Global Cement News

UK/Nigeria: Aliko Dangote, the owner of Dangote Cement, has reiterated his intention to list the company on the London Stock Exchange (LSE), following a meeting with the UK Prime Minister Theresa May in Lagos. May was in the country as part of a multi-stop trade tour of African nations ahead of the UK’s departure from the European Union in March 2019. Dangote Cement is worth an estimated US$7bn.

During the visit May said, “Already the finance and business links between Lagos and London are bringing enormous benefits to businesses and people in the UK and in Nigeria. London is a world-leading financial centre and, as the UK leaves the European Union, it will play an even greater role in financing the fastest-growing economies across Africa and the world.”

Kenya: The Capital Markets Authority (CMA) has extended the suspension of ARM Cement’s shares from trading on the Nairobi bourse for a further 21 working days. According to a public notice the shares of the cement maker will remain suspended until 27 September 2018.

“The extension of suspension in trading of the company’s shares takes effect from 30 August 2018 and shall remain in force for a further 21 working days,” said the NSE.

ARM Cement, which is grappling with US$140m of debt, was previously suspended from the bourse for seven working days from starting 20 August 2018.

Uganda: President Yoweri Museveni has commissioned the Simba Cement plant in Mukuju Sub-County in Tororo District in Eastern Uganda.

The factory, which currently employs about 400 workers, was built in two and half years by Mepani Technical Services, at an estimated cost of US$55m. It is the second cement plant in Tororo District.

President Museveni, who on arrival at the factory made an inspection tour of the facility, urged Ugandans to be enterprising and disciplined. He added that, with the abundant natural resources with which Uganda is endowed, there is tremendous potential for development.

Musaveni commended the pledge by the factory to employ local youths and advised the company to employ at least 30% youth workers. He also praised Tororo District for the peaceful approach in handling their district’s matters.

The Managing Director of Simba Cement factory, Guru Narendra Raval, said that the reduction in the price of cement due to the new capacity the plant had brought was in line with President Museveni's dream of having Ugandans living in cemented houses. He said, “The President asked me to build a cement factory and now I have built it. I am not here to make profits but to make Ugandan lives better.”

Russia/Ukraine: The Cabinet of Ministers has banned clinker imports from Russia. The government says that cement imports from Russia almost doubled in 2017, according to Interfax. Its share in total imports in 2017 was 85 - 87%, and in January - May 2018 it grew to 100%.

"The introduction of cement clinkers into the list of goods banned to import into Ukraine from Russia is carried out as part of the policy of economic opposition to discriminatory actions against Ukraine by the aggressor state," said the Ministry of Economic Development and Trade. It added the ban is expected to increase local production. Although a cement deficit is not expected, the ministry said that, if necessary, additional clinker could be imported from the European Union (EU).

According to the draft resolution, the ban on the import of Russian clinker will come into force 10 days after the publication of the document.

Australia: Boral’s cement business, Boral Australia, reported a 2% year-on-year rise in cement sales volumes in the financial year to 30 June 2018. Its external sales fell but this was compensated for by growing local sales in support of its concrete business. It’s said that the earnings and margins for its cement business improved due to an improvement programme. However, these benefits were partly offset by cost inflation and higher energy costs.

Overall, Boral Australia’s sales revenue rose by 34% year-on-year to US$2.62bn in the financial year to 30 June 2018 from US$2.40bn in the same period in 2017. Boral Australia’s earnings before interest, taxation, depreciation and amortisation (EBTIDA) increased by 15% to US$462m from US$402m. Total group sales rose by 34% to US$4.28bn and EBITDA grew by 47% to US$770m due to the acquisition of Headwaters.

“We have continued to optimise our networks and grow volumes in Australian east coast markets, where demand is very strong, and we continue to focus on full cost recovery through price and strengthening margins through improvement programs,” said chief executive officer and managing director Mike Kane.