grown due to increased sales volumes in Brail, Turkey, India and Latin America. Higher prices in North America and Europe, Asia and Africa also contributed to the result. Votorantim Cimentos’ sales revenue grew by 11% year-on-year to US$682m in the first half of 2018 from US$613m in the same period in 2017. Local sales in Brazil grew by 13% to US$417m due to concrete and mortar sales. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 28% to US$65.3m from US$50.8m.
Colombia: Cementos Argos’ sales have fallen due to decreased cement sales volumes in Colombia and the US. It blamed poor weather in the US and a large number of holidays in Colombia for the situation. Its sales revenue dropped by 8.2% year-on-year to US$677m from US$737m. However, its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 2% to US$107m from US$104m.
“The growth of EBITDA throughout all our regions is proof that the strategy we established is beginning to reap the benefits of the best efficiency programme and to focus our initiatives in continuing to provide the best experiences to our clients,” said Juan Esteban Calle, president of Cementos Argos.
Cement sales volumes fell by 4.1% overall to 3.69Mt. Volume drops were noted in Colombia and the US but in the rest of the world they rose by 11%.
Production resumes at ANCAP following strike
Uruguay: Production has resumed at the Administración Nacional de Combustibles, Alcoholes y Portland’s (ANCAP) Minas and y Paysandú cement plants following a strike, according to the El Espectador newspaper. The disruption ended following negotiation between management, the union, the Ministry of Industry, Energy and Mining and the Ministry of Labor and Social Security. In April 2018 it was reported that production at the Minas plant had stopped for two months due to union action.
Pakistan: Dewan Cement has rejected a takeover bid by Mega Conglomerate to buy a 87.5% stake in it. Chairman Dewan Mohammad Yousuf Farooqui turned down the offer following a valuation of the company, according to the Pakistan Today newspaper. The valuation reported that the value of the cement producer was below the initial offer made by Mega Conglomerate due to low capacity utilisation rates at Dewan’s plants and the need for investment at the sites. Dewan Cement has claimed that negotiations are still on going.
Uganda: Local cement producers are facing challenges meeting the specification required for cement being used by the Standard Gauge Railway (SGR) project. Project coordinator Kasingye Kyamugambi said at a procurement conference in Kampala that the project was facing issues with cement, reinforcement steel and sand, according to the Daily Monitor newspaper. Hima Cement is producing one specific product for the project following discussions with the SGR. However, the railway needs eight different types of cement.
Kyamugambi has called for legal cover for the infrastructure project to bypass local product sourcing laws. He has asked that new legislation be introduced to cover projects with a lifecycle of over a century.
The SGR is being built by China’s China Harbour Engineering Company. The project is intended to link up to Kenya’s railway project at Tororo with proposed links to Rwanda and South Sudan. The Democratic Republic of Congo has also expressed interested in the line.
Japan: Sumitomo Osaka Cement’s net sales rose by 4.6% year-on-year to US$2.24bn in the financial year that ended on 31 March 2018 from US$2.14bn in the same period of the previous year. It attributed the increase to higher sales volumes of cement. However, its operating income fell by 15.6% to US$92m from US$113 due to higher coal prices. The company said that overall local demand in the country rose by 0.2% to 42Mt during the reporting period. Exports rose by 2.4% to 11.8Mt.
Taiheiyo Cement sales rise by 9.1% to US$7.98bn
Japan: Taiheiyo Cement’s sales rose by to 9.1% year-on-year to US$7.98bn in the financial year that ended on 31 March 2018 from US$7.30bn in the same period of the previous year. Its domestic sales volumes increased by 2.4% to 14.7Mt and its export sales fell by 2.7% to 2.3Mt.
Buzzi Unicem’s sales drop in first quarter
Italy: Buzzi Unicem’s sales fell by 8.4% year-on-year to Euro539m in the first quarter of 2018 from Euro589m in the same period in 2017. Its cement sales fell by 1.6% to 5.1Mt from 5.2Mt. It blamed poor weather and reduced working days in the reporting period. Sales volumes in Eastern Europe performed well due to favourable trends in the Czech Republic and Russia. Sales in Italy improved due to the consolidation of Cementizillo into the group.
Italy: Cementir’s sales and earnings have fallen following the divestment of its local business. Its sales dropped by 1.6% year-on-year to Euro242m in the first quarter of 2018 from Euro246 in the same period of 2017 when adjusted for the divestment. Earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 12.4% to Euro241m from Euro27.5m. Cement sales volumes increased by 4.1% to 2.08Mt from 2Mt.
“The exit of Cementir Italia group from the perimeter of consolidation and the improvement in Turkey and China offset the deterioration of results in Egypt caused by the curfew introduced in February 2018, the effects of harsh weather conditions in Scandinavian countries, and the fewer number of working days due to the early Easter holidays, which resulted in lower earnings in Norway and, to a lesser extent, in Belgium, Denmark, Sweden and Malaysia,” said the company in a results statement.
The group’s board of directors has also approved a business plan for 2018 to 2020 to recognise changes in its portfolio. In 2020 the group forecasts that the Nordic and Baltic countries and the US will generate about 72% of the group's revenue, while the Eastern Mediterranean area, including Turkey and Egypt, will generate 20% and the Asia Pacific area, including China and Malaysia, will account for around 6%.
Pakistan: The Peshawar High Court has stopped construction of a cement plant by Fecto Cement at Palai in Malakand. Opponents of the project cited environmental and health concerns, according to the News International newspaper. Fecto Cement announced plans for its new 6000t/day plant in February 2018.