Global Cement News

China: Anhui Conch returned to rising sales revenue and profit in 2016 after a problematic year in 2015 beset by a poor market for cement. Its revenue rose by 9.7% year-on-year to US$8.12bn in 2016 from US$7.40bn in 2015. Its sales volumes of cement and clinker rose by 8% to 277Mt. Its net profit rose by 14% to US$1.24bn from US$1.09bn. The group says that its adoption of a flexible marketing strategy for different regions and plants and a focus on lowering production costs delivered sales growth and operating savings. However, its full year results are in contrast to its ones for the first nine months of 2016, in which it reported small declines in its revenue and net profit.

During the year the cement producer finished building six clinker production lines at Yingjiangyunhan Cement and Yiyang Conch Cement and it completed 18 cement grinding plants at Wenshan Conch Cement and Ganzhou Conch Cement. In addition to purchased the assets of Anhui Chaodong Cement. Outside of China the group completed lines in Indonesia and Myanmar, started buildings projects in Indonesia, Cambodia and Laos and started early work on new projects in Russia and Myanmar. At the end of 2016 the group says it has a clinker and cement production capacity of 244Mt/yr and 313Mt/yr respectively. It also reported that it had completed 15 waste treatment projects by the end of the year to feed cement plant kilns with domestic waste.

Austria: Starlinger is targeting its Ad*Star block bottom valve sacks for the Chinese market based on their environmental performance. The packaging manufacturer says that a recent life cycle analysis study compared Ad*Star cement sacks favourable against cement sacks from sewn sacks made of recycled woven polypropylene tape fabric from China and paper sacks from Saudi Arabia. Starlinger also hopes that widespread adoption of its products in China would aid the automation of the entire chain of cement filling and transport processes, further modernising the sector. The company is preparing to exhibit at a Chinese plastic and rubber exhibition in May 2017.

India: Emami Cement has commissioned a 2Mt/yr cement grinding plant at the Panagarh Industrial Park in the Burdwan district of West Bengal. The project cost US$76m, according to the Hindu newspaper. The plant will produce Ordinary Portland Cement, Portland Pozzolana Cement and Portland Slag Cement products under the ‘Emami Double Bull’ brand. The new plant joins Emami Cement’s integrated plant at Risda in Chattisgarh. It is also building another 1.8Mt/yr grinding plant in Odisha.

Iran: President Hassan Rouhani has opened the 1Mt/yr Bagheran cement plant near Birjand in South Khorasan. The plant cost US$160m to build and its output will be supplied domestically as well as to Afghanistan and Pakistan, according to the Islamic Republic News Agency. The unit is expected to create around 350 direct jobs.

Nigeria/South Africa: Gas shortages in Nigeria significantly impaired Lafarge Africa’s performance in 2016 in addition to local currency devaluation and a recession. Overall the group’s sales, which include those in South Africa, fell by 18% year-on-year to US$716m in 2016 from US$871m in 2015. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 57% to US$94.6m from US$219m. Despite these problems the cement producer’s results rallied in the fourth quarter of the year, aided by changes in fuel supplies and other cost savings.

“Our turnaround plan delivered solid results in the fourth quarter of 2016 in spite of the challenging environment in Nigeria and South Africa. Technical challenges have been resolved with all our plants operating at high reliability. Our energy optimisation plan has proved successful with increased use of alternative fuel to offset gas shortages,” said Michel Puchercos, the chief executive officer of Lafarge Africa. He added that the Mfamosing line 2 is now operational and contributed to cement production in the fourth quarter of 2016. The new line is expected to enhance cost reductions in 2017.

By region, the group’s cement sales volumes in Nigeria fell by 15.4% to 5.29Mt in 2016 from 6.26Mt in 2015. A similar decline in sales volumes was also reported in the fourth quarter. The cement producer declined to provide detailed information on its operations in South Africa saying that the operating environment was challenging and ‘highly’ competitive. It did report that sales volumes of cement fell by 8% in 2016.