Global Cement News

Nigeria: Dangote Cement’s sales revenue rose in 2017 but its sales volumes of cement fell. Its revenue rose by 31% year-on-year to US$2.23bn in 2017 from US$1.70bn in 2016. However, sales volumes of cement in Nigeria fell by 15.9% to 12.7Mt from 15.1Mt. Altogether, its sales volumes rose by 8.4% to 9.37Mt in the rest of Africa and fell by 7% to 21.9Mt in total. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 50.9% to US$1.08bn from US$713m.

“Although Nigerian volumes were lower in 2017, our Pan-African operations increased volumes by 8.4% and now make up 42% of the Group’s total cement sales, demonstrating the robust diversification of our business,” said Joe Makoju, Acting Group Chief Executive Officer of Dangote Cement. He added that the cement producer had increased its footprint from eight countries to 10 during the reporting period with the opening of new facilities in the Republic of Congo and Sierra Leone, while its operations in Cameroon, Senegal and Ethiopia achieved ‘strong’ sales growth during the year.

Regionally, Dangote Cement said that its estimate for the total Nigerian cement market fell by 18% to 18.6Mt in 2017 due to a recession in the first half of the year and higher prices. It also noted that its Gboko plant in Benue State was mothballed for ‘most of the year.’ Elsewhere, it said that it exported 174,000t of cement from Nigeria to Ghana. In Senegal it introduced 32.5R cement to its product range. In Sierra Leone it opened a 0.5Mt/yr terminal and bagging plant in Freetown in early 2017. In Tanzania it said that its plant at Mtwara had lost earnings due to its reliance on temporary diesel generators. Gas turbines are scheduled to start operation in March 2018.

China: Dongwu Cement has forecast that its sales revenue will rise by 60% year-on-year to US$56.4m in 2017 from US$35.2m in 2016. It has attributed the boost to increased sales volumes and the price of cement, according to ET News. Its profit is forecast to more than double to US$10.7m from US$2.37m. The cement producer will release its full annual results later in March 2018.

Indonesia: Indocement has inaugurated a 0.5Mt/yr at Palembang in South Sumatra. The terminal has two cement silos and a packaging plant, according to Warta Ekonomi magazine. The new unit will allow the cement producer to sell bulk cement and it is expected to increase its presence in Sumatra.

Georgia: Oman’s Raysut Cement has approved an initial study to consider building a 1Mt/yr cement plant in Georgia. The company’s subsidiary Pioneer Cement Industries Georgia owns a limestone mine with reserves of over 30Mt about 60km from Tiblisi. A final decision on the project is expected to be made by June 2018. Discussions have also commenced with possible partners for both equity participation and engineering, procurement and construction (EPC) contracting.

Egypt: Egypt Petroleum Technology (EGYPTCO) has received bids from US, Canadian and Saudi Arabian companies to finance two oil well cement production projects with a value of US$500m. An agreement is expected to be reached by mid-2018, according to the Egypt News Daily newspaper. The company is seeking to reopen an existing cement production line and build a new plant to produce both specialist cement and additives.