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Akhangarancement opens refractory plant 21 September 2017
Uzbekistan: Akhangarancement has launched a 3500t/yr refractory plant. The unit was built by China’s Henan Dufu Machinery Manufacturing as part of an agreement between the Uzbek company and Russia’s Eurocement group, according to Uz Daily. The Uzbekistan refractory market is 7000t/yr and the new plant is anticipated to cover half of this. The plant also plans to increase its production capacity to 10,000t/yr to cover the local market and start exporting materials.
Kuraray to buy Calgon Carbon 21 September 2017
US: Kuraray has entered into an agreement to buy Calgon Carbon for over US$1.3bn. Calgon Carbon produces filtration technologies and systems for a variety of industries, including cement. The deal will be subject to shareholder and regulatory approval. It is expected to be completed by the end of 2017. Kuraray, a Japanese chemical company, intends to run Calgon Carbon as a subsidiary.
Cementir Holding leaves the Italian cement industry
Written by David Perilli, Global Cement
20 September 2017
We said to expect more consolidation in Italy. Well, today it happened. Last time Global Cement Weekly covered the country, in June 2017, it reported upon the Buzzi Unicem deal to buy Cementizillo. Today, HeidelbergCement announced that it is going to buy Cementir Italia from Cementir Holding for Euro315m.
Our first reaction is that the deal seems cheap. The agreement covers five integrated cement plants and two cement grinding plants with a total capacity of 5.5Mt/yr, as well as the network of terminals and concrete plants. HeidelbergCement is buying all of this for Euro57/t. This suggests a downward trend given that Buzzi Unicem paid Euro80/t for the Cementizillo units in mid-2017. Although, Cementir only paid Euro38/t when it purchased Sacci in mid-2016.
Cementir’s acquisition of Compagnie des Ciments Belges (CCB) boosted its sales revenue, volume and operating profit in 2016 and in the first half of 2017. However these figures suffered on a like-for-like basis due to falling revenue in Turkey and Malaysia. Overall revenue rose in Italy for the company in 2016 due to a growing ready mix concrete business. However, with this removed, its sales revenue would have fallen by 14% year-on-year due to a 13.5% decrease in the sales volumes of cement.
Cementir Holding chief executive officer (CEO) Francesco Caltagirone has framed the sale of Cementir Italia in terms of improved financial leverage. He’s placed it at close to 0.5x by the end of 2018. This, he says, will allow the group to “…take the opportunities arising in the future, as it has happened during the last twelve months.” By this he likely means the purchase of CCB. Given the low cost for what Cementir picked up the bankrupt Sacci, it makes one wonder whether their plan all along was to leave Italy and they just happened to pick up a bargain along the way.
Meanwhile, HeidelbergCement has framed its acquisition in terms of preparing its presence in the Italian market for the future when the recovery kicks in. The usual talk about synergies is also there and Italian workers for both Italcementi and Cementir Italia will be wondering what this means for their jobs. Given that the group’s overall sales have struggled to grow so far in 2017, the company may be telling the truth when it says it’s banking on the medium to long term in Italy. After all, in its half-year report for 2017, it described the Italian economy as subdued and reported cement sales volumes as ‘stable.’
Once the deal completes, Cementir Holding will be an Italian-based cement company without any production facilities in Italy. Unless the group is planning to re-enter its home market at a later date, it does suggest a certain lack of confidence at home. Let’s see if HeidelbergCement has the nerve to stick it out.
Brian Schudiske appointed as chief executive officer of CTLGroup
Written by Global Cement staff
20 September 2017
US: CTLGroup has appointed Brian Schudiske as its president and chief executive officer (CEO). He succeeds Timothy Tonyan.
Schudiske has held leadership roles over the last 20 years, in areas such as manufacturing, supply chain, operations, and engineering management. He holds a Bachelor of Science and Master of Science in Environmental & Public Health from the University of Wisconsin-Eau Claire. Prior to joining CTLGroup, Schudiske was General Manager, US Materials and Manufacturing, for SGS North America where he provided operational and sales leadership for the Metallurgical Engineering and Testing business in the US and was credited for delivering new business as a result of innovative growth and sales strategies.
Tonyan will remain as chief operating officer and continue to focus his efforts on firm-wide business and client development, project management and leadership promotion.
CTLGroup is a subsidiary of the Portland Cement Association. It operates as a consulting and testing company for a variety of markets including the cement industry.
Mike Pearce appointed as chief executive of Breedon Southern
Written by Global Cement staff
20 September 2017
UK: Mike Pearce has been appointed as the chief executive for the Southern division of Breedon Group. He is currently managing director of the Aggregates division of Aggregate Industries Limited (AI). Pearce will take up the position in 2018, joining Breedon’s executive committee and succeeding Tim Hall, who will be leaving the company at the end of September 2017. In the interim, the Southern division will be led by Colin Parke, who currently runs Breedon Southern’s Central region, reporting to group chief executive Pat Ward.
Pearce was previously the commercial director for AI, coordinating strategic activities across its business divisions, whilse also managing the contracting division. He has been a member of AI’s executive committee since 2009, during which time he has been variously responsible for AI’s building products, ready-mixed concrete and asphalt businesses.