Global Cement News

Switzerland: LafargeHolcim has launched a new five year plan, ‘Strategy 2022 – ‘Building for Growth,’ as it has reported an income loss of Euro1.46bn. It blamed the loss on a, ‘…detailed review of the asset portfolio, and specifically the country risk.’ Its net sales rose by 4.7% year-on-year on a like-for-like basis to Euro22.7bn from Euro23.4bn. Its sales of cement rose by 3.3% on a like-for-like basis to 210Mt from 233Mt.

“In 2017 we made good progress across all key metrics. The growth in sales and the over-proportional increase in earnings before interest, taxation, depreciation and amortisation (EBITDA) represent a good performance and give us a very good basis to build on. The fact that four of our five regions reported growing EBITDA is testimony to our global strength,” said group chief executive officer Jan Jenisch. He added that the new strategy is based by a new set of targets that centre on growth, improving profitability, increasing cash generation and better returns for shareholders.

Iran: Cement production fell by 0.9% year-on-year to 43Mt in the first nine months of the local financial year. Data from the Ministry of Industries, Mining and Trade showed that cement production in the November to December 2017 period fell by 8.8% to 4.29Mt, according to the Trend News Agency. The decline has been blamed on a recession in the construction industry, poor supplies of natural gas to industrial users and a drop in exports due to falling global oil prices. The country produced 54.1Mt of cement in the 2017 financial year that ended in March 2017, a fall of 6.6% from the preceding year.

Jordan/Saudi Arabia: Al Jouf Cement Company has activated a contract to export 72,000t/yr of cement to Jordan with effect from late February 2018. The company previously signed the deal with Saudi Industrial Export, according to Mubasher. The financial effect from the agreement is expected to show in the company’s results for the first quarter of 2018.

Argentina: Holcim Argentina plans to import 0.42Mt of clinker between May and December 2018 for US$27.5m. In a measure, agreed by the board of the subsidiary of LafargeHolcim, the cement producer will import the raw material via 10 ships, according to the El Cronista newspaper. The measure is intended to make up for a shortfall between production and local demand.

Australia: Adelaide Brighton is reportedly considering buying the cement business of Barro Group for around US$387m. Barro Group is a major stockholder in Adelaide Brighton that recently increased its stake to 40%, according to the Australian newspaper. The increase in its stake has generated speculation about the relationship between the two companies.

Barro Group operates Independent Cement and Lime (ICL), a joint venture with Adelaide Brighton and Barro. ICL is a specialist supplier of cement and cement blended products throughout Victoria and New South Whales and is also the exclusive distributor of cement for Adelaide Brighton.