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HeidelbergCement reduces refinancing needs by further Euro500m 23 October 2015
Germany: HeidelbergCement has taken another step to optimise the financing of the Italcementi acquisition. The volume of the bridge financing could be reduced by a further Euro500m from Euro3.8bn to Euro3.3bn. The refinancing needs in the bond market declined by Euro500m to around Euro2.5bn, correspondingly.
Decisive for the reduction of the financing volume was that some of Italcementi's creditor banks have agreed to waive their change of control clauses. As a consequence, HeidelbergCement will have access to additional credit lines totalling Euro500m on a long-term basis also after the takeover. Therefore, refinancing of these credit lines after the acquisition is no longer necessary and the volume of the bridge financing could be reduced accordingly. As already communicated in the announcement of the Italcementi acquisition, the bridge financing should be refinanced by free cash flow, the sale of production sites and the issuance of bonds. The reduction in the volume of bridge financing thus also reduces the need for refinancing in the bond market by the same amount.
Malaysian Ringgit woes cast shadow over cement industry 22 October 2015
Malaysia: The protracted slump of the Malaysian Ringgit against the US Dollar, which has plagued importers and harmed consumer sentiment with the threat of imported inflation, has also cast its shadow over the cement industry.
The Cement and Concrete Association of Malaysia (C&CA) Chairman Datuk Yeoh Soo Keng said that some items crucial to the cement industry, such as coal and gypsum, are purchased in US Dollars. "Coal and gypsum, which are important components of our industry, are imported in US Dollars. With the current weak Ringgit levels, this has an impact on the industry," said Yeoh Soo Keng, who is also the CEO of YTL Cement Bhd, a member of C&CA.
Lafarge's former president and CEO Bradley Mulroney said that the weak Ringgit had also impacted imports of clinker. "The import of clinkers has gone up by about 20% due to the impact of the weak Ringgit," he said.
Hume Industries Bhd Managing Director Quah Thain Khan said that cement players are working to mitigate the impact of the weak Ringgit by managing the usage of raw materials, such as coal, more efficiently. "We also negotiate for cheaper sources of coal," said Thain Khan, adding that the industry is also challenged by the increasing cost of foreign labour. "I think that the industry needs to place more emphasis on automation and be less labour-intensive by investing in precast concrete systems and industrialised building systems."
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said that the construction industry would see 'reasonable growth' in 2016, fuelled by infrastructure projects under the 11th Malaysia Plan, such as Mass Rapid Transit Line 2, Light Rail Transit Line 3 and the Sungai Besi-Ulu Kelang Elevated Expressway. "It will not be double-digit growth, but it will be reasonable growth. As for the slow-down in the property sector, the softening is more in the high-end housing segment; the affordable housing segment continues to be reasonably strong," said Mustapa.
Mustapa added that Malaysia's cement and concrete industry is an important economic pillar, contributing about 4% of the country's gross domestic product. "The industry has also contributed to Malaysia's export earnings, with exports to countries such as Australia, Sri Lanka, Indonesia and India, but, at the same time, Malaysia is still a net importer when it comes to clinker." From January to August 2015, Malaysia imported US$81.4m of clinker, compared with US$77.9m in the same period of 2014. "It is hoped that more integrated cement plants will be set up in Malaysia to produce our own clinker and reduce imports," said Mustapa.
Panama: Cemex's Panamanian operations have been awarded the highest recognition in sustainable development and environmental management by the Panamanian Chamber of Construction (CAPAC). Cemex Panama earned this honour for its implementation of protection and conservation policies in the environments where it operates.
The award criteria included the company's environmental policies, energy and water efficiency, waste management and the handling of chemical substances; air pollution mitigation; environmental controls and records; environmental contingency plans; and reforestation plans.
Cemex Panama obtained this recognition thanks to such initiatives as its Technological Innovation Project based on P+L Systems, which resulted in energy savings of 32% at its cement plant; its Reduction of Water Consumption Project, which helped reduce its water consumption by over 35%; its waste management and waste-water treatment policies; its Reforestation Project, which will enable the recovery of 633,000m2 of forest by 2019.
"We are very honoured to receive this award, which recognises the integration of environmental management in our daily operations and processes," said Andres Jimenez, President of Cemex Panama. "Sustainability is an integral part of our business model and a core component of Cemex's future growth."
Sinoma to build US$386m cement plant for Ibeto Cement 22 October 2015
Nigeria: China National Materials Company's Shanghai-listed subsidiary Sinoma International Engineering Co Ltd has entered into an engineering, procurement and construction contract with Ibeto Cement Company Limited for a 6000t/day clinker line and 45MW self-generation power plant in Enugu, Nigeria. The contract is worth US$386m. It covers the whole process, from the exploitation of limestone mines and the crushing of raw materials, to the packing and delivery of cement and a captive power plant and includes engineering design, supply of equipment, steelwork and materials, civil construction, installation, debugging and staff training.
Saudi Cement Company launches new identity 22 October 2015
Saudi Arabia: Saudi Cement Company has launched a new brand identity that embodies the company's future vision for growth.
A ceremony was held at the Sheraton Damman Hotel to mark the occasion in the presence of senior government officials, businessmen, suppliers and clients. The event also marked the company's diamond jubilee.
According to a statement, Saudi Cement chose to evolve its brand and motto in order to reflect a new identity and pledge solid commitment to clients in line with its vision and determination to continue in the path of fundamental evolution embarked on in 2008.
Chairman Khalid bin Abdul-rahman Al Rajhi said that the new identity confirms that Saudi Cement is looking forward to a brighter future. "In light of the changing conditions in the markets of the cement industry, the company reveals a new brand identity that reflects its historical legacy and our present day status, as well as our relentless efforts to be innovative and have a positive impact on the future," said the Chairman. "All of the shareholders, customers, employees, suppliers and the community we serve have played a part in our successful achievements and we cherish our excellent relations with them."
Managing Director Walid bin Ahmed Al Juffali highlighted the importance of planning and development in the outstanding performance of the company. He said that there were a number of key factors to the success of the company, including the concerted efforts of co-operation between the staff of the company, customers' trust and the favourable climate created by the government to support national companies.
"We were able to attain the objectives that we set during the past decade," said Al Juffali. "Armed with a clear vision we set our goals, outlined our values and managed to develop the organisational structure of the company and motivate the human resources to materialise our objectives. Thus Saudi Cement was able to attain its well-deserved leading position and looks forward to a promising future. The leading position assumed by Saudi Cement is the outcome of a solid foundation and historical heritage spanning half-a-century during which the company was able to weave close relations with stakeholders, clients, suppliers and the community it is serving to the benefit of all parties." He stressed that the new brand identity is an accolade deserved by merit of outstanding performance in the region, driving the company to become one of the major and most trusted companies in the Saudi and Middle East markets.
Saudi Cement benefits from its presence in Al Ahsa, in close proximity to the energy needed to run the cement plant and raw materials essential for the cement manufacturing process, as well as the availability of skilled labour and craftsmen. The proximity of the cement plant, linked by rail to King Abdul Aziz Port in Dammam also helps to facilitate cement exports.