Global Cement News

China: Anhui Conch Cement has ordered four new Polab laboratory automation systems from Germany’s ThyssenKrupp Industrial Solutions. The systems will be installed at some of the world’s largest integrated cement plants at Wuhu and Tongling respectively in Anhui province. No value for the order has been disclosed.

Argentina: Loma Negra says that a minor fire broke out at an auxiliary building for the second production line at the L'Amalí integrated cement plant on 1 August 2019. No casualties or injuries were reported in the incident. The subsidiary of Brazil’s InterCement said that the causes of the accident are yet to be determined but that no significant impacts are expected. The plant is currently being upgraded with a new production line that is scheduled for completion in early 2020.

France: Vicat’s sales rose by 4.6% year-on-year to Euro1.34bn in the first half of 2019 from Euro1.28bn in the same period in 2018. This was mainly due to its acquisition of Brazil’s Ciplan in late 2018. At constant scope and exchange rates its sales fell by 0.6% due to poor markets in Turkey, Switzerland, Indian and West Africa. Its earnings before interest and tax fell by 9.4% to Euro97m from Euro107m. Cement sales volumes dropped by 4.9% to 10.8Mt from 11.4Mt and concrete volumes decreased by 6.7% to 4.3Mm³ from 4.57Mm³.

“In the first half of 2019, solid performances in France, Asia and the US drove an increase in our sales and earnings before interest, taxation, deprecation and amortisation (EBITDA). These results reflect a marked improvement in the operational profitability given the on-going increase in consumed energy costs, the deteriorating macroeconomic situation in Turkey and the exceptional rainfalls in California that we experienced in the first half,” said Guy Sidos, the group’s chief executive officer (CEO).

By region, the group’s sales and earnings rose in France but fell in the rest of Europe. Sales grew in the Americas region, even without the Ciplan acquisition, but earnings fell due to a Euro10.6mn settlement payment booked in the US in the first half of 2018. The group’s sales fell in India but earnings rose due to price increases. Poor markets in Turkey and Egypt hit sales and caused a loss.

US: Summit Materials' revenue rose by 3% year-on-year to US$739m in the first half of 2019 from US$717m in the same period in 2018. Its adjusted earnings before interest, taxation, deprecation and amortisation (EBITDA) grew by 4% to US$147m from US$141m. Cement sales volumes increased by 2% to 1Mt from 0.97Mt. Tom Hill, the chief executive officer of Summit Materials, noted that flooding on the Mississippi River had presented ‘significant’ challenges for its cement business during the second quarter of 2019.

Summit Materials is active in the aggregates, asphalt and concrete sectors. It also owns Continental Cement, a cement producer that runs two integrated cement plants at Hannibal, Missouri and Davenport, Iowa.

India: Dalmia Bharat has blamed the general election for its slow cement sales volumes growth in its first quarter. Its sales volumes of cement increased slightly to 4.55Mt. Its revenue grew by 7% year-on-year to US$365m in the first fiscal quarter to 30 June 2019 from US$340m in the same period in 2018. Its earnings before interest, taxation, deprecation and amortisation (EBITDA) rose by 27% to US$95.7m from US$75.2m.

The cement producer also said that its power and fuel costs per tonne had been negatively affected by its Kalyanpur plant operating at low capacity utilisation levels, partly due to a lack of coal. However, it noted that its raw material costs had been ‘moderated’ due to falling slag prices.