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Indocement expects 6% higher sales volumes in 2015 18 February 2015
Indonesia: PT Indocement Tunggal Prakarsa expects sales volumes to grow by 6% in 2015, according to CEO Christian Kartawijaya. The company reported cement sales of 18.8Mt in 2014, up by 3% from 2013. It will invest up to US$391m on capital expenditure in 2015. The company's 14th plant in West Java is expected to start operating in the third quarter of 2015.
Semapa's 2014 profit fell by 23% 18 February 2015
Portugal: Portugal's conglomerate Semapa, which owns cement maker Secil and pulp and paper producer Portucel, has posted a 23% fall in its 2014 net profit due to tax adjustments and a financial loss. Semapa's net profit fell to Euro113m in 2014. Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 2.6% year-on-year to Euro410m. Total sales rose by 1.5% to nearly Euro2bn, with cement sales up by 5%.
Vietnamese government agrees extra cement production capacity 18 February 2015
Vietnam: The Government of Vietnam has approved the Ministry of Construction's proposal to increase the capacity of two cement plants in Ha Nam and Nghe An Provinces.
The Thanh Liem Cement plant in Ha Nam Province's Bong Lang Commune will be upgraded with an additional 2.3Mt/yr capacity production line, which is expected to open in 2018. Currently, the plant has just one production line with 450,000t/yr of cement production capacity. Nguyen Quang Bay, director of the Thanh Liem Cement plant, said that it was necessary to increase the capacity of the plant in order to fully exploit the limestone resources in the province.
The Song Lam Cement plant, which is currently under construction in Nghe An Province's Bai Son Commune, will now have 4Mt/yr of cement production capacity when complete. Construction on the plant began in February 2015 with investment capital of US$494m. Three production lines will be built by 2020. The first two are scheduled to be put into operation in 2017.
Prime minister Nguyen Tan Dung asked the Construction Ministry to re-examine cement plant projects in the 2011 - 2020 period and forecast market demand, then report it to the Government later in 2015. Cement consumption reached 5.87Mt in January 2015, an increase of 30% compared to January 2014, according to the Construction Ministry's Building Material Department. Domestic cement production currently meets demand, according to the department.
The Vietnam Cement Association predicts that cement exports in 2015 could earn as much as US$1bn via the export of 20 - 21Mt of cement and clinker, a 15% increase in value year-on-year.
Cemex guaranteed 35% stake in Trinidad Cement 18 February 2015
Trinidad & Tobago: Cemex has struck a deal with the board of Trinidad Cement Limited (TCL) that will allow Cemex to increase its stake in TCL to at least 35%, with the option to add another 5%.
Cemex SAB de CV currently owns 20% of TCL, the maximum that was allowable per shareholder, through Sierra Trading. It has committed not to seek a stake higher than 40% of TCL under an accompanying deal to an upcoming rights issue. The deal, referred to as a Subscription Agreement, was signed by Sierra and TCL on the same day that TCL's shareholders voted to remove the cap on ownership of TCL shares.
Sierra will take up its full allowable allotment under the rights offer that gives shareholders the option to acquire one additional share for every two held. Some 124,882,568 shares will be available for subscription. If Sierra fails to reach its 35% ownership target at the close of the offer, "Then subject to receiving all required approvals, including shareholder approval, a private placement of TCL shares will be issued in favour of Sierra Trading in an amount that will permit Sierra Trading to achieve a shareholding of 35% of TCL's outstanding shares," said a Trinidad Cement spokesperson. The TCL board, under the leadership of chairman and shareholder Wilfred Espinet, also signed off on an 'exclusive' plan for Sierra to buy up the TCL shares that are not taken up during the rights offer, but under terms where Sierra's stake does not exceed 40% of the publicly traded company.
The ownership structure of TCL is undergoing changes that, according to the board, will facilitate a new debt-restructuring plan under negotiation with creditors. The loan agreements of 2012 that lengthened the maturity profile of the debt by six years were placed on hold by the current board while it negotiated a new deal. Consequently, TCL's US$315m of long-term debt was reclassified as short-term obligations.
Jaiprakash Power Ventures wins coal block on day four 18 February 2015
India: On the fourth day of India's coal block auctions, on 17 February 2015, Bharat Aluminium Co bid US$48.5/t to beat rivals Hindalco Industries and UltraTech Cement, among others, to win the Chotia mine in Chhattisgarh. The block has Grade C coal reserves with 1Mt/yr of production capacity. The price of imported coal of a similar grade is around US$72.2/t.
Jaiprakash Power Ventures won the Amelia North coal block in Madhya Pradesh for US$11.4/t, while agreeing to forego the mining cost. The mine has extractable reserves of 2.8Mt/yr and was previously owned by Madhya Pradesh State Mining Corp. OCL Iron & Steel won the Ardhagram mine in West Bengal at a price of US$36.9/t. The mine has extractable reserves of 400,000t/yr.