Global Cement News

India: Penna Cement has filed for an initial public offering (IPO) worth US$212m. It plans to offer US$34m-worth of shares for sale and to issue equity shares worth US$177m. United News of India has reported that part of the money raised will fund capital expenditure (capex) investments worth US$58m. The company’s plans consist of a second line at its Krishnapatnam grinding plant in Andhra Pradesh, an upgrade of raw materials and clinker grinding at its integrated Talaricheruvu plant in Andhra Pradesh, and new waste heat recovery (WHR) units at its Talaricherevu plant and its integrated Tandur plant in Telangana. It additionally plans to repay previous loans.

Kenya: Domestic cement consumption was 607,000t in February 2021, down for a third consecutive month and below mid-coronavirus lockdown levels of 723,000t in October 2020. Labour shortages and a national economic slowdown have slowed housing and infrastructure growth since 2020, while commercial construction has declined as companies opt not to invest in office space. The Business Daily newspaper as reported that uncertainty about the economic situation continues in May 2021.

UK: The Mineral Products Association (MPA) has described first-quarter building materials demand as ‘resilient’ in 2021 despite renewed coronavirus lockdown restrictions, on-going supply chain disruptions and wet winter weather. Following a recent survey the association says that continued housing activity – with increased home improvements – and an acceleration in infrastructure work, driven by a new roads programme and the start of the HS2 high-speed railway, drove minor growth during the quarter. Ready-mix concrete demand rose by 2% year-on-year, while mortar demand fell by 7% during the period. The MPA said that both products are mostly used in the early stages of construction, thus serving as a barometer for construction activity ahead in the short term.

The MPA reports that since September 2020, construction growth has remained close to zero, whilst new contract awards have been ’weak’ since May 2020. The downward trend of housing-led mortar demand in the first quarter of 2021 continues a pre-pandemic decline since mid-2018. Thus, housing activity growth is considered unlikely to continue beyond the completion of existing projects ahead of the end of a land tax holiday and a deadline in a first time buyers loan scheme. The MPA described the slow growth of ready-mixed concrete demand as ‘concerning.’ Low housing activity and few new commercial projects compounded the difficult recovery: non-infrastructure projects normally generate 60% of demand. Ready-mix concrete producers rely on London and the South East region for over 30% of sales. First-quarter volumes were 9% below the previous five-year average, despite three consecutive quarters of growth since the first coronavirus lockdown in the first half of 2020.

Director of Economics Affairs Aurelie Delannoy said, “Mineral products manufacturers are busy supplying post- lockdown pent-up demand, particularly for domestic activity such as landscaping, repair and maintenance and home improvements, as well as infrastructure projects.” She added “The outlook for this year and next is also positive, but the stakes are high. Any optimism assumes activity is not disrupted by renewed outbreaks of Covid-19 and, most importantly, relies on the government delivering on its planned infrastructure commitments. MPA members tell us they are yet to see a more clear-cut pick-up in new house building, whilst any recovery in commercial development is expected to remain muted given the current reticence for major new investments.”

South Korea: A man has died in hospital after a crane collapsed onto him while working at SsangYong C&E’s Donghae cement plant in Gangwon province on 14 May 2021. The Korea Herald newspaper has reported that the man worked for a construction company contracted by the cement producer. Police are investigating the incident.

Greece: The consolidated revenues of the Titan Cement Group came to Euro371m in the first quarter of 2021, a decrease of 4% compared to the first quarter of 2020. The company said that the decline was due in part to the weakness of the US Dollar and currencies linked to it. It said that organic growth was solid, with revenue rising by 3% in local currency terms.

During the first quarter of 2021, Titan’s earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 38% to Euro56.1m compared to Euro40.6m in the same period of 2020. However, Titan noted that deferred maintenance costs, which will now be reflected in the second quarter of 2021, would have pegged its first quarter EBITDA back by around Euro8.3m.

The group said that 2021 started positively, with robust demand in the US, particularly in March 2021. It also observed solid market trends in Southeast Europe, as well as continued favourable momentum in Greece and some improvement in the eastern Mediterranean.

All product lines showed positive trends in terms of sales volumes. The group's cement and clinker sales increased by 3%, supported by increased demand in most markets. Ready-mixed concrete and aggregate sales volumes increased by 1% and 3% respectively.