Global Cement News

UK: The Materials Handling Engineers Association has announced that the BULKEX conference will be held on 5 – 6 October 2016 in Harrogate, UK. The event is aimed at professionals, organisations and academics in the bulk materials industry.

Azerbaijan: The Azerbaijan Investment Company (AIC) sold its 10% stake in Holcim Azerbaijan to Holcim on 18 November 2015, according to a government source quoted by Azer-Press. AIC and Holcim signed a memorandum of understanding in December 2007 allowing AIC to gain 10% of shares in local Holcim cement plant following the completion of certain conditions. These included increasing the plants cement production capacity from 1.3Mt/yr to 1.7Mt/yr of cement and its clinker production capacity from 0.8Mt/yr to 1.2Mt/yr of clinker.

Australia: Adelaide Brighton has reported that its net profit rose by 20% to US$150m in 2015 from US$124min 2014. Its revenue grew by 5.6% to US$1.02bn from US$964m. The construction materials company attributed the growth to ‘healthy’ residential construction in east coast markets.

“Cement and clinker sales volumes increased marginally in 2015. Strong demand in New South Wales, Victoria and south east Queensland, was primarily driven by residential construction. This demand more than offset the previously anticipated reduced sales to a major South Australian customer and lower sales to resource projects in Western Australia and the Northern Territory,” said the company in a statement.

It added that import volumes continued to grow in 2015 as Adelaide Brighton used imports to meet domestic demand, whist reducing local manufacturing capacity in Western Australia. The company made savings of US$7.2m in 2015 by stopping clinker production at its Munster plant.

Indonesia: Semen Indonesia has reported that its net profit fell by 18.7% year-on-year to US$337m in 2015 from US$415m in 2014. Its revenue fell slightly to US$2.01bn. The cement producer’s director Suparni attributed the fall in net profits to an increase in electricity and distribution costs, as well as the depreciation of the rupiah against the US Dollar.

Semen Indonesia plans to increase exports in 2016 in order to counteract falls in sales in the domestic market, according to local press. The company expects to begin operations at two new cement plants, Indarung VI in West Sumatra and Rembang in Central Java, in the third quarter of 2016. The two cement plants will have production capacities of 3Mt/yr each.

Kenya: East African Portland Cement (EAPCC) has issued a profit warning due to mounting losses caused by higher financing costs and currency market losses. Its loss for the half year that ended on 31 December 2015 grew to US$5.22m from US$0.64m in the same period in 2014. The cement producer also expects its profits for the 2015 – 2016 financial year, which ends on 30 June 2016, to fall by at least 25%.

EAPCC’s financing costs rose by 50% to US$2.74m, which it attributed to increased use of debt to finance capital projects, including the setting up of a third packing line to support higher sales volumes. Sales revenue rose by 12% year-on-year to US$45.2m from US$40m. Sales volumes rose by 16%.