China: Data from the National Development and Reform Commission reports that the profits of local cement companies more than doubled to US$64bn in 2018 compared to 2017. Cement output grew by 3% year-on-year to 2.18Bnt, according to the Xinhua News Agency. Cement sector growth has been attributed to rising cement prices. In December 2018 the average price of cement was 10.6% higher than at the same time in 2017.
LafargeHolcim España to invest Euro4m in Sagunto cement plant
Spain: LafargeHolcim España plans to spend Euro4m on upgrades to its Sagunto cement plant, according to the Las Provincias newspaper. The work will include automating the laboratory, adding a new control system for the plant, making environmental changes, improving lighting and acoustics and remodelling the unit’s white cement line.
Udayapur Cement production hampered by power cuts
Nepal: Udayapur Cement’s production is being reduced due to power cuts. The plant has a production capacity of 800t/day of clinker but at times it has been reduced to only just 100t/day, according to the Republica newspaper. The cement producer says that the cuts have cost it over US$0.4m.
The electricity outages have also damaged machinery such as gears in cement-packaging equipment and raised general costs through repeated start-ups. The unit suffered 62 power cuts from 15 January to 2 February 2019 lasting a total of 23 hours. As many as six stoppages in a single day have been reported.
The Nepal Electricity Authority supplies electricity to the plant. It has blamed the ‘incompetence’ of officials at a substation.
LafargeHolcim considering options in Middle East and Africa
Switzerland: LafargeHolcim is considering options, including divestments, for its businesses in the Middle East and Africa. Unnamed sources quoted by Bloomberg say that the company has held early talks with advisors about selling assets and it is also looking at an initial public offering (IPO). If it decides to sell its entire business in this region it may seek up to US$8bn. However, the sources thought that finding a buyer at this scale might prove difficult given market conditions. In 2018 the building materials producer operated 44 integrated and cement grinding plants in the region, 30 aggregates plants and 212 ready-mix concrete plants. LafargeHolcim has declined to comment on the report.
