Global Cement News

Argentina: Loma Negra, a subsidiary of Camargo Correa of Brazil, has reported that its profits fell by half to US$43.9m in 2012 from US$96m in 2011. Sales dropped to US$688m from US$704m following the official currency quotation in December 2012. Cement and lime production fell by 9% to 5.7Mt from 6Mt.

Loma Negra's performance follows a general reduction in the construction sector in Argentina, where the construction index (ISAC) fell by 3.2% in 2012. Loma Negra has confirmed that its results were affected by the acquisition of a 35% stake in Paraguay's Cementos Yguazu at cost of US$19m. Camargo Correa holds a 70% stake in Yguazu, with 30% belonging to Concret Mix.

Poland: Poland's cement production totalled 350,600t in February 2013, a decrease of 35.4% year-on-year, according to statistics from the country's Cement Producer Association. Cement sales remained relatively stable at 533,300t, marking a decrease of 2.5%. For the first two months of 2013, cement output declined by 46.6% to 705,900t, while sales dropped by 24.1% to 941,000t.

Japan: UBE Industries plans to install a generator powered by waste heat at its cement plant in Kanda, Fukuoka Prefecture. The generator will meet about 40% of the plant's electric power consumption reducing production costs. The US$52.1m project will start providing power as early as the second half of 2015.

The Kanda plant currently produces 11% of its own electricity using a diesel generator. UBE's decision follows similar schemes at UBE's two other domestic cement plants in Japan. The company previously put off this upgrade because of a lull in domestic demand for cement. UBE is acting now because Kyushu Electric Power Co. is preparing for a rate increase in April 2013 that will impact upon production costs.

Ghana: HeidelbergCement is constructing a new cement mill with a capacity of 0.8Mt/yr at its grinding plant in the port city of Takoradi. The investment of US$30m also includes the construction of a clinker silo, a new cement silo and the installation of cement bag packing and dispatch facilities. Commissioning of the new mill is scheduled for late 2014.

"The construction of the new cement mill in Ghana is another project in the context of our strategy of expanding our clinker and cement capacities in growth markets. In particular the countries of sub-Saharan Africa have a very high growth potential due to their early stage of industrialisation and rich natural resources," said Dr Bernd Scheifele, chairman of the managing board of HeidelbergCement. Ghana now holds the company's largest capacity in west Africa.

In November 2012 HeidelbergCement inaugurated a new 1Mt/yr cement mill at its grinding plant in Tema, some 25 km east of the capital city of Accra. Upon completion of the new mill at Takoradi, HeidelbergCement's total cement production capacity in Ghana will be 4.4Mt/yr.

France: The French cement giant Vicat Group has announced its results for 2012, which show a 20% drop in income compared to 2011. The group's consolidated sales came to Euro2.29bn, 1.2% higher than in 2011 when it took Euro2.27bn in sales.

However, Vicat's earnings before interest, tax, depreciation and amortisation (EBITDA) came to Euro437m, a 10.9% drop compared to 2011 when it had an EBITDA of Euro491m. The drop in its net income was 21.1% year-on-year, falling from Euro164m to Euro129m. The group said that the decline was the result of lower volumes of cement, concrete and aggregates, due to lower business levels in France and Egypt and lower prices in West Africa.

It highlighted particularly difficult production conditions in Egypt, caused by fuel shortages, higher energy costs in India, Egypt and Senegal and higher freight costs in India. These negative factors were partly offset by strong EBITDA growth in Kazakhstan and Turkey, improved performance in the US business and a slight improvement in EBITDA in Switzerland and Italy.

Vicat's CEO Guy Sidos said, "With its greater geographical diversity, the Vicat group confirmed the resilience of its growth model in 2012 in an operating environment that remained tough. The group capitalised on its investments in high-potential emerging markets, along with the gradual recovery in Turkey and the USA."

"Performance improved substantially in the second half and 2012 profitability remained at a satisfactory level," continued Sidos. "In addition, Vicat Sagar started operating in India, completing the group's development plan without affecting its robust financial position. From this solid base, the group has started 2013 confident of benefiting from its investments of the last six years, and with the stated intention of maximising cash flow in order to continue reducing debt before considering the next phase of its international development strategy."

Vicat's cement segment sold 17.89Mt of cement in 2012, a 0.8% drop compared to the cement sold in 2011. The segment's consolidated sales were Euro1.16bn, a 1.6% year-on-year improvement, while its EBITDA came to Euro336m, a drop of 11.5%. Vicat reported increased sales prices in France and Switzerland and Turkey. However, it saw sales reduce in the United States and west Africa.

In its native France, Vicat's took Euro879m in sales, 6.8% down year-on year from Euro939m in 2011. Its French EBITDA was Euro163m in 2012, 19.1% down from Euro202m. Its cement sales in France fell by 11.6% year-on-year.

In Europe (excluding France) Vicat took Euro411m in sales, 2% higher than in 2011 when it took Euro403m. Its EBITDA in Europe was Euro105m, 2.4% up year-on-year. In terms of cement sales were up by 5.0% compared to 2011, although the first half of the year saw an 11% year-on-year drop compared to the same period of 2011.

In the United States, the group made sales of Euro196m, 18.7% higher than in 2011. Its EBITDA was a loss of Euro5m, compared to a Euro9m loss in 2011. Its cement sales were significantly up in the country, growing by 18.7%.

In Turkey, Kazakhstan and India Vicat had sales of Euro442m, a 17% improvement over 2011, when it took Euro348m in sales. In terms of EBITDA the group improved by 23.9% year-on-year, increasing from Euro92m in 2012 from Euro74m in 2011. Its cement sales in these countries were up by 10.9% year-on-year, with average sales prices rising throughout the year.

In Africa and the Middle East, the group took Euro364m in sales, 11.3% down year-on-year, and had an EBITDA of Euro83m, 31.9% lower than in 2011. Notable problems included a 27% fall in sales in Egypt due to gas delivery disruption and ongoing civil unrest. In west Africa, sales were down by 5.2%. The decline here was due to a fall in sales prices.