Global Cement News

Tanzania: Charles Mwijage, the minister for Industry, Trade and Investment, has threatened to cancel the licences of so called cement ‘super-dealers’ if they fail to curb rising prices. Super-dealers are middlemen who acquire cement directly from the producers for sale to distributors, according to the Citizen newspaper. Mwijage made the comments on a tour of the Tanzania Portland Cement Company. He called on the management of the cement company to intervene in order to hold prices down for ends users. However, the cement company wants the government to take action itself against traders.

Ivory Coast: LafargeHolcim Ivory Coast has launched Bélier SuperBric. The 52.5N strength cement product is being marketed for its fast setting time, strength and economic advantages. The subsidiary of Switzerland’s LafargeHolcim is also using the product launch to promote its online sales platform, which offers delivery timing and tracking.

At the launch ceremony for the new product Felix Anoblé, the secretary of the state to the Minister of Commerce, Industry and Promotion of Small and Medium Sized Enterprises, said that local cement producers had invested US$130m on inreasing production capacity between 2015 and 2017. Production capacity rose to 7.2Mt/yr in 2018 from 2.9Mt/yr in 2015.

China: China National Building Material’s (CNBM) cement production volume fell by 5% year-on-year to 143Mt in the first half of 2018 from 150Mt in the same period in 2017. It has attributed this decrease to ‘flat’ demand, increased pressure on environmental protection and rising costs of fuel and raw materials. As part of its ‘Price – Cost – Profit’ (PCP) initiative the group has focused on reducing production capacity and output, implementing peak shifting production and eliminating old production facilities.

Despite the headwinds, the group’s sales revenue from its cement division rose by 22% to US$7.41bn from US$6.06bn. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 38% to US$2.08bn from US$1.51bn. Average cement prices also rose year-on-year. External sales from its engineering companies increased by 13% to US$2.18bn from US$1.92bn. Overall, group sales revenue rose by 22% to US$14bn from US$11.5bn.

CNBM completed its merger with China National Materials Company (Sinoma) on 2 May 2018. Its cement producing subsidiaries include China Untied, South Cement, North Cement, Southwest Cement, Sinoma Cement, Tianshan Cement, Ningxia Building Materials and Qilianshan. Its engineering subsidiaries include Sinoma International, China Triumph and Sinoma Milling.

China: Huaxin Cement’s sales rose by 27% year-on-year to US$1.75bn in the first half of 2018 from US$1.38bn in the same period in 2017. Its net profit nearly tripled to US$304m from US$107m. Its cement and clinker sales volumes grew by 1.13% to 32.2Mt.

The cement producer said that it had been challenged by raw materials and fuel price rises and kiln suspensions due to government-mandated peak shifting production during the reporting period. However, measures such as higher alternative fuels co-processing rates and efficiency gains helped to bolster its financial performance. Its kiln waste processing volumes increased by 18.4% to 0.68Mt.

The company added that its Tibet Shannan 3rd Phase 3000t/day clinker production line was ‘proceeding smoothly’ and was scheduled to start operation by the end of August 2018. Its 4000t/day Yunnan Luquan clinker line and 2.85Mt/yr Huangshi clinker replacement line projects have started construction. In Nepal a 2800t/day clinker line is scheduled to start construction by the end of the year. It is also working on municipal solid waste (MSW) projects in Wuhan Changshankou and Lijiang.

Malaysia: Repair costs at Cahya Mata Sarawak’s (CMS) Kuching cement plant have reduced the profits of the company’s cement division. The planned maintenance period in January and February 2018 was the first major shutdown carried out by the group since it purchased the integrated unit in 2007. The division’s performance was also hit by an increase in the price of imported clinker due to a reported ‘tight supply’ in the international market. The division’s profit before tax fell by 17% year-on-year to US$9.56m in the first half of 2018 from US$11.5m in the same period in 2017. However, its revenue grew by 8%.

Overall, CMS reported revenue growth of 15% to US$183m and a pre-tax profit increase of 32% to US$42.9m. It attributed the strong performance to its other subsidiaries.