Global Cement News

Thailand: Fitch Ratings forecasts that demand for cement will rise due to recovery in the private construction sector. It is expected to grow by over 5% in 2019, according to the Bangkok Post. Cement sales rose by 3.7% year-on-year in the third quarter of 2018, the first quarterly growth in 10 quarters. Data from the Office of Industrial Economics showed that this was followed by a rise of 2.8% in the fourth quarter of 2018.

The forecast said that local cement producers were expanding regionally due to domestic oversupply and a profitability gap between domestic sales and exports. Government infrastructure projects are expected to continue to drive sales, with nearly US$100bn planned on projects from 2018 to 2026.

India: HeidelbergCement India’s sales rose by 11.9% year-on-year to US$222m in the nine months to 31 December 2018 from US$202m in the same period in 2017. Its expense increased by 3.5% to US$193m from US$186m. Its net profit nearly doubled to US$22.6m. The cement producer reported a strong third quarter of its 2017 – 2018 financial year due to improved construction activity in central India.

India: Gujarat Sidhee Cement’s revenue grew by 2.3% year-on-year to US$57.5m in the nine months to 31 December 2018 from US$56.2m in the same period in 2017. It made a loss of US$1.66m compared to a profit of US$1.87m previously. Its costs rose by 13% to US$62m from US$55m, in part due to the cost of raw materials.

Peru: Cementos Pacasmayo’s sales rose in 2018 due to higher sales to medium-sized companies, the self-construction sector and the public sector. The cement producer said that this was the first year it had reported growth after five years of ‘flat’ volumes. Its sales rose by 3.5% year-on-year to US$379m from US$366m. Cement production increased by 2.6% to 2.35Mt from 2.29Mt and clinker production increased by 4.7% to 1.72Mt from 1.64Mt. Its consolidated earnings before interest, taxation, depreciation and amortisation (EBITDA) increased 14.7% to US$112 from US$97.2m.

UAE: Arkan Building Materials has sold the closed Emirates Cement plant for US$13.6m, according to Mubasher. The unit was originally closed in late 2016 on a temporary basis due to rising gas and electricity costs. It later decided to permanently close the plant. The company continues to run its Al Ain Cement plant.