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LATEST CEMENT INDUSTRY NEWS
Hope Construction Materials to launch bagged cement product
Hope Construction Materials has announced the launch of a new bagged cement product scheduled for later in 2016. The new product, called Professional Grade Cement, will be marketed in the south of England.

“Hope Works has been making cement for more than 80 years and has an outstanding reputation for consistent quality and service. We are delighted to be able to offer our product in our own branded bag to customers for the very first time,” said Hope s Commercial Director for Cement, Gary Brennand.

The new product packaging will feature a large ram, paying homage to the company s origin in Derbyshire, which is transparent to ensure the consistent colour of Hope cement is always clearly visible. All the bags will be plastic, weatherproof and packed to give end users confidence that they can store the bags outdoors.

Hope cement had previously been available in bags through a third party supplier. This launch marks the first time Hope cement will be on the company s packaging. The new product follows an 18-month research and development process with consultation of merchants and professional builders.
GlobalCement - Feb,12 ,2016

Indonesia:Semen Indonesia s Rembang plant aids local communities
From the start of 2016, Semen Indonesia has channelled Rp.1.78 billion s worth of aid to the communities around its Rembang plant. Assistance includes the construction of appropriate housing, the creation of a village gate, building latrines, as well as the provision of tree seedlings. Aid was delivered by the Head of the Department of CSR Semen Indonesia, Heru Wahyudi Field Tegaldowo Village, District Gunem, Rembang.

Housing assistance was given to 31 villagers across six villages in Rembang. The construction of houses for residents will begin in February and is expected to be completed in May.

Head of CSR Department, Heru Wahyudi said, "The provision of housing assistance given by the company to the citizens is based on a survey of the team formed by the company, the construction was done by building a new home is not a renovation. This assistance is intended to improve the quality of life of communities around the company. Funds allocated for these activities amounted to Rp1.13 billion ".

"In addition to providing housing assistance to the community, the Indonesian Cement also provide assistance worth Rp134 million to 50 villages around the company. Assistance in the form of making healthy latrines, latrines manufacture is expected to improve the health of communities around the company, "said Heru Wahyudi.

The company also donated Rp208million for the construction of a gate, with the grant being given to four local villages. Additionally, 10 500 tree seedlings, worth Rp309 million, were provided as part of the productiove tree programme. Seedlings included mango, durian, sapodilla, jackfruit and avocados.

UAECEMENT.COM - Feb,12 ,2016

Turkey: Turkish Cement Manufacturers Association signs wage agreement with union
Turkey: The Turkish Cement Manufacturers Association (TÇMB) has signed a two-year labour agreement with the CIMSE-IS union. Under the terms of the deal workers wages will rise by 10.5% from 1 January 2016, according to CIMSE-IS and Reuters. Subsequently, workers will receive a raise on 1 Janaury 2017 based on an individual factory basis. Adana Çimento, Aslan Çimento, Unye Çimento, Mardin Çimento, Bursa Çimento and Bolu Çimento are members of the union.
UAECEMENT.COM - Feb,12 ,2016

Cemex releases Q4 and full-year 2015 results
Cemex has announced that, on a like-to-like basis for the ongoing operations and adjusting for currency fluctuations, consolidated net sales increased by 2% during the fourth quarter of 2015 to US$3.4 billion, and increased 5% for the full year 2015 to US$14.1 billion versus the comparable periods in 2014. Operating EBITDA on a like-to-like basis increased by 7% during the fourth quarter to US$663 million, and increased 9% for the full year to US$2.6 billion versus the comparable periods of 2014.

Cemex s consolidated fourth-quarter and full-year 2015 financial and operational highlights:

The increase in consolidated net sales, on a like-to-like basis, was due to higher prices of our products, in local currency terms, in most of our operations, as well as higher volumes in the US, and our Mediterranean and Asia regions.
On a like-to-like basis, operating earnings before other expenses, net, in the fourth quarter increased by 11% to US$410 million and in the full year increased by 17% to US$1.7 billion versus the comparable periods in 2014.
Controlling interest net income improved to US$144 million during the fourth quarter of 2015 from a loss of US$178 million in the same period last year. Also, controlling interest net income improved during the full year to US$75 million from a loss of US$507 million in 2014.
Operating EBITDA on a like-to-like basis increased by 7% and 9% during the quarter and the full year, respectively, to US$663 million and US$2.6 billion versus the comparable periods of 2014.
Operating EBITDA margin during the quarter grew by 0.9 percentage points on a year-over-year basis reaching 19.4%. For the full year operating EBITDA margin increased to 18.7%, up 1.1 percentage points from 2014.
Free cash flow after maintenance capital expenditures for the quarter increased by 35% to US$566 million, compared to the same quarter of 2014. For the full year 2015, free cash flow after maintenance capital expenditures reached US$881 million, an increase of 121% versus previous year.
UAECEMENT.COM - Feb,7 ,2016

Lafarge Jordan proposes US$2.8bn development to replace Fuheis cement plant
Jordan: Lafarge Jordan has proposed a US$2.8bn plan to replace its Fuheis cement plant with an urban development, according to the Jordan Times. The company sent an official letter to the Investment Commission in October 2015 informing them about the plan but still has not received any response. The Fuheis cement plant has been non-operational since 2011 when it was converted to petcoke but the local community objected.
Global Cement - Feb,6 ,2016

Pakistan cement exports in decline since July 2015
Data from the All Pakistan Cement Manufacturers Association (APCMA) show that exports have been in decline since July 2015. Exports declined by 24% year-on-year to 3.4Mt in the seven month period between July 2015 and January 2016 compared to 4.5Mt in the same period in the previous year. However, domestic cement consumption has risen in the same period, according to local press.

"A substantial reduction in the exports has drastically affected foreign exchange earnings of the country and cement makers are finding it difficult to maintain their existence in export markets because of high costs of business in Pakistan and the absence of export incentives," said an APCMA spokesman.

Cement despatches between July 2015 and January 2016 increased by 6.4% year-on-year to about 21Mt compared to about 20Mt previously. Cement plants sales volumes in the north of the country grew by 14% year-on-year to 14.8Mt from 13Mt. These producers saw exports fall by 22.4% to 2.2Mt from 2.8Mt. Cement plant sales volumes in the south grew by 23% year-on-year to 3Mt from 2.5Mt. These producers saw exports fall by 29.2% to 29.2% from 1.8Mt.

The APCMA recommended that the government should impose an additional 20% duty for cement imports alongside the existing customs duty to protect the local cement industry. It added that taxes on energy inputs such as a gas and coal should be reduced and measures put in place to make exports more competitive.
Global Cement - Feb,6 ,2016

US: Eagle Materials reports cement earnings up by 11% to US$41.8m in Q3
US: Eagle Materials has reported that its earnings from its cement business rose by 11% year-on-year to US$41.8m in the third quarter of 2015. The earnings increase was attributed to a 4% increase in average net cement sales prices and record quarterly cement sales volumes.
Cement revenues for the third quarter rose by 9% to US$97.1m. Cement sales reached 1.2Mt, a rise of 1% year-on-year. Eagle also reported that its cement businesses in Texas and Oklahoma was impacted by heavy rains in October and December 2015 which resulted in lower sales volumes in both of those markets. Additionally, in Texas, increased demand for construction grade cement continues to offset much of the impact from lower oil well cement demand.
UAECEMENT.COM - Feb,1 ,2016

Ghana evaluating cement trade-war
Dr Ekwow Spio-Garbrah, the Ghanaian Minister of Trade and Industries has announced that his Ministry is undertaking a thorough evaluation of various interests in the current trade-war between local cement manufacturers and importers.

In his announcement he stated that the evalaution should enable the Ministry to pronounce appropriately on the issue.

Local cement makers are claiming cement imports from Nigeria and China are flooding the market, and therefore making their businesses uncompetitive.

Dr Spio-Garbrah commented that his ministry expects revenues that make up the shop price of imported cement as provided by the exporters to be transparent.

He also said that competition should make cement prices a little cheaper than it is currently.

UAECEMENT.COM - Feb,1 ,2016

Sinoma and ABB sign strategic cooperation agreement
In early January 2016, Sinoma-Int and ABB held a strategic agreement signing ceremony.

Mr. Yin Zhisong, general manager of Sinoma-Int, and Mr. Ya Wenlin, director of ABB, jointly signed the agreement. Mr. Shen Jun, chairman of Sinoma-Int, and Dr. Gu Chunyuan, chairman and CEO of ABB, witnessed the signing ceremony.

The signing formally established a strategic partnership, with both sides entering into a more long-term, broader, more in-depth cooperation and development stage.

Mr. Shen Jun said that Sinoma-Int and ABB have maintained a good relationship of cooperation in recent years, with the development of overseas business. After the signing of a strategic cooperation agreement, the two sides should expand cooperation scope in all aspects of marketing, product quality and customer service, strengthen cooperation, enhance cooperation value, and develop a broader market jointly.

UAECEMENT.COM - Jan,30 ,2016

Spanish cement consumption up by 5.3%
Cement consumption in Spain reached 11 408 287 t by the end of 2015, 5.3% more than in 2014. This figure confirms the slowdown in annual growth.

Exports have fallen by 4.4% in 2015, reaching 9 233 979 t, 422826 t less than in 2014.

In 2016, Oficemen expects a moderate growth of 7%, which however can be adversely affected by political instability.

In this sense, the cement sector points out that a country without infrastructure investment cannot remain competitive, even in the tourism sector.

UAECEMENT.COM - Jan,30 ,2016

Sberbank receives 6% of LafargeHolcim from Eurocement in repurchase deal
Russia: Sberbank CIB, the investment banking arm of Russian lender Sberbank, has announced that it holds 6% of LafargeHolcim following a repurchase deal with Eurocement. Under the terms of the agreement, Sberbank CIB had organised financing for Eurocement Holding AG in return for 37m shares in LafargeHolcim. Eurocement has the right to buy back the shares at a specific price and on a certain date.

The agreement was implemented on 21 January 2016. No further details were disclosed. Before the repurchase deal Eurocement was among the largest shareholders of LafargeHolcim.

UAECEMENT.COM - Jan,28 ,2016

Sinoma awarded AAA credit enterprise rating
China Chamber of Commerce for Import & Export of Machinery and Electronic Products recently organised the 2015 enterprise credit grade evaluation. After re-evaluation, Sinoma Equipment and Technology Group Co. Ltd. once again obtained the highest grade, AAA, credit enterprise.

As the first batch of sector association authorised by the National Credit Commission and SASAC to conduct credit grade evaluation, CCCMB worked closely with Sinosure, and constantly carried out credit grade evaluation for the import and export enterprises of machinery and electronic products in the areas of complete engineering, ordinary machinery and electronic products. The evaluation results are widely recognised, both at home and abroad, and have a high reputation. In light of Sinoma-Tec passing the reevaluation with AAA Grade Credit Enterprise, its publicity and reputation in the international market is improved, and gives the group an excellent opportunity to further explore the international market.
UAECEMENT.COM - Jan,28 ,2016

Sudan government plans to raise cement production capacity to 5Mt/yr
Sudan: The Minister of Investment Mudathir Abdul-Ghani has revealed state plans to increase cement production capacity from 3Mt/yr to 5Mt/yr. The aim is to achieve self-sufficiency and to build an export surplus according to local media. The announcement was given at a meeting with the managers of a cement plant in River Nile State.
UAECEMENT.COM - Jan,28 ,2016

India cement consumption to improve by 2018; analysts predict sluggish 16
India s cement consumption could go up by 9% only in full-year 2018, said analysts from JP Morgan, who expect demand in 2016 to be gradual.

A sharp contrast to 2015, where the India cement sector outperformed the broader markets; large caps and mid caps delivered positive return last year as against Sensex decline of 5%. But with upcoming elections in a number of Indian states the infrastructure spending in rural India is expected to go up in 2016-17 and cement consumption could go up from current low single digits, said JPM.

With sluggish demand and weak pricing expected to continue, Deutsche Bank cut its earnings for cement companies by 11-16% for 2016-17 and said one cannot rule out the sector underperforming the BSE this fiscal. 2016 supply is also expected to be at a decade-low with only 10-12 million tonnes added, which is just 3% of industry capacity. "Our expectations of industry utilization crossing 85% is now pushed to late FY18E," say DB analysts.

Merger and acquisitions are expected to remain high despite a sluggish outlook for 2016. "About 15% of industry capacity is on the block for sale. With large players looking to mark down their debt, sale opportunities are likely. Industry consolidation on the back of this should yield better pricing power as the demand environment improves," say JPM analysts.

With limestone mine auctions and linkage coal auctions around the corner, analysts expect higher operating costs near-term for raising limestone from new mine operators and higher fuel costs for companies with high coal linkage. The benefits of weak energy prices are not enough for most cement players, said DB.
UAECEMENT.COM - Jan,26 ,2016

Nepal:There won t be shortage of cement for reconstruction
Country s cement industry, one of the industries with high export potential, is looking for better future despite facing various problems.

The government has kick-started the reconstruction drive and it is expected that demadn for cement will surge once reconstruction of houses and other infrastructures begin. The industry -- plagued by severe power crisis, transport syndicate and government apathy -- is ready to support the reconstruction drive with build back better concept.

Cement industry uses 80 percent of local resources as one of its key raw material, limestone, is available in abundance in Nepal. The Rs 100 billion industry can compete with foreign products in terms of cost, quality and quantity if the government gives a little more importance to the industry, according to major industry players. They have also asked the government to address non-economic causes that can bring down price so that end consumers can benefit.

Cement industry, which is regarded the second best industry in the country after hydropower, is expanding rapidly, creating new jobs and opportunities.

Nepal Republic Media recently held an interaction with the cement industry players, and discussed the industry s problems, strength, and expansion plans.
UAECEMENT.COM - Jan,26 ,2016


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