Global Cement News
Search Cement News
EU Commission sends Slovenia to court over eco permits 27 February 2015
Slovenia: Slovenia faces EU judicial proceedings for its alleged failure to fully-implement a system of environmental permits for its large industrial plants. The case referred to the EU Court of Justice relates to one of the country's two cement producers, which continues to operate without permits.
The Commission said that matter would be referred to the court for failure to implement provisions of the integrated pollution prevention and control (IPPC) directive of 2007, which requires that industrial plants be licensed to verify that they meet strict environmental controls. It is the second time that Slovenia has faced EU court action over the IPPC directive, after the Court of Justice found in 2010 that Slovenia was running afoul rules requiring that all plants meet the set requirements.
The EU is seeking a base fine of Euro1.6m for the country plus Euro9009 for each day that the violation persists. The Slovenian Ministry of Environment and Spatial Planning said that it was, "Striving to implement as quickly as possible the alleged violations of EU law." Licenses under the IPPC directive became a requirement for member states as of 30 October 2007. According to the Commission, Slovenia has made considerable progress since the 2010 ruling, but full compliance with the judgement has still not been reached.
The new case concerns 'a major cement factory,' which continues to operate without a permit. While it avoided naming the plant, Slovenia has two cement plants owned by Salonit Anhovo and Lafarge. Whereas Salonit Anhovo is a licensed IPPC plant, Lafarge is involved in lengthy bureaucratic and legal proceedings in seeking a permit. It has faced ongoing protests from local groups against it being granted a license. Despite not having a license, the plant continues to operate.
The Environment Ministry said that one of the factors influencing the length of procedures was a ruling by an administrative court in Slovenia demanding that Lafarge's plant be treated as a new facility rather than an existing installation. The Environment Agency, which issues permits, is therefore obliged to complete all procedures prescribed for licensing of new plants.
Grupo Cementos de Chihuahua sees 1025% swell in 2014 net income 27 February 2015
Mexico: Grupo Cementos de Chihuahua (GCC) saw its consolidated net income surge by 1025% in 2014 to US$43.1m. Its consolidated net sales grew by 14.8% year-on-year to US$755m. Net sales grew by 11.7% to US$185m in the fourth quarter of 2014. Cement sales volumes rose by 10% in the fourth quarter and by 9% in the full year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2014 increased by 35% year-on-year to US$154m. EBITDA in the fourth quarter of 2014 grew by 27.5% year-on-year to US$37.2m.
Cement manufacturing cost to increase by US$0.11 – 0.16/bag 27 February 2015
India: The manufacturing cost for cement is likely to go up by US$0.11 – 0.16/bag due to the proposed freight hike on various inputs and the cement itself. "The cost of production will go up in the range between US$0.11 – 0.16/bag," said a cement company spokesperson. He added that cement producers would most likely pass on the costs to their customers.
The Railway Budget proposals plan to increase freight rates of coal and slag, used in the manufacturing of cement, by US$0.74/t and by US$0.34/t respectively. A hike in cement freight rates of US$0.34/t has also been proposed, however, a reduced freight on limestone, by US$0.04/t, is also in the proposal.
"The freight rate hike is likely to increase our cost of production in the range between US$0.03 – 0.06/t. However, price is determined by demand and supply," said Mahendra Singhi, whole-time director of Dalmia Bharat Cement. Jaypee Cement's whole-time director Shiva Dixit said that although the freight rate hike would have an impact on input prices, they would wait for the main Budget to see the cost implication.
Ireland: CRH expects to receive regulatory decisions on a Euro6.5bn purchase Holcim and Lafarge operations as soon as March 2015. CRH chief executive Albert Manifold said that the acquired facilities would help CRH to expand in both North America and Europe, where it sees opportunities to expand its business.
"There are significant building needs and funding going to countries like Poland, Slovakia and Romania," said Manifold. He added that construction growth in those countries could be as high as 4%/yr over the next 10 years. Manifold said that CRH had already begun discussions with regulators in the various markets and expected decisions in March and April 2015. The acquisitions require the approval of CRH shareholders and an extraordinary shareholders meeting has been scheduled for 19 March 2015 for this purpose. Manifold said that CRH would continue to trim its portfolio and make further acquisitions.
Suez Cement reports 11.5% gain in EBITDA for quarter four of 2014 27 February 2015
Egypt: For the fourth quarter of 2014, Suez Cement reported a 2.5% year-on-year increase in revenues and 11.5% year-on-year growth in earnings before interest, tax and depreciation (EBITDA). Its net profit after non-controlling interests increased by 15.2% during the quarter.
For the entirety of 2014, Suez Cement's sales increased by 22%, while recurring EBITDA improved by 8.8% compared to 2013. However, higher corporate income taxes coupled with an absence of foreign exchange gains were responsible for an 8.4% drop in net profit after non-controlling interests. EBITDA gains were also driven by Suez Cement's downstream activities in transportation and ready-mix cements, as well as its paper bags subsidiary, which saw an EBITA increase of 26.5%. Cement activities accounted for a gain of 6.3%.
The strong revenue performance was largely due to cement price increases due to an unprecedented surge in production costs and product shortages. Overall, clinker production decreased as a result of severe energy supply issues that impacted each of Suez Cement's plants and subsidiaries differently. The Tourah plant felt the greatest pressure from expensive clinker imports that were necessary to satisfy Egypt's growing demand.
Suez Cement was also negatively affected by energy costs (gas, mazut and electricity) that rose by 25 - 35% in 2014. It did not let the economic pressures, including a 40% drop in industrial production capacity, impact its employment rates or benefits packages. This was partially due to Suez Cement's commitment to the implementation of energy-efficient processes throughout the five plants, as well as further emphasis and utilisation of alternative fuels, which helped mitigate the drop in production as well as limit the impact from growing clinker imports. Suez Cement will go ahead with the deployment of coal power at all five plants over the next two years, a factor that is also expected to put a stop to some importing activities.
Suez Cement believes that the construction industry's recovery will continue to attract new investment. This is in addition to positive economic growth thanks to Egypt's new-found government stability and the future implementation of several large national projects. However, power cuts and fuel shortages are likely to remain major issues for cement producers. Fuel and energy shortages will also prolong challenges to meeting cement production targets.
The recent closure of the Tourah I plant is one example of Suez Cement's continued commitment to reducing its environmental impact. The company remains focused on investing in energy-efficient initiatives and environmentally-sound programs. This includes developing alternative fuel strategies that incorporate waste-derived fuels and coal, which will shift the company's energy mix and improve its production capabilities by reducing dependence on natural gas and mazut.