Global Cement News

Japan: Taiheiyo Cement’s sales fell by 2.1% year-on-year to US$1.94bn in the quarter to 30 June 2019 from US$1.99bn in the same period in 2018. Its profit dropped by 37.6% to US$58.7m from US$94.1m. It blamed falling sales on the end of construction booms linked to preparations for the 2020 Tokyo Olympic Games, earthquake reconstruction work and the construction of Yatsuba Dam. Exports also fell.

Turkey: Sales from Sabancı Holding’s cement businesses fell by 5% year-on-year to Euro132m in the first half of 2019 from Euro139m in the same period in 2018. Its cost of goods sold grew by 7% during the same period. It made a net loss of Euro1.35m compared to a net profit of Euro23.3m previously. Overall, the group’s sales rose by 24% to Euro1.48bn but its profit fell by 17% to Euro577m.

Vietnam: 20 factories in Quang Ninh, Thanh Hoa, Quang Nam and Thua Thien Hue provinces will be subject to a new carbon tax in a pilot project. The Ministry of Agriculture and Rural Development has started to put the programme into action following approval from Prime Minister Nguyen Xuan Phuc, according to the Vietnam News Agency Bulletin. The pilot project will start in 2020 and run until the end of 2021.

The scheme will include 11 cement companies and nine power plants. Cement producers and traders will be charged US$0.09/t of clinker, equivalent to US1.35/t of CO₂. The tax will also increase electricity costs for cement producers. It is expected to increase the production cost at plants by 0.29%.

Nguyen Van Vu, head of Finance and Planning Department under Vietnam Administration of Forestry (VAF), said that the tariff was lower than the World Bank’s Forest Carbon Partnership Facility pledge to pay for emission reduction efforts in North Central Region of US$5/t of CO2. The provinces running the tariff are expected to generate around US$7.4m/yr. Most of this revenue will be accrued in Quang Ninh, followed by Thanh Hoa, Thua Thien Hue and Quang Nam.

Denmark: FLSmidth’s order intake for its cement business grew by 29% to Euro604m in the first half of 2019 from Euro469m in the same period in 2018. It said this was mainly due to ‘strong’ order intake in the first quarter of 2019, which included two large cement orders, together worth around Euro120m. The second quarter also included a larger order worth Euro45m. The division’s revenue rose by 7% to Euro548m and its earnings before interest, taxation, depreciation and amortisation (EBITDA) remained stable at Euro28.4m.

Spain: A 29-year old man has died in a failed attempt to base jump at Cemex España’s former integrated plant at San Vicente del Raspeig near Alicante. The deceased wanted to film a nocturnal descent from a 50m tower at the site for his social media channel, according to the El País newspaper. However, his parachute failed to open during the incident. In June 2018 Cemex was denied permission to demolish the San Vicente del Raspeig plant.