Global Cement News

Hungary: The government has imposed a 90% tax on the excess profits of some building materials producers to prevent rising prices. It applies to companies that produce cement, lime, gypsum, chalk, gravel, sand and clay that had an annual revenue over Euro8.4m in 2019, according to the MTI news agency. Producers will be liable for a 90% ‘mining allowance’ on the difference between revenue generated using their own prices and threshold prices set in the decree. The threshold price for cement has been set at Euro56/t.

The government has also ordered that companies report the export of ‘strategic’ construction materials including cement, gypsum wallboard, gravel and steel products. The related decree also gives the state pre-emption rights for the materials that have been reported at a price "in line with their current market value." Failure to comply with the reporting obligation may result in seizure of the construction materials and fines up to Euro14,000.

UK: John King Chains has agreed to acquire Precision Chains for an undisclosed price. The group said that Precision Chains’ heavy series chains production capabilities made it an attractive acquisition. It said that there is ‘untapped potential’ for heavy series chains production for the cement industry in the companies’ collaboration.

Managing director David Wadsworth said “The acquisition of Precision Chains represents a tremendous opportunity for John King Chains to further enhance its reputation as a leading manufacturer of conveyor chains and sprockets worldwide. We are committed to UK manufacturing and consider the potential for Precision Chains to flourish under the John King Chains umbrella is substantial.” He added that the company will retain the Precision Chains brand name for the ‘foreseeable’ future.

Mexico: Cemex has closed the sale of its white cement business outside of Mexico and the US for US$155m to Turkey-based Çimsa Çimento. The assets sold include the company’s Buñol white cement plant in Valencia, Spain. The group said that the proceeds from the sale would be used to fund its bolt-on investment growth strategy in its core businesses and geographies, and contribute to debt reduction.

Vietnam: The Vietnam National Cement Association (VNCA) has reported a 27% year-on-year rise in cement and clinker exports to 21.0Mt in the first half of 2021. The Viet Nam News newspaper has reported that the value of cement exports rose by 32% to US$812m. The growth was attributed to China’s environmental policies and the promotion of clinker imports.

Nigeria: BUA Cement has increased the ex-factory price of its cement by 7%. It previously claimed that it did not intend to increase its prices, according to the Sun newspaper. In statements issued between April and June 2021 it said, “the company had no plans to increase prices of its cement now or in the near future.”

In April 2021 Dangote Cement was forced to publicly defend the price of its cement due to allegations that its prices were allegedly lower in Ghana or Zambia. Around the same time the Senate of Nigeria called for the federal government to introduce policies, such as tax breaks, to encourage local investments in cement production and to reduce prices.

At its annual general meeting in July 2021, BUA Cement issued dividends worth US$170m to its shareholders. The company reported sales of US$509m in 2020, a rise of 20% year-on-year. However, its costs increased by 22% to US$277m at the same time.