Global Cement News

Germany: Beumer Group has published a technical report detailing changes to its operations due to the on-going Covid-19 outbreak. The group says that cement producers in some markets have changed to 50kg to 25kg bags. It also reported an increased rate of digitisation, less personal interaction with customers and an increased reliance on alternative fuels.

Cement head of sales Kay Wieczorek said, "Over past months, Covid-19 has forced us to cope with some changes. This will probably bother us even more in the colder months." He added, "Even if the Covid-19 figures are currently in progress, I am sure that BEUMER Group will come through this crisis pretty well; we just have to be well-prepared for it."

Thailand: Siam Cement Group (SCG) has forecast total earnings growth of 5 - 10% from US$13.3bn in 2020. The Bangkok Post newspaper has reported that the group believes that its businesses are likely to be driven by product development and the circular economy, with an emphasis on diversification outside of cement.

President and chief executive officer Roongrote Rangsiyopash said, "We have a positive outlook for our businesses because we have strong strategies. The company is focused on high value-added products and global trends to support our businesses during the outbreak."

India: A raid by customs officers on an alleged fake cement production facility near Manpur, Madhya Pradesh, has resulted in the recovery of 250 bags of fake cement. Also present were large quantities of fly ash and low-quality cement, as well as further empty cement bags. The bags bore UltraTech Cement branding. The Free Press Journal has reported the operation was situated in a shed adjacent to a roadside restaurant. Police are searching for an individual seen fleeing the site at the time of the raid.

US: Eagle Materials’ sales in the nine months up to 31 December 2020 rose by 16% year-on-year to US$1.28bn from US$1.10bn. Its net earnings were US$273m, compared to a loss of US$1.54m in the first nine months of its 2020 financial year. Total cement volumes rose by 28% to 6.1Mt from 4.8Mt, and cement sales revenue rose by 35% to US$676m from US$502m.

President and chief executive officer Michael Haack praised the performance in the quarter which ended on 31 December 2020, saying, “Our cement shipments were up by 28% year-on-year, reflecting the strong performance of the recently acquired Kosmos Cement Business and the strength of our core markets. We continued to generate strong operating cash flow, which significantly improved our balance sheet and liquidity position providing us with increased financial flexibility.” He added, “As we continue to navigate the Covid-19 environment, I want to thank our team for their exceptional work under extraordinary circumstances, delivering strong results, remaining focused on the integration of Kosmos and keeping our strategic projects on schedule. We continue to closely monitor the disruptions caused by the Covid-19 pandemic and their possible impact on our business in current and future periods. We also continue to enforce strict health and safety protocols to protect our employees, customers and business partners, and we will continue to manage our cash flow prudently and protect our balance sheet.”

Kuwait/Germany: HeidelbergCement has detailed the reasons behind the sale of its 51% stake in Hilal Cement, which has been led by HeidelbergCement subsidiary Suez Cement since 2016. The group said that the divestment represents the first step in a ‘comprehensive portfolio optimisation’ in line with its Beyond 2020 strategy.

Chief executive officer Dominik von Achten said, “We are pleased with the closing of the transaction in Kuwait.” He continued, “The focus of our portfolio management is the simplification of country portfolios and a prioritisation of the strongest market positions.”

Hilal Cement operates two cement terminals and four ready-mix plants.