Global Cement News

Angola: Cimenfort plans to build a new cement plant at Cabinda. The site will have an area of 51 hectares and create 150 news jobs, according to the Mercado newspaper. The country has a total cement production capacity of 8Mt/yr.

Germany: Poor weather in the US and lower asset sales than expected reduced HeidelbergCement’s earnings in 2018. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 6.8% year-on-year Euro3.07bn in 2018 from Euro3.3bn in 2017. Its revenue rose by 4.7% to Euro18.1bn from Euro17.3bn. Cement sales volumes grew by 3.4% to 130Mt from 126Mt and ready-mix concrete volumes increased by 3.7% to 49Mm3 from 47.2Mm3.

“In operational terms, we were almost able to offset the impact of adverse weather conditions, particularly in the US, and the higher than expected cost inflation through growth in sales volumes and price increases,” said Bernd Scheifele, chairman of the managing board. He added that the company achieved record sales volumes and revenues in 2018. He also said that its action plan is producing its first results, with a reduction in debt to below Euro8.4bn due to portfolio ‘optimisation’ and spending discipline.

By region the group reported that construction activity in North America was hampered by a long winter in the north and heavy rainfall, particularly in the north and southwest of the US. A ‘strong’ level of construction was noted in the group’s Northern and Eastern Europe-Central Asia Group area leading to revenue increases. In Asia-Pacific its operating EBITDA fell by 4.4% due in part to high competition in Indonesia and infrastructure project delays in Thailand. Cement sales volumes growth was reported in most counties in Sub-Saharan Africa.

India: Ambuja Cement’s earnings fell in 2018 due to rising energy and fuel costs. The subsidiary of LafargeHolcim says it has implemented efficiency and cost saving programs to mitigate these effects. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 6% year-on-year to US$265m in 2018 from US$266m in 2017. Despite this, the company’s sales volumes of cement grew by 5% to 24.2Mt from 23Mt. Its sales revenue rose by 7% to US1.54bn from US$1.44bn. Overall, the consolidated results for both Ambuja Cement and its fellow subsidiary ACC, saw growth in EBITDA, net sales and sales volumes of cement.

Colombia: Poor weather in the US reduced Cementos Argos’ sales revenue in 2018. Its sales revenue fell by 1.4% year-on-year to US$2.7bn in 2018 from US$2.74bn in 2017. Cement sales volumes decreased by 1.1% to 16Mt from 16.2Mt. The cement producer said that its cement volumes in the US were impacted by weather and a 43 day halt at its Martinsburg Plant in Texas, US. However, its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 8% to US$494m from US$457m. This was in part due to an improved Colombian construction market.

Saudi Arabia: Demand for cement is forecast to fall in 2019. A report by Al Rajhi Capital expects this due to reduced government spending on infrastructure projects and growing construction costs, according to Trade Arabia. Cement producers will focus on pricing rather than volume in this environment. Exports are also expected to increase. Local sales volumes of cement decreased by 13% year-on-year in 2018.