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Uzbekistan to increase cement production to 7.9Mt in 2015
Uzbekistan: Uzbekistan plans to increase cement production from 7.5Mt/yr in 2014 to 7.9Mt/yr in 2015. Production is expected to reach 8.9Mt/yr by 2019. Within a programme of measures on structural reforms, modernisation and diversification of cement plants will take place in 2015 – 2019. Kyzylkumcement will invest US$30.7m to update equipment, while Bekabadcement will invest US$5.5m to modernise its milling technology.
UAECEMENT.COM - Nov ,26 ,2015

Yamama Cement & ThyssenKrupp sign $1.12bn contract
Saudi Arabia s Yamama Cement Company has signed a $1.12bn (SAR4.2bn) contract with ThyssenKrupp Industrial Solutions to build a new cement plant.

The new plant will have a daily production capacity of 20,000 tonnes of clinker, or nodules ground to make cement, Saudi state news agency SPA reported.

Located 100 kilometres outside of Riyadh, the plant will be built over a period of 39 months.

The source of funding and start date for the project will be announced at a later date, the company said.

Yamama Cement currently produces six million tonnes of clinker and 6.3million tonnes of comment, according to Reuters data.
UAECEMENT.COM - Nov ,26 ,2015

Breedon Aggregates buys Hope Construction Materials for Euro480m
UK: Breedon Aggregates plans to acquire Hope Construction Materials for Euro480m. In a statement, Breedon said that the transaction would create the UK s leading independent producer of cement, concrete and aggregates.

Hope has 160 operational sites, including a cement works in Derbyshire, five quarries and 152 concrete plants. In the first six months of 2015, Hope sold 1.6Mt of cement, 4.7Mt of aggregate and 2.3Mm3 of concrete, generating revenue of Euro407m and underlying earnings before interest depreciation and amortisation of Euro52.8m.

The acquisition is conditional upon UK competition authority approval and is expected to be completed in the second quarter of 2016. "This acquisition is well-timed, with UK construction output forecast to expand by around 15% over the next four years and volumes of all our major products expected to grow strongly," said Peter Tom, Breedon Executive Chairman. "We are confident that we will be able to continue delivering significant value for our shareholders in the coming years, with an even stronger platform for growth."

The Chief Executive of Aggregate Industries, part of LafargeHolcim, Pat Ward, will take over as Breedon Chief Executive early in 2016.

UAECEMENT.COM - Nov ,23 ,2015

China Shanshui Cement s top shareholder to fund bond redemption
According to a report by Reuters, China Shanshui Cement s top shareholder, the Tianrui Group, has announced that it will provide funds to the cash-strapped company to redeem a US$500 million global bond. The announcement has raised investor hopes that it may avoid defaulting on them.

China Shanshui is set the hold a general meeting on 1 December to decide on certain changes in the board of directors. The changes could trigger a contractual obligation to redeem the bonds that are otherwise due in 2020.

Tianrui Group is the biggest shareholder in China Shanshui Cement, owning 28.16% of its equity. China Tianrui s Chairman Li Liufa owns 70% of Tianrui Group.

UAECEMENT.COM - Nov ,23 ,2015

Thailand s construction industry is picking up
According to a new report by Timetric s Construction Intelligence Centre (CIC), Thailand s construction industry is picking up with a more optimistic future outlook, after suffering a decline during the economic crisis.

In real terms, the industry s output value recorded a compound annual growth rate (CAGR) of -0.23% during the review period (2010–2014). This decline was mainly due to socio-political unease, which affected the country s economic growth and foreign investments. The outlook, however, seems more positive, driven by the stabilising political and economic conditions along with new investments in residential, infrastructure and commercial construction projects, and improvements in investor confidence in the country.

Thailand s construction industry is expected to increase in value from US$17.4 billion in 2014 to US$19.9 billion in 2019 in real terms, at a CAGR of 2.79%. The economic expansion, the country s housing demand and the government investment in public infrastructure are projected to be the main drivers of growth. Moreover, the government s tax incentives aimed to attract investment from foreign companies in agriculture, renewable and alternative energies, information technologies as well as the tourism, sector should boost the construction activities in the coming years.

However, risks associated with the industry s positive outlook are still in place. Economic and structural factors coupled with an absence of modern transport infrastructure and a lack of skilled labour will likely to slow the potential industry growth.

According to the report, residential construction was the largest market in the Thai construction industry during the review period, accounting for 37% of the industry s total value in 2014. According to Timetric s CIC, the country s rising population, urbanisation and positive developments in regional economic conditions will support the market over the forecast period.

Infrastructure construction was the second-largest market, accounting for around 24.6% of the industry s total value in 2014. The market is projected to grow further supported by the government s eight-year national development plan that aims to develop Thailand s infrastructure by 2022. To implement this programme, the government has allocated THB2.4 trillion (US$75.0 billion) to invest in road, rail and port infrastructure.

UAECEMENT.COM - Nov ,23 ,2015

Positive forecast for Swiss construction industry

According to research by Timetric s Construction Intelligence Centre (CIC), the Swiss construction industry is set to expand with a five-year outlook that is improving compared to its review-period performance. Real average annual growth is set to accelerate from 2.0% during the review period (2010-2014) to 2.9% over the forecast period (2015-2019), to reach a value of US$79.4 billion by 2019 in real terms.

The industry s output value grew at a CAGR of 8.3% during the review period, from US$63.6 billion in 2010 to US$68.9 billion in 2014. This expansion was mainly due to improved economic conditions, a low unemployment rate and an increase in exports. Over the next five years, the industry is expected to be supported by public and private sector investment in the manufacturing industry and infrastructure modernisation. Moreover, investments in office, leisure and hospitality buildings will also support this growth.

Residential construction was the largest market in the Swiss construction industry during the last five years, accounting for around 34.0% of the industry s total value in 2014. Timetric expects the market to follow a similar trend over the forecast period, and to remain the largest in the construction industry, driven by population growth, an increase in the number of net immigrants, and a low unemployment rate. Rising urbanisation rate, low interest rates and positive regional economic conditions will also provide support for the market.

Commercial construction was the second-largest market in the industry during the review period, and accounted for 19.6% of the industry s total value in 2014. The market growth was fuelled by increased investment in the office, leisure and hospitality buildings categories. Over the forecast period, Switzerland s commercial construction will be supported by the rising tourist arrivals and the extension of the 3.8% value-added tax (VAT) rate for the hotel industry until 2017.

UAECEMENT.COM - Nov ,17 ,2015

Shanshui shareholder says it will help repay debt
China Shanshui Cement Group may have a saviour in the form of its largest shareholder, Tianrui Group Co., according to a report from Bloomberg. Tianrui Group Co. has been pushing for changes to the Shanshui board and has said that if its motion passes at the EGM scheduled for 25 November, it would help fix the company s debt problems. Yesterday, China Shanshui Cement failed to pay RMB2 billion of onshore notes, having announced earlier in the week that its shareholder problems were creating difficulties in securing financing that ultimately led it to file a winding up petition with the Grand Court of the Cayman Islands.

Bloomberg reports that Tianrui may not have the capability to offer financial assistance. Much will depend on investors and the lengths they go to to ensure they get their money back.

UAECEMENT.COM - Nov ,17 ,2015

Morocco: Anouar Invest To Launch Cement Plant in Laayoune
Moroccan Holding Group Anouar Invest announced the construction of a cement factory in Laayoune as part of the new southern provinces development projects in infrastructure and housing.The factory will seek to meet the high demand for cement, an essential product for construction, the group explained in a communiqué.

With an investment package reaching MAD 300 million, CIMSUD (Ciement Sud) will begin operations by July 2017, producing 500,000 tons of cement per year.

The plant will be located in the area of Foum El Oued (Laayoune). CIMSUD will create 75,000 employment days in its operation phase and 170 jobs in its exploitation phase.

The group has also started construction of a cement entity in the Settat region with a budget of MAD 3 billion. It will produce 2.2 million tons of cement annually and will be in operation late 2018.

Founded in 1994, Anouar Invest SA has grown from a regional food distributor to one of the largest agribusiness players in Morocco. The group primarily processes and distributes staple foods, but it is also involved in real estate development.

Anouar s strategy focuses on consolidating its market position in agribusiness, preparing for future domestic market growth and gradually expanding to high potential markets in West Africa.

The group s consolidated sales reached MAD 7 billion in 2014. It employs 3,500 people in more than 20 subsidiaries.

UAECEMENT.COM - Nov ,14 ,2015

Indonesia: Cement sales increase in Indonesia
Indonesia Investments reports that cement sales were up by more than 10% in October 2015. Figures from the Indonesian Cement Association show a 10.7% y/y increase – up to 6.4 million t – thanks to government investment in infrastructure. Government capital spending in 3Q15 was double what was spent in 1Q15, at US$3.76 billion, and there is more to spend, with reports indicating some 70% of the capital budget remains unspent.

Citing information provided by the Indonesian Cement Association, Indonesia Investments reports that projects such as the Trans-Sumatra highway, contributed to a 17% rise in cement sales on Sumatra in October, have benefited cement sales across the country, with the exception of Kalimantan where sales contracted.

Bulk sales exceeded bagged in September and October, indicating that cement is being used for bigger projects. A further increase in sales is expected in the last quarter of the year, while total sales are expected to come in at 63 million t for 2015, a 5% increase y/y. Cement production capacity currently stands at 78 million t.

UAECEMENT.COM - Nov ,14 ,2015

Pakistan: First quarter results : Bestway Cement posts Rs 3.2 billion profit
Bestway Cement Limited board of directors (BoD) announced financial results for the first quarter, from July to September, of 2015.

Bestway s turnover on a consolidated basis jumped by 38% from Rs 6.8 billion to Rs 9.4 billion. This was largely due to acquisition of Pakcem Limited, increase in domestic demand and stable retention prices during the quarter. Gross margin of Rs 3.7 billion grew by more than 50% over the same period last year.

Profit before tax for the quarter amounted to Rs 3.2 billion, showing an increase of 28% as compared to Rs 2.5 billion during the quarter that ended September 30, 2014. The company s consolidated profit after tax also registered a growth of 34% to reach Rs 2.3 billion in the quarter against Rs 1.7 billion from the corresponding period of FY14-15.

On a consolidated basis, domestic sales volume increased by 48% from 814,610 tonnes to 1.2 million tonnes, while exports saw a decline of 4% from 197,824 tonnes to 189,208 tonnes in the quarter. Overall, cement dispatches increased by 38% during the reporting period to 1.4 million tonnes from 1.0 million tonnes. Despite fierce competition, Bestway was able to maintain its market share in the north zone and retained its position as the largest exporter of cement to Afghanistan and India.

Earnings per share for Bestway Cement stood at Rs 3.88 against Rs 2.94 from the corresponding period. The company announced an interim dividend of Rs 2.5 per share keeping in view its excellent performance.

During the quarter, Bestway Cement further reduced its reliance on the national grid by taking energy-saving initiatives and launched a 12MW waste heat recovery power plants at its Pakcem Kallar Kahar operations. The implementation of the project, which is expected to cost $15 million, would not only support in alleviating the country s power crisis to a certain extent, but also reduce cost of production whilst generating clean, affordable energy.

Bestway brands are synonymous with quality in international markets and the company continues to explore all opportunities for expanding its presence in regional and international markets. The company brought innovation to new heights by introducing Sulphate Resistant Cement (SRC) to its product portfolio, which is gradually being launched in domestic markets.

With a total cement capacity of over 8 million tonnes per annum, Bestway continues to be the leader and a pioneer in the cement industry focused on reducing environmental impact and contributing to the country s power generation.
UAECEMENT.COM - Nov ,14 ,2015

Egypt: Alexandria Cement Company loses EGP 116m in 9 months
The Alexandria Portland Cement Company revealed that in the past nine months, the company recorded net losses worth EGP 116m, in an official statement to the Egyptian Stock Exchange (EGX) on Sunday.

The aforementioned amount is compared to the EGP 71m in profits that were registered in the same period the year before.

In the first half (H1) of the current year, the company also recorded losses worth EGP 67.7m, unlike in H1 of 2014 where the company’s profits stood at EGP 38.5m.

Alexandria Portland Cement is a public company that has been listed on the Egyptian Stock Exchange (EGX) since 1995. The company produces and trades all types of cement, as well as other construction materials.

UAECEMENT.COM - Nov ,09 ,2015

Pakistan: Smuggling of Iranian cement hitting local industry

The All Pakistan Cement Manufacturers Association has said that the growth in the domestic economy has supported overall growth in the cement industry. He said that the industry has approached various decision makers to stop influx of Iranian cement into Pakistan from Balochistan by road and railway. The industry needs mechanism of safeguard to be put in place to protect the cement smuggling into the country. Government should also impose 20pc Regulatory Duty for import of cement in addition to custom duty.

The APCMA spokesperson added that due to high cost of doing business in Pakistan, Pakistani cement industry is losing competitiveness to other countries such as Iran, UAE and India. The industry has appealed for reduction in energy costs, removal of GIDC imposed on gas, reduction of custom duty on coal to 0pc and additional incentive of 5pc on export of cement by sea.

Statistics indicate that cement sector is now almost completely dependent on domestic sales, the share of which has increased to over 80 percent in total cement sales compared to around 50 percent in 2008-09, as domestic sales continue to increase while exports are showing constant decline. Cement despatches to domestic markets during the month of October 15 were 2.595 Million Tons compared with 2.095 Million Tons during same month last year showing an increase of 23.89pc.

UAECEMENT.COM - Nov ,09 ,2015

Australia: Boral benefits from higher sales prices
Australia: Boral chief executive Mike Kane has said that higher product prices are playing a part in the strong performance of its key businesses so far in the 2015-2016 fiscal year. He noted that cement prices were up in New South Wales and southeast Queensland but steady elsewhere.

"Based on the first quarter results, we are seeing an improvement in year-on-year results. The business is consistent with our expectations this year," Kane told shareholders at Boral s AGM. "Price is playing a role in our performance, as well as cost management. On average, we think prices will move up, but we will have more clarity on that as we get through the half year."

The company has experienced lower demand from roads, engineering and major infrastructure projects so far in the 2015 – 2016 fiscal year, but has responded by reducing costs and pushing through a number of surplus property sales.

UAECEMENT.COM - Nov ,08 ,2015

Pakistan: APCMA reports on Pakistani cement industry
According to the All Pakistan Cement Manufacturers Association, cement dispatches during the first four months of the current fiscal year came to 11.398 million t. This is an increase of 3.79% from the previous year.

Domestic sales came to 9.37 million t, compared to 8.192 million t between July and October 2014, representing an increase of 14.38%. This is the fastest growth in eight years.

Exports, on the other hand, decreased by 27.31% from the same period in 2014, dropping from 2.79 million t last year, to 2.028 million t.

Regionally, north-based mills sold 13.65% more to domestic markets than in the same period in 2014, but saw a 25.85% decrease in exports. The southern region witnessed a growth of 18.21% in domestic markets.

Emphasising that 80% of cement sales are dependent on the local market, the All Pakistan Cement Manufacturers Association has appealed to the government to implement measures to stop the illegal smuggling of Iranian cement into the country, as it affects sales significantly. Cement manufacturers are calling for the imposition of a regulatory duty on imported cement bags of up to 20%, in addition to the existing customs duty.

UAECEMENT.COM - Nov ,08 ,2015

India: New inland shipping port to be built in Rajasthan
In India, the Inland Waterways Authority (IWAI) has agreed to guide and support the government of Rajasthan as it builds an inland shipping port at Jalore. The port will help develop navigation facilities in western Rajasthan and contribute to the region s socioeconomic development. In a statement, the Ministry of Shipping announced that business development opportunities are to be explored by the state government for limestone, gypsum, lignite and cement plants along the canal.

The project comprises a canal with a minimum draft of 3 m to be built between Mori Creek and Jalore. Existing cherras and rivers may also be explored for establishing connectivity between Jalore and Mori Creek. The proposal includes plans to desalinate the water for use in irrigation, which would help develop drought-resistant crops. The viability of saline-resistant crops such as soya will also be studied. A further study will be undertaken to look at how the Indira Gandhi Canal could be made navigable, and the plan will also look into the development of smart cities along the new canal.

A pre-feasibility study will be undertaken by WAPCOS and should be submitted within 5 months, monitored and guided by IWAI.

UAECEMENT.COM - Nov ,07 ,2015

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