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Buzzi Unicem sees cement sales rise slightly so far in 2016 11 November 2016
Italy: Buzzi Unicem’s cement sales have risen by 1.2% year-on-year to 19.5Mt for the first nine months of 2016 from 19.3Mt in the same period of 2015. Its total net sales rose slightly to Euro2bn and its earnings before interest, taxation depreciation and amortisation (EBITDA) rose by 18.3% to Euro416m from Euro352m. It reported improved demand in Central Europe, Poland and Ukraine but that the US was affected by poor weather. Elsewhere, it said that the recession in Russia has lessened although its sales have continued to decline.
India: ACC has revealed that an appeal by cement producers to the Competition Appellate Tribunal (COMPAT) against a fine imposed by the Competition Commission of India in August 2016 for alleged cartel activity has succeeded in negotiating the terms of the penalty. The COMPAT has ordered that the producers deposit 10% of the US$1bn fine in a similar manner to that of a fine levied in 2012. That fine was eventually dropped in 2014 with the CCI citing a lack of evidence.
Fines totalling US$1bn were levied on ACC, ACL, Binani, Century, India Cements, JK Cement, Lafarge, Ramco, UltraTech, Jaiprakash Associates and the Cement Manufacturers Association in late August 2016 for alleged cartelisation activity.
Germany: The rating agency S&P Global Ratings has assigned a BBB-/A-3 company rating to HeidelbergCement. The classification in the Investment Grade is associated in particular with the strong business profile after the Italcementi acquisition and an improved creditworthyness. It attributed the decision to the strong market position and wide geographic diversification of HeidelbergCement following the acquisition of Italcementi.
“We are very happy about the positive rating decision by S&P,” said Bernd Scheifele, CEO of HeidelbergCement. “It is proof of the strong operating business of HeidelbergCement and the continuous improvement of our capital structure and cashflow in the last years. With the classification in the Investment Grade, we have achieved one of our core strategic targets. As a consequence, we are very well positioned to significantly enlarge our investor base and improve our financing conditions.”
S&P also upgraded the issuance ratings of Italcementi from BB/B to BBB-/A-3. The outlook on all ratings is stable.
Cementir sales rise but profit falls so far in 2016 10 November 2016
Italy: Cementir Holding’s revenue has risen by 1.8% year-on-year to Euro733m in the first nine months of 2016 from Euro720m. Its sales volumes of grey and white cement grew by 4.6% to 7.28Mt from 6.96Mt. Yet, its profit fell by 24.9% to Euro47.7m from Euro63.6m. It blamed the fall in profit indicators on foreign currency effects and poor markets in Italy and Turkey.
Palestine: Sanad South Cement Grinding and Filling has started a pre-qualification tender process to find engineering, procurement and construction (EPC) contractors to build a 1.3Mt/yr cement grinding plant in Bethlehem. The plant will use a vertical roller mill to grind clinker, gypsum, pozzolana, limestone and fly ash to produce three types of cement, according to Zawya. 30% of the cement will be sold in bags, while the remainder will be sold in bulk. Contractors have until mid-November 2016 to make their submission.
In October 2016 the Palestine Investment Fund announced that a new cement plant would be built for US$310m by 2018. Building a cement grinding plant is part of the process.