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PPC to focus on consolidation in South Africa and expansion abroad 15 December 2017
South Africa: Peter Nelson, the chairman of PPC, says that the company is not interested in merger or acquisition activity. Instead the cement producer will focus on its current business strategy by development projects in Sub-Saharan Africa, executing its ‘mega plant’ plan in South Africa and making further efficiency drives in its subdued domestic market. In an interview with Reuters he described talks with LafargeHolcim about a potential takeover as ones that, “…fell short on value”. "PPC is not looking to sell its assets, it's not looking to merge it's assets, it's looking to focus on its business, deliver cash flow and deliver shareholder value," said Nelson.
Loma Negra to build new line at L'Amalí plant 14 December 2017
Argentina: Loma Negra plans to spend US$350m on building a new 2.7Mt/yr production line at its Amalí plant in Olavarria. Production on the new line is scheduled to start in early 2020. Once operational it is expected to create 220 new jobs. The new line will include a new kiln, two new two vertical mill for raw and cement grinding and a bagging and palletising unit.
Mexico: Grupo Cementos de Chihuahua’s (GCC) cement sales volumes increased by 18.2% year-on-year to nearly 4Mt in the first 11 months of 2017 due to high US cement sales in October and November. The US generates around 75% of GCC’s revenues.
October and November US cement sales volumes rose by 31.2% compared to the same period of 2016. Overall, for the first 11 months of the year, US cement volumes increased by 28.8% from 2016. The increase reflects strong demand and GCC’s acquisitions in Texas and New Mexico in late 2016. October and November sales volumes in Mexico also grew by 10.2%, rebounding from decreases earlier in the year. However, for the first 11 months, Mexico’s cement volumes fell by 1.6%.
“GCC reached record cement sales volumes as a result of strong demand and high level of backlog in our core markets, especially West Texas, Colorado, South Dakota, and the state of Chihuahua. In addition, builders and contractors enjoyed favourable weather in October and November, which offset the effect of some weather and project-related delays in the third quarter. As a result, we are confident that GCC will significantly exceed our US volume outlook for the year and, as a result, also surpass our earnings before interest, taxation, depreciation and amortisation (EBITDA) growth target,” said GCC´s Chief Executive Officer (CEO) Enrique Escalante.
LafargeHolcim pulls out of talks with PPC 14 December 2017
South Africa: LafargeHolcim has ended its talks with PPC regarding a possible transaction in Africa. The Switzerland-based building materials company originally said it was discussing a possible bid for PPC in October 2017. Fairfax Holdings stopped its bid for PPC in December 2017 and expressions of interest by CRH and Dangote Cement have also ceased.
ABB India wins order from Emami Cement 14 December 2017
India: ABB India has won an order from Emami Cement for an automation and electrical system for a new 2Mt/yr plant in Odisha. ABB will be undertaking complete project implementation including supply, erection, testing and commissioning for the electrical distribution and distributed control system (DCS), according to the Press Trust of India. The 800xA DCS is intended to help monitor, control and optimise the cement manufacturing process while maximising plant uptime.