Global Cement News

South Africa: PPC has published its Integrated Report for its 2023 financial year, which ended on 31 March 2023. The producer recorded revenues of US$559m, up by 0.2% year-on-year from US$557m in the 2022 financial year. Its cost of sales declined by 0.1% to US$471m from US$472m. As a result, PPC's loss widened by a factor of more than seven, to US$32.5m from US$4.36m.

PPC's cement volumes fell by 5.8% in South Africa and Botswana, where its cement prices rose by 8%. The company noted sustained 'good demand' for cement in coastal South Africa. It said that demand was 'robust' in Zimbabwe, however its local sales volumes fell by 16% on account of an extended kiln shutdown at one of its cement plants during the half. In Rwanda, PPC's subsidiary CIMERWA increased its cement volumes by 1%.

India: ACC recorded sales of US$632m in the first quarter of the 2024 financial year, which began on 1 April 2023. This corresponds to a year-on-year rise of 16% from US$545m. The Economic Times newspaper has reported that ACC increased its cement and clinker sales volumes by 23% to 9.4Mt. The producer reported earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$103m, up by 77% year-on-year. It attributed this to lower costs, including fuel costs, and increased operational efficiencies. Its net profit more than doubled during the quarter, to US$56.6m from US$27.6m in the first quarter of the previous financial year.

ACC said "The cement industry is in positive cycle of demand, as well as cost factors. This comes at the most apposite time, when the company is in a transformation phase, buoyed by synergies with the group. We expect the positive trend of industry to continue in the second quarter of 2023."

Gujarat-based conglomerate Adani Group completed its acquisition of ACC on 16 September 2022. It subsequently began to relocate 'significant roles' from the cement producer's headquarters in Mumbai, Maharashtra.

India: Local press has reported that a 'leading Indian conglomerate' may have concluded a deal to enter the cement industry in the union territory of Jammu and Kashmir. The Kashmir Monitor newspaper has reported the value of the deal as US$30.4m.

At present, the Jammu and Kashmiri cement sector is comprised of state-owned J&K Cements and five private companies. J&K Cements previously ceased production at its 400,000t/yr Khrew cement plant in Pulwama amid 'financial difficulties.' It has since sought a buyer for its business.

Vietnam: The government has directed state-owned businesses, including Vietnam Cement Industry Corporation (Vicem), to take measures to mitigate potential losses of state assets in construction. The Vietnam Investment Review newspaper has reported that a recent audit concluded that companies' equitisation processes created scope for such losses within the sector.

Switzerland: Holcim recorded 7.4% year-on-year growth in its organic sales to US$15.3bn in the first half of 2023. However, in real terms, its sales fell by 11% year-on-year from US$17.1bn during the first half of 2022. Its sales of cement grew by 13.8% on an organic basis to US$7.93bn, down by 21% in real terms from US$10bn. Cement constituted 52% of revenues, compared to 58% in the first half of 2022. Holcim's group share of net income rose by 9% to US$1.47bn from US$1.35bn.

Chair and chief executive officer Jan Jenisch noted 'continued profitable expansion' in the growing North American market and 'accelerated green growth' in the group's Europe and Latin America regions. He said “In line with our Strategy 2025 - Accelerating Green Growth, we reduced our overall CO₂/net sales by 18% while building billion-dollar brands with ECOPact and ECOPlanet. It’s exciting to be at the forefront of decarbonising Europe with three additional grants from the EU Innovation Fund for our carbon capture, utilisation and storage projects, making us the first in our sector with five projects supported by the EU. We look forward to finishing the year strong and to further decarbonising building.” Jenisch concluded that the results 'confirm Holcim’s strong positions across all markets, delivering superior profitability and growth with leading sustainable building solutions and brands.'