Global Cement News

Mexico: GCC recorded consolidated sales of US$207m in the first quarter of 2022, up by 16% year-on-year from first-quarter 2021 levels. US sales growth of 21% contributed to the increase, driven by regional cement volumes growth of 10%. The group's cement volumes in its native Mexico rose by 12%. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) in the quarter reached US$54.5m, up by 10% year-on-year. Following the results, the company plans to reactivate its on-going share buyback programme.

Chief executive officer (CEO) Enrique Escalante said "GCC is off to an excellent start this year. We are pleased with the results delivered during this quarter and of the way we are overcoming a high inflation environment amid global challenges. One of our top priorities is being extremely vigilant in offsetting cost pressures as we capitalise on market opportunities and focus our efforts in maximising production and terminal outputs. Market trends and full-year backlogs are encouraging for 2022; therefore, we expect to end the year in line with our high-single to double-digit EBITDA growth guidance."

Spain: Cementos Molins recorded first-quarter consolidated sales of Euro274m in 2022, up by 23% year-on-year from first-quarter 2021 levels. The group's net profit for the period fell by 34% year-on-year to Euro22m. It attributed this to material, power and transport costs inflation. During the quarter, Cementos Molins acquired Hanson Hispania's Catalonian ready-mix concrete and aggregates operations. It says that its 0.8x debt-to-earnings before interest, taxation, depreciation and amortisation (EBITDA) ratio positions it well to continue with the execution of its Strategic Plan 2020-2023.

Chief executive officer (CEO) Julio Rodríguez said “The year 2022 has an uncertain and highly complex global environment, in which the war in Ukraine and its global effects are added to the previously existing problems of costs inflation and supply chain disruptions. Despite this complex environment, we expect to continue in 2022 the path of solid results achieved in previous years."

Uzbekistan: Orient Group has entered talks with foreign banks to obtain loans and raise funds. BNE IntelleNewshas reported that the company's earnings before interest, taxation, depreciation and amortisation (EBITDA) is 3x its debt.

Head of corporate finance Davron Ozgurer said “Now we are well diversified, but we plan to exit some of the businesses and sectors but we are also considering getting into some new businesses. The main change will be that now we are an operational company – we make and sell things – but the plan is to transform into more of a financial holding. But that will take time.” Regarding future fundraising, Ozgurer said “Nothing is decided yet. We are just looking at options, but we could issue a bond, or maybe take a syndicated loan. Eventually, an initial public offering (IPO) could be possible.”

India: Police in Mumbai, Maharashtra, have opened a case against a Gujarat-based cement producer on charges of cheating, forgery and criminal conspiracy. The Times of India newspaper has reported that the accused company borrowed US$27m in 2017 and early 2018, purportedly for the purchase of four clinker carrier ships and the construction of jetties at two sites in Gujarat. However, the producer had mortgaged all four ships, pledging over 20% of its shares. From the funds, it reportedly paid itself for the construction of the jetties, and used US$17.35 to repay outstanding bank loans.

Dominican Republic: Mexico-based Cemex has reopened the second production line at its integrated San Pedro Macoris plant. The decision will add 0.5Mt/yr to the plant’s production capacity bringing its total to 2.5Mt/yr. The decision has been made to support customers in the Caribbean market. Other recent investment in the country by Cemex include new packaging machines, palletisers, hydro combustion, new trucks and tanks.

Jesús González, the president of Cemex South, Central America and the Caribbean said “The reactivation of the production line is a clear example of our commitment to the sustainable development of the Dominican Republic. This investment contributes to the revitalisation of the national economy, promotes exports, reduces the need for imports and supports employment and a more sustainable environment in the country."