Global Cement News

France: The board of directors of Ciments Français, part of the Italcementi Group, has examined and approved the audited annual and consolidated accounts as of 31 December 2011, which show a net consolidated profit of Euro274m, a 13.7% drop year-on-year.

Cement sales volumes for the entire year were down by 1.4% at 42.4Mt. Ciments Français Cement sales improved in France, North America, Morocco and India but decreased in Egypt due to the political crisis there. An overall fall in demand, strong inflation on fuel prices and negative translation effects resulted in deterioration in the company's operating results. These impacts were only partly mitigated by efficiency measures implemented throughout the year.

As of 31 December 2011, Group consolidated revenues were Euro3.89bn, down by 3.8% year-on-year. Its recurring earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to Euro702m, down by over 20% year-on-year. Earnings before interest and tax dropped by 38% to Euro309m following recognition of Euro359m in depreciations and Euro53.4m in impairment losses, mainly in crisis-hit Spain and Greece.

Group investments in industrial and intangible assets amounted to Euro301m as of 31 December 2011, down by 25.6% compared to 31 December 2010. They mainly related to the strengthening of production in France, Belgium and Egypt and an increase of production capacity in India and Morocco.

A tight management of cash flows, the disposal of assets in Turkey and the sale of subsidiary Axim contributed to strengthen Ciments Français' net financial position. At the end of December 2011, its net financial debt was reduced by Euro390m to Euro1.02bn compared to Euro1.41bn as of 31 December 2010.

Regarding 2012 Ciments Français reported that the markets in which it operates should be more stable. Sales volumes are expected to stabilise at a level similar to that of 2011, increasing in North America and Morocco while declining in southern Europe. Egypt remains a source of uncertainty. Prices are likely to trend more positively and partially offset the rise in energy costs and the impact of inflation on fixed costs. Additionally, the efficiency programs launched in 2011 should increase operating results in 2012.

The group will initiate a new cycle of investments in 2012 related to its industrial facilities, mainly in Gulbarga, India and Bulgaria. In Morocco, the group expects a new expansion phase after the commissioning of the Ait Baha plant.

Kenya: The Maasai Council of Elders (MCE) has assured cement manufacturing companies in Athi River of their willingness to allow them get raw materials from Kajiado county, following disputes over land. MCE spokesman, William Kirrinkai, gave the assurance after a meeting of stakeholders and representatives of the five cement manufacturers at Nkurrunka area in Kitengela.

Kirrinkai is also the treasurer of the recently-formed special council mediator group to negotiate the re-opening of all the mines that had been closed over alleged misunderstandings between the locals and the companies. He was quick to point out that earlier demands made by the MCE still stand.

The elders had given an ultimatum to the companies to look again at their social corporate responsibilities and consider some of the requirements of the Maasai community. Some of the demands were the implementation of employment quota for Maasai young graduates, two directorial positions in all of the companies, building of health centres in all the mining areas, building of tarmac roads in areas leading to the mines and helping members of the community pay school fees for their children.

During a meeting on the matter at Kitengela on 27 February 2012, the East African Portland Cement Company (EAPCC) and Athi River Mining Cement (ARMC) representatives requested to be given time to consider the demands. Kirrinkai, who attended the meeting, agreed with the then EAPCC chairman, Mark Karbolo, and ARMC's representative Peter Danga to meet again on 10 March 2012 to review the matter.

Kirrinkai separately addressed more than 2000 members of the local Maasais and other communities in Kajiado County, saying that local and non-locals living in the region have a right to all the available resources.

Brazil: Cement manufacturer Holcim, which already operates cement plants in Minas Gerais and Rio de Janeiro, is considering a new plant or joint-venture with a company already established in the Brazilian cement market. The group has untouched limestone reserves in the south, mid-west and the north east regions to offer any potential collaborator.

Holcim President Otmar Hübscher said that the company has been looking at possible locations and wants to focus Holcim to meet the growing cement demand in Brazil, where it is currently operating at its 5.3Mt/yr capacity. The company has already announced an US$800m expansion of its plant in Barroso, Minas Gerais. It is presently waiting for environmental clearance for the project, which will see that plant increase its capacity from 1.2Mt/yr to 3.5Mt/yr by 2014.

Iran: Cement exports from Iran increased to over 9.3Mt in the first 11 months of its current calendar year, which ended on 19 February 2012, marking a 17% rise compared to the same period of the previous year. Exports of clinker stood at 1.5Mt in the same period of time.

Iranian Minister of Industry, Mine and Trade Mehdi Ghazanfari announced that, with the implementation of new projects, the country's cement capacity could reach 110Mt/yr by the end of 2015.

Venezuela: Venezuela's President Hugo Chávez has authorised the transfer of US$10m to build a new quarry to help stimulate cement production in the country. The executive also greenlighted a measure to change local cement firm Cemex Venezuela's name to Venezolana de Cementos, as well as measures to develop and strengthen the firm.

The Venezuelan government nationalised Cemex Venezuela, formerly operated by Mexican cement maker Cemex in August 2008. The Mexican firm received US$600m in compensation in 2011.

Chávez also said that future investments for the cement sector would aim to develop relevant technology, perform environmental impact studies and improve benefits for cement workers.