Global Cement News

China: China Resources Cement (CRC) has reported lower net profits for the six months that ended on 30 June 2019, largely on falling sales of cement, clinker and concrete amid a slowing Chinese economy. Its net profit was US$481m, compared with US$510m in the first half of 2018. Revenue for the first half dropped by 6.0% year-on-year to US$2.22bn. The company said it will continue to seek partnerships with domestic and overseas companies as it noted that the Chinese economy is facing new downward pressure.

Kenya: East Africa Portland Cement Company (EAPCC) has withdrawn a restructuring and staff rationalisation notice that it had earlier issued. The firm had sought to declare 800 employees redundant, with the aim of trimming its bloated wage bill.

“A replacement notice about the intended company restructuring and staff rationalisation, shall be circulated, in due course,” stated EAPCC’s acting managing director Stephen Nthei.
EAPCC is stuck in negative working capital with obligations maturing within the next 12 months outstripping current assets by US$71m. This potentially makes it difficult to service its short-term obligations.

Nigeria: Dangote Cement has stated that the rate at which consumers are winning valuable prizes in its on-going national consumer promotion, tagged ‘bag of goodies,' is not a gimmick, but a means of giving back to the loyal consumers of its cement products. The response follows criticism that there are too few winners.

At a prize ceremony in Port Harcourt, Aliko Dangote, Chairman of Dangote Cement, stated that the presentation events were proof that the promotion was not a scam. The company is giving out 43 cars around Nigeria as well as other prizes, including televisions. “We value everybody in our value chain – distributors, wholesalers and retailers – and this is our own way of giving back to our consumers,” said Dangote.

Vietnam: Cement and clinker exports from Vietnam are well on track to meet the central target for 2019, with turnover of nearly US$750m generated in the first seven months, according to the General Department of Customs’ statistics.
During the period, 17.3Mt of cement and clinker were shipped overseas.

In the first half of 2019 the country exported 15.6Mt of cement and clinker, which generated revenues of US$667m. This represents a 1.3% rise in volume and 18% rise in value compared to the same period of 2018.

The Vietnam Cement Association attributed the seven-month’s performance to positive demand from the global market and the export prices of cement, which have increased by 15-17% year-on-year. The closure of China’s worst-polluting cement plants and forced campaign operation at many others has created a significant opportunity for Vietnamese firms to increase exports.

The ministry forecasts that overall demand for cement from Vietnam’s cement producers would be likely to increase marginally to 98-99Mt by the end of 2019, comprising 70Mt domestic sales and 28-29Mt in exports.

Argentina: Loma Negra, Argentina’s leading cement producer, saw its net revenue decline by 2% to US$165m in the second quarter of 2019, with its earnings before interest, tax, depreciation and amortisation (EBITDA) rising by 7.1% to US$44m. This was driven by the domestic cement, lime and masonry sector.

Sergio Faifman, CEO of Loma Negra, said, “We are pleased to announce another set of solid results, our business continues to deliver adjusted EBITDA margin expansion based on our constant focus in profitability and cost enhancement initiatives. In this sense, during this quarter we adjusted our production-footprint by reconverting the Barker facility to a grinding and distribution centre, this initiative will let us be a more efficient and agile company. Considering the Argentine context, our business continues to deliver both adjusted EBITDA margin expansion and Net income growth.”