Global Cement News

Nigeria: Dangote Cement has appointed former Xstrata CEO Mick Davis as a non-executive director alongside Cherie Blair, a lawyer and the wife of ex-UK Prime Minister Tony Blair. The new board appointments are targeted at strengthening the company’s board, according to Bloomberg. While the company did not explain the reason for such high-level appointments, it has been reported that the company is planning to relaunch its bid to be listed on the London Stock Exchange (LSE). According to Bloomberg, Dangote has already approached investment bankers to discuss a potential UK listing.

Davis ran Xstrata, the mining giant now owned by Glencore, for 12 years to 2013. He is now the chairman of Macsteel and the CEO of the UK’s ruling Conservative party. Cherie Blair’s other board positions include Renault SA.

India: Votorantim Cimentos is rumoured to be selling its 75% stake in Gujarat-based Shree Digvijay Cement as part of its strategy to prioritise assets and reduce debt, according to ‘sources close to the company.’

The news comes as the company struggles amid rising competition among mid-sized Indian cement producers. It made a net profit of US$2.0m in the 12 months to 31 March 2018 from a turnover of US$63.5m. In 2012, before Votorantim took over the company, it made a net profit of US$1.2m from a turnover of US$64.2m.

China: Hong Kong based CK Infrastructure Holdings (CKI) has acquired a 1Mt/yr cement grinding station and three quay berths in Yunfu City, Guangdong, for an investment of US$28.5m. The three berths can handle 3Mt/yr.

The group said it hopes to expand its infrastructure investment portfolio in mainland China. "The acquisition is deemed to be another robust investment with stable returns for CKI," it said in a statement, explaining that demand for cement has been growing on the mainland. "The acquisition of the jetty further realises the vertical integrated production of cement, brings about competitive advantages, and enhances operation efficiency," the statement added.

Peru: Cementos Pacasmayo has seen its sales volumes of cement, concrete and blocks rise by 7.8% year-on-year in the first quarter of 2018, primarily due to increased sales volume of cement to the public sector and the self-construction segment. Its revenues increased by 12.8%, also due to higher cement sales, as well as an average cement price increase.

Cementos Pacasmayo’s net income was US$9.22m, a 37.3% increase, mainly due to higher sales and operating profit. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) were US$29.2m.

Mexico: Grupo Cementos de Chihuahua (GCC) recorded a 13.6% increase in sales in the first quarter of 2018, with US sales up by 11.9% and Mexican sales up by 18.0%. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 46.0%, while its net income rose by 554.6% to US$11.3m.

GGC said that the increases reflect strong cement demand and favourable cement pricing environments in both the United States and Mexico, increased ready-mix demand in Mexico, the effect of Mexican Peso appreciation compared to the US Dollar, and strict control of operating expenses.

Enrique Escalante, GCC's CEO, said, "Our US operations are catching the tailwind from the strong market in 2017 and the benefit of relatively mild winter weather in some of our markets. In Mexico, sales volumes were above our expectations. Our EBITDA margin in Mexico reached an all-time record of 42.7% and US margins were 16.6%, the highest for a first quarter since the 2009 financial crisis."